Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 28 August 2017

FDIC Puts on Sales Market $1.1Bln of Assets from Failed New Orleans Bank

Written by 
Rate this item
(0 votes)

Commercial Real Estate Direct Staff Report

The FDIC has put a portfolio of $1.1 billion of assets from the failed First NBC Bank of New Orleans on the sales block, marking one of the largest whole-loan offering by the agency in years.

DebtX has been tapped to market and sell the portfolio, which is comprised of a broad mix of business, residential and commercial real estate loans. The Boston loan-sales adviser has divided the portfolio into two components. It will take offers on Sept. 12 for a portfolio of $117 million of energy-related assets in Louisiana, and on Sept. 26, it will take offers for each of 17 remaining pools totaling $1.04 billion.

Among those is a $1.4 million nonperforming loan against a Louisiana apartment property; a performing $951,882 loan against a Florida retail center; a performing $801,715 loan against a retail center in Louisiana; performing $728,166 loan against a Florida office property, and four loans totaling $5.9 million against commercial properties in Louisiana.

First NBC Bank was launched in 2006 by Ashton J. Ryan Jr., who previously had run First National Bank of Commerce, also of New Orleans. That bank, prominent in the city during its time, ultimately was acquired by what then was Bank One.

First NBC was launched to much fanfare, in part because it had set a Louisiana record for capital raised by a start-up. Among its early investors were Peyton and Eli Manning, the star professional football quarterbacks and New Orleans natives. In 2013, the bank went public, having grown rapidly, largely through acquisitions.

Given its location, it compiled a large exposure to the now-struggling oil and gas industry. It also had developed a tax-credit investment business, where it would invest in federal and state low-income housing tax credits that were used as equity for certain projects. It also would provide construction financing for them. The tax credits it invested in typically didn't generate immediate profit, and eventually led to the bank substantially writing down their value. At the same time, the bank's nonperforming loan portfolio grew.

So last April, FDIC took over the institution as receiver. It sold the bank's deposits to Whitney Bank, also of New Orleans, which also bought about $1 billion of First NBC's assets, leaving the FDIC with the remainder to liquidate. The bank became the fourth to fail this year. Another two have failed since.

First NBC was the largest bank to fail since Doral Bank of San Juan, Puerto Rico, which had $5.9 billion of assets and failed in early 2015.

DebtX expects it will complete the sale of the $117 million portfolio by Sept. 29. Closing for the remaining 17 pools is set for Oct. 18. The company has handled 77 transactions involving a total of more than $5.4 billion of assets for the FDIC since 2007.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Subject: Loan Offerings (LOAN)
  • Private: No
Read 532 times

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
warehouse-backstage