Operational Losses At First Federal Draw Heightened Regulatory Scrutiny

by George Waldon  on Monday, Dec. 14, 2009 12:00 am  

"We're back to basics and conservative bank lending. Regulators are emphasizing this with lenders throughout the nation. Northwest Arkansas is still one of the best locations. It's one of the regions that will lead the economic rebound.

"I believe that, and a lot of people do too."

Real Estate Owned & Troubled Land Loans

The real estate owned portfolio at First Federal Bancshares of Arkansas is dominated by property in Benton and Washington counties and represents more than $27.9 million in bad loans as of Sept. 30.

Land and land developments recovered by the lender account for $11.8 million of that total, the biggest piece of the real estate owned portfolio.

With $25.3 million in nonaccrual loans secured by land, First Federal expects that tally to increase in the coming quarters. More than $20 million in loan loss allowances already are assigned to land and land development loans.

 

Nonaccrual Loans Secured by Land

 

52 single-family lots and 25 acres of undeveloped land, Fayetteville

Loan Balance: $4.59 million

 

 

 

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