OREO Totals Remain High 5 Years After

by George Waldon  on Monday, Jun. 24, 2013 12:00 am  

Benton County became an Arkansas icon for bank-owned property after the real estate bubble burst in 2008.

“Other Real Estate Owned” portfolios ballooned courtesy of failed developers, and the 27 lenders on the ground with full-service branch operations in the Benton County market all felt the pain.

(See this week's cover story, Benton County OREO Stacks Up.)

Of those 27, only three held more OREO five years ago than they did during the first quarter of 2013: Regions Bank, Delta Trust & Bank and Bank of Gravett. During the first quarter of 2008, Intrust Bank of Wichita, Kan., actually registered a zero total for OREO.

The combined OREO total for the 27 lenders — encompassing property in Benton County, around the state and across the nation — is more than five times greater than the total five years ago: more than $3.9 billion versus $723 million.

That total was boosted in a big way by Bank of America. The financial giant’s total OREO nationwide mushroomed from $406 million during the first quarter of 2008 to nearly $3 billion at March 31, 2013.

Excluding BOA from the picture, the OREO total among the remaining 26 lenders is $986 million, still triple the $317 million total from five years ago.

The pace of big foreclosures and sizable real estate forfeitures in lieu of foreclosure has slowed, and new construction activity is becoming more commonplace.

The bounce-back from an overbuilt market and overvalued real estate continues in Benton County. Lenders still have their work cut out writing down, selling off and managing real estate.

Benton County Lenders*
(Dollars in thousands)

2013 Companywide OREO**2008 Companywide OREO#
Bank of America, Charlotte, N.C. $2,973,000 $406,227
Regions Bank, Birmingham, Ala. $132,936 $173,811
IberiaBank, Lafayette, La. $130,461 $2,153
BOKF, Tulsa $101,535 $5,077
BancorpSouth Bank, Tupelo, Miss. $96,314 $26,623
Arvest Bank, Fayetteville $91,251 $18,617
Metropolitan National Bank, Little Rock $70,648 $3,832
Great Southern Bank, Springfield, Mo. $64,634 $22,445
Bank of the Ozarks, Little Rock $62,149 $3,385
Chambers Bank, Danville $50,074 $821
Liberty Bank of Ark., Jonesboro $29,670 $4,996
First Security Bank, Searcy $26,332 $12,875
Signature Bank of Ark., Fayetteville $21,415 $2,145
Pinnacle Bank, Rogers $21,281 $5,732
First National Bank, Fort Smith $15,004 $5,206
First Federal Bank, Harrison $14,445 $11,234
Simmons First Bank of Northwest Arkansas, Rogers $12,082 $1,982
First Western Bank, Booneville $9,323 $3,843
Community First Bank, Harrison $8,708 $4,003
Legacy National Bank, Springdale $7,787 $1,250
Decatur State Bank##, Decatur $6,285 $529
Intrust Bank, Wichita, Kan. $4,235 $0
Delta Trust & Bank, Little Rock $3,277 $3,313
Parkway Bank, Rogers $2,921 $1,523
United Bank, Springdale $2,112 $1,229
First Bank, Hampton $1,227 $112
Bank of Gravett, Gravette $550 $867
Totals $3,959,656 $723,830

*Lenders with banking offices in Benton County **Total portfolio value of Other Real Estate Owned as of March 31, 2013 #As of March 31, 2008 ##Taken over by Chambers Bank of Danville in November 2012 through a DPC (debt previously contracted) acquisition

 

 

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