FDIC to auction assets of three failed banks

By Chris Carey, Bailout Sleuth

The Federal Deposit Insurance Corp. has announced
three more auctions of loans held by failed banks, and has named the winner of
a $421 million pool of assets from a previous sale last month.

Two of the offerings arise from the failure of
Centennial Bank of Ogden, Utah, which was closed by the Utah Department of
Financial Institutions on March 5. Although the FDIC arranged for Zions First
National Bank of Salt Lake City to accept Centennial’s direct deposits from the
federal government, it was unable to find a buyer for the insolvent bank’s
branches, assets or other deposits.

The first sale features a $12 million portfolio of
performing and non-performing loans from Centennial. The 11 loan participations
average around $1.12 million each. 
Nine of the loans, totaling about $7.2 million, are performing.  The loans are secured by commercial and
residential real estate and other assets.

The portfolio is being marketed by the advisory
firm of Mission Capital Advisors LLC. The bid day for the assets was last Tuesday, and the closing date for the sale is May 26.

Mission Capital also is marketing the second
Centennial-related offering, a $9.6 million portfolio of performing and
non-performing loans and leases. 
The offering represents a diverse pool of 73 assets, including 48
commercial and industrial or consumer loans, 6 Small Business Administration loans, and 19 unidentified
leases. Seventy-eight percent of these assets are performing.  The portfolio has a bid date of May 18
and a closing date of June 3.

The third FDIC offering, marketed by Eastdil
Secured, includes $11.3 million of performing and non-performing
commercial and industrial, SBA and consumer loans. The vast majority of the
assets came from Waterfield Bank of Germantown, Maryland which was closed by
the Office of Thrift Supervision on March 5.

The bank had only one branch, but conducted
extensive business over the internet and via 38 affinity institutions.  The Waterfield-related assets total
more than $10.7 million and will be bid in three pools. One consists of roughly
$3.55 million in commercial and industrial and SBA loans (14 assets). Another
consists of $3.81 million in commercial and industrial loans, and the third
consists of some $3.35 million in consumer loans (179 assets).  The sale announcement did not include
information on ratio of performing to non-performing loans.  The pools have a bid date of May 18 and
a closing date of June 11, 2010.

The auction also includes five consumer and
commercial and industrial loans from Carson River Community Bank, of Carson City, Nev., which was closed on Feb. 26. That pool totals about $611,133. Again, the sale announcement offered no
information regarding the ratio of performing to non-performing loans.

In related news, the FDIC has announced that Square
Mile Capital Management LLC was the winning bidder for a pool of assets from the failed Silverton Bank of Atlanta. The assets consisted mainly of performing hospitality loans and leases, and were auctioned on
April 23.  The expected closing is mid-May 2010.

Square Mile is getting a 40 percent ownership
interest in a public-private partnership that
will hold the Silverton assets. It also will have management control over the partnership.

The FDIC will retain a 60 percent stake. The FDIC did not disclose the price that Square
Mile agreed to pay for its interest.

The FDIC press release on the deal represents one
of the few times that the agency has posted any follow-up information on its
loan sales.  Usually the sales
announcements appear on the FDIC’s loan sales announcements page and are
quickly removed after the sale dates without further comment.

BailoutSleuth will continue to track these auctions
and sales as part of our coverage of upheaval in the financial industry.         

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