Friday, February 4, 2011

FDIC Structured Sales: Timing (and Leverage) Is Everything



Since 2008 the FDIC has sold an estimated $22.02 billion in failed bank loans in 19 structured sales transactions.
 
Loan type seems to be much less a factor on the price paid for the failed bank loans


Loan Type
Book Value (Millions)
Price/Book Value
% of Total Sales Activity
Subtotal
Acquisition Development or Construction Loans (SFR,CRE etc.)
$15,559
40%
71%
Subtotal
Commercial Real Estate Loans
$2,877
54%
13%
Subtotal
Single Family Residential Loans
$3,584
48%
16%
Total/Avg

$22,020
44%


than the timing and leverage of the transactions.  Early deals closed in early 2009 were done in the midst of the crisis and were not yet financed by the FDIC.

Date Sold
Loan Type
Book Value (Millions)
Leverage
Price/Book Value
5/6/2008
Single Family Construction and Lot Loans
$146
N/A
32.80%
12/29/2008
Single Family Residential
$561
N/A
38.60%
1/12/2009
Acquisition Development and Construction ("ADC") Loans
$1,120
N/A
9.00%
2/5/2009
Residential Construction
$733
N/A
22.00%
2/20/2009
Commercial Construction
$702
N/A
29.20%
3/19/2009
Consumer Construction, Homebuilder Construction, Lot Loans
$1,652
N/A
16.40%
Total/Avg: First Deals (All Cash)

$4,914

20.40%
9/30/2009
Single Family Residential
$1,320
6 to 1
64.80%
10/16/2009
Commercial Construction
$4,451
1 to 1
62.50%
1/7/2010
Commercial Real Estate
$1,028
1 to 1
44.70%
2/9/2010
Residential ADC
$2,253
1 to 1
38.60%
2/9/2010
Commercial ADC
$799
1 to 1
45.70%
4/1/2010
Single Family Residential
$491
2 to 1
42%
5/18/2010
Commercial RE, Construction and ADC
$421
1 to 1
82.30%
6/25/2010
Single Family Residential
$314
1 to 1
35.40%
7/2/2010
Commercial Real Estate
$1,849
1 to 1
59.90%
7/9/2010
Single Family Residential
$898
1 to 1
37.40%
7/21/2010
Commercial ADC
$1,703
1 to 1
40.80%
8/26/2010
Residential/ Commercial ADC
$762
1 to 1
34.70%
Announced, Not Closed
Residential/ Commercial ADC
$817
 1 to 1
23.60%
Total/Avg: Financed Deals

$17,106

50.22%