FDIC Poised to Seize Corus Bankshares, Inc.

Chicago-based lender Corus Bankshares, Inc. (CORS) , a  company primarily focused on commercial real estate lending and deposit gathering, may be seized by U.S. regulators who are preparing to auction the entire company or its assets – financial news service Bloomberg reported Thursday, citing people briefed on the matter.

From Bloomberg:

The Federal Deposit Insurance Corp. has indicated the bank may be taken over by the government within the next several weeks, said the people…

Corus’s fate has shifted into the hands of the FDIC because the lender and its financial adviser, Bank of America Corp., haven’t found a buyer willing to complete a deal in the absence of government assistance.

U.S. regulators told Corus that it was undercapitalized as of May 1…The company’s nonperforming assets more than quadrupled to $2.5 billion as of March 31, [according to a May 18 filing with the SEC]. It listed reserves of $338.6 million and reported a first-quarter loss of $285 million.

As of December 31, 2008, Corus Bank operated 11 retail banking branches in the Chicago metropolitan area. The company, with a portfolio concentrated in loans secured by condominium construction loans, many in the hard hit areas of Arizona, Nevada, south Florida and southern California, has seen a rapid increase of nonperforming assets, charge-offs, and credit loss reserves.

CORS shares have plunged more than 90% in the past year.

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