Feds Close First NBC Banks…
First NBC Bank had officially failed. All branches have been closed, the Federal Deposit Insurance Corp. will take over certificates of deposit (CDs) and individual retirement accounts (IRAs). The FDIC will send checks, including interest, directly to those account holders. On Friday, April 28, 2017, First NBC Bank, New Orleans, LA was closed by the Louisiana Office of Financial Institutions. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.
Nations Loan Services assists First NBC Bank business borrowers
Nations Loan is working with a number of First NBC businesses that had loans with First NBC Bank. The FDIC and the Louisiana Office of Financial Institutions closed down First NBC Bank on April 28, 2017. Borrowers loans are now with the FDIC.
John Brocato, president of Nations Loan Services, a Business & Bank Consulting Company, commented, “The main goal is to move the loan that has been transferred to the FDIC to a bank as quickly as possible with favorable terms. The second goal is to establish a new solid relationship with that bank and loan officer. Its imperative that the bank understands that particular business, what makes them tick, how does that business make its money, does the business have cycles, etc.
John Brocato, president of Nations Loan Services, a Business & Bank Consulting Company, commented that it is very unfortunate that businesses are now in this position, a majority of these loans are paid as agreed and now business are in limbo, not knowing the future. Brocato says its imperative to move the loans to other banks and re-establish new banking relationship with a bank that has a solid reputation in assisting business owners. Nations Loan is assisting some businesses that had loans with First NBC Bank. We are assessing the loans, we are underwriting the loan, and hopefully moving the credit to banks. We believe in some cases the borrower may be able to receive a small discount from FDIC, since cost is involved in moving these loans. There is without a doubt, a cost involved in doing this, such as new appraisals, environmental reports, CPA prepared financial statements, surveys, title work, legal cost. The major concerns for some businesses are the ones with lines of credit, construction loans; the FDIC cannot fund these.
We are currently helping these businesses; we are mainly focused on loans from $1,000,000-25,000,000 million. Brocato commented, that he prefers working with small community banks that know your name. It’s not just about the bank, but also the Loan Officer, he must be your biggest cheerleader and support in the good times and the bad times. Nations Loan Services works with most of the community banks throughout this region and other states in the surrounding areas.