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TierOne Corp. Message Board

  • shaniatwaingetsmeup shaniatwaingetsmeup Jun 25, 2008 7:12 PM Flag

    GREAT NEWS!

    Sale of FLA non-performing loans sold with no material charge! Released a few moments ago..

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    • Someone enlighten me on what this means:

      was TONE paid money for the portfolio & is so how much?

      I guess now TONE does not have to carry cash to back up these loans?

      Any other positive points?

      Thanks for knowledgeable responses.

      • 3 Replies to lotahype44
      • TONE will issue an 8K (Report of unscheduled material events or corporate event)with specific numbers which is available on the SEC site probably by tomorrow.

        The good news is the loans are gone with no additional charges and no more write downs for these loans.

        The downside is there is no hope now that these loans sold will ever recover or gain in value marked to market. I don't actually think there was any real hope however these would ever go up. So there really was no downside.

        The sale removes some uncertainty and in banking today thats always a plus as there will be no more charge-offs for these specific loans and some additional capital is returned to the bank.

      • As is the case of everything in Tone's case, it is unclear as they mixed all Florida loans with the Transland loans. we don't know how much of a write-down was taken previously agains the non-transland loans. See the following taken from the year end 10K. They previously had written down 25.5M of the loans from Transland. We don't know how much of the loan loss reserve for the 1st quarter 08 was for the Florida loans. Also, I thought they were pursuing insurance reimbursement from Transland's insurance carrier. So if some one can come up to the actual hickey amount they took on their unwise timed foray into a super overheated Florida market, I'd like to know. Also, you still have their wonderfully timed entry into the red hot Las Vegas market that is still pending resolution. Hey be happy if they wrote them all down to almost nothing previously, they can now proudly boast that any additional loss will not be material.

        "At December 31, 2007, $168.8 million, or 5.1%, of our total loans were collateralized by properties in the state of Florida. Among our Florida loans, $31.8 million were considered nonperforming residential construction loans at December 31, 2007. Approximately $26.5 million of our total nonperforming residential construction loans in Florida were purchased from TransLand. During the three months ended December 31, 2007 we charged off $25.5 million of TransLand residential construction loans, due in large part to a permanent decline in the estimated fair value of residential lots."

        If you want to get sick, take a look in the 10K at what these wonderful execs will get after taking the company to the brink of extinction if there is a change of control of the company.
        They make out like bandits and we the shareholders get screwed royally.

        Looking at the ages and locales of the board of Directors, it's my opinion that they are just along for the ride on the gravy train.

        WORTHLESS

      • "Based upon the present carrying value of the TransLand portfolio, the Company will not experience any material additional charge as a result of this sale. The sold TransLand loans represent approximately $12.7 million of the Company’s total nonperforming loans."

        As usual, the CEO is guilty of underinforming..... however, I read it as a riddance of an already written down asset. I am guessing this means they can remove some liability and recover investable cash.

 

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