bank might have some serious issues to be sold below book value. perhaps jersey real estate might have considerable downside left to go. just my take given there is plenty of properties for sale around the entire state with high valuations with large loan balances.
David Benoits Wall Street Journal's July 24,2012 blog says "bank deals are coming at higher valuations than any year since 2008, SNL said. The average price to the sellers tangible book value has been 120.8%, compared to 104.9% last year and 116.2% in 2010. The figures remain far below 2008 prices, when banks were sold at nearly 170% of tangible book value." Why did this bank deal sell for less?
The serious issue is that the clown in charge of the bank did not manage interest rate risk very well. It has nothing to do with the quality of their loan portfolio as the resident idiot on this board incessantly implied.
The huge problem were the loans HCBK took from Federal Home Loan Bank a few years back. Those loans carry a higher interest rate than what the bank can get from their own mortgages/other investments . A terrible mistake by greedy Hernance that has now come to roost. He walks away with millions I'm sure while shareholders get shafted and NJ loses one of its oldest financial institutions. Just another son of a beech executive who destroys a fine company and walsk away scot free.