All articles tagged with #loan portfolio
Western Alliance CEO Kenneth Vecchione described the alleged loan fraud involving the Cantor Group as an isolated incident, reassuring investors that the bank has taken steps to review and verify its collateral, which has helped stabilize its stock after last week's selloff. Despite this, concerns remain about the bank's exposure to non-bank financial institutions and the overall stability of regional banks following recent issues.
The Federal Deposit Insurance Corp. (FDIC) is seeking buyers for an $18.5 billion loan portfolio from Signature Bank, consisting of subscription credit facilities to private equity funds tied to major firms such as Starwood Capital Group, Carlyle Group Inc., Blackstone Inc., Thoma Bravo, and Brookfield Asset Management Ltd. The sale is part of the FDIC's offloading of about $60 billion of Signature Bank loans, with Newmark Group Inc. handling the sale. The deadline for bids is in September, with closing set for early October.
PacWest Bancorp has sold the first tranche of a $5.7 billion loan portfolio to Kennedy Wilson Holdings and its affiliate Fairfax Financial Holdings. The sale is part of PacWest's efforts to shore up liquidity after runs on deposits hit several regional lenders earlier this year. The first tranche of loans acquired by Kennedy Wilson and Fairfax totaled $3.25 billion in commitments and $1.8 billion in principal balances. PacWest's shares have slumped 60% this year amid the turmoil.
PacWest Bancorp has agreed to sell a $2.6 billion portfolio of real estate construction loans to Kennedy-Wilson Holdings Inc. at a discounted price of about $2.4 billion, as part of its efforts to shore up liquidity. The portfolio of loans PacWest is selling accounts for more than half of its real estate construction and land loans. PacWest will sell six more loans to Kennedy-Wilson for about $363 million if it wins certain approvals.
SoFi Technologies' stock continues to decline after Q1 earnings report, prompting a rating downgrade from Wedbush to Neutral from Outperform. Despite a sizable Q1 beat, FY guidance was raised "only modestly," and declining tech platform fees in Q1 are expected to remain flattish for the year. Analysts fear that when SoFi starts selling loans again, there could be a material negative impact on the fair value of the loan portfolio.
First Republic Bank's recent decline has made the stock attractive, but there is too much opacity and uncertainty surrounding the company's liquidity and loan portfolio to make it a reasonable risk-to-reward prospect. Management has provided updates on liquidity and deposits, but has not revealed the overall state of the bank. The company's loan portfolio, which includes a significant amount of exposure to the San Francisco Bay Area, creates additional risk for investors. Until management can provide a more comprehensive picture, the company is not one that prudent investors should touch at this time.
Apollo Global Management is reportedly working with Emerson Collective and Credit Suisse to buy Silicon Valley Bank's loan portfolio, which was previously rejected by the FDIC. Apollo has also reached out to venture capital firms to offer liquidity options and potentially co-invest in the deal. The FDIC's preference is to find a single buyer for all SVB-related assets, but this may be difficult without liability protections. The potential deal is still fluid and could proceed without VC firm involvement.