Wednesday, September 29, 2010
FDIC accuses First Bank and Trust of unsound practices. By Walter Pierce
Data compiled by the Federal Deposit Insurance Corporation shows that New Orleans-based First Bank and Trust sustained heavy losses in the first half of 2010, particularly in the second quarter, by over-extending itself primarily in the real estate market. As a result, FBT was one of 75 financial institutions nationwide to face FDIC regulatory action — in FBT’s case, the bank was issued a cease and desist order. The CDO is of interest to depositors locally because FBT has branch locations on Camellia Boulevard and Johnston Street in Lafayette.
The FDIC summary of First Bank’s portfolio shows the bank had just more than $655 million in loans during the first half of 2010, and the vast majority of those loans were in real estate; of the $655 million, only $119 million are in commercial loans.
While FBT’s loan loss provisions were $10.7 million in the Jan. 1-June 30 period this year — that is, capital reserves set aside to cover potential losses on loans — FBT lost $10.8 million in the same period.
FBT accepted more than $45 million in federal TARP funds. FBT was ordered by the FDIC to submit a capital plan within 90 days and to execute the plan within 30 days of approval by regulators.
According to the consent order between the FDIC and FBT, the bank is not “admitting or denying any charges of unsafe or unsound banking practices or violations of law or regulation.”
FBT President and CEO Gary Blossman did not return a phone call seeking comment for this story.
Comments
(0)
Subscribe to this comment's feedYou must be logged in to post a comment. Log in using your Facebook account or register if you do not have an account yet.
ABIZ Stock Watch
Aggreko
Company ID [LON:AGK] Last trade:GBX1,859.73 Trade time:4:43PM GMT+1 Value change:▲3.73 (0.20%)IberiaBank Corp
Company ID [NASDAQ:IBKC] Last trade:49.99 Trade time:4:00PM EDT Value change:▼1.23 (-2.40%)LHC Group
Company ID [NASDAQ:LHCG] Last trade:22.31 Trade time:4:00PM EDT Value change:▲0.13 (0.59%)MidSouth Bancorp
Company ID [AMEX:MSL] Last trade:14.85 Trade time:4:01PM EDT Value change:▼0.17 (-1.13%)PetroQuest Energy
Company ID [NYSE:PQ] Last trade:4.75 Trade time:4:03PM EDT Value change:▼0.20 (-4.04%)PHI Inc
Company ID [NASDAQ:PHII] Last trade:34.14 Trade time:3:39PM EDT Value change:0.00 (0.00%)Superior Energy
Company ID [NYSE:SPN] Last trade:28.77 Trade time:4:03PM EDT Value change:▲0.01 (0.03%)Stone Energy
Company ID [NYSE:SGY] Last trade:22.74 Trade time:4:01PM EDT Value change:▼1.16 (-4.85%)Teche Holding Corp
Company ID [AMEX:TSH] Last trade:41.80 Trade time:4:05PM EDT Value change:▼0.20 (-0.48%)Advertisement
Most Read
-
David Calhoun, ‘EB’ Brooks join Lafayette Central Park
David Calhoun and Elizabeth “EB” Brooks are the first two employees of Lafayette Central Park Inc., the nonprofit charged with turning Lafayette Consolidated Government’s 100-acre Johnston Street Horse Farm property into a passive public park. Calhoun was named executive director, and Brooks is director of planning and design. -
Remembering Ricky Rees
The veteran police officer remembered by friends for his large and small acts of kindness will be laid to rest Wednesday. -
Update: PXP creating 600 jobs averaging 100k
At Thursday's State of the Economy luncheon, LEDA President and CEO Gregg Gothreaux said PXP has already quietly hired 180 people for its Broussard expansion. -
Zachary Barker takes helm of the Opportunity Machine
Zachary Barker continues making waves in Lafayette’s business scene, mostly recently being named director of the Opportunity Machine. -
Shakin' at the Shack
There will soon be a whole lot of shakin’ going on at Benny’s Sportshack Supplement Depot, a new concept by Opelousas native Benny Nele. Located at 2002 Johnston St., the supplement shop, smoothie bar and café, featuring hot off the press paninis and wraps, plans to open in late May.
Advertisement
Advertisement
in case you missed it
-
COOL TOWN 2013
This year’s Cool Town issue is all about people who are not native to South Louisiana but made a conscious decision to be here, to be among us, to participate in our culture and contribute to it. -
A curious compact
A shelved ordinance transferring $200,000 from a northside drainage project to a south Lafayette development may not break any laws, but it stinks to high heaven. -
Pooyie 2012
It's good, it's bad and it's just plain crazy. -
Saving Saturday Night
An effort to restore a shuttered dancehall and document other vacant or razed honky-tonks could serve as a model for saving an endangered species of entertainment. -
Posthaste vs. HART FORTENBERY
Lafayette’s gene pool has been host to a long line of eccentric characters who have blurred the lines between crazy, genius, disturbed and curiously entertaining.