Any validity to this posters thought process?
SSBX Prognosis is Very Poor 17-May-08 08:14 am
$1.4B of Real Estate (commercial and residential, raw land) Loans at cost. $120mm of Tangible Book Value - a 10% hit on the value of these loans wipes out the Equity.
Anyone have a clue where real estate is trading in the LV markets? Anyone see the ex-SSBX executive's blog on LV real estate? THERE ARE NO BUYERS ANYWHERE NEAR COST. How can SSBX' loan book be impaired even just 10%?
4 depositors make up over 45% of deposits...SCARY.
SSBX announced in the 10-Q, two interesting facts - go read it. 1) Impaired loans are up $100mm from the Quarterly conference call two weeks ago alone; 2) they hired an investment banker - my guess, DUH - to raise money, somewhere somehow at some price.
There have been quite a few recent capital raises, none by banks this small or this trouble. So what are the chances it gets done? If they dont, hello FDIC. If they do, what possible price - $1.00? $1.50? at that price, how much time does that buy SSBX?
