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Bad Loans Hurting Las Vegas Banks
By Stephen Roberts | November 9, 2009
There is no doubt that the past year has been a horrible one for Banks in the United States, and Las Vegas area banks are no exception to this fact. The most recent analysis of the troubled-asset ratios of Las Vegas area banks shows that five banks had trouble-asset ratios over 100 percent at the end of the second quarter. The troubled-asset ratio is a number based on financial figures such as capital, loan-loss reserves and nonperforming loans. The national median troubled-asset ratio for all banks is roughly 13 percent.
Many of Las Vegas’ largest banks with high trouble-asset ratios are attempting to merge with sister banks that are not in as much economic trouble. Having a high trouble-asset ratio does not necessarily mean that the bank has a doomed fate, but it does shown signs of struggle. Nevada has been one of the hardest hit states in this current economic crisis.
Banks with a high trouble-asset ratio can recover by turning a lot of their current foreclosed homes into sales. Many banks have repossessed up to $150 million in foreclosed homes in the past year. Many of the larger troubled banks have a good chance if they can find buyers for their bad loans and sell their foreclosed homes.
Topics: Investment, Southern Nevada Monthly Economic Update, foreclosures | No Comments »