The Federal Deposit Insurance Corp. has announced two new auctions of assets from a pair of failed banks.
Bids are due Dec. 17 for roughly $8 million of performing and non-performing loan participations once held by Warren Bank of Warren, Mich. The Michigan Office of Financial and Insurance Regulation closed the bank in October and appointed the FDIC as receiver.
Although the FDIC arranged for another bank to absorb Warren's branches and deposits, it was left holding $455 million in assets.
The auction, marketed by Garnet Capital Advisors LLC, consists of three loan participations previously held by Warren. Each of the three will be bid individually. Garnet Capital's offering sheet describes them only as commercial loans, with one in Colorado (totaling $2.5 million) and two in Michigan (totaling $5.5 million).
The sale is restricted to federally-insured institutions in 11 specified states. It is not possible to discern from either the FDIC's loan-sales announcement page or Garnet Capital's public web presence the ratio of performing to non-performing loans. The strictures of registration and participation make it unlikely that anyone except screened and vetted parties of interest will ascertain such data prior to the sale.
Bids are due Jan.12 for the second auction, which again features assets from Warren, along with a smaller single pool from the recently closed Dwelling House Savings & Loan of Pittsburgh. Garnet Capital also is marketing these assets and will conduct the auction.
The $16.2 million of performing and non-performing assets include more than $14.5 million of Warren's commercial and industrial business loans. Ninety percent of these assets, to be auctioned in four separate pools, are performing.
A much smaller slice of Warren's consumer loans ($938,494) is being offered in a single pool, only half of which is classified as performing. Another pool of $749,103 in church loans from Dwelling House, with 87 percent rated as performing, also will be auctioned.
BailoutSleuth has begun tracking these deals as part of our continuing coverage of the upheaval in the financial industry.
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