Westover Farms Bank Owner Goes Under

[ness]

http://www.fdic.gov/news/news/press/2010/pr10228.html

Well, WE may own it -- it depends on whether that asset gets folded into the new bank, or whether the FDIC holds onto it. Not sure either outcome means anything in particular though -- both the new bank and the FDIC are gonna sell it as soon as they can.

But, if the $6.5 million price tag has been out of your reach, whoever has it may be willing to talk.

[ColdWaterFshr]

'twould be cool if MDC makes a lowball offer and the bank takes it.

[ColdWaterFshr]

the new bank, the FDIC, or whoever the proverbial "we" is I mean

[ness]

Yeppers.

[Gavin]

An article in today's Post Disgrace said the assets of Premier Bank were already sold to Providence Bank in Columbia so I guess they own it now. Losses to be divided between the FDIC and the purchasing bank accourding to the story.

http://www.stltoday.com/business/local/article_4b58b6e8-d8bc-11df-ba06-00127992bc8b.html

[ness]

An article in today's Post Disgrace said the assets of Premier Bank were already sold to Providence Bank in Columbia so I guess they own it now. Losses to be divided between the FDIC and the purchasing bank accourding to the story.

http://www.stltoday.com/business/local/article_4b58b6e8-d8bc-11df-ba06-00127992bc8b.html

I think I'd go with the FDIC's announcement. Providence took $600 million-plus in assets, FDIC kept the rest. Loss-sharing would be on the part Providence owns now. That's a fairly common arrangement.

[Gavin]

Not sure what they took...but that sounds about right....I'm sure they got to cherry pick and negotiate some others...I hear that Premier looks small, but its got a whale for an owner..... Will wait to hear word from Tom & Lisa.

[joeD]

FDIC just insures deposits, not assets, so they don't really "own" anything. But the takeover doesn't change anything for Westover, they're still in trouble, just to somebody else. Too bad. I'm certainly not impressed with their new bank. I'm skeptical of regional banks with relatively no history buying other banks of the same size. Having assets is one thing, cash flow is quite another. You have to be wary of an aggressive bank owner in a down economy.

What does this have to do with fishing? Uh. Nothing. Well kind of. Westover is a beautiful place. But I don't think it's a moneymaking place.

[ness]

Joe, the FDIC does own the assets it takes in a bank failure, and they'll sell them in one of various ways. I don't know if Westover ended up with FDIC or the new bank, but I would guess the bank didn't take that property -- it's just too big and unique. And even if it did, it's going to be part of the loss-sharing arrangement, so the FDIC will bear most (usually 80%) of the risk.

Typically when the owner of a business changes, there will be changes in the business too. Who knows what they'll be? Westover wasn't a money-maker with the investment the previous owner had in it. But there's some point at which the investment is small enough that it could make money. Then there's the possibility of a deep-pocketed owner that doesn't need to make money -- like MDC.

It's got a spring-fed stream, rainbow trout and a functional hatchery. Kinda like a small, privately held Bennett. That's what it has to do with fishing.

[FishinCricket]

For those of you who know the place:

What do you think is the problem with the place? Why can't it turn a profit? Seems like it could be a world class destination, eh?