FDIC Taps First Financial for $174MM Asset Sale

FDIC is offering four portfolios containing 520 mixed-quality loans and loan participations with a balance of $174 million against a variety of collateral, including commercial real estate, from the failed Bank of Union of El Reno, Okla.

Commercial Real Estate Direct

Written by Dan Moynihan

FDIC is offering four portfolios containing 520 mixed-quality loans and loan participations with a balance of $174 million against a variety of collateral, including commercial real estate, from the failed Bank of Union of El Reno, Okla.

The agency has tapped First Financial Network Inc. of Oklahoma City to handle the sale of the four portfolios.

Investors can conduct due diligence from now until May 6, when they’ll submit their bids. First Financial and the FDIC expect to complete sales by May 22.

Bank of Union, the second bank to fail this year, was shuttered in January. Its $328.8 million of deposits were assumed by BancFirst of Oklahoma City, which also bought $225.5 million of its assets, leaving $174 million of assets for FDIC to liquidate.

Most of the collateral in the four portfolios being offered is in Oklahoma. It includes land, houses, agricultural assets, business assets, automobiles and commercial real estate. One portfolio is comprised solely of agricultural assets and can only be bid on by certified agricultural lenders. One other pool contains loan participations and only FDIC-insured institutions can compete for that. The other two can be pursued by all investors.

For additional details on the offerings, contact First Financial at (405) 748-4100.