Coast Financial Holdings, Inc. - "Diversified" Bank
2007-01-20
stories: bradenton.com, bizjournals.com
This is an angle I hadn't initially thought of tracking on this page—lenders becoming distressed because of developers (rather than residential borrowers) becoming insolvent. But it's every bit as relevant to the overall solvency picture. Here are some clips from the first story above:
A developer unable to complete construction on hundreds of homes has put $110 million worth of mortgage loans in jeopardy for Bradenton-based Coast Bank.
The management of Coast Financial Holdings Inc., parent company of Bradenton-based Coast Bank, announced Friday that it was anticipating problems with loans to 482 borrowers after a local development company said it may not have sufficient funds to complete construction on the homes.
Here's a link to their SEC filing announcing the material impairments.
Important: This company is on our list of lending operations that are apparently ailing or which we think are worth watching for any other reason. We make no representation or claim that any company on this list will or will not continue as a going concern, or change in any other way, adverse or beneficial. If you have concerns about this company, we suggest contacting them directly and/or checking with other reliable sources.