Local banks say they remain healthy, need time to work bad loans out of system…Alpine Bank is in the process of writing off the losses and clearing the troubled assets off its books. Many of its loans were secured by real estate. When a borrower defaults on a loan, the property or its fate ends up in the hands of the bank. Even though bankers know the property will increase in value from low levels hit during the recession, they don’t want to hold onto troubled assets. Bank regulators also frown on them sitting on troubled assets.
ASPEN GLENWOOD SPRINGS REAL ESTATE — Alpine Banks of Colorado aimed to trim as much as $60 million in troubled assets from its books this month through sales of commercial mortgage loans that are no longer being repaid, according to President and Vice Chairman Glen Jammaron.Alpine Bank had $138.74 million in troubled assets on Dec. 31, 2009, according to the website Bank Tracker. Those are the latest statistics available. Troubled assets include loans 90 days or more past due, other non-accruing loans and real estate owned, usually through foreclosure or a deed in lieu of foreclosure…Alpine’s troubled assets more than tripled in recession-racked 2009, from $41.71 million at the end of 2008, Bank Tracker reported, citing data from the Federal Deposit Insurance Corp. Jammaron confirmed the accuracy of the statistics.
By Scott Condon, March 29, 2010 Aspen Times