President says bank wrote off bad loans to speed recovery…Jammaron said despite the $48 million loss, Alpine Bank remains healthy and committed to the 37 cities and towns it serves in western Colorado. The bank has $1.58 billion in loans. It has $109.52 million in non-performing loans, generally considered 90 or more days past due. The percentage of bad loans to total loans is 6.91 percent. That is up from 6.04 percent at the end of 2009. Alpine Bank’s percentage of non-performing loans was virtually non-existent during the booms years of 2005-08.
GLENWOOD SPRINGS, CO — Alpine Banks of Colorado lost $48.18 million in 2010 as it continued to shed bad loans and other assets that went sour during the recession, President and Vice Chairman Glen Jammaron said Friday. Alpine Bank, like many banks in the country, saw its non-performing loans soar in 2009 and last year as the wrath of the recession was felt. Some loans made for real estate acquisition and development couldn’t be paid off by borrowers. Loans were often secured by property, which ended up back in the hands of the bank through foreclosures and other steps.Jammaron said the bank isn’t in the real estate business, so it tries to clear the troubled assets off its books as quickly as possible. Alpine has sold some property at a loss and held auctions for other properties.The bank’s strategy was to respond to the problem as quickly as possible rather than spread the financial pain out over several years. So in 2010, the bank wrote off nearly $90 million in loans, he said.“We wanted to put the bad year behind us in one year,” Jammaron said. “We want to make sure we make money in 2011.”
By Scott Condon, Jan. 24, 2011 Aspen Times
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