Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Nancy Bush.
Nancy Bush
If I missed it I am sorry but did you address the Island at all and the size of the exposure, etc.? It has been in much of the news lately I think down in Atlanta.
Fred Green
What we will say about Sea Island is they are our largest customer. I won’t get into the net amount of our loan there but what I will say is that the loan is a performing loan. We have very, very frequent interaction with the company and the principles because of the size of the loan and that being our largest customer. As I said it is a performing loan.
Nancy Bush
Has that loan been re-structured? Is that part of this remaining performing? My understanding is that Sea Island development is in not great shape.
Fred Green
The are in, as you know, the resort business which is suffering throughout the country. That loan has not been restructured. We are talking to them about opportunities to do that but at this point it has not been restructured and is current as well.
Richard Anthony
The reference Fred is making would have to do with a longer term and the company is performing within the maturities that have been established and with all the covenants and payment requirements but if possible we would like to work out a longer term maturity and those conversations are going on. There are other bank partners with us and the activity levels have been pretty good down there. I was down there last weekend and was impressed with what I saw.
Nancy Bush
I asked Kelly King today on the BB&T call about doing auctions in Atlanta and I know that had been your plan before. If I recall it was about $125 million a quarter. If you can just update us on that. Kelly said the conditions for auctions there were pretty tough and they had done some small things there and the discounts were just prohibitive. If you could just speak to that.
Mark Holladay
In the third quarter we had mentioned to you that we took a charge down to do an auction in the fourth quarter. We did carry out that auction. It did come in where we anticipated it to come. We got some really good partners that we do business with. The end users that we are seeing are actually end users buying these properties. The mortgage rates are dropping. The availability of financing and affordability is going up. Right now we are not seeing that. We had a successful fourth quarter auction so we still feel pretty comfortable with where we are.
- To read the full transcript on Seeking Alpha, click here »
