December 10, 2009
San Francisco magazine is out with a detailed update on the Lembi apartment fiasco in SF, replete with attachments and all.
Tamalpais Bank made most of the Lembi loans between December 2007 and April 2008. In spring 2008, the bank’s parent company announced record earnings and assets, propelled in part by expansion of its commercial real-estate portfolio. “We had strong organic loan demand in the quarter while maintaining near pristine asset quality,” said CEO Mark Garwood in an April press release. The bank’s directors eventually awarded him a $156,000 bonus for his performance that year.
But by this past September, the Lembis had defaulted on all except one of their loans, leaving Tamalpais Bank with a $38 million hole in its portfolio. The size of the loans was equivalent to more than 75 percent of the bank’s total capital.
What a difference 18 months can make. The use of the word “pristine” at the height of the market is just grand.
[via San Francisco Magazine]
- San Francisco’s Largest Apartment Owner Loses 51 Buildings To Lender
- Tamalpais Bank in Hot Water
- San Francisco Magazine Covers The Lembi Fallout
- Banks Quick to Adopt New FDIC Guidelines
- Commercial Real Estate Lending Remains Tight