Atlantic Bank and Trust Co. announces $107,600,000 loan portfolio acquisition.BOSTON--(BUSINESS WIRE)--Oct. 8, 1996--Atlantic Bank and Trust Co. (Nasdaq:ATLB) announced today that it has acquired a portfolio of 241 commercial loans secured principally by commercial real estate located in Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). and Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. .
These loans, which have an aggregate outstanding principal balance of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $107,600,000, were purchased for $47,900,000. The purchase price has been initially allocated as follows:
Principal Purchase
Balance Price
Loans purchased for the
Bank's portfolio $58,500,000 $38,100,000
Loans purchased for resale
or other disposition 49,100,000 9,800,000
$107,600,000 $47,900,000
With respect to the loans purchased for the bank's portfolio, Atlantic Bank expects to record a discount of approximately $20,400,000 which shall be allocated between non-amortizing discount (reserve) and amortizing discount. The amortizing discount will be recognized in interest income over the estimated remaining life of the loans. Loans purchased for resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. or other disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of will be carried at the lower of cost or fair value. "This transaction represents the bank's largest loan pool acquisition to date," said Nicholas Nicholas, Russian grand duke Nicholas (Nikolai Nikolayevich) (nyĭkəlī` nyĭkəlī`əvĭch), 1856–1929, Russian grand duke and army officer; first cousin of Czar Alexander III and grandson of Czar W. Lazares, chairman. "These loans were acquired from a private sector seller in a negotiated transaction and represent a portion of the portfolios of several New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. based banks that have either failed or merged into other institutions. We believe that this transaction demonstrates the expanding acquisition opportunities in the private sector. As a significant player in the multi-billion dollar discounted loan trade, Atlantic Bank will continue to develop its strategic relationships with private sector loan sellers and buyers." President Richard Wayne Dr. Richard Wayne (April 4, 1804 – June 27, 1858) served as mayor of Savannah, Georgia for four terms: 1844 - 1845, 1848 - 1851, 1852 - 1853 and 1857 - 1858. He died while in office.[1] Wayne was the first mayor of Savannah elected by its citizens. commented that, "The acquisition fits well into Atlantic Bank's business plan of building its loan portfolio on a wholesale basis through the purchase of discounted loans. This transaction also provides Atlantic Bank with loan inventory for resale to others, which significantly expands our loan purchasing opportunities and also broadens our range of transactions to include loan sales. The newly acquired customer base, coupled with loan inventory for resale, serves as a valuable addition to Atlantic Bank's franchise." Atlantic Bank and Trust Co., a Boston-based commercial bank formed in 1987, complete its initial public offering in April of this year. It continues to focus its business activities on the acquisition of discounted loan pools, premium-priced specialty commercial lending and SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government guaranteed small business lending. CONTACT: Atlantic Bank and Trust Co. Nicholas W. Lazares or Richard Wayne, 617/330-8585 |
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