Sun American Bancorp seeks loan waiver after default - Birmingham Business Journal:

retention-jackjacks.blogspot.com
million loan. On June 15, the notified Sun Americahn (NASDAQ: SAMB) that it was in defaul t on a loanfrom Atlanta-based Silverton Bank, which was closed in May and placed into receivership. The defaulrt gives the FDIC the right to demand immediate repayment and chargew an 18 percent defaulyinterest rate. Sun American Chairman, President and CEO Michaelo E. Golden said he believes the FDIC is likely to work with the bank and give it more time to repaythe loan, which was set to mature on Jan. 16, 2010. The FDIC shouldc be lenient with the banks that had loanes with Silverton because the FDIC ultimately is responsible forthos institutions, Golden said.
An FDIC spokesperson didn’gt immediately return a call seeking comment. While Sun American is current on interesy payments underthe loan, it violated one of the loan provisionds because its ratio of non-performing asset s exceeded 10 percent of its total assets. The bank had 11.26 percengt of its assets as non-performing either noncurrent loans or repossesserproperty – as of Apri l 30, according to a SEC That’s up from an 8.24 percent non-performing asset ratiio as of March 31, accordint to FDIC data. The company’s sole , was the third-largest Palm Beach County-baseed bank with $601 million in assets.
Golden said his first priorit is to raise money for Sun American to repayt the FDIC loan and recapitalize the bank. He has been workintg with an investment bank and talking to contacts on Wall including privateequity firms. “They are all lookingf and they want to find a bank that has a real Golden said. “We have a real bank here with 13 good branchesd in good areas and a real operations center with 16,000 square feet. The question is, ‘How much are the bad That’s very hard to Golden said the slumping commercial real estate market in Florida has made it difficult to forecastthe future, but he doubtsz things will improve this year.
However, the long-term outlook for Florida is good for he added. Shares of Sun Americah were unchanged at 44 cent searly Monday. The 52-week high was $3.0 on July 2, 2008. The 52-weeki low was 12 cents on Marcy 3.