Community First Bankshares of Fargo, N.D., got out of the subprime
This is one of the last steps in the banking company's yearlong effort
Community First's 1996 purchase of Mountain Parks Financial Corp. had
The deal last week, with Crescent Bank and Trust and Southpoint Credit
"We can now direct our full attention to the business of community
The $5.9 billion-asset company will retain a "modest portfolio" of
This was not what Community First had planned when it bought Mountain
But after expanding the finance unit outside its accustomed markets,
"We have always had very high credit quality," Mr. Mengedoth said.
"Some of the subprime units' higher chargeoffs began to affect our
The North Dakota company's timing was also off, he said. "The entire
This departure from subprime lending doesn't necessarily mean the
"It really depends on the geographic marketplaces they're in," he said.
"It didn't work for us because we were expanding in areas that were
Mr. Mengedoth said he would advise small banks interested in subprime
"It's a different kind of business," he said.
Community First has offices in 154 communities in Arizona, Colorado,
And it has a deal pending in California.