Full Recovery Forecast On $31M Bad Loan
Stung this year by a bad loan to a Las Vegas hotel and casino, GBC Bancorp in Los Angeles said late Tuesday that it will recover the full $30.9 million plus interest.GBC, the $1.5 billion-asset parent of General Bank, said Sunrise Suites Inc. is obliged to pay the sum under a settlement reached in Chapter 11 bankruptcy proceedings. GBC said the land intended for the casino and hotel is to be auctioned Jan. 26. A nearby 18-acre parcel is also to be sold if needed to generate funds for repayment to the bank.
- Matt Andrejczak
Bank of Kentucky In $28M Deal for Rival
Bank of Kentucky Corp. said this week that it plans to buy a nearby competitor, Fort Thomas Financial Corp., for $27.5 million of stock.Bank of Kentucky, with $303 million of assets, and $100 million-asset Fort Thomas operate in adjacent northern Kentucky counties just across the Ohio River from Cincinnati. The headquarters of Bank of Kentucky are in Florence, and it has 11 branches in Boone, Kenton, and Grant counties. Fort Thomas, named for its hometown, has two branches in Campbell County.
The deal is expected to close by April. The purchase price is about two times Fort Thomas' book value and 27 times its annual earnings. Bank of Kentucky said it expects the purchase to improve its earnings per share immediately.
- Craig Woker