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Oceancrest was appointed to perform due diligence on a bank's potfolio of loans with a balance of $200MM and over $550MM in deposits. The purpose of the assignment was to provide a thorough understanding of the bank's overall loan portfolio by collecting and interpreting loan documents, loan data, borrower data and third party reports, as well as insite from the loan officer.
Oceacrest had to re-underwrite the borrower and the underlying collateral securing these loans to account for the deteriorating loan performance and current distressed market conditions. Ultimately, the information was compiled and used to determine a risk-adjusted valuation of each loan for the purpose of a potential disposition of these assets. There were a number of variables determining the potential return at disposition, based on best and worse-case scenarios.
This assignment was compiled in a three day period, and with the precarious financial position of the bank, tight timeframes were imposed. Throughout the process, confidentiality was held in the highest regard, and the due diligence process with the upmost respect for the client and the sensitive information.
As a result, the compilation of the critical loan data and thorough examination allowed the team to qualify and quantify each loan's perfomance and current status. In addition, the banks was able to determine the likelihood of continued performance and ultimate repayment.
Our understanding of the unique characteristics of non-performing and sub-performing loans allowed us to recognize those complexities and appropriately analyze.