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Official reports Stockmans Bank on solid ground
Officials of Stockmans Bank report they are not fazed by the current financial meltdown that has affected some prominent national financial institutions. Stockmans in Elk Grove is part of the PremierWest Bank, headquartered in Medford, Oregon.
According to John Anhorn, Premier West chief executive: “We went through the `70s and `80s. We learned when the market gets too hot it’s time to start backing off. When prices jump too fast on anything it’s time to take a contrarian view.”
Anhorn commented that his position was confirmed when billions of dollars worth of real estate-backed loans stacked up on the books of Bear Stearns, Lehman Brothers and other brokerages began precipitously losing value.
Anhorn stated PremierWest recently announced a six-cent per share dividend at the height of the crisis faced by other companies. And he said PremierWest and Stockmans Bank held no preferred stock issued by Fannie Mae or Freddie Mac and will suffer no impairment related to the recent loss of value in those securities.
Anhorn added they can add up Stockmans’ robust health to caution that comes with experience.
“Banks took losses with Fannie and Freddie in the sixties, seventies and eighties,” said Anhorn. “The trouble is you get a lot of new players in the markets who go ‘Oh wow, look how much money we can make.’ They haven’t had the experience. Nothing changes but the title of the documents when they are backed up with those things. I don’t like securities secured with real estate.”
Premier West President Jim Ford stated, “Everyone was then talking about how great the market was. Financial institutions, thrifts and banks were making these high-loan-to value loans, financing 100 percent and even 110 percent of the value. There was even pressure by some of our officers to follow the big banks, but we stuck to our guns.”
He added his company didn’t completely escape the problem. “No one escaped the residential construction collapse.”
“But we’re going to continue lending in markets where you know your customers and understand those markets,” Anhorn stated.
According to John Anhorn, Premier West chief executive: “We went through the `70s and `80s. We learned when the market gets too hot it’s time to start backing off. When prices jump too fast on anything it’s time to take a contrarian view.”
Anhorn commented that his position was confirmed when billions of dollars worth of real estate-backed loans stacked up on the books of Bear Stearns, Lehman Brothers and other brokerages began precipitously losing value.
Anhorn stated PremierWest recently announced a six-cent per share dividend at the height of the crisis faced by other companies. And he said PremierWest and Stockmans Bank held no preferred stock issued by Fannie Mae or Freddie Mac and will suffer no impairment related to the recent loss of value in those securities.
Anhorn added they can add up Stockmans’ robust health to caution that comes with experience.
“Banks took losses with Fannie and Freddie in the sixties, seventies and eighties,” said Anhorn. “The trouble is you get a lot of new players in the markets who go ‘Oh wow, look how much money we can make.’ They haven’t had the experience. Nothing changes but the title of the documents when they are backed up with those things. I don’t like securities secured with real estate.”
Premier West President Jim Ford stated, “Everyone was then talking about how great the market was. Financial institutions, thrifts and banks were making these high-loan-to value loans, financing 100 percent and even 110 percent of the value. There was even pressure by some of our officers to follow the big banks, but we stuck to our guns.”
He added his company didn’t completely escape the problem. “No one escaped the residential construction collapse.”
“But we’re going to continue lending in markets where you know your customers and understand those markets,” Anhorn stated.
