SC Bank Sells $200M In Bad Loans To PE Joint Venture

Law360, New York (October 26, 2011, 8:02 PM EDT) -- First Federal Savings and Loan, one of South Carolina's largest banks, has inked a deal to sell $198 million in troubled loans and foreclosed properties to a joint venture backed by investment firm Varde Partners Inc. for $81 million in cash, the bank announced Wednesday.

The sale of the portfolio, which is about 80 percent commercial real estate and development loans, will cut First Federal's delinquent loans roughly in half and net $20 million pretax for the bank, which has struggled to stay profitable after record...
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