First National Bank's struggles continue
Edinburg-based First National Bank continues to creep toward treacherous territory.
The bank's ongoing struggles led it to announce Thursday that it has retained an investment bank to “explore our strategic alternatives.”
It didn't share any details. But such announcements generally mean one of three things: Raise new capital, unload branches or sell the bank, said Clark Locke, managing director and head of investment banking in Texas for Hovde Group.
Meanwhile, First National's latest financial results show the red ink keeps flowing, though the loss wasn't as much as in the same period last year. Bad loans are shrinking, too, but still represent nearly one out of every $5 loaned.
A lot of the bank's troubles are the result of soured real estate loans — including some made in San Antonio, where it continues to be dogged by problems.
http://www.mysanantonio.com/business/article/First-National-Bank-s-struggles-continue-4482961.php
