NCNB Chief Mulls Sale of Bad Assets
NEW YORK (AP) _ NCNB Corp. Chairman Hugh McColl said Tuesday the bank is considering sale of a large portion of its delinquent loans and foreclosed real estate.
McColl, in a speech before securities analysts here, discussed plans to manage the problem assets of NationsBank, the proposed combination of NCNB and C&S-Sovran Corp.
McColl, who will serve as president and chief executive officer of NationsBank, said in prepared remarks the combined bank could sell ″a large portion, if not all of the problem assets″ to Amresco, an NCNB unit that manages problem loans from failed thrifts and banks.
McColl envisioned either selling Amresco to an outside investor or shareholders.
Amresco currently has contracts to manage $17 billion in delinquent loans and foreclosed real estate, an NCNB spokeswoman said.
Nancy Bush, regional bank analyst for Brown Brothers Harriman & Co., said McColl may have advanced the proposal to allay investor concerns about the high level of problem loans and real estate assets at the new NationsBank.
″There is a lot of fear and trepidation about the direction of non- performing assets at C&S-Sovran,″ she said.
At the end of the third quarter, the Charlotte, N.C.-based NCNB reported $1.1 billion in nonperforming assets. C&S-Sovran, with dual headquarters in Atlanta and Norfolk, Va., reported nonperforming assets of $1.6 billion.