The economic climate has caught up with Regional and Community Banks creating unprecedented economic and management challenges.  The Next several months will be extremely challenging:

1.  Lackluster and delayed economic recovery is amplifying stress on Real Estate Borrowers

• “the oxygen in the tank is running out”
• Lack of liquidity combined with lack of credit is eliminating options for normal “workout” of loans and forcing existing lenders to deal with increasing challenges
• Developers’ dwindling resources are stressing or eliminating cash flow formerly dedicated to interest payments

2.  These conditions are causing Lenders to establish significant valuation reserves and take write-offs

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