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Mixed Messages in CRE

The number of banks with concentrations in commercial real estate is on the decline, but does this mean CRE risk is also on the decline?  Regulatory guidance suggests banks have CRE concentration risk when exposure exceeds 300% of total risk-based capital and the CRE loan portfolio increased 50% or more during the prior 36 months. Alternatively, banks may have heightened CRE risk when construction and development loans exceed 100% of total risk-based capital. A May analysis by S&P Global Market Intelligence showed that 505 banks exceeded either or both of those criteria, representing the lowest level since the third quarter…

Prominent Community Bank CEO Pleads Guilty in Crypto Scheme

A former bank CEO pleaded guilty to embezzlement in May after being charged with funneling millions out of his bank and into a crypto wallet.  Shan Hanes was CEO of Heartland Tri-State Bank in Elkhart, Kansas, when he transferred $47.1 million out of the bank over 10 wire transfers between May and July 2023, according to prosecutors.  The wire transfers severely impaired the $139 million bank’s capital and liquidity, and Heartland Tri-State Bank was closed by the Kansas Office of the State Bank Commissioner on July 28, 2023. Heartland’s failure ultimately cost the Federal Deposit Insurance Fund an estimated $54…

Fraudulent Graceland Sale Thwarted

Scammers recently attempted — and failed — to auction off Graceland, the former Memphis, Tennessee, home of Elvis Presley and a tourist attraction.  In May, a company calling itself Naussany Investments and Private Lending posted a foreclosure notice for the Graceland estate, according to reports by the Associated Press and The New York Times. The foreclosure notice claimed that Promenade Trust, which controls the majority of Elvis Presley’s estate, had failed to repay a 2018 loan and owed $3.8 million.  Naussany said that Lisa Marie Presley, the daughter of Elvis Presley, who died in 2023, had used Graceland as collateral…

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WRITTEN BY

Laura Alix

Director of Research

Laura Alix is the Director of Research at Bank Director, where she collaborates on in-depth strategic research for bank directors and senior executives, including Bank Director’s annual surveys. She also writes for BankDirector.com and edits online video content. Laura is particularly interested in workforce recruitment and retention strategies, and environmental, social and governance issues facing the banking industry. Previously, she covered national and regional banks for American Banker, and before that, she covered community banks for Banker & Tradesman and The Commercial Record. Based in Boston, she has a bachelor’s degree from the University of Connecticut and a master’s degree from CUNY Brooklyn College. You can follow her on Twitter or connect on LinkedIn.