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Baylake Corp. Baylake Corp. Reports Reduction in Non-Performing Loans
Sturgeon Bay, Wisconsin – (PR Newswire) – May 1, 2009
Baylake Corp. (OTC BB: BYLK), a
bank holding company with $1.0 billion in assets, reported today that a
previously impaired loan relationship in the aggregate amount of $9.7 million
was partially repaid in the amount of $5.5 million plus an amount representing
interest, late fees, and legal costs. This partial repayment resulted from the
sale of the underlying real estate and other fixed assets which secured a
portion of the loan relationship. The impairment was first identified at
December 31, 2008 and a specific loan loss reserve of $4.1 million was charged
against earnings in the fourth quarter of 2008 and was reflected in the
Company’s allowance for loan loss balance at December 31, 2008 and March 31,
2009. In connection with the partial repayment, $2.7 million was charged off
against the allowance for loan losses. The remaining impaired loan balances of
$1.5 million are partially secured by inventory and accounts receivable, among
other assets. The bank’s specific loan loss reserve of $1.4 million relating to
these loans is believed to be adequate to cover any future losses with respect
to the loan. As such, any future repayment and/or charge-off will have no effect
on Baylake’s earnings.
Baylake Corp., headquartered in Sturgeon Bay, Wisconsin, is the bank holding
company for Baylake Bank. Through Baylake Bank, the Company provides a variety
of banking and financial services from 28 financial centers located throughout
Northeast and Central Wisconsin, in Brown, Door, Green Lake, Kewaunee,
Manitowoc, Outagamie, Waupaca, and Waushara Counties.
