Solving The Loan Freeze Problem

April 5, 2009

April 15, 2009
Everyone knows that it is difficult to obtain bank financing for seniors housing transactions, but one lender and mortgage originator is taking matters into their own hands. In what can be considered a unique way to expand their health care and seniors housing lending business, Capital Funding Group is buying a Maryland-based bank, AmericasBank Corp. through its newly created affiliate, Capital Funding Bancorp. After the transaction closes, Capital Funding Bancorp will inject more than $35 million of capital into the bank, in the form of cash, as well as a $1 billion loan servicing portfolio. The merger is expected to close during the second quarter.

Even though AmericasBank has only three branches, it will offer a good platform for Capital Funding Group to grow its health care mortgage and working capital funding programs. The plan is to grow the bank, and while it will still operate as a community bank, Capital Funding certainly has plans to grow it into a thriving commercial bank with national expertise in health care. Given the current financial condition of so many banks, burdened with loans secured by assets with depreciating values, starting a bank today or buying a small one can certaintly make a lot of sense as a platform for the future. Quite frankly, we are surprised we have not seen more of this.

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