BluegrassForeclosure.com

Banks are still not out of the woods yet, but it looks like they are willing to work out more issues.  From MarketWatch.com:

–Non-performing loans decreased $24.4 million during the first quarter to $60.5 million at March 31, 2010 compared with $84.9 million at December 31, 2009. The decrease was primarily attributable to obtaining a deed in lieu of foreclosure on a residential construction and development loan that totaled approximately $24.1 million. This loan was on non-accrual at December 31, 2009.

– Non-performing assets increased $20.7 million during the first quarter to $120.2 million at March 31, 2010. The increase was primarily due to the addition of a residential construction and development credit relationship totaling approximately $17.6 million in the first quarter of 2010.

. . . .

Asset Quality

Nonperforming loans decreased to $60.5 million, or 4.4% of total loans, at March 31, 2010, compared with $84.9 million, or 6.0% of total loans at December 31, 2009, and $24.8 million, or 1.8% of total loans at March 31, 2009, primarily due to troubled loans working their way through the collection, foreclosure, and disposition process. As a result, foreclosed properties at March 31, 2010 rose to $59.7 million compared with $14.5 million at December 31, 2009, and $10.5 million at March 31, 2009. Additionally, our ratio of non-performing assets to total assets increased during the quarter to 6.84% at March 31, 2010, compared with 5.42% at December 31, 2009.

Our loan loss reserve as a percentage of total loans increased to 1.95% at March 31, 2010, from 1.87% at December 31, 2009, and 1.49% at March 31, 2009. Net loan charge-offs for the first quarter of 2010 were $2.8 million, or 0.2% of average loans for the quarter.

“The prolonged weakness in the economy continues to pressure the real estate markets in our area, resulting in reduced demand and lower real estate values,” stated Ms. Bouvette. “We have increased our reserve for loan losses over the past year to account for these factors and believe our reserves reflect these economic factors and their potential impact on our loan portfolio,” concluded Ms. Bouvette.

“We continue to take a proactive approach in working through problem loans to minimize potential losses. In the first quarter, we obtained deeds in lieu of foreclosure on two multi-unit residential condominium and patio home developments located in our primary market area. The loans had a carrying amount of approximately $41.7 million. We are committed to an orderly disposition of our borrowers’ properties. We have set up a real estate department with a dedicated real estate sales expert that has been successful in selling OREO properties and assisting in the sale of properties securing non-performing loans. In the first quarter of 2010, these transactions totaled approximately $17.6 million,” concluded Ms. Bouvette.