Comments on: Community Banking Comes to Wall Street
By Turbo Tax Tim on 02-23-09
GBCI is just like every other bank. They have problems, just like every other bank. They are not any more conservative than any other lender. They may not hold any sub prime loans on their books, but they did originate loans to people who could not afford homes in the Flathead as well as Bozeman, and Idaho. They just sold them to Fannie Mae, which sold them to everyone else. While they did not take any TARP money, they did raise $90 million in new capital, which diluted the existing shareholders.
The GBCI model allows the bank to slip by without one regulator examining the entire picture. Each charter is treated separately and so concentrations are not adequately questioned. Let’s not forget that a senior executive was quoted in the media just over a year ago saying that over 90% of Glacier Bank’s loans were related to real estate. How do you think the value of the collateral is doing??? About as well as every other bank’s real estate loan portfolios are doing…
Let’s check back with the numbers in twelve months. If they are still number one (in whatever criteria this magazine actually uses) then they should be applauded. I doubt that they will be.








The views expressed in the comments section do not reflect those of the Beacon.