Tundra Village Townhomes Blog San Antonio, Texas OCC FNB MAURO PADILLA ARRESTED by F.B.I

Fact Witness List Submitted to Court

2013-05-23T16:40:00.000-05:00

With the Tundra Village Trial rapidly approaching, all parties have submitted their fact witness lists.

It's a Doozie!

Defendant Daniel L. Brown Thrown Under Bus!

2013-05-23T14:17:00.002-05:00

In a recent court filing, Fidelity National Title Insurance, a co-defendant of First National Bank Edinburg in the Tundra Village lawsuit has filed a cross claim against Daniel L. Brown. Brown was an attorney with LandAmerica Lawyers Title. More details to follow!

First National Bank Edinburg Still Stuck With Tundra Village Dump....

2013-05-17T14:25:00.000-05:00

Now Going on 6 years,

First National Bank Edinburg

still can't finish or sell

the infamous Tundra Village development in south San Antonio. No signs of this getting finished or sold soon either!

Maybe this is what's called a

"buy and hold" property!

Reading Between the Lines

2013-05-03T15:13:00.002-05:00

First National Bank Edinburg

Retains "Investment Bank"

to Explore Alternative Strategies

(see updated article in link below)

http://www.mysanantonio.com/business/article/First-National-Bank-s-struggles-continue-4482961.php

FNB Loses another $3.4M in Q1-2013!!

FNB Edinburg Goes Public With Their Struggles

2013-05-02T13:06:00.001-05:00

Just Posted Online in San Antonio News Express

(see link below)

First National Bank's struggles continue

By Patrick Danner, Staff Writer

Updated 12:20 am, Friday, May 3, 2013

First National Bank at the San Antonio location on N. New Braunfels, Thursday, Nov. 8, 2001.
Photo: BOB OWEN, SAN ANTONIO EXPRESS-NEWS

Edinburg-based First National Bank continues to creep toward treacherous territory.

The bank's ongoing struggles led it to announce Thursday that it has retained an investment bank to “explore our strategic alternatives.”

It didn't share any details. But such announcements generally mean one of three things: Raise new capital, unload branches or sell the bank, said Clark Locke, managing director and head of investment banking in Texas for Hovde Group.

Meanwhile, First National's latest financial results show the red ink keeps flowing, though the loss wasn't as much as in the same period last year. Bad loans are shrinking, too, but still represent nearly one out of every $5 loaned.

A lot of the bank's troubles are the result of soured real estate loans — including some made in San Antonio, where it continues to be dogged by problems.

The beleaguered bank's Tier 1 leverage capital ratio — a measure of financial strength — was 2.39 percent on March 31. That's down from 2.47 percent on Dec. 31; it originally was reported as 3 percent before it was revised two weeks ago.

That means First National remains “significantly undercapitalized” by the Federal Deposit Insurance Corp.'s measures.

“It's very rare for an institution that is still losing money to be able to earn its way out of that level of capital deficiency,” said Karen Dorway, president of BauerFinancial Group, a Coral Gables, Fla., firm that analyzes banks. “More commonly, it's going to take some sort of capital infusion.”

First National Chairman and CEO Saul Ortega told the San Antonio Express-News in January that the bank wasn't seeking capital from investors or looking for a buyer.

In a statement Thursday, the bank said, “Our liquidity remains strong, and we believe we have sufficient liquid resources to meet our cash flow obligations arising from ordinary operations.”

Ortega previously predicted the bank would turn a profit in the first quarter. It actually lost almost $3.4 million, though that was an improvement over a $12.3 million loss in the same period last year. For all of 2012, it lost $136.5 million.

Two years ago, the bank was directed by the Office of the Comptroller of the Currency to maintain minimum capital ratios, including a Tier 1 leverage capital ratio of 9 percent.

Capital is important for banks to absorb losses and provide protection for depositors.

The ratio, though, has been inching closer to 2 percent. A ratio of 2 percent or less is considered “critically undercapitalized.” Federal banking regulators have been known to commence takeovers of institutions below that level if they can't immediately raise capital.

But Curtis Carpenter, managing director of Sheshunoff & Co. Investment Bank, said that isn't necessarily true anymore — especially in Texas, which is considered one of the nation's strongest banking markets.

“In Texas, I think there is more patience and less panic because the thought is there probably is a buyer for a Texas bank,” Carpenter added.

The FDIC protects deposits of up to $250,000 per depositor at insured banks.

Meanwhile, First National continues to have its share of problems in San Antonio.

It's moving to foreclose next week on 70 undeveloped acres along Interstate 10 West, near Camp Bullis Road. Owner 70 Acre Cresta Bella allegedly has defaulted on a $20 million note from the bank.

First National is listed as the largest creditor in last month's bankruptcy of a San Antonio partnership that owns the office and retail building at 8522 Broadway, just north of Northeast Loop 410. The bank is owed almost $8.6 million.

Developer David W. Monnich, who heads the partnership that owns the building, said last month that he's negotiating with the bank to restructure the debt.

A group of investors in a townhouse project near the Toyota plant on the South Side and financed by First National are suing the bank for at least $25 million. The case is scheduled to go to trial this fall.

The investors allege the bank continued to loan money to developer Mauro Padilla despite serious construction deficiencies on the project. They also claim he was not applying a large percentage of the construction draws to the project. Padilla was sentenced to 12 years in federal prison for lying to the bank.

On March 31, the bank had $347.9 million in noncurrent loans, or about 17.9 percent of total loans. It had $363.8 million in noncurrent loans, or nearly 18.2 percent, on Dec. 31. Some of the improvement was in construction and land development loans.

It held $230 million in repossessed real estate at the end of the latest quarter, down from $240.9 million on Dec. 31.

First National had assets of $3.19 billion at the end of the first quarter, down from $3.28 billion at the end of the year.

Despite the bank's difficulties, deposits declined only slightly in the last quarter. It had almost $2.44 billion in deposits on March 31, down less than 3 percent from about $2.51 billion on Dec. 31.

The bank shrank its workforce to 744 in the latest quarter, a 4 percent decline from 777 at the end of last year.

pdanner@express-news.net

http://www.mysanantonio.com/business/article/First-National-Bank-s-struggles-continue-4482961.php

Oh Yeah, You Should Read The Transcripts!

2013-05-01T14:11:00.001-05:00

Can You, Really?

Legal Fees....Apples to Oranges

2013-04-26T12:17:00.001-05:00

Just how does

First National Bank Edinburg's legal fees stack up compared to Frost Bank in Texas?

According to figures submitted to the FDIC year ending 2012, Frost Bank has total assets of over $23B (yes, that's a B) and legal fees of $7.6M for the year.

First National Bank Edinburg, for the same time period, submitted figures showing $3.27B of assets and over $6.4M in legal fees.

Pretty incredible that a bank that has 7x the asset base of First National Bank Edinburg has a legal bill that is only 10% more than FNB. What's wrong with this picture????

It must be good to be an attorney for FNB!

Just one more week until 1Q 2013 numbers are

posted on this blog! It's going to be interesting to see what their contingent liabilities column looks like!!

First National Bank Edinburg 2012 Recap

2013-04-23T12:06:00.000-05:00

According to Banktracker Investigative Reporting Workshop, (see link below)

First National Bank Edinburg

posted a loss of over $125,000,000 in 2012. Additionally, the report also indicated that the Edinburg based bank now has a Texas ratio of 337%.

FINANCIAL DETAILS FOR FIRST NATIONAL BANK

Line item

Assets

Deposits

Loans

Loan loss provision

Profit

Capital

Reserves

Loans 90 days or more past due

Non-accruing loans

Other real estate owned

Capital plus reserves

Total troubled assets

Dec. 31, 2011

$3,517,003,000

$2,598,847,000

$2,298,230,000

$52,016,000

$-26,047,000

$316,583,000

$78,770,000

$8,291,000

$378,760,000

$281,454,000

$395,353,000

$668,505,000

Dec. 31, 2012

$3,286,330,000

$2,505,593,000

$1,928,834,000

$62,200,000

$-125,274,000

$97,204,000

$89,697,000

$7,322,000

$378,227,000

$244,966,000

$186,901,000

$630,515,000

FNB 1st Quarter results will be available in early May.

http://banktracker.investigativereportingworkshop.org/banks/texas/edinburg/first-national-bank/

First National Bank Edinburg Continuing to Make News In San Antonio

2013-04-22T18:05:00.001-05:00

According to a news article in the San Antonio Express News posted online April 22, First National Bank Edinburg is having to restructure an $8.6M loan to Warren's Corner LP due to a recent bankruptcy. The owner was quoted (regarding the loan)

“It's to get it restructured in such a way that the cash flow of

the building can more than service the debt,”

(see link below).

No way from the outside to tell if this is just another FNB

band-aid to avoid another REO addition but according

to Bexar County Appraisal District the subject property

has an appraised value of $4,577,000. We won't

speculate why the loan amount is more than $2,000,000

more than the appraised value.

Read more: http://www.mysanantonio.com/business/article/Broadway-building-partnership-files-Chapter-11-4454195.php#ixzz2REhQ0Wzr

Another One Bites the Dust For First National Bank Edinburg!

2013-04-19T13:07:00.002-05:00

(before)

The Good Ol' lending days of 2007 continue to come back and haunt First National Bank Edinburg as it was just reported in the San Antonio Express News that 70 acres of undeveloped land just north of San Antonio is scheduled to hit the auction block next month. This time, it's a whopping $20,000,000 note that will soon be added to FNB's extensive REO list should a buyer not be secured at the May 7 auction. (see link below)

Remember this quote from

FNB President/CEO Saul Ortega

in the January 30 San Antonio Express News Article (link below)??

“We definitely have to appraise our properties to the market value,” Ortega said. In the past year and a half, he added, the sale of repossessed real estate has been done with “pretty firm underwriting guidelines.” That has included ensuring builders have “the proper financial capacity” and the “proper down payments.”

Don't forget this quote by Ortega in the same article:

(link below)

Ortega called Tundra Village an “isolated case.”

Read more: http://www.mysanantonio.com/news/local_news/article/Texas-size-troubles-for-the-state-s-No-12-bank-4226623.php#ixzz2QvxdnWx4

Anybody wonder why they didn't foreclose on this in the 1st quarter of this year???

THE HITS JUST KEEP COMING FOR

THE EDINBURG BOYS!!

North of that location, about 70 acres of undeveloped land also is set to hit the auction block. Its owners, 70 Acre Cresta Bella, have defaulted on a $20 million note from 2007. First National Bank in Edinburg is the lender.

(after?)

Get Ready Boys!

2013-04-18T00:10:00.000-05:00

Time For an Internal Audit?

Just Two More Weeks for First National Bank Edinburg.....

2013-04-16T11:25:00.002-05:00

To Turn in Their Report Cards

to the Regulators.

We'll all soon see if they are "on their way"!

First National Bank Edinburg Getting Lots of Attention!

2013-04-10T12:04:00.003-05:00

Why All The Recent Attention???

First National Bank Edinburg Lawsuit and 22 Causes of Action

2013-04-05T00:45:00.000-05:00

The Latest Allegations against First National Bank Edinburg and some of their

Board of Directors:

Common Law Fraud
Fraud in a Real Estate Transaction
Negligence
Negligence: Voluntary Undertaking
Negligent Administration of Loans
Negligent Disbursement of Funds
Negligent Supervision of Construction Loans
Construction Trust: Fraud
Partnership in Fact
Constructive Trust: Unconscionable Conduct
Constructive Trust: Constructive Fraud
Negligent Misrepresentation
Negligent Hiring, Supervision and/or Management
Breach of Contract
Breach of Implied Contract
Conspiracy
Agency
Aiding and Abetting
Inducing and Participating in Breach of Fiduciary Duty
Colluding with Disloyal Fiduciary
Deceptive Trade Practice
Spoliation

First National Bank Edinburg 1st Quarter 2013

2013-04-01T11:35:00.000-05:00

1st Quarter Comes to a close for First National Bank Edinburg.

Results due in 30 days, available soon after.

Remember this quote in late January 2013 by FNB CEO Saul Ortega in the San Antonio Express News???

“The bank has plenty of liquidity, and I think we're on

our way,” Ortega said. “I think we've found bottom. The

bank should continue to improve as we go forward here

in 2013. I'm really excited about the year.”

The year has started and we'll soon find out just how

"good" the 1st quarter report card looks for FNB, and if

their $66 million lawsuit settlement is making its way

into their books.

With various trial dates quickly approaching, one can

only wonder what their contingent liabilities column will

look like????

FNB Keeping Their Attorneys Busy Across Texas!

2013-03-11T11:34:00.000-05:00

The summer schedule is getting full for First National Bank Edinburg and they are covering the courtrooms in the same way their distressed properties are littering south Texas.

At least three trial dates have already been put on calendar in Hidalgo, Harris and Bexar Counties that could result in millions of dollars of losses to the already financially hampered bank. See Below:

In FNB's backyard, Hidalgo County, a Pre-trial conference has already been scheduled for July 5 with Progressive Insurance in a lawsuit filed by FNB for not covering a $66,000,000 award to Plaintiffs. The Judgment was settled recently though Progressive (amongst several reasons listed in an amended answer) is claiming no obligation to cover because:

The “Fraud/Violation of Law Exclusion” in the Policy, which is applicable to all Insuring Agreements in the Policy, provides as follows:

Fraud/Violation of Law Exclusion – The Insurer shall not be liable to make any payment for Loss, other than Defense Costs, in connection with any Claim arising out of or in any way involving any fraudulent, dishonest or criminal act or any willful violation of any civil or criminal statute, regulation or law by the Insured, provided a final judgment or final adjudication establishes such fraudulent, dishonest, or criminal act or such willful violation of statute, regulation or law.

FNB’s claims are barred in whole or in part by the “Fraud/Violation of Law Exclusion.”

Additionally, Progressive is asserting:

The “Illegal Profit/Payment Exclusion” in the Policy, which is applicable to all Insuring Agreements in the Policy, provides as follows:

Illegal Profit/Payment Exclusion – The Insurer shall not be liable to make any payment for Loss, other than Defense Costs, in connection with any Claim arising out of or in any way involving:

(1) any Insured gaining, in fact, any profit remuneration, or financial advantage to which the Insured was not legally entitled; provided that this Exclusion shall only apply if a judgment or final adjudication establishes that the Insured was not legally entitled to such profit, remuneration or financial advantage;
(2) payment by the Company of inadequate or excessive consideration in connection with its purchase of Company securities; or
(3) conflicts of interest, engaging in self-dealing, or acting in bad faith.

FNB’s claims are barred in whole or in part by the “Illegal Profit/Payment Exclusion.”

Shortly after the Progressive Insurance trial takes place FNB will then battle in Bexar County in the infamous "Tundra Village Scandal" Lawsuit. The lawsuit, now four years old has trial set for September 16. Twenty causes of action are alleged and like the settled lawsuit in which FNB was dealt a $66,000,000 loss to Plaintiffs, various elements of fraud are alleged.

FNB attorneys are again scheduled to step into the Harris County courtroom in the Assi v FNB lawsuit of which approximately $20,000,000 worth of REO properties is being disputed. Trial is slated for October 7 and allegations include FRAUD!! SURPRISE, SURPRISE!!!

Well, at least their attorneys are PROBABLY doing good!

First National Bank Edinburg Settles $66 Million Lawsuit

2013-03-05T16:11:00.000-06:00

First National Bank Edinburg Tundra Village Visitors

2013-02-25T14:46:00.000-06:00

Why is the US Department of Justice and several national sized banks visiting the Tundra Village Blog?

What will the next quarterly reports reveal?

Can't wait to see how much is being set aside for "contingencies" in the next FNB Edinburg quarterly report!

Is Friday always a nervous day at FNB?

Even FNB Attorney is exposing client's trouble! A great way to get business???

2013-02-19T20:37:00.001-06:00

STRAIGHT OFF OF GOOGLE.......

Texas-size troubles for the state's No. 12 bank | Law Office of Sherer ...

shererandcrow.com/.../texas-size-troubles-for-the-states-no-12-...

Jan 27, 2013 – 12 bank Express-News Copyright 2013 Express-News. ... The bank — the 12th- largest based in Texas, with $3.4 billion in assets and 57 ... and repossessed real estate is less than one-fifth the size of the Edinburg bank's. ... First National firstestablished a foothold in San Antonio around 2000, opening a ...

YOU THINK THOSE EDINBURG BOYS ARE HAPPY THEIR ATTORNEY IN THIS CASE LITTERED WITH ALLEGATIONS OF FRAUD IS PROMOTING THEIR LEGAL AND FINANCIAL TROUBLES???

5 Little Piggies and the Tundra Village Scandal

2013-02-06T11:04:00.000-06:00

FIRST NATIONAL BANK EDINBURG FRAUD

Alleged Conspirators Identified by Attorney in Connection with Tundra Village Loans and Lawsuit!!

This little piggy (allegedly) cooked the books....
This little piggy (allegedly) took a bribe....
This little piggy(allegedly) falsified documents....
And this little piggy (definitely) went to prison...

(but there are other piggies involved and it won't be long before their conduct is revealed)

Is First National Bank Edinburg Trying to Bury This Lawsuit Too??

2013-02-04T12:08:00.003-06:00

TRIAL DATE SET FOR OCTOBER 7, 2013

HARRIS COUNTY CASE # 201253770

ASSI, ALI

vs.

FIRST NATIONAL BANK

(A/K/A FIRST NATIONAL BANK OF EDINBURG)

(Court 270)

What REALLY happened with this $20,000,000 purchase and agreement?

Will it end up back in FNB REO closet?

Was this another case of 100% Financing?

Another Non-Recourse Loan?

shhhh.....keep it quiet!

Is This Somebody At First National Bank Edinburg???

2013-02-01T12:06:00.002-06:00

I KNOW NOTHING!

(except for everything is going to be alright and I've been told to shut up and stop making bonehead statements about how things are getting better and I'm a little too busy to talk to any news reporters and I wish you would stop picking on us and researching all this non-sense like straw buyers and lawsuits because you're hurting my feelings and I'm really wondering if the former CEO had to deal with this crap or if that's why I was put here and I sure hope insurance is covering my ass...)

Calling All Straw Men!!

2013-02-01T09:05:00.001-06:00

Hello....anybody there???

Where are you Saul???

"OK, so you want me to take your crap properties......

and you'll finance it 100%......

and even make the interest and property tax payments

and if it doesn't work out you'll take it back in 12 months......

with no damage to my credit report......

you won't go after me on a deficiency......

and the sales price is $4.7 Million....

even though the appraisal doesn't support the value....

and I'm not suppose to worry if this is illegal.....

and you'll take my phone call if something goes wrong......

and it doesn't matter if it's in a flood plain

but when are you going to plat the property"?

JUST IMAGINE THE PHONE CALL ABOUT BUYING TUNDRA VILLAGE!!!

First National Bank Edinburg

2013-01-27T22:39:00.000-06:00

MORE TRUTHS ABOUT

FIRST NATIONAL BANK EDINBURG

AND THEIR PRACTICES

SPILL OUT

(As seen in January 28 issue of San Antonio Express News)

Read Quotes and comments just made about their financial challenges, lawsuits

and real shifty practices.

“It's one situation that definitely maybe got out of control, but that's not the norm,”

OK FOLKS, WHAT THE HELL DOES "DEFINITELY MAYBE" MEAN? IS THAT WHEN ONE KNOWS THEY DEFINITELY SCREWED UP AND MAYBE HOPE THEY DIDN'T GET CAUGHT?

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"Tundra Village is an isolated case"

OK, THIS MEANS THAT THEY DEFINITELY SCREWED UP, GOT CAUGHT AND NOW KNOW IT!

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"The bank has insurance in that lawsuit"

WELL THAT'S GREAT! ONE CAN ASSUME AS LONG AS YOU HAVE INSURANCE TO COVER FRAUD IT'S OK TO SCREW CONSUMERS!

THAT'S RIGHT MR. DAVIS! AT LEAST YOU KNOW YOUR APPRAISER USES THE SAME STEROIDS AS LANCE ARMSTRONG!!

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“We definitely have to appraise our properties to the

market value,”

YOU DEFINITELY ARE FULL OF SHIT!
-------------------------------------------------------------------------------------------------------------------------------------------------------------------

“We kind of took our hits in the early part of the year,”

YEAH, TOO BAD YOU'RE GETTING SHIT-SLAPPED WITH LOSSES THE SECOND HALF OF THE YEAR ALSO!!

OH, THAT'S RIGHT; DAVIS SAYS APPRAISAL CAME IN AT $2 MILLION AND TUNDRA HAS A "PENDING OFFER" LISTED AT $4.7 MILLION. LOVE THOSE "MARKET VALUES"! AND BY THE WAY, HOW'S THE PLATTING GOING ON THAT DUMP (OR ARE YOU STILL WAITING FOR PADILLA TO FINISH IT)?

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“They are in the worst possible 99 percent of their peer group
rankings for 184 banks.”
ORTEGA IS RIGHT! THINGS COULD BE WORSE!!
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Weiss Ratings gave First National its worst rating, an “E-” for
“very weak,”
I DIDN'T KNOW THERE WAS AN E- ON REPORT CARDS!
THESE GUYS MUST REALLY BE STUPID AND INCOMPETENT!
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“They scored out at the absolute bottom of the barrel,”
OK, OK...DON'T RUB IT IN!
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“The bank has plenty of liquidity, and
I think we're on our way,”

YEAH, ENOUGH LIQUIDITY TO DROWN YOURSELVES!
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Tundra Village wasn't the only time First National
foreclosed on property in San Antonio, deeded it to a
small Edinburg builder and later took it back.

THAT'S RIGHT, BUT LET'S KEEP THAT BETWEEN US FOR NOW.
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"and I think we have a very solid case.”

GOT TWO WORDS FOR YOU: HARRIS COUNTY

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"Gandy now serves as the bank's legal coordinator."

THAT'S A RELIEF SINCE AFTER BEING CEO FOR 25 YEARS HE'S ADMITTED HE'S NOT A BANKING EXPERT! AND HE GOT HIS LAW DEGREE WHERE?
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“That's my understanding, yes, sir,”

FNB ATTORNEY ERIC SHERER ADMITTING THE OL' KICKING THE CAN DOWN THE ROAD SO FNB COULD AVOID TAKING LOSSES ON TUNDRA VILLAGE.
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TUNDRA VILLAGE BLOG HAS A RECORD SETTING DAY WITH AMOUNT OF VISITS.....
FUNNY HOW MOST OF THEM ARE FROM SOUTH TEXAS!

Bribes, Lies and Favors.....

2013-01-05T16:26:00.000-06:00

This lawsuit gets juicier by the day as more scandalous information surfaces!

Who, what, when, where?

You'll See!