Every little thing gonna be all right
From the New Brunswick Home News Tribune:
Amboy bank to cover loan losses
Everything will be all right.
Amboy officers said last week that their bank, listed as one of the most profitable in the country, will be able to cover any losses on loans made to embattled real-estate mogul Solomon Dwek and Kara Homes, a major developer that has filed for bankruptcy.
Old Bridge-based Amboy said it could maintain its fiscal strength by using reserves set aside for bad loans, profits from the privately held bank and, if necessary, the bank's own cash and other holdings.
"Although we've had a couple of bumps in the road, we can weather the storm without any issue at all," Amboy's chief operating officer Stanley J. Koreyva Jr. said. "We're optimistic about the real-estate market. . . . We're optimistic about Amboy."
The bank released a letter last week to customers to assure them of the bank's financial strength.
But a banking expert who reviewed Amboy's federal regulatory filings for Gannett New Jersey newspapers said Amboy has taken more chances than most banks would by specializing in real estate and approving large amounts to single borrowers.
"They have doubled their risk," said Gary Maples, who teaches loan portfolio management at the Graduate School of Banking in Madison, Wis., and is a retired bank president.
By JASON METHOD
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