subject: Matthew W Norkett - The First Commercial Bank [print this page] Matthew W Norkett - The First Commercial Bank
Can you trust Matthew W. Norkett from the First Commercial Bank?
In this honest review we'll examine the factors needed to determine if Matthew Norkett is the type of community bank president you see in the movies and on TV that portray the local banker as the bedrock of the community who's constantly on the lookout for the best interests of their customers.
Or is Matthew Norkett the evil banker type portrayed by the media and government as the "greedy and corrupt" banker that pads their pockets at any cost, including breaking the law through fraud and deception?
Until Matthew Norkett is arrested and found guilty of a specific banking related crime, the reality is that any assessment of his business record will remain nothing more than "1 man's opinion" regardless of how many people share the same opinion.
So let's simply assess the facts and then you'll be able to form your own opinion.
1. Bank Profits / Loss - The First Commercial Bank filings show a substantial loss in essentially all areas of their business.
2. Foreclosures - The disputed foreclosures appear to be at the very high end of the industry average which could indicate that loan decisions and procedures were either poorly written or poorly adhered to by senior management.
3. Bad Loan to Assets Ratio - This measurement follows the trend of the other financial results under Matt Norkett's tenure.
4. Lawsuits Filed - While not an easy number to obtain, the "rumor mill" amongst real estate insiders indicates that The First Commercial Bank is being pursued heavily. The jury is still out on this indicator.
Unfortunately, the FDIC doesn't publicly release it's problem loan list associated with the banks but by using a special ratio called the "Texas Ratio", it is possible to determine if a bank is on the "high risk" list and likely to fail.
The Texas Ratio is calculated by dividing the bank's non-performing assets by its tangible common equity and loan-loss reserves. Tangible common is equity capital less goodwill and intangibles.
This ratio measures a banks problem loans and calculates with a proven rate of accuracy what loans will eventually need to be charged off as losses. This is also an excellent indication of the banks health and the management's performance. As the ratio approaches 1.0, the bank's risk of failure escalates exponentially.
The First Commercial Bank's Texas Ratio of 1.38 is certainly a poor indication of the overall health of the bank and Matt Norkett's performance during his tenure as bank President.
Matt Norkett was removed from his position with the First Commercial Bank and has yet to surface in the employment of another financial institution indicating strongly that his departure was anything but voluntary. At first glance, it would appear that not only the numbers are against Matt Norkett, his past employer is as well.
Was Matthew Norkett the cause of the bank's poor performance or was he simply a scapegoat for a much larger systemic problem at the bank? There are only a few "insiders" that really know this answer but I think you now have enough information to make the call yourself.
Learn more about Matthew Norkett at my hard hitting blog - http://matthew-norkett.blogspot.com
