Mr. Jeff WheelerWrong Jeff Wheeler?
Red Legacy LLC
4717 Central Street
Kansas City , Missouri 64112
Company Description: RED Legacy creates superlative commercial real estate developments around the country. Fired from that same single-minded drive that drove her sister company, RED... more
At the time, Hillcrest had a greater exposure to construction and land development loans than any bank in the Kansas City area.
Hillcrest’s portfolio was spread across 42 states, and it financed projects for developers who operated in several states. Loans in California, Florida and Arizona — three real estate trouble spots — were part of the bank’s portfolio but limited to 18 percent of loans, Wheeler had said.
In the bank’s 2007 annual report, management had acknowledged emerging real estate problems and told shareholders they’d been “pro-active” and set aside reserves to cover potential losses “well ahead of the curve.”
But the unending slide in property values forced the bank to set aside more and more of its own earnings and then most of its capital backing to cover potential losses on the loans secured by the real estate.
These moves produced $146.4 million in financial losses for the bank during 2009 and the first half of this year.