Freddie Bites First Market Bank 

Count First Market Bank among the local thrifts burned in the fallout from Fannie Mae and Freddie Mac. The Ukrop's-owned First Market, which has $1.3 billion in assets, reported recently that it lost $4.4 million as a result of Freddie Mac's crash.

Fannie Mae and Freddie Mac, which hold 58 percent of the nation's mortgages, fell into government control in early September after suffering huge losses in the subprime mortgage meltdown. Several Virginia-based banks with considerable Fannie and Freddie holdings were damaged in the fallout, including Central Virginia Bank and Gateway Financial, Bank of Richmond's parent, which was sold to Hampton Roads Bancshares after losing nearly $40 million.
First Market Bank was one of the lucky ones, it turns out. The bank, which is owned by Ukrop's Super Markets and the Ukrop family (60 percent) and Markel Corp. (40 percent), issued $6 million in common stock to beef up its capital after taking the hit.

“We actually added some additional common stock equity, from Ukrop's and Markel,” says Dave Fairchild, First Market's chief executive. “As we took that write-down it was a good time to add some common-stock equity. They were happy to put back $6 million.”

As the economy continues to weaken, banks across the country continue to absorb mortgage defaults and take hits to their lending portfolios. First Market, however, has managed to stay above the fray.

“We've been real fortunate in this market; Richmond has been fairly well insulated,” Fairchild says. “Our portfolio has held up very nicely. We're cautious with the outlook, but so far so good.”


Latest in News and Features


Subscribe to this thread:

Add a comment

Connect with Style Weekly

Most Popular Stories

  • Starting Conversations

    Starting Conversations

    The Conciliation Lab finds a natural fit between theater and activism.
    • Feb 23, 2021
  • Diversity through Unity

    Diversity through Unity

    Two biggest local LGBTQ+ nonprofits join forces to further their impact.
    • Feb 23, 2021
  • Designers, In Living Color

    Designers, In Living Color

    Richmond’s Black designers impart creativity, culture, cool – and lift – as they climb.
    • Feb 16, 2021
  • The Big Smooch

    The Big Smooch

    That issue around Valentine’s Day when we spread some love to people, places and things that deserve shoutouts.
    • Feb 9, 2021
  • More »

Copyright © 2021 Style Weekly
Richmond's alternative for news, arts, culture and opinion
All rights reserved
Powered by Foundation