What are Hcsb Financial's Business Segments?
Real Estate Loans. Residential real estate loans were 35.9% of the portfolio.
These loans are secured generally by first or second mortgages on residential,
agricultural or commercial property and consist of commercial real estate loans
and residential real estate loans (but exclude home equity loans, which are classified
as consumer loans).
Due to concerns regarding the economic recession and our concentration of commercial
real estate loans, we have focused on reducing the level of these types of loans
in our portfolio over the last several years and will maintain a conservative
lending strategy toward these types of loans if we are able to close the private
placement transaction. Construction and development loans are secured by the real
estate for which construction is planned.
Commercial Loans. Commercial loans consist of secured and unsecured loans, lines
of credit, and working capital loans. We make these loans to various types of
businesses. Included in this category are loans to purchase equipment, finance
accounts receivable or inventory, and loans made for working capital purposes.
Consumer Loans. These are loans made to individuals for personal and household
purposes, such as secured and unsecured installment and term loans, home equity
loans and lines of credit, and revolving lines of credit such as overdraft protection.
Automobiles, recreational boats and small recreational vehicles are often pledged
as collateral on secured consumer loans.
Agricultural Loans. These are loans made to individuals and businesses for agricultural
purposes, including loans to finance crop production and livestock operating expenses,
to purchase farm equipment, and to store crops. These loans are secured generally
by liens on growing crops and farm equipment. Also included in this category are
loans to agri-businesses, which are substantially similar to commercial loans,
as discussed above.
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