Amresco
| Company type | Subsidiary (former) |
|---|---|
| Industry | Financial services |
| Predecessor | Financial Resource Management, Inc. |
| Founded | 1990 |
| Founder | North Carolina National Bank (implied) |
| Fate | Divested in 1993; defaulted on debt after 2001 |
| Headquarters | Texas , United States |
| Parent | NCNB Texas National Bank (until divestiture) |
Amresco was a Texas-based American financial services company, originally known as "Financial Resource Management, Inc." until it was renamed in 1992. It operated as a subsidiary of NCNB Texas National Bank, which had been established in 1990 to oversee the $11 billion asset portfolio from the failed Dallas-headquartered "First Republic Bank Corporation." This portfolio was acquired by North Carolina National Bank from the Federal Deposit Insurance Corporation (FDIC) in 1988. Prior to the creation of Amresco, these asset management functions were performed directly under the North Carolina National Bank banner.
History
North Carolina National Bank successfully acquired FRBC, which at the time was Texas's largest banking institution. The deal included a stipulation that NCNB would not assume losses related to FRBC’s nonperforming assets—a standard arrangement with the FDIC. Given the substantial size and complexity of these assets, the FDIC lacked adequate resources to manage them conventionally. Consequently, FRBC’s seasoned staff were retained and expanded to oversee asset recovery efforts on behalf of the FDIC, generating fee income for NCNB.
This internal "workout group" eventually became inefficient and began to harm NCNB’s reputation. To address this, it was separated into an independent subsidiary named Financial Resource Management, Inc., which was later rebranded as Amresco—an abbreviation for "American Resources Company."
In 1992, following NCNB’s merger with C&S/Sovran Corp., the combined entity adopted the NationsBank name to enhance its image within Texas. NationsBank subsequently acquired Bank of America and took on its name.
Amresco was completely divested in 1993 and secured contracts from the Federal Savings and Loan Insurance Corporation and Resolution Trust Corporation to manage assets from failed savings and loan institutions. Its strategic aim was to broaden its client base by offering collections management services to financially sound banks.
Nevertheless, the FDIC perceived this expansion as a conflict of interest while Amresco’s principal contract with FRBC remained active, hindering efforts to attract new clients. The passage of the 1993 Resolution Trust Corporation Completion Act centralized savings institution oversight under the FDIC, effectively creating a near monopoly on loan workout contracts. This regulatory environment contributed to declining employee morale and restricted Amresco’s growth prospects. Although staffed by former bankers experienced in collections and litigation, the company lacked marketing capabilities essential for securing new business amid the southwestern economy's late-1980s recession.
Mortgage origination and servicing
Amresco redirected its focus toward servicing mortgages and commercial loans, while continuing to offer debtor-in-possession (bankruptcy) financing solutions.
By 1998, as collection activities decelerated, Amresco diversified into acquiring and securitizing subprime mortgages along with commercial loans. However, following financial shocks such as the Russian bond default and the collapse of Long Term Capital Management, Amresco encountered difficulties selling these assets at a profit. After three years, the company defaulted on its outstanding debt obligations, reflecting a fate similar to that of many of its clients.