E-mail Story
Print Friendly
Send E-mail
Reprint story
Tuesday, February 02, 2010
First State Racks Up Hefty '09 Losses
By Michael Hartranft
Journal Staff Writer
First State Bancorporation reported a $28.4 million loss in the fourth quarter and concluded 2009 with a total net loss of $110.5 million, according to the company's fourth-quarter report.
That compares with a net loss of $37.5 million for the fourth quarter in 2008, and a total net loss of $153.6 million in 2008.
The company's stock, which has been trading under $1 for three months, lost 18 cents or fell 28 percent Monday to close at 46 cents.
First State, which operates the First Community Bank system, attributed the losses for the quarter and the year ending Dec. 31 to a “significant provision” for loan losses due to non-performing assets, and charge-offs and write-downs of other real estate owned.
The losses were tempered by a tax benefit of $21.4 million for the quarter and $20.9 million for the year, the report says.
“While overall classified loans remained stable for the second straight quarter, we experienced another increase in non-performing loans,” said H. Patrick Dee, president and chief executive officer, in a prepared statement. “The level of loan charge-offs and potential problem loans declined in the fourth quarter, compared to the previous quarter.”
Dee was named First State's president and CEO in December after Michael R. Stanford stepped down.
“For 2010, we are focused on reducing non-interest expenses in several areas and have already identified approximately $2.1 million in annualized expense reductions to be accomplished in early 2010, compared to those incurred in 2009,” he said.
First Community Bank remained adequately capitalized as of Dec. 31, according to the report.
“However, based on the recent deterioration of the loan portfolio, there is a pressing need for additional capital,” the report says. “Although we do not believe we currently have the ability to raise new capital at an acceptable price in the current economic environment, we continue to evaluate alternative capital strengthening strategies, including the potential sale of other loans and normal loan amortization.”
First State hired a consultant last year to explore the company's options including its potential sale.
You also can send comments via our comment form
|
|
