(Source: By George Avalos, Contra Costa Times, Walnut Creek, Calif. (MCT) – ALAMEDA — The parent of Bank of Alameda lost $2.1 million during its second quarter that ended in June, primarily because of a decision to write off nearly all of a single bad loan.
NorCal Community Bancorp decided to take a provision for loan losses of nearly $2.6 million. That was primarily because the bank learned that one large borrower and collateral for a loan had caused a greater financial exposure than previously anticipated.
“We are very disappointed,” CEO Stephen Andrews said. “NorCal and Bank of Alameda were seemingly on the way to a profitable 2012 prior to this unexpected turn of events.”
At the end of June, the Bank of Alameda’s deposits totaled $229.2 million, up 5.3 percent from the same dates the year before.
“Management believes that by taking this loan loss provision and related loan write-downs now it will serve to provide for a much stronger company in the future,” Andrews stated. “Our core operations are sound, our capital remains strong and our prospects are favorable.”
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©2012 the Contra Costa Times (Walnut Creek, Calif.)
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