Provident Community Bancshares has reported a net loss of $1.4 million, or $0.81 per diluted share, for the fourth quarter of 2008, compared to a net income of $213,000, or $0.12 per diluted share, for the fourth quarter of 2007.
According to the company, the decrease in net income for the period was due primarily to declining interest rates along with an increase in the provision for loan losses due to loan growth and the increase in nonperforming assets, offset by an increase in noninterest income and a reduction in noninterest expense.
Net loss for the 12 months ended December 31, 2008 was $397,000, or $0.22 per diluted share, compared to a net income of $2.2 million, or $1.19 per diluted share, for the same period in 2007.
At December 31, 2008, assets totaled $434.2 million, an increase of 6.5% from $407.6 million at December 31, 2007.
Dwight Neese, president and CEO, said: It is an understatement to say that 2008 was a very challenging year for our bank as well as the entire industry. As we move through this economic cycle, our focus will be to reposition our bank to prosper and to continue our long-term goal of creating shareholder value.
