Imperial Capital Bancorp has reported a net loss of $36.2 million, or $6.66 per diluted share, for the fourth quarter ended December 31, 2008, compared to a net income of $1.1 million or $0.21 per diluted share, for the fourth quarter ended December 31, 2007.
According to Imperial, the fourth quarter 2008 provision was primarily attributable to continued declines in the values of real property collateral securing loans in the bank’s construction and land development loan portfolio, a deteriorating economic environment, internal downgrades of loan risk ratings and an increase in non-performing construction and land development loans.
For the year ended December 31, 2008, the preliminary net loss was $32.6 million, or $6.01 per diluted share, compared to a net income of $15.6 million, or $2.81 per diluted share, for the year ended December 31, 2007.
Non-performing assets at December 31, 2008 were approximately $192.9 million, or 4.34% of total assets, compared to $57.4 million or 1.62% of total assets at December 31, 2007.
Timothy Doyle, executive managing director and CFO of Imperial Capital Bancorp, said: The current economic climate remains extremely challenging. Nonetheless, we have made significant progress toward our key initiatives, which are to improve asset quality, reduce our asset base and improve regulatory capital ratios, control expenses, and reduce our reliance on wholesale funding sources. We expect that the successful completion of these initiatives will strengthen the company’s position long term.
