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Porter Bancorp Inc. in Louisville, Ky. reported a bigger than expected loss for the fourth quarter and warned investors that the ultimate loss for the quarter could be even larger.
February 2 -
Porter Bancorp Inc.'s largest outside shareholder says that the Louisville, Ky., company continues understate its level of problem loans despite its recent claims that its allowance for loan losses is sufficient.
November 30
Porter Bancorp's (PBIB) loss for last year widened after the Louisville, Ky., company increased its loan-loss provision by $8.8 million.
The $1.5 billion-asset company said Friday that it also recorded a $500,000 reversal in interest income. The reversal and higher provision resulted in a loss of $105.2 million for 2011. It previously reported in February losing $96.2 million for the year.
The company's provision increased to $35.8 million, compared to its previously reported $27 million, because of loan downgrades and chargeoffs following a routine regulatory exam and audit.
The revision to earnings came a day after the company said that its chairman and namesake founder was stepping down.
The company said Thursday that it expects to name Maria L. Bouvette, Porter Bancorp's president and chief executive, to succeed J. Chester Porter. The company's board has formed a search committee to hire a new president and CEO to succeed Bouvette at PBI Bank.
Porter, 71, will become chairman emeritus following the company's annual meeting in May. The company expects to nominate William G. Porter, Chester Porter's brother, to join the board.
Porter Bancorp also said in its press release that the Federal Reserve Board had approved its selections of Phil W. Barnhouse as chief financial officer and David B. Pierce as chief risk officer.
Porter Bancorp has lost more than $100 million over the last two years as it has struggled with bad loans. The company
Last fall, Porter Bancorp's largest outside shareholder, Clinton Group of New York,
