City Bank in Lynwood, Wash., restated its fourth-quarter results Tuesday, widening the net loss to $64.9 million from the previously reported loss of $39.9 million.
The $1.3 billion-asset company had earned $10.2 million during the same period in 2007.
City Bank said new appraisals had revealed deterioration in local real estate markets, so it increased the fourth-quarter loan-loss provision to $85.9 million from the previously reported $58 million.
"This has been a difficult process for us to go through, but we believe the new appraisals reflect the significant decline in the number of monthly home sales in King, Snohomish, and Pierce counties since June 2008," Conrad Hanson, City Bank's president and chief executive, said in a press release.
"As such, there has been a measurable decline in the value of comparable residential real estate sales in our local market the last few months. Our real estate collateral for impaired loans has been valued at distressed market levels … based on these new appraisals and the selling prices we have been able to achieve and that we have seen in March."
