First Federal Bankshares Inc. of Sioux City, Iowa, swung to a fiscal fourth-quarter net loss of $19.3 million, or $5.94 a share, from earnings of $670,000, or 20 cents a share, a year earlier.
It attributed the loss mainly to an $18.4 million one-time, noncash goodwill impairment charge related to past bank acquisitions.
For the fiscal year that ended June 30, the company lost $22.5 million, or $6.92 a share. It reported a profit of $3.1 million, or 93 cents a share, for fiscal 2007.
The fourth-quarter results were also affected by a noncash impairment charge of $809,000 related to First Federal's trust-preferred pooled securities portfolio, which was downgraded from triple-B to triple-C in December.
The $565 million-asset company's credit problems worsened in the quarter. It recorded a loan-loss provision of $1.4 million, versus $13,000 a year earlier, and said nonperforming assets nearly doubled from the previous quarter, to $17.7 million, or 4.3% of loans. It said the increase was primarily related to three commercial real estate loans totaling $12.9 million.