Shares of TierOne Corp. fell 7.46% Tuesday, to $12.78, after the Lincoln, Neb., company disclosed that it had lost $18 million in the fourth quarter.
The $3.5 billion-asset TierOne, which released its results after markets closed Monday, attributed the loss to a surge in nonperforming loans, which more than tripled from a year earlier, to $128.5 million, or 4.32% of net loans.
TierOne said it increased the fourth-quarter provision for loan losses nearly 21-fold, to $38.9 million. It cited trouble with residential construction credits and land development and commercial construction loans, mostly in Florida and Nevada.
TierOne made a deal in May to sell itself to CapitalSource Inc., a real estate investment trust in Chevy Chase, Md., for $652 million in cash and stock, but the deal has yet to close. In February, CapitalSource gave John Delaney, its chairman and CEO, authority to renegotiate or terminate the deal.
Analysts said that TierOne's credit quality appears to be a sticking point; CapitalSource has repeatedly declined to discuss the matter.
TierOne gave no update on the deal.
