Capital Corp. of the West in Merced, Calif., has postponed the release of its second-quarter earnings while it evaluates the effects of a nonperforming construction loan.
The $1.9 billion-asset company said late Monday that it expects to foreclose on the $12.9 million loan this week. It did not say when it would report earnings, which it had intended to announce Monday.
In its first-quarter earnings announcement, Capital said the loan accounted for 85% of its nonperforming loans during that quarter.
At that time the company said that even though it was foreclosing on the loan, no loss was anticipated and no reserves had been allocated.
On Monday, Capital said that recent acquisition deals have slowed the loan review.
Last week it announced that it would buy Bay View Funding, an asset-based lender in San Mateo, Calif., for about $14 million. Last month Capital said it would buy the 11 California branches of National Bank of Arizona, a unit of Zions Bancorp., for $27.4 million.
On Tuesday Capital's stock fell 3.4%, to $20.74 a share.
