A large loan-loss provision and an even larger goodwill impairment charge led to another quarterly loss for TierOne Corp. of Lincoln, Neb.
The $3.4 billion-asset company said Friday that it lost $60.9 million, or $3.60 a share, in the first quarter, compared with an $18 million loss in the fourth quarter and earnings of $9.4 million, or 55 cents a share, a year earlier.
Its $39.9 million provision for loan losses included $14.5 million for a package of nonperforming residential construction loans in Florida originated by TransLand Financial Services Inc. TierOne said it is working with an investment bank to sell the TransLand portfolio.
TierOne's declining market value forced it to take a $42.5 million goodwill impairment charge related to its 2004 purchase of United Nebraska Financial Co. Its shares have lost more than 75% of their value in the last year.
They were trading at $7.60 late Friday, up 15.3% from Thursday's closing price.
Nonperforming loans at March 31 totaled $127.1 million, or 4.4% of net loans. Three months earlier, nonperformers were 4.32% of net loans. Roughly 75% of the nonperforming loans were for residential construction or land development, primarily in southwestern Florida and Las Vegas.
