NorCal Community Posts Wider 2Q Loss

NorCal Community Bancorp in Alameda, Calif., reported a steeper net second-quarter loss as credit deterioration continued to affect the institution.

The parent company of Bank of Alameda reported a net loss of $721,000, compared with a net loss of $377,000 a year earlier.

Stephen Andrews, NorCal's president and chief executive, said in a press release late Friday that earnings were hurt by "the difficult lending environment coupled with our high level of nonperforming assets."

This makes it difficult for the bank "to build its earning asset base into higher-yielding instruments," Andrews said.

Nonperforming loans and other real estate owned accounted for 10.14% of NorCal's $245.8 million of assets on June 30, up from 6.32% a year earlier. Net interest income fell 20% year over year, to nearly $2.5 million, contributing to a tighter net interest margin at the bank.

The company remains well capitalized, with a total risk-based capital ratio of 14.50%.

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Community banking California
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