NorCal Community Bancorp in Alameda, Calif., said it must restate its 2008 results after a regulatory exam and that it expects to swing to a loss because of an increase in impaired assets.
In January the $263 million-asset parent of Bank of Alameda said it had earned $414,000 last year.
NorCal said it will report the new results once it completes a re-examination of its loan portfolio. It did not estimate the loss, but said the company and its bank unit would remain well capitalized.
NorCal said real estate values are the sticking point with regulators, who conducted an exam after last year's audited financial statements had been issued.
"The deepening and prolonged downturn in the real estate market and current regulatory environment with respect to measuring values of real estate collateral in distressed markets prompted additional impairment charges," Stephen G. Andrews, NorCal's president and chief executive officer, said in a press release that was issued Saturday.
The company said it has not completed its first-quarter results but expects to report "modest" earnings.
In the previously reported 2008 results, NorCal's provision for loan losses spiked 951%, to $3.5 million, with $2.1 million of that coming in the fourth quarter. Nonperforming assets made up 5.67% of its assets at Dec. 31, up from 0.58% a year earlier.
The company said in January that it had reduced its work force by 10% and eliminated bonuses to save money.
