Battered by problem loans, Tennessee Commerce Bancorp in Franklin said Friday that it lost $3.2 million, or 26 cents a share, in the first quarter. By comparison, the $1.5 billion-asset company earned $553,000 in the fourth quarter of 2010 and $1.2 million in last year's first quarter.
Tennessee Commerce attributed the results largely to a $5 million increase in its provision for loan losses and a $2.4 million charge associated with losses on repossessed assets. Nonperforming loans totaled $59 million at March 31, up 9.4% from Dec. 31 and nearly 70% from a year earlier.
"We are disappointed by the events that occurred during the quarter," said Mike Sapp, the company's president and chief executive officer, said in a news release. "We are committed to operating the bank in a safe and profitable manner."
Separately, Tennessee Commerce disclosed this week that it received a notice from the Nasdaq that its annual report filed with the Securities and Exchange Commission was not in compliance with the Nasdaq's reporting requirements. In the report, Tennessee Commerce included a qualification that regulators could require it to restate earnings to reflect even higher loss provisions. Because the filing includes such a qualification, the Nasdaq views it as incomplete and therefore delinquent.
Tennessee Commerce has 60 days to present a plan to resolve the deficiency or it could face delisting.