Valley Commerce Bancorp of Visalia, Calif., said it lost $2.1 million in the fourth quarter, compared with earnings of $417,000 a year earlier.
The company, which announced the results Monday, said that its assets increased 11%, to $340.2 million, in the quarter and that its net loans increased 4%, to $234.8 million.
It reported a net loss of $587,000 for the year, compared with a profit of $1.8 million in 2008.
Valley Commerce's allowance for loan losses increased 24%, to $6.2 million, in the fourth quarter.
The aggregate balance of its nonperforming assets increased 51%, to $7.4 million in 2009, primarily as a result of one commercial real estate loan worth $5.9 million that was transferred to nonaccrual status in the second quarter.
The company also charged off a $3.7 million nonperforming loan in the fourth quarter.
