NorCal Community Bancorp posts lower Q3 profit
NorCal Community Bancorp, the parent of Bank of Alameda, saw third-quarter earnings fall 88 percent on higher loan-loss provisions.
The bank’s net income slipped to $102,000 from $885,000 in the third quarter of 2007. Earnings per diluted share were down to 3 cents from 26 cents a year earlier.
Net interest income was down 16 percent to $3.3 million from $3.9 million last year. Noninterest income rose 7 percent to $202,000, from $188,000.
NorCal (OTCBB: NCLC) increased its allowance for loan losses, or its reserves against which loans deemed uncollectible can be charged off, to $3.95 million, from $3 million a year earlier.
“It is unclear when this economic downturn will bottom out,” Troy Williams, the company’s chief credit officer, said in its earnings release absolutely free credit report. “Management believes it critical to build its reserves to manage through this period. We believe that we have exercised sound judgment in our approach to analyzing the potential risk in our current loan portfolio.”
At the quarter’s end, NorCal’s total assets stood at $ 279.2 million, up from $264.7 million a year earlier.