Business & Finance
Business and Finance
Business and Finance
Wed, February 25, 2009 First Commerce Bancorp Posts Losses for Fourth Quarter and Full Year Due to Higher Loan Loss Provisions " Bancorp Retains All W
ENCINO, Calif.--([ BUSINESS WIRE ])--First Commerce Bancorp (the "Company") (OTCBB: FCCC) today announced a net loss (unaudited) for the year ended December 31, 2008 of $(1,241,000) or ($0.13) per share on a diluted basis compared to net income of $3,518,000 for the year ended December 31, 2007. Net loss for the quarter ended December 31, 2008 was $(2,970,000) or ($0.32) on a diluted basis compared to net income of $906,000 for the quarter ended December 31, 2007. Reflecting the continuing economic recession and the downturn in the real estate market in general, and the construction industry in particular, the Bancorp added $6,368,000 and $7,357,000 to its loan loss reserves in the fourth quarter and the full year, respectively.
Assets at December 31, 2008 were $296,087,000, up $10,648,000 or 4% from the prior year end. Deposits and net loans totaled $261,941,000 and $240,300,000, respectively, up 6% and down 3% over the same period last year.
Jack Feldman, President and CEO of the Company and the Bank, said: "These are challenging times for the nation and for financial institutions, and our results show we have been adversely affected, too. With our substantial loan loss provision, we believe we are adequately reserved and our long-standing emphasis on capital strength has enabled us to remain 'well capitalized' under the regulatory framework." He said: "This capital strength has come without the need to participate in the U.S. Treasury's Troubled Asset Relief Program (TARP). We believe we have positioned the Bank to weather the uncertain economic climate."
Feldman also announced that effective February 10, 2009, the Glendale Regional Office has been closed due to its inability, after three years, to become profitable.
First Commerce Bank is an independent community bank with its main office in Encino, California and a regional office in Los Angeles, California.
This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.Actual results could differ materially from those projected in the forward-looking statements.
