NASB Financial, Inc. (NASDAQ: NASB) announced today a net loss for the quarter ended March 31, 2011, of $24,507,000 or $(3.11) per share. This compares to a net loss of $3,035,000 or $(0.39) per share for the quarter ended December 31, 2010, and compares to net income of $3,219,000 or $0.41 per share for the quarter ended March 31, 2010.
The net loss for the six months ended March 31, 2011, was $27,542,000 or $(3.50) per share, compared to net income of $4,548,000 or $0.58 per share for the six months ended March 31, 2010.
Most notable for the quarter is the provision for loan losses of $38.8 million and a provision for loss on foreclosed real estate of $9.7 million, which is included as a reduction to non-interest income.
During the quarter ended March 31, 2011, the Company early adopted Accounting Standards Update (“ASU”) No. 2011-02, “A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring.” This ASU, which was issued in April 2011, clarifies the guidance on how creditors evaluate whether a restructuring of debt qualifies as a Troubled Debt Restructuring (“TDR”) and, for public companies, is effective for the first interim or annual period beginning on or after June 15, 2011. However, the ASU permits entities to early adopt the guidance and the Company decided to do so in its second fiscal quarter ending March 31, 2011. With the adoption of ASU 2011-02, the Company’s TDRs increased $34.8 million and the related increase in the provision for loan losses associated with those loans was approximately $11.3 million.Of the loans designated as TDRs at March 31, 2011, most are paying as agreed and have not been restructured by offering any concessions that discount the original terms; however, the original maturity dates have been extended. In addition to the adoption of ASU 2011-02, and in connection with the determination of impairment, the Company adopted a change in methodology for the valuation of both the loans in its development real estate portfolio and its foreclosed real estate. The revised methodology applies downward “qualitative” adjustments to recent real estate appraised values for residential development assets that the Company has deemed impaired. The Company believes these qualitative appraisal adjustments better reflect the continued uncertainty in real estate values in light of adverse economic conditions that prevail. This change in methodology increased the provision for loan losses by approximately $18.3 million and increased the provision for loss on real estate owned by approximately $7.2 million during the quarter ended March 31, 2011.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV