PORTLAND, Ore., Feb. 8, 2013 (GLOBE NEWSWIRE) -- Albina Community Bancorp (OTCBB:ACBC), the holding company of Albina Community Bank, the only certified community development bank headquartered in Portland, today reported that higher than anticipated expenses related to year-end strategic charge offs impacted net income in both the fourth quarter and full year in 2012. Albina lost $379,000, or $(0.29) per share in 2012, compared to earning $292,000, or $0.22 per share in 2011. For the fourth quarter of 2012, the net loss was $741,000, or $(0.56) per share, compared to net income of $252,000, or $0.19 per share in the preceding quarter and $157,000, or $0.12 per share in the fourth quarter of 2011.
"The losses we incurred during the quarter and for the year were related to a number of decisions we made prior to the Bank entering into a stock purchase agreement with One PacificCoast Bancorp, and will not adversely impact the Bank's capital levels once the investment has been finalized. Credit quality remains strong and none of the expenses we incurred in the fourth quarter were linked to credit quality issues," said Cheryl Cebula, President and Chief Executive Officer of Albina Community Bank. "Specifically during the quarter, we wrote off $220,000 remaining in a community real estate investment project, and we established a $300,000 reserve for costs associated with a previously owned foreclosed commercial property."
The recently announced Investment Agreement between Albina Community Bank and One PacificCoast Bancorp is expected to close in the second quarter of 2013. "The capital infusion will bolster capital levels as required by the regulators and provide a platform for long term, sustainable success for the Bank," Cebula added.2012 Highlights (at or for the period ended December 31, 2012):
- Albina Community Bank entered into an investment agreement with One PacificCoast Bancorp, which is expected to close in the second quarter of 2013. The recapitalization of the Bank will bring capital levels in line with regulatory requirements.
- Albina Community Bancorp lost $(0.56) per share in the fourth quarter of 2012 and $(0.29) per share for the year.
- Credit quality further improved as non-performing assets decreased to $3.9 million or 3.06% of total assets.
- Total assets were $128.4 million, compared to $130.3 million at the end of the preceding quarter and $132.1 million a year ago.
- Total deposits were down 1% year-over-year to $118.7 million from $119.7 million at December 31, 2011, reflecting a reduction in matured high-cost internet "bulletin board" and brokered certificates of deposit of $14.8 million. Non-interest-bearing deposits grew 17% year-over-year and accounted for 32% of total deposits at December 31, 2012.
- Interest expense for the quarter declined 34% to $214,000 from $326,000 during the like quarter a year ago, primarily due to a shift in deposit mix out of higher cost certificates of deposit into less expensive checking and money market products. Interest expense for the year dropped 36%, to $964,000, compared to $1.5 million in 2011.
- Loans totaled $77.1 million at quarter end, compared to $76.2 million at September 30, 2012, and $93.2 million at December 30, 2011.