NorCal Community Bancorp (NCLC), parent company for Bank of Alameda, Monday reported a net loss of $2.1 million for the quarter ended June 30, 2012 and $1.9 million year-to-date.
The loss is associated with a second quarter provision for loan losses of $2.575 million, according to a company press release.
"The large provision is substantially associated with one relationship, previously identified by management as impaired, whereas new information about the borrower and collateral has created a greater exposure than previously estimated," said NLCL President Stephen G. Andrews in the release.
"In an effort to reduce any future exposure on the credit, the Bank is writing down the current balance significantly.
"We are very disappointed that such an event came to light when the Company was poised to report its fourth consecutive quarter of profitability. NorCal and the Bank were seemingly on the way to a profitable 2012 prior to this unexpected turn of events."
Andrews said he encourages customers and investors to contact him or Board Chairman James B. Davis "to talk about these results and the ongoing strategy of the organization."
You may read NCLC's full press release here.
NorCal Community Bancorp, headquartered in Alameda, was formed in 2002 as a single-bank holding company for the Bank of Alameda, a locally owned business bank which was established in 1998.
The Bank of Alameda has branches at South Shore Center and on Park Street in Alameda, along with one branch each in Oakland and Emeryville.