[T]he Company has decided to increase its provision for loan losses by $13.25 million and write down the net carrying value of other real estate owned by $27.00 million. The Company has also elected to expense $1.20 million of previously deferred costs associated with the capital raise during the 2011 fiscal year. The Company expects to recognize an additional $2.00 million of capital raise expenses in the first quarter of 2012. The 2011 adjustments require the Company to establish a valuation allowance for its net deferred tax asset resulting in an increased income tax expense of approximately $8.04 million for the quarter and year ended December 31, 2011. The combination of these 2011 adjustments is expected to result in a net loss to common shareholders for the fourth quarter of 2011 of approximately $50.48 million and for the fiscal year ended December 31, 2011, of approximately $50.94 million.
The bank had previously estimated fourth-quarter loss of $971,000 and a full-year loss of $1.4 million. Fifty times worse is just awful.
Shares are down about -16% at $1.25 in a 52-week range of $1.13-$2.75.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks