Heritage Oaks Bancorp on Tuesday reported a third quarter loss of $10.9 million which the bank attributes to a $10.5 million non-cash charge and $4.4 million for loan losses.
In comparison, during the third quarter of 2009, the San Luis Obispo based bank reported a loss of $5.2 million. During the first three quarters of 2010, the Bancorp reported a net loss of $18.1 million compared to a net loss of $3.6 million for the same period in 2009.
The bank’s third quarter losses can be attributed in large part to the work-through of several large problem loans, as the Bancorp works to straiten its balance sheet by reducing the amount of non-performing assets, said Lawrence P. Ward, President and Chief Executive Officer in an earnings release.
In early March, federal bank regulators took enforcement action against the bank, which operates 15 branches in San Luis Obispo and Santa Barbara counties, and banned the company from paying dividends or incurring debt as part of a written agreement between the company and the Federal Reserve Bank of San Francisco.
On March 12, in order to increase its capital and strengthen its balance sheet, the bank raised proceeds of approximately $60 million through the sale of securities.
