North Valley Bancorp in Redding, Calif., posted a $7.6 million loss for the third quarter, compared with net income of $684,000 a year earlier.
The $895 million-asset company late Monday blamed the loss on a huge writedown of deferred tax assets, along with the recognition of benefits associated with the conversion of Series A preferred stock as part of a $40 million capital raise. The noncash charges totaled $23.1 million.
Michael Cushman, North Valley's chief executive, said in a press release that the main goal is lowering nonperforming assets, which fell 22% from a year earlier, to $48.5 million.
North Valley charged off $5.5 million in problem loans, a 34% year-over-year increase, and tripled its loan-loss provision, to $4.6 million.
At Sept. 30, North Valley had a total risk-based capital ratio of 17%, a Tier 1 ratio of 15.2% and a leverage ratio of 11%.
