Beverly Hills Bancorp Jumps On Earnings

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Shares in Beverly Hills Bancorp Inc. closed up nearly 70 percent Tuesday after the parent company of the First Bank of Beverly Hills reported first quarter earnings late Monday.


The bank reported net income of $1.8 million (10 cents per share), a 31 percent decline from $2.6 million (14 cents per share) in the same period a year earlier.


The decline was primarily due to an additional $500,000 set aside for loan losses, a $300,000 decline in net interest income and a $700,000 increase in operating expenses, the bank company said.


Net interest income for the Calabasas-based company was $7.3 million, a 5.5 percent decline from $7.7 million last year mainly due to declining interest rates, the bank said.


The company said it has seen an increase in non-accrual loans from $29.9 million at the end of 2007 to $45 million at March 31, which includes $41.4 million of construction loans.


“Current economic conditions and deteriorating real estate markets have adversely affected us, particularly with regard to the construction loan portfolio,” the bank said. “In general, developers are having difficulty selling existing inventory; absorption periods have extended beyond the originally projected timelines, creating an interest reserve deficiency, and buyers are not able to secure jumbo purchase money mortgages.”


Shares in Beverly Hills Bancorp closed up 68 percent ($1.15 per share) to $2.85 Tuesday.

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