NORFOLK
Blaming the difficult economic environment, Commonwealth Bankshares Inc. said Thursday that it lost more than $9 million in the July-through-September quarter after adding $20 million to its reserve for troubled loans.
The Norfolk-based parent of Bank of the Commonwealth also reported that its nonperforming assets ballooned to $33.1 million at the end of September from $5 million one year earlier. Such assets now account for 3.2 percent of the bank's total assets.
In last year's third quarter, Commonwealth earned $2.77 million, or 40 cents a share. In the latest quarter, it lost $1.33 a share.
Commonwealth's management team and board made the hefty addition to loan-loss reserves "in response to what we considered unprecedented economic times," said Edward Woodard Jr., the company's chairman, president and chief executive officer.
Heavy losses can cripple a bank's capital and hamper its continued growth. Woodard insisted that won't be the case with Bank of the Commonwealth.
"We're still as active in the lending market as we've ever been," he said. "If you get past the unprecedented provision, our core earnings are still very strong."
Bank of the Commonwealth continues to have more than adequate capital, he said, and can draw on $20 million of cash in the parent company if needed.
Bank of the Commonwealth has been especially active in lending for real-estate projects in downtown Norfolk and helped finance the site for Granby Tower, a stalled condominium project at the corner of Granby Street and Brambleton Avenue. Woodard said he couldn't discuss particular lending relationships but said that the Granby Tower site isn't in the bank's portfolio of foreclosed properties.
Commonwealth declared a quarterly dividend of eight cents, payable Nov. 28 to shareholders of record Nov. 17. The company has no plans to cut its dividend, Woodard said.
In the release of its third-quarter results, Commonwealth said it is considering applying to the Treasury Department's Troubled Asset Relief Program, which provides additional capital to banks as a way to spur lending.
Commonwealth released its financial results after the stock market closed Thursday. Its share price fell 20 cents to close at $8.80. That's down 55 percent from its 52-week high of $19.59 in February.
Tom Shean, (757) 446-2379, tom.shean@pilotonline.com
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commonwealth bank profits
The comment on not discussing the Granby Tower project, it seems as though the whole City of Norfolk including city council does not want to discuss this failed project. The Bank of Commonwealth for three years has been holding deposits from homeowners who believed in this project and City of Norfolk. They SHOULD discuss this matter as well as Norfolk city council. Tight lips???
STOCK HOLDERS WAKE UP!TIME 2 CHANGE THE PRESIDENT AND BOA
stock trading under $9.
woodard salary $1 million a year.
board members earning $50,000 + a year for attending meetings..good job if u can get it..
branch office buildings paying $96,000-$120,000 in rent 2 woodard's family and other board member families...they own the land the branches r built on...what a great world we live in..
Y did woodard buy 10,000 shares of bank stock last month?? get that price up..woodard and the board got stock options at $7.47 a share ..y did woodard buy in the open market??
STOCK HOLDERS IT MIGHT B X 4 A NEW COMMANDING OFFICER AND BOARD...they r getting RICh and the stock price is going DOWN..how low can the price go????.the troubled "asset relief program" is wating 2 lend money 2 the BOC. this will never happen...woodard if thing r so bad y r u still paying a dividend?? the big banks cut their dividend..
AND life goes on...keep up the good work woodard and board!!!!!