Imperial Capital Bancorp reported fourth-quarter net income of $1.1 million, down from $7 million in the like quarter of 2006.
For the full year, Imperial Capital reported net income of $15.6 million, compared to $26.9 million for 2006.
The commercial banking company, formerly called ITLA Capital Corp., set aside $11 million for possible loan losses during the past year, more than double what it put into reserves in the prior year, which cut into profits.
The company said the primary cause for the reduced earnings was shrinking margins on its loan portfolio, as higher-yielding loans paid off and were replaced by loans at lower interest rates.
Nonperforming assets at Dec. 31 were $57.4 million, or 1.62 percent of the company’s total assets of $3.6 billion. That was up from nearly 1 percent in problem assets at the end of 2006.
Total assets increased over the year by $135.7 million.
Loan originations for the year were $1.2 billion, up from $1.1 billion in the prior year.
CEO George Haligowski said loan demand declined 60 percent in the fourth quarter, and will likely remain soft in the near term, but normalize as liquidity conditions improve and markets stabilize.
Traded on the New York Stock Exchange under IMP, shares closed Feb. 7 at $22.82, up nearly 4 percent from the prior day’s close. The 52-week range was $13.68 to $60.10.
, Mike Allen