Security Business Bancorp reported a net loss of $1.2 million for the third quarter due mainly to a $1.8 million loss sustained from the bank’s ill-timed investment into preferred stock of Fannie Mae Corp., seized by the federal government in September. That compared to a net profit of $460,000 for the third quarter of 2007.
For the nine months ended Sept. 30, Security Business Bancorp had a net loss of $545,000, compared to a net profit of $1.2 million for the like period of 2007.
On the plus side, the bank, which has three offices, grew its loans nearly 28 percent to $173 million, and deposits by 29 percent to $174 million.
Total assets were $214.9 million, up from $169.6 million in the like period of 2007.
The bank reported a single nonperforming loan of about $500,000.
CEO Paul Rodeno said the investment in Fannie Mae stock was less than 1 percent of the bank’s assets, but its core capital stands at 9.4 percent as of Sept. 30, which qualifies as a well capitalized institution.
, Mike Allen
