Home Federal Bancorp officials reported a $300,000-plus loss in the final quarter of 2009, while focusing on the absorption of its purchase of Oregon-based Community First Bank.
“The integration of our Central Oregon Region was a focus of the quarter, as well as understanding the loss share loan portfolio,” said Home Federal CEO Len Williams. “We will continue to diligently assess the collectability of these assets as we evaluate this portfolio.”
Home Federal Bancorp, the parent company of Home Federal Bank, posted a net loss of $309,000 for the quarter ended Dec. 31, 2009, compared to a net loss of $801,000 for the same period a year ago.
On Aug. 7, 2009, Home Federal purchased certain assets and assumed certain liabilities of Community First Bank located in Prineville, Ore., in an FDIC-facilitated acquisition, which is reflected in this financial statement. Year-over-year results of operations may not be comparable, according to the bank.
Additionally, only 54 days of operations from the purchase are included in the fourth quarter of fiscal 2009, which impacts quarter comparisons. In certain areas, management has separately disclosed the impact of the buyout on the financial condition and results of operations of the bank.
In connection with the purchase, the bank entered into a loss sharing agreement under which to be reimbursed by the FDIC for 80 percent of the first $34 million of losses on acquired loans and real estate owned and for 95 percent of losses beyond that threshold. The purchase resulted in the bank’s entrance to the Tri-County Region of Central Oregon.
Highlights for the quarter include:
• The Bank launched two full-service banking offices in Boise and Meridian, and closed two Walmart branches.
• In connection with the August 2009 acquisition of Community First Bank, the bank purchased two banking offices and assumed leases on five other offices in the Central Oregon region.
• Provision for loan losses totaled $700,000 as delinquent loans and classified assets increased during the quarter.
• Net charge-offs totaled $1.3 million.
• The bank received $9.4 million in reimbursed losses from the FDIC on assets covered under the loss share agreement.