Pacific & Western Credit Corp. swung to a first quarter loss as turbulent market conditions and a drop in short term interest rates hampered results.
The company said Thursday the net loss for the quarter ended Jan. 31 was $2.7 million, or 20¢ a share, compared to a profit of $536,000, or 3¢ a share, for the same period last year.
Total revenue, which is comprised of net interest income after the provision for credit losses and other income, was $311,000 for the quarter compared to $5 million a year ago.
Loans and leases increased to $1.1 billion from $976 million a year ago.
Credit quality remained strong, the company said, with gross impaired loans to total assets of 0.53% compared to 0.52% at the end of the previous quarter.
Non-interest expenses fell to $3.4 million for the quarter from $3.8 million a year ago.
At Jan. 31, total assets were $1.47 billion compared to $1.49 billion a year ago and $1.51 billion at the end of the previous quarter.
“Last quarter our spread and earnings continued to be negatively affected by the turbulent market conditions and by the drop in short term interest rates,” said David Taylor, president and CEO, in a release.
“Subsequent to the quarter end, we were successful in adding another $20 million to our bank’s regulatory capital. This new capital has allowed us to begin re-investing our short-term securities, which is mainly composed of T-Bills, into high yielding, high quality securities,” Taylor said.
IE