United Western Bancorp Inc (fka UWBKQ)

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United Western Bancorp posts Q3


Denver's United Western Bancorp lost $8.7 million from continuing operations in the third quarter, in part because of increased money set aside to cover bad loans and a $2.8 million writedown on mortgage-backed securities, officials said.

United Western Bancorp (NASDAQ: UWBK) owns United Western Bank and UW Trust Co.

The loss, which equates to 95 cents per share, compares with a profit of nearly $1.5 million in the same quarter a year earlier.

"We continued with our efforts to strengthen the balance sheet and plan for the future," CFO William Snider said in a statement late Wednesday. "The balance sheet-strengthening actions in the third quarter included increasing capital, increasing liquidity, and risk reduction through increased reserves, a decline in exposure to construction and development loans and increasing core community bank deposits."

The company raised $81.8 million in September and October through a stock offering. That contributed to its having about $370 million of short-term liquidity on its balance sheet during the third quarter, which lowered its return on interest-earning assets.

United Western's net interest margin declined by 47 basis points in the third quarter, officials said.

The company took $2.8 million in impairment charges on three private label mortgage-backed securities during the third quarter.

Meanwhile, provision for credit losses was $10.1 million in the third quarter, compared with $6.3 million in the previous quarter and $2.2 million for the year-ago quarter.

Community bank deposits rose by $92 million, or 32 percent, in the third quarter, to $385 million.

Read more: United Western Bancorp posts $8.7M Q3 loss - Denver Business Journal




http://denver.bizjournals.com/denver/stories/2009/11/02/daily74.html