BSD Bancorp Inc. said Tuesday that it lost $964,824 last year, the first annual loss since the bank holding company was founded in 1979.
The previous year, BSD reported net income of $1 million, or 37 cents per share. The loss was largely the result of third-quarter write-offs and provisions for bad loans. Most of the company's $4 million in problem loans are at Bank of San Diego, BSD's flagship subsidiary.
In the fourth quarter ended last Dec. 31, BSD reported lower net income of $204,443, compared to $259,737 a year earlier.
Total assets increased to $343.3 million from $315.5 million in the previous year.
Deposits increased to $315.1 million from $286.9 million, and loans rose to $245.1 million from $207.3 million a year earlier.
Despite the loss and lower fourth-quarter results, Chairman James Brown said the holding company is "moving in the right direction" and "will continue to operate on a well-capitalized and profitable basis."
Release of the year-end figures was delayed until BSD had notified its shareholders of the loss by mail. The company recently commissioned a 200-page communications study on shareholder relations.
In addition to Bank of San Diego, BSD is also the parent of American Valley Bank, Coast Bank, Borrego Springs Bank and Bank of La Costa.