Pittsfield’s Legacy Bancorp Inc., the holding company for Legacy Banks, has reported a net loss of $4.5 million for the quarter ended Dec. 31, compared to a net loss of $3.8 million during the same period in 2009.
In 2010, the company incurred a net loss of $7.9 million, compared to a net loss of $7.8 million in 2009. The year-to-date change in net loss includes a decrease in the loss on the sale of securities and charges on investments deemed to be other-than-temporarily impaired (OTTI), offset by an increase in the provision for loan losses and operating expenses and a decrease in net interest margin, according to a statement.
The 2010 fourth quarter and full year loss also include a charge of $1.5 million on the prepayment of approximately $34.7 million of advances from the Federal Home Loan Bank (FHLB). The total shares outstanding resulted in a book value per share and tangible book value per share of $12.92 and $11.17, respectively, at Dec. 31, 2010.
"The fourth quarter concluded a pivotal and transitional year for Legacy Bancorp and sets the stage for improved performance and dynamic change for our company, customers, employees and community," said J. Williar Dunlaevy, chief executive officer. "In April, following a national search, Pat Sullivan joined us as president of the company and president and CEO of Legacy Banks. On the operating side, Pat quickly moved to put in place a profit improvement plan. He also quickly assumed the reins as chief lending officer and aggressively worked to resolve problem assets and remove risk from the balance sheet, which unfortunately overshadowed the profitability improvements.
On the more strategic front, we worked with the board on how best to create long term shareholder value. The conclusion was the decision announced in December to join forces with Berkshire Hills Bancorp, our long term in-market competitor, to create a dynamic regional community bank building on the financial strength and talent of each company," Dunlaevy said.
Sullivan added, "My first year has been primarily focused on improving all measures of asset quality as well as addressing cost management throughout the bank. 2010 is reflective of all those actions. Our recently announced merger with Berkshire Hills Bancorp creates further opportunities for building a strong Western Mass-based financial institution."
