Centennial Bank Holdings takes $142.2 million charge

DENVER — Centennial Bank Holdings Inc. (Nasdaq: CBHI) took a fourth quarter goodwill impairment charge of $142.2 million, creating a year-end net loss of $138.1 million.

The non-cash charge was taken in relation to prior acquisitions and does not impact the bank holding company’s cash flow, liquidity or regulatory capital, according to President Daniel Quinn.

“While market conditions and the current environment dictated that we adjust our goodwill, the magnitude of the impairment does not detract from the continued success of our efforts to strategically reposition Centennial Bank Holdings,” he said, in a prepared statement. Centennial Bank Holdings operates Guaranty Bank and Trust and recently merged its Fort Collins-based Centennial Bank of the West subsidiary into Guaranty.

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The company’s repositioning included a fourth quarter reduction in land development loans — down 19 percent to account for 13 percent of the company’s loan portfolio. At the same time, the company saw a 6 percent increase in commercial loans. Total loans declined year-over-year by $165.3 million — $47.9 million of which were part of an impaired asset sale in October.

Without taking into account the goodwill impairment charge and intangible asset amortization, the company saw a cash net income of $9.5 million, compared to $31.7 million the previous year. In morning trading, Centennial Bank Holdings stock was trading down 2 cents at $5.60.