Bank of Blue Valley parent posts a quarterly loss

By MARK DAVIS and STEVE ROSEN

The Kansas City Star

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Loan problems at the Bank of Blue Valley in Overland Park led to a $4.2 million third-quarter loss for its parent company and to a formal agreement with regulators.

The $825 million bank became the 17th in the Kansas City area to operate under a formal regulatory agreement. The 12-page document signed Wednesday focused on improvements in credit risk, asset quality and funds management. It also called for specific capital and earnings plans.

CEO Robert Regnier said the bank continued to be well capitalized by regulatory standards, with more than $35 million in excess capital.

Blue Valley benefited from a $21.75 million capital investment under the U.S. Treasury’s TARP program. The $4.2 million loss was a 33 percent improvement over the bank’s third-quarter loss a year ago. The loss does not include dividend payments Blue Valley owes but has deferred paying under TARP.

Regnier said the bank was cleaning up its supply of foreclosed homes, many of which came from builders that had borrowed from the bank.

Blue Valley Ban Corp. said its loss equaled $1.61 a share. A year ago, the company had lost $6.2 million, or $2.55 a share.

Posted on Fri, Nov. 06, 2009 11:07 PM

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