Venture Financial Group says 10-Q will be late

Venture Financial Group said Monday that it will be late filing its first-quarter report and expects a significant increase in bad loans, according to a regulatory filing.

The parent company of Lacey-based Venture Bank said it???s unable to file its quarterly report on time without ???unreasonable effort and expense,??? according to a Securities and Exchange Commission (SEC) filing.

The bank did, however, note that it expects non-performing assets ??? one measure of bad loans ??? to increase to about $100 million in the first quarter compared with about $21 million during the same time period last year.

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The bank???s ratio of non-performing assets is expected to climb to 9.2 percent of its total assets compared with 1.7 percent during the first quarter of 2008.

As a result of the increase in problem loans, Venture expects to report net income of $2.4 million in the first quarter, down from $3.1 million during the first quarter of last year.

Venture Bank, with assets of $1.2 billion and 18 branches across Washington,is operating under strict enforcement action from federal regulatorswho say the bank is undercapitalized.

The bank is appealing that decision and alsorecently announcedit had shored up investments in private capital.