Suffolk Bancorp in Riverhead, N.Y., is planning to restate its earnings for third and fourth quarters of 2010, as well as for the full year, after its audit committee determined that portions of the loan-loss provision it took in this year's first quarter should be applied to prior quarters.
The $1.6 billion-asset company had warned investors earlier this year that it had identified weaknesses in its methodology for calculating loan losses and may need to restate earnings for previous quarters. In a Securities and Exchange Commission filing Friday, Suffolk said that its 10-Qs for the quarters that ended Sept. 30 and Dec. 31 and its 10-K for 2010 "should no longer be relied upon due to an understatement of its allowance for loan losses in such periods."
Suffolk had previously reported that it earned $4.7 million in last year's third quarter, $4 million in the fourth quarter and $15 million for all of 2010. In Friday's SEC filing Suffolk said it intends to amend its financial statements "as soon as practicable."
The company also announced last week that it would delay reporting its second-quarter earnings until the review was complete, though it said it expects to turn a profit of roughly $4.6 million.
Suffolk's shares were trading at $9.31 Monday afternoon, down 1.4% from Friday's closing price. The stock has lost more than 62% of its value since Jan. 1.
