UCBH Holdings Inc. has postponed its annual meeting because it needs to recalculate its first-quarter and 2008 results.
In a Securities and Exchange Commission filing Wednesday, the $13.4 billion-asset San Francisco company said it had re-examined its nonperforming assets and concluded that certain loan impairments recorded in the first quarter actually belong in the fourth quarter. This requires adjustments to the provision for loan losses and chargeoffs that it reported for those quarters.
UCBH said the corrections it found so far might increase last year's pretax loss by $45 million to $55 million.
It had previously reported a pretax loss of $134 million for 2008.
UCBH said it also expects to record additional general valuation allowances in the first quarter.
However, the level of nonperforming assets should be unchanged.
In releasing its preliminary first-quarter results April 23, UCBH had pegged its net loss for the three months at $93.7 million, mostly because of a $178.5 million provision for loan losses. At the time nonperforming assets were reported to be $700.8 million, or 5.22% of total assets.
UCBH said its audit committee is investigating the impairment losses on nonperforming loans and other real estate owned. It said it does not intend to restate the 2008 results or file its first-quarter results until after completing the investigation, and it gave no estimate of when that might be.
It also cautioned that the investigation could result in more impairment charges.
The company said the investigation came about as part of its effort to remediate the ineffective controls it had disclosed on March 16.
UCBH has not scheduled a new date for the annual meeting, which originally had been set for May 21.
