North Valley Bancorp (NOVB) in Redding, Calif., disclosed an error in its third-quarter earnings report that will reduce its profit by more than $1.3 million.
The $890 million-asset company said in a regulatory filing Wednesday that it overstated a third-quarter tax benefit. The company failed to record a charge of over $1.3 million for increased tax liabilities.
Correcting the error will reduce North Valley's profit in the quarter by 25%, to $4 million.
The company said it discovered the error after consulting with its accounting firm, Crowe Horwath. North Valley hired the firm to replace Perry-Smith in November 2011, the company said in its most recent annual report.
North Valley said it is reviewing the circumstances that led to the mistake, though it has not come to a conclusion about the adequacy of its internal financial reporting controls. The company did not state when it plans to file its fourth-quarter financial results.