Another banking company has tallied the impact of Silverton Bank's failure on its bottom line.
Southeastern Bank Financial Corp. in Augusta, Ga., has revised its first-quarter results downward because it held $1 million of stock and trust-preferred securities in Silverton Financial Services Inc., the parent company of the correspondent bank that regulators seized May 1.
The $1.5 billion-asset Southeastern said Monday that it earned $56,124 in the first quarter, or 92% less than it had previously reported.
Its earnings per share were lowered to 1 cent, from 11 cents.
Southeastern said the revision includes a loss of $163,981 on its investment securities, instead of the $743,900 gain that had been in its preliminary results April 24.
"The actual loss has minimal impact on our overall financial health," R. Daniel Blanton, Southeastern's president and chief executive officer, said in a press release. "We are still profitable, and our capital ratios remain strong."
Southeastern, the parent company of Georgia Bank and Trust Co. of Augusta and Southern Bank and Trust, earned $2.6 million, or 44 cents a share, in the first quarter of 2008.
Last month it suspended its dividend to save $3.2 million annually.
The Silverton Bank failure is expected to affect hundreds of community banks, including the 400 that owned stock in the holding company, several that participated in a syndicated loan it had and those that held its trust-preferred securities and subordinated debt.
Pinnacle Financial Partners Inc. in Nashville was the first to quantify and disclose the financial impact. The $4.8 billion-asset company announced this month that it would write off $21.55 million on a loan to Silverton Financial in the second quarter. It said the charge would be about 53 cents a share.
