First National Community Bancorp Inc. in Dunmore, Pa., said Friday that it had restated financial results for 2009 and two quarters in 2010 after an internal audit uncovered inaccuracies in its accounting for loans losses.
The $1.1 billion-asset company said in October 2010 that the financial statements previously filed with the Securities and Exchange Commission for the year ending Dec. 31, 2009 and the quarters ending March 31, 2010 and June 30, 2010 had to be restated.
Its analysis found that accounting charges and loan-loss allowances that were previously recorded in 2010 should have been reported in 2009. As a result, the company updated its 2009 financial statement to reflect a loss of $44.3 million, up from the $11.3 million loss it initially reported. This adjustment included a $10.1 million addition to the provision for loan and lease losses, $14.5 million additional charges related to other-than-temporary impairment in the securities investment portfolio and an $8.1 million goodwill impairment charge.
For the quarter ending March 31, 2010, it is now reporting a loss of $825,000 after initially reporting a $2 million profit; and for the June 30 quarter it now says it lost $5.2 million, not the $1.7 million in first reported. The adjustments stemmed from additions to its loan-loss provisions, more charges related to other-than-temporary impairment in the securities portfolio and a reduction in the credit for income taxes.
First National's chairman, Dominick L. DeNaples, said the company is still working to file its financial statement for the year ending Dec. 31, 2010 and reports for the quarter ending Sept. 30, 2010 and the first three quarters of 2011.
In November First National named Steven R. Tokach, a community banking veteran and former examiner with the Officer of the Comptroller of the Currency, as its president and chief executive.