Shares of Alliance Bancorp Inc. of Broomall, Pa., fell 2.8% Monday after the company restated its fourth-quarter earnings to show a $197,000 loss.
In January the parent of the $424 million-asset Alliance Bank had reported earnings of $370,000, or 5 cents a share.
Alliance Bancorp announced the restatement after the markets closed Friday. It attributed the loss to the continued decline in the value of its $20 million mutual fund portfolio, for which it took a pretax charge of $860,000 against operating results.
The funds have mortgage-backed securities underlying them and lost about $240,000 in the first two months of this year, Alliance said, and more charges could be taken this quarter if the value continues to decline.
For the fourth quarter of 2006, Alliance posted a profit of $254,000, or 3 cents a share.
