Appalachian Bancshares Inc. in Ellijay, Ga., said it will restate its fourth-quarter results to show a bigger net loss after a routine Federal Deposit Insurance Corp. examination found additional loan problems.
The $1.2 billion-asset company said last week that it plans to increase its loan-loss provision for the period by $2 million, to $5.8 million. That would increase its net loss to $2 million. On Jan. 29 it reported a loss of $831,000.
Appalachian earned $1.1 million in the fourth quarter of 2007.
The provision increase raised the allowance for loan losses to 1.64% of total loans.
Appalachian also increased its loans classified as nonperforming at yearend by 15.1%, to $28.2 million.
