Camco Financial Corp. in Cambridge, Ohio, has revised its fourth-quarter results, saying it lost $2.3 million more than it previously reported.
The $1 billion-asset company also disclosed late Monday that it is operating under a memorandum of understanding with the Federal Reserve Bank of Cleveland.
Camco said it swung to a $15.8 million loss in the fourth quarter, from a profit of $807,000 a year earlier. It had reported in early February that it lost $13.5 million in the fourth quarter.
Several recent adjustments resulted in the higher loss. "Now that more information has been received for 2008, the deterioration of the economy and housing values during the latter part of 2008 increased at a more rapid rate than contained in our previous analysis," James E. Brooks, Camco's chief financial officer, said in a press release. "Our actions reflect what we believe to be the prudent decisions in these times."
The company wrote down its mortgage servicing rights by $2.5 million. It had previously calculated a $229,000 writedown on those rights for the quarter.
Camco also wrote down the value of its real estate owned by an additional $650,000 to reflect fair market values and boosted its allowance for loan losses by $206,000. With the adjustment, the allowance increased 130% from a year earlier, to $15.5 million.
The company did not specify whether its ratio of nonperforming assets would change. It previously reported a 5.84% ratio as of yearend, nearly double what it had been a year earlier.
In a Securities and Exchange Commission filing Monday, Camco also said that it agreed to a memorandum this month that prohibits it from paying dividends or repurchasing stock without written approval from regulators. A copy of the memorandum was not included in the filing.
In other recent filings, Camco disclosed that two executives have resigned from its Advantage Bank. The chief lending officer, Kemper Allison, resigned Jan. 22 and the chief credit officer, D. Edward Rugg, resigned Feb. 27. The company said it agreed to pay each a lump sum in exchange for a mutual release.
Advantage Bank has 28 branches in Ohio, Kentucky and West Virginia.
