First M&F (FMFC) in Kosciusko, Miss., revised its second-quarter results, turning previously reported earnings into a loss.
The $1.5 billion-asset company, which is in the process of selling to Renasant (RNST), said Wednesday that lost $222,000 in the quarter, after taking into account dividends on preferred stock. Previously, First M&F had reported a $2.2 million profit.
The company said that its management decided to record losses on a foreclosed property and certain securities during the second quarter rather than third quarter. The foreclosed property sale resulted in a $1.13 million loss. The impairment charge on the securities, involved collateralized debt obligations that were sold in the third quarter, was $2 million.
"We are making these revisions after a detailed review of the accounting and reporting of certain transactions, identified in the third quarter but which had second quarter effects," Hugh Potts Jr., First M&F's chairman and chief executive, said in press release.
"We have made great strides in reducing our nonperforming assets and improving the quality of our balance sheet, especially in light of our anticipated merger," Potts said. "These transactions will not have a material impact on the combined company after the merger is completed. All indications are that the pending merger with Renasant will be completed during the third quarter."
