First NBC Bank Holding in New Orleans will likely cut its 2015 profit after it discovered errors in its accounting for tax credits.
The $4.8 billion-asset company may retroactively lower its net income for the fourth quarter and prior quarters in 2015 after it found mistakes in its accounting of federal and state historic rehabilitation tax credit entities. The review may also require the company to adjust noninterest expense and income tax figures reported in the quarter. First NBC reported fourth-quarter net income of $15.7 million, up 0.8% year over year.
First NBC will also file its annual report late as it assesses the impact of the errors. The company filed its second-quarter 10-Q late last year after the discovery of accounting errors.
As part of its review, First NBC said it will also evaluate its internal controls over financial reporting. First NBC did not provide a date for when it expects to file its annual report.
The company disclosed its discovery of the errors in a Wednesday regulatory filing. Its shares fell nearly 22% on Wednesday and were down 6% in early trading Thursday.