Community Bancshares of Blountsville, Ala., has revised downward its 1999 earnings after regulators recommended that the company write off a lingering claim against its fidelity bond carrier.
The $675 million-asset company Monday restated its 1999 net income as $1.7 million, or 51% less than the earnings reported on Jan. 12 and 54% less than in 1998. The revision was made in connection with a $2.6 million receivable - and its related income - that was recorded in last year's financial statements but did not materialize.
The sum was claimed from an unnamed bond carrier in connection with defaulted loans originated by the company's subsidiary, Community Bank. In late February the Federal Deposit Insurance Corp. recommended that the company write off the claim.
Community Bancshares restated net income per share for 1999 as 37 cents, compared with 76 cents previously reported for 1999 and 90 cents for 1998. Its restated return on average assets was 0.26% for 1999, down from the previously reported 0.53%, and its restated return on average equity was 3.75%, down from 7.66%
- Veronica Agosta