Belmont Bancorp. of St. Clairsville, Ohio, said it will restate last year's earnings and declare a $2.6 million loss for the first quarter after a large commercial customer went out of business.

Schwartz Homes Inc. of New Philadelphia, Ohio, closed last month. Belmont, the $446 million-asset holding company for Belmont National Bank, has loans outstanding to Schwartz as well as individual consumers for whom Schartz was building homes.

Belmont now says it lost $1.9 million in 1998. The company has filed a claim with its bonding agent seeking restitution for its losses.

J. Vincent Ciroli Jr., president and chief executive officer of both the bank and the holding company, said Belmont reported problems with Schwartz to the Office of the Comptroller of the Currency before the company's closing.

Despite yearend and first-quarter losses, Belmont remains adequately capitalized, the company said.

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