LSB Bancshares Inc. in Lexington, N.C., said its second-quarter earnings fell 36% from a year earlier, to $1.5 million, after it incurred a $1 million charge related to a condominium project.
The charge, announced Monday in LSB’s earnings report, was recorded after the $986 million-asset company learned that certain assets of a condominium development it acquired last year had not been properly reported to the bank, therefore lowering the carrying value from $3 million to $2 million.
LSB said that it is actively pursuing the losses.
Second-quarter net interest income decreased 1%, to $11 million.
In a press release, Robert F. Lowe, LSB’s chairman, president, and chief executive officer, called the second quarter a “challenging” one for his company
“Margins remained tight, which restrained net interest income growth,” Mr. Lowe said. “Additionally, the writedown on the condominium development increased the pressure on noninterest expense.”
