Greater Atlantic Financial Corp. of Reston, Va., has uncovered irregularities in its financial reporting and said that its earnings reports for fiscal 2004 and 2005 and the quarters that ended March 31, 2006, and Dec. 31, 2005, should no longer be relied upon.
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The $306 million-asset company said Friday that an investigation by its audit committee found that warehouse accounts maintained by a now-defunct mortgage unit of its Greater Atlantic Bank had not been properly reconciled. It said it would restate its results to reflect a loss of $1.4 million.
The company closed Greater Atlantic Mortgage Corp. in March after the unit's originations fell sharply.
Greater Atlantic's stock fell 6.53% Friday, to $4.44, its lowest in more than five years.
