Six Rivers National Bank of Eureka, Calif., has restated its 1997 earnings after writing off two bad loans and boosting its loan-loss reserves.

The bank had reported net income of $411,000 for 1997, or 52 cents a share. Boosting loan-loss reserves by $590,000, to $2.24 million, reduced net income to $118,000, or 17 cents a share.

Though the loans are in collection, the $194 million-asset bank decided it was prudent to write them down, said John T. Burger, president and chief executive officer.

Six Rivers is pursuing legal action against the borrowers and has set aside $100,000 for anticipated legal expenses, he added.

The earnings adjustment marred what was otherwise a memorable year for the bank. In December it nearly doubled its asset size by acquiring four Northern California branches from BankAmerica Corp.

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