Merchants & Manufacturers Bancorp Inc. in New Berlin, Wis., said Friday that it is restating fourth-quarter earnings after discovering troubled loans at one of its subsidiary banks.
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The $1.5 billion-asset company said it had added $2.4 million to loan-loss reserves and, as a result, is reporting a loss of $74,000 for the quarter. It had previously reported a $1.4 million profit.
Merchants and Manufacturers is a holding company for nine community banks in Wisconsin, Minnesota, and Iowa. It said in a press release that a loan officer at one bank did not follow lending policies. It has fired the lender and said it has identified all the loans it thinks may go bad.
