Mounting problems in its construction loan portfolio have forced NASB Financial Inc. in Grandview, Mo., to restate earnings for its fiscal first quarter and delay reporting its second-quarter earnings.
The $1.3 billion-asset company said late Wednesday that it swung from a $2 million profit in the quarter that ended Dec. 31 to a $3 million loss after the Office of Thrift Supervision ordered its North American Savings Bank subsidiary to reclassify certain residential development loans as "troubled debt restructuring," resulting in a $6.6 million impairment charge. The company said that payments are being made on the loans, but that they had to be reclassified because the maturity dates have been extended.
The company also said that it took an additional $1.6 million writedown after concluding that certain foreclosed properties had declined in value during the December 2010 quarter.
Because of the time it needed to amend its fiscal first-quarter earnings, the company said it is still working on its results for the March 31 quarter and that it would release them "at the earliest practicable date."
NASB shares were down more than 6% in early trading Thursday, to $13.11.
