Mounting problems in construction lending have forced NASB Financial Inc. in Grandview, Mo., to restate earnings for its fiscal first quarter and delay reporting 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 to reclassify certain residential development loans as "troubled debt restructuring," leading to a $6.6 million impairment charge.
NASB said payments are being made on the loans, but that they had to be reclassified because the maturity dates were 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 fiscal first quarter. Because of the time needed to amend its fiscal first-quarter earnings, NASB said it is working on its results for the March 31 quarter and that it would release them "at the earliest practicable date."