Omni Financial Services Inc. in Atlanta said it is awash in foreclosures and expects to report a "substantial loss" for last year.
Its stock was down 11% late Thursday, to $1.02, after the $920 million-asset company made the announcement late Wednesday. The shares have lost about 75% of their value this year.
Omni has yet to file its fourth-quarter and full-year results with the Securities and Exchange Commission. It said Wednesday that it would be late in reporting its first-quarter earnings as well, and that it needs more time because it is still valuing other real estate owned. The foreclosures are mostly from the community development lending division, which makes loans to contractors rebuilding residential properties in inner cities.
In saying it would report the loss for last year, Omni cited a significant increase in the loan-loss provision; an increase in nonperforming loans; expenses for other real estate owned; a $4.7 million goodwill impairment charge resulting from its declining stock value; a $550,000 charge on impaired securities in its investment portfolio; and a $450,000 charge related to a former executive's retirement.
The troubles surfaced in February, when Omni said "lending policy violations and internal control deficiencies" would force a delay in reporting results. It earned $1.7 million in the third quarter.
