Following a regulatory exam, Preferred Bank in Los Angeles announced Wednesday that it will restate its third-quarter earnings, bringing its loss for the quarter to as much as $5 a share, according to one analyst's estimate.
The $1.41 billion-asset bank had initially reported a loss of $14.3 million, or $1.31 a share, which was more than three times the loss for the third quarter of 2008.
And after five consecutive quarters of losses, Preferred said it expects to report a fourth-quarter profit.
Preferred has not yet finalized the financial statements and the impact on capital that the restatement will have, but it added $29.8 million to its provision for loan losses, bring the provision for the quarter to $48.3 million, compared with $3.7 million in the third quarter of 2008.
The company added $7 million in valuation charges on other real estate owned, an additional $5.6 million in disallowed deferred tax assets for regulatory capital, a reversal of $2.2 million of accrued interest on additional nonaccrual loans and additional loan charge-offs of $21.3 million.
