Pacific West Bank of West Linn., Ore., has restated its results for the second quarter to show a net loss more than five times the loss originally reported.
The $73 million-asset bank said the restatement was "a result of an ongoing regulatory examination."
It increased its provision for loan losses by $676,000; the tax benefit for its loan losses, and associated deferred tax asset, by $266,000; and its loan chargeoffs by $171,000.
After these adjustments, Pacific West said, it lost $509,000, or 67 cents a share, in the second quarter. A year earlier it had made a profit of $12,000, or a penny a share.
According to the Federal Deposit Insurance Corp., on June 30 Pacific West's total risk-based capital ratio was 11.6% — lower than the 12.5% originally reported in July but still higher than 10% threshold to be considered well capitalized.
Pacific West released its restated figures last week, along with results for the third quarter, when the net loss narrowed from the previous quarter to $35,000, or 4 cents a share. A year earlier it had made a profit of $12,000, or a penny a share. Steve Gray, the bank's president and chief executive officer, said in a press release that Pacific West remained "committed to restoring profitability."
The bank remained well capitalized, with a total risk-based capital ratio of 11.61% on Sept. 30.