Sterling Banks Inc. in Mount Laurel, N.J., has given shareholders more information about a restatement for the second and third quarters of 2009.
The $370 million-asset company disclosed late Thursday that a $5.6 million valuation allowance for its deferred tax assets will be part of the restatements it announced in January.
Such charges are driven by accountants' doubts about earnings prospects in coming quarters. The company's Sterling Bank unit was adequately capitalized at yearend, with a total risk-based capital ratio of 8.37%, according to data from the Federal Deposit Insurance Corp.
Sterling Banks previously disclosed that it would add $5 million to its allowance for loan losses for the second quarter of 2009 because of asset-quality trends noted in a 2009 Federal Reserve Bank of Philadelphia examination of Sterling Bank. Sterling Banks had previously reported a loss of $946,000 for the second quarter and a $4.5 million loss for the third quarter. It said it would file its restatements by March 8.