Following a regulatory exam, Sterling Banks Inc. in Mount Laurel, N.J., said it will restate its results for the second and third quarters of 2009.

The $390 million-asset company, which had previously warned that it was in talks with regulators about loan-loss provisions, disclosed Friday that a July 27 exam by the Federal Reserve Bank of Philadelphia uncovered a need for an additional $5 million provision in the company's second-quarter filing.

Sterling had previously reported losing $946,000 in the second quarter, about 140% what it lost for the same period in 2008. It had reported a provision of $390,000, down 2.5%. For the third quarter, Sterling reported a net loss of $4.5 million, compared with net income of $79,000 a year earlier.

Sterling set aside a provision of $1 million in the third quarter, an increase of about nine times the provision a year earlier.

Sterling's subsidiary bank was adequately capitalized at the end of the third quarter. The total risk-based ratio was 9.6%, Tier 1 risk-based capital was 8.34% and the leverage ratio was 6.26%.

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