Suffolk Bancorp in Riverhead, N.Y., plans to request a hearing to delay delisting from the Nasdaq as the company works to provide the exchange with two quarters of delinquent financial statements.
The $1.6 billion-asset company missed a deadline this week to provide the Nasdaq with financial statements for the first two quarters of 2011. (Suffolk is also in the process of restating results for two quarters from last year.)
Frank D. Filipo, an executive vice president at the company, said in an interview that management is "disappointed with not meeting the deadline." Filipo, who is also the operating officer for Suffolk County National Bank said the company has seven days to respond to the Nasdaq's potential delisting and that the company intends request a hearing that would delay the process through the end of November.
"We plan to continue to work to complete our filings and get this job done," he said. "We are working extremely hard with our accounting firm to make that happen and every effort is being expended to get this done as quickly as is humanly possible."
Suffolk's issue has been with accounting for its allowance for loan losses. In October 2010, it reached a formal agreement with the Office of the Comptroller of the Currency that required the company to establish programs tied to internal audit, maintaining an adequate allowance, and credit risk management, among other things.
The company earned $3.1 million in the third quarter. At Sept. 30, Suffolk's bank had a Tier 1 leverage ratio of 8.57% and a Tier 1 risk-based capital ratio of 12.6%. The OCC has mandated that the company keep those ratios above 8% and 10.5%, respectively.