Suffolk Bancorp in Riverhead, N.Y., ended 2011 with lower profit for the fourth quarter and a loss for the year.
The $1.5 billion-asset company reported late Tuesday that its quarterly earnings fell 62% from a year earlier, to $1.2 million. For 2011, Suffolk lost $76,000, compared with a profit of $6.3 million in 2010.
During 2011, Suffolk delayed reporting some of its earnings. It also revised its loss for the first quarter of 2011 and restated its results for the third and fourth quarters of 2010.
The company said in January that Howard Bluver would take over as president and chief executive, and it recently replaced its outside auditing firm.
These troubles contributed to a spike in expenses, which rose more than 13% from a year earlier, to $15.3 million. Over the year, Suffolk incurred increased accounting, consulting and other costs related to bringing its financial reports current and assisting in transitioning to new management.
Suffolk's fourth-quarter net interest income slid almost 13% from a year earlier, to $16.2 million, because of lower balances of earning assets and liabilities and higher balances of nonperforming assets. The quarter's nonperforming assets more than doubled from a year earlier, to $82.6 million.
The company's other income fell more than 60% from a year earlier, to $1.4 million, because of a decrease in deposit service charges. The fourth quarter also included a $1.1 million loss attributable to other-than-temporary-impairment on two private-label collateralized mortgage obligations in the company's investment portfolio.