Suffolk Bancorp in Riverhead, N.Y., has announced that it may need to restate earnings for several quarter after identifying weaknesses in its methodology for calculating loan losses.
The $1.6 billion-asset company also said that it has delayed filing its first-quarter earnings report with the Securities and Exchange Commission until it completes a review of its internal controls.
On April 12, Suffolk announced that it lost $12.9 million in the first quarter after taking a $29.7 million provision for loan losses. The company earned $1.5 million in the same quarter of 2010.
In a news release late Thursday, Suffolk said that in the course of preparing its quarterly report, management identified possible deficiencies or weaknesses in its loan-loss calculations and that it has hired outside consultants to review its loan files. "The review could result in Suffolk making the determination that it needs to restate its financial statements for one or more periods," the company said.
Suffolk's shares were trading at $15.81 early Thursday, near a 52-week low. The stock price is down roughly 36% since Jan. 1.