Taylor Capital Group Inc. of Rosemont, Ill., has revised its 2006 earnings report to reflect significantly higher levels of nonperforming loans than it first reported.
However, the $3.4 billion-asset company said that the corrections would not result in any change to its fourth-quarter or full-year earnings.
The parent of Cole Taylor Bank, said late Tuesday that at yearend it had $33.2 million or nonperforming loans, or 55% more than it had reported in its Jan. 25 earnings release. Taylor also said it had $24.1 million of impaired loans, or 16.4% more than it had reported in January.
As a result, the ratio of nonperforming loans to total loans more than doubled from a year earlier, to 1.33% as of Dec. 31. Taylor's ratio of nonperforming assets to total assets also more than doubled from a year earlier, to 0.99%.
Brian Martin, an analyst with Howe Barnes Hoefer & Arnett Inc. in Chicago, said that such ratios are above average for banking companies in Taylor's asset group.
The ratio of nonperformers to total assets is "not a horrible number, but it's not the direction we'd like to see it go," Mr. Martin said.
Additionally, Taylor said that it has $10 million of loans that are contractually past due 90 days or more but still accruing interest, a sharp increase over the $1.8 million of such loans it reported in its January release.
Calls to Taylor executives were not returned, and a spokeswoman for the company would not provide additional comment beyond what was in the press release.
Taylor said that the correction is connected to three loans to a single, unidentified borrower: a $3.4 million loan that has been reclassified as a nonaccrual and impaired loan, a $5.5 million loan guaranteed by that borrower that continues to accrue interest but is at least 90 days past due, and a $6.9 million loan guarantee that has been identified as a "higher than average credit risk."
The correction was also related to a loan of $2.7 million (to a different borrower) that was contractually past due 90 days or more but still accruing interest at yearend, Taylor said.
The impact of the corrections was not material to the net income reported in January, the company said. In that report, Taylor said that its full-year net income had increased 45% from a year earlier, to $46.2 million, and that its fourth-quarter net income had jumped 73%, to $12.1 million.
Taylor's shares were trading at $34.42 late Wednesday, down nearly 2%.
