Willow Financial Bancorp Inc. in Wayne, Pa., said Monday that it cut previously reported earnings for its 2007 fiscal year by 10%, to $8.4 million, after discovering material weaknesses in its internal controls.
The parent of the $1.55 billion-asset Willow Financial Bank reported Aug. 8 that it earned $9.3 million for the fiscal year that ended June 30.
It adjusted earnings per share downward by 6 cents, to 54 cents.
The company said it found two accounting deficiencies: inadequate review of manually posted entries and inadequate evaluation of the financial reporting impact of interest rate swaps and other significant matters. Errors resulted in the income and expenses that had been calculated for each quarter of fiscal 2007.
Willow said it is implementing a plan to correct the deficiencies and prevent them from recurring.
"We are confident that we have identified the problems and have designed an appropriate remediation plan," Donna M. Coughey, its president and chief executive, said in a press release. "We pledge to be even more vigilant in the future to maintain the confidence of our shareholders."
For its fourth quarter, Willow said it earned of $1.3 million, $303,000 less than previously reported.