WSB Financial Group Inc. in Bremerton, Wash., said Tuesday that it expects to add $7 million to $9 million to its reserves to cover possible losses from a portfolio of 146 mortgage loans made by one or two former lenders.
The $476 million-asset parent of Westsound Bank also delayed its third-quarter earnings report until after an independent third party completes a review of the loans. It did not say when the review might wrap up.
The projected reserve amount is more than quadruple that reported in its preliminary third-quarter earnings Oct. 23. A day later WSB had said regulators were reviewing its lending operations. WSB said Tuesday that it would not finalize its third-quarter results until after the loan review is completed. It also said that it expects to remain well capitalized after the reserve boost.
