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Bank of Alameda restates 2008 earnings

Submitted by on 1, May 1, 2009 – 5:45 amNo Comment

The Bank of Alameda’s chief executive has announced the bank anticipates restating its earnings for 2008 to show a loss, instead of the profit it earlier reported.

In a message that he has since published as an advertisement in at least one local paper, Bank of Alameda President and CEO Stephen G. Andrews said the loss comes as a result of the reexamination of the company’s loan portfolio conducted by an independent auditor.

“The strain of a faltering economy has forced a few clients to cease payments on obligations to the Bank,” he wrote.

He said the bank expects to report a “modest profit” for the start of 2009, although the review is continuing, he wrote.

Andrews declined a request for comment. But he told the Contra Costa Times:

“Real estate has found its bottom in certain markets, but in other markets it has not … The deepening and prolonged downturn in the real estate market and current regulatory environment with respect to measuring values of real estate collateral in distressed markets prompted additional impairment charges.”

“We primarily have residential loans in our portfolio,” Andrews said. “Most of our problems have been more in the construction and development side of the business.”

Andrews told the paper that the exact amount of the loss is not yet know.

His message also addressed recent charges against a Bank of Alameda bank manager who is accused of stealing more than $650,000 out of an opera star’s retirement account.

“The victim was immediately made whole and the Bank made a call on its insurance policy, but the scar of the incident will linger in our family,” Andrews wrote.

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