Suffolk Bancorp has announced the results of operations during the fourth quarter and full year of 2011.
The company reported unaudited earnings of 12 cents per share for the fourth quarter, a decrease of 62.5 percent from 32 cents during the comparable period of 2010.
Net income for the quarter was just under $1.2 million, down 62.3 percent from $3.1 million during the same quarter last year.
The bank reported a net loss of $76,000 for 2011. That represents a 101.2 percent decrease compared to restated results for 2010, when the bank had net income of $6.3 million.
“Given the significant challenges faced by the bank throughout 2011, I am pleased that this quarter’s results continue to reflect the financial strength that has been the hallmark of this institution over its long history," Suffolk president and CEO Howard C. Bluver said in a news release. (See release below.)
"The bank was profitable in the fourth quarter, notwithstanding significant costs incurred to complete financial restatements," Bluver said. The bank "exceeds all well-capitalized regulatory standards and maintains an allowance for loan losses equal to 4.12 percent of total loans. Further, the net interest margin of 4.91 percent this quarter is a testament to the loyal customer base that our employees never lose sight of for even a single day," Bluver said.
The bank also made progress reducing its levels of nonperforming loans, which will continue to be "a primary focus" through 2012.
"While the uncertain economic environment on the east end of Long Island will continue to be the most important factor impacting our ability to show future progress, I am confident that we now have in place the right senior leadership and workout resources to manage this priority in a smart and focused way," Bluver said.
Bluver also said the bank expects to announce soon the appointment of "an experienced chief financial officer.”
There has been significant turnover in leadership at the bank over the course of the last two years, a troubled period in the bank's 122-year history: its chief lending officer, Robert Dick, resigned in December 2010; its chief financial officer, Stacy Moran, resigned in June 2011; and its president and CEO, J. Gordon Huszagh, resigned last month.
The turnover followed a determination by the Office of he Comptroller of the Currency that the bank was "in troubled condition" and said Suffolk had unsafe and unsound banking practices relating to asset quality, compliance and management. Suffolk signed an agreement with regulators in October 2010 promising to establish a three-year plan and capital program, maintain an adequate allowance for loan losses and re-assess its real property appraisal, credit risk management and credit concentrations.
In April 2011, Suffolk announced a $12.9 million first-quarter loss for 2010. In May, the bank alerted regulators it would not meet its SEC filing deadline for its first-quarter report and might need to restate its financial statements for one or more prior periods. The bank then failed to meet the SEC filing deadline for the second quarterly report.
The NASDAQ stock exchange notified Suffolk it would be delisted for its failure to file timely quarterly reports required by the SEC. The bank appealed the delisting determination and had a hearing scheduled for Jan. 2012.
In December, the bank announced it had brought its filings with the Securities and Exchange Commission up to date, with the release of restated results of operations for the third quarter of 2010, restated results for the year ended Dec. 31, 2010 and results of operations during the first three quarters of 2011. Suffolk had returned to profitability in the second and third quarters of 2011, according to its filings.
The bank is facing several class action suits by shareholders, who saw stock values drop from $24.68 per share in December 2010 to $10.76 per share in December 2011, hitting a low of under $8 per share during the fiscal year. Its stock closed at $12.32 Feb. 1.