Heritage Oaks Bank reports accounting error
March 26, 2010
Paso Robles-based Heritage Oaks Bancorp blames accounting errors for a recently discovered additional $1.8 million in losses for the fourth quarter of 2009. [RTTNews]
The parent company of Heritage Oaks Bank now reports a fourth quarter net loss of $3.4 million or about .48 cents a share, compared to a previously reported loss of $1.6 million or about .26 cents a share.
The additional loss increases the 2008 net loss of the bank from $5.2 million, or .81 cents a share, to $7 million or $1.04 a share.
Earlier this month, federal bank regulators took enforcement action against the bank, which operates 15 branches in San Luis Obispo and Santa Barbara counties, and banned the company from paying dividends or incurring debt as part of a written agreement between the company and the Federal Reserve Bank of San Francisco.
On March 12, in order to increase its capital and strengthen its balance sheet, the bank raised proceeds of approximately $60 million through the sale of securities.
In March 2009, while awaiting $21 million in federal bailout monies, members of the bank’s board of directors and a few high ranking employees were in Hawaii enjoying their annual trip to the islands.