These
adjustments reflected in the Company’s Consolidated Statement of Income for the
year ended December 31, 2006 and Consolidated Balance Sheet as of December 31,
2006 will also have an impact on the Company’s Consolidated Financial Statements
for the periods ending on and as of March 31, 2006, June 30, 2006 and September
30, 2006, each of which is being restated. The following is a general
discussion of the effects of the correction of these errors on net
income:
The
impact of these adjustments on the Company’s net income for the three-months
ended March 31, 2006 was a decrease in net income by approximately
$187,200. The net income as reported in the Company’s Form 10-Q for
the quarterly period ended March 31, 2006 was $1,254,758 and, as restated, is
approximately $1,067,500.
The
impact on net income for the three- and six-month periods ended June 30, 2006
was a reduction of net income by approximately $139,500 for the three months
ended June 30, 2006 and a decrease of approximately $326,800 for the six months
ended June 30, 2006. The net income as reported for the three- and
six-month periods in the Company’s Form 10-Q for the quarterly period ended June
30, 2006 was $1,357,264 and $2,612,022, whereas the restated amounts are
approximately $1,217,700 and $2,285,200, respectively.
The
impact on net income for the three- and nine-month periods ended September 30,
2006 was a reduction of net income by approximately $139,500 for the three
months ended September 30, 2006 and approximately $466,300 for the nine months
ended September 30, 2006. The net income as reported for the three-
and nine-month periods in the Company’s Form 10-Q for the quarterly period ended
September 30, 2006 was $1,379,116 and $3,991,138, whereas the restated amounts
are approximately $1,239,600 and $3,524,800, respectively.
During
the first three quarters of 2007, similar errors were made in the Company’s
Consolidated Financial Statements for the periods ending on and as of March 31,
2007, June 30, 2007 and September 30, 2007. The following is a
general discussion of the effects of the correction of these errors on net
income:
The
impact of these adjustments on the Company’s net income for the three-months
ended March 31, 2007 was a reduction of net income by approximately
$79,600. The net income as reported in the Company’s Form 10-Q for
the quarterly period ended March 31, 2007 was $1,405,500 and, as restated, is
approximately $1,325,900.
The
impact on net income for the three- and six-month periods ended June 30, 2007
was a reduction of net income by approximately $79,600 for the three-months
ended June 30, 2007 and a reduction of approximately $159,200 for the six-months
ended June 30, 2007. The net income as reported for the three- and
six-month periods in the Company’s Form 10-Q for the quarterly period ended June
30, 2007 was $1,497,705 and $2,903,205, whereas the restated amounts are
approximately $1,418,000 and $2,744,000, respectively.
The
impact on net income for the three- and nine-month periods ended September 30,
2007 was a reduction of net income by approximately $79,600 for the three-months
ended September 30, 2007 and $238,800 for the nine-months ended September 30,
2007. The net income as reported for the three- and nine-month
periods in the Company’s Form 10-Q for the quarterly period ended September 30,
2007 was $1,515,336 and $4,418,541, whereas the restated amounts are
approximately $1,435,700 and $4,179,700, respectively.
As a
result of the errors set forth above and other errors that management of the
Company has determined to be immaterial, the Previously Issued Financial
Statements will be restated in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2007 (the “2007 Form
10-K”). Furthermore, misstatements in accounting for current
and deferred tax liabilities and the over-accrual of certain non-interest
operating expenses for the year ended December 31, 2005 and prior periods are
also being corrected by an adjustment of approximately $327,000 to opening
Retained Earnings for the year ended December 31, 2006 in the 2007 Form 10-K.
The Company expects to file the 2007 Form 10-K with the SEC on or before its
required due date. The restated amounts set forth are approximate and
subject to further adjustment. While management of the Company is unaware of any
other adjustments to the Previously Issued Financial Statements, prior to the
filing of its Form 10-K for the year ended December 31, 2007 management may make
additional corrections to the Previously Issued Financial
Statements.
The
Company does not intend to amend its Forms 10-Q or Forms 10-K for periods ending
prior to or on December 31, 2006.
The
Chairman of the Audit Committee, the Chairman of the Board, the principal
executive officer and the principal financial officer have discussed the matters
disclosed in this Current Report on Form 8-K with Grant Thornton, LLP, the
Company’s independent registered public accounting firm.