Suffolk Bancorp Under Stockholder Investigation Over Possible Breaches Of Fiduciary Duties
After the Suffolk Bancorp announced that it will not file its Quarterly Report on Form 10-Q for the period ended March 31, 2011 within the prescribed time an investigation on behalf of investors in Suffolk Bancorp (NASDAQ:SUBK) over possible breaches of fiduciary duties by certain officers and directors at Suffolk Bancorp was announced.
The investigation by a law firm focuses on whether Suffolk Bancorp has violated federal securities laws by issuing false and misleading statements to its shareholders and whether certain officers and directors at Suffolk Bancorp. breached their fiduciary duty.
Suffolk Bancorp had $1.469billion in Total Assets in 2007 and $1.618billion in Total Assets in 2010. Its Net Income decreased from $22.13million in 2007, respectively $24.69million in 2008 to $15.02million in 2010.
Shares of Suffolk Bancorp (NASDAQ:SUBK) traded as high as $42.50 per share during 08 and as high as $32.75 during 2010.
On April 12, 2011 Suffolk Bancorp announced its results of its operations during the first quarter of 2011 and announced a net loss of $12,899,000 for the first quarter of 2011, compared to net income of $1,532,000 during the first quarter of last year.
Suffolk Bancorp said the key reason for the change in performance is a provision for loan losses of $29,700,000, an increase of 236.1 percent from a provision of $8,837,000 during the first quarter of 2010.
SUBK stock fell from $21.77 per share on April 6, 2011 to $15.71 per share on April 27, 2011.
Then on May 11, 2011 Suffolk Bancorp (NASDAQ—SUBK) announced that it will not file its Quarterly Report on Form 10-Q for the period ended March 31, 2011 within the prescribed time.
Suffolk Bancorp said that in the course of preparing its Form 10-Q, management identified possible deficiencies and/or weaknesses in the company’s internal controls with respect to credit administration and credit risk management, primarily with respect to the timing of the recognition of credit risk, as well as with regard to risk rating which affected the computation of the allowance for loan losses.
Suffolk Bancorp also said that the on April 12, 2011reported net loss for the three months ended March 31, 2011 of $12,899,000 compared to net income of $1,532,000 in the prior year period may change.
SUBK shares decreased during May 13 to $15.27 per share.