FNCB share price falls
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share thisA restatement of earnings and director resignation sent shares of the First National Community Bancorp Inc. falling 6 percent last week to a Friday close of $8.75.
The Dunmore-based bank Wednesday announced the resignation of a board member and restated earnings.
A business partnership that included director Michael G. Cestone defaulted on nearly $4 million in debt to the bank. Although he was re-elected to another term on the board recently, Mr. Cestone resigned last week. Mr. Cestone's partners in the failed housing development are suspects in far-ranging public corruption investigation in Luzerne County.
Also Wednesday, the bank restated first-quarter earnings, admitting that it erred in making a $2.1 million charge to the allowance for loan losses that the bank originally thought it allocated to the second quarter. After discussion with Demetrius & Company LLC., its independent registered public accounting firm, the bank determined the charge should have been in the first quarter.
The $1 billion bank operates 20 offices in Lackawanna, Luzerne, Wayne and Monroe counties.
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