The Bank Slate


Shore in Md. to restate 3Q results to fix accounting error

Shore Bancshares in Easton, Md., will likely report a larger third-quarter loss when it restates financial results to correct an accounting error tied to its purchase of Community Financial.

The $5.7 billion-asset company disclosed in a regulatory filing that the error was tied to the improper recording of the net deferred tax assets (DTAs) tied to the acquisition. The error resulted in a $3.4 million overstatement of the deal’s reported bargain purchase gain.

The error impacted Shore’s reporting for its balance sheet, income statement, cash flows and stockholders’ equity.

Shore, which acquired Community Financial on July 1, originally reported a $6.4 million net loss in the third quarter.

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