Bank to Restate; Cites REMIC Error

Beverly Hills Bancorp, Calabasas, Calif., has announced that it will restate its 2004 audited financial statements as a result of errors that included the computation of taxable "excess inclusion income" on its interests in real estate mortgage investment conduits.As a result of the REMIC-related error, and an error related to the amount of net operating losses used in computing taxes for 2004 and prior years, the company said it overstated its deferred tax asset, which included future tax benefits associated with its net operating losses. This overstatement had no effect on the company's balance sheet or income until the fourth quarter of 2004 "because the company had established a valuation allowance against this asset," the holding company said. The company can be found online at http://www.bhbc.com.