Fieldstone Restatement Linked to Mortgage Sub

Fieldstone Investment Corp., Columbia, Md., has restated its earnings from 2003 through the first three quarters of 2005 to correct accounting errors related to the timing of its recognition of income tax paid by its Fieldstone Mortgage Co. subsidiary.The tax payments were related to the sale of loans from the mortgage company to its real estate investment trust parent. Because of the restatement, net income for 2003 increased by $3.7 million, to $51.5 million. Its net income in 2004 decreased by $2 million, to $63.6 million. First-quarter 2005 net income was reduced by $350,000, while income increased by $751,000 in the second quarter and decreased by $399,000 in the third quarter. Therefore, the change in net income for the first nine months was just $2,000. Fieldstone said shareholder equity as of Sept. 30, 2005, increased by $1.7 million because of the accounting corrections.