POAGE BANKSHARES, INC. (NASDAQ:PBSK) Files An 8-K Other EventsItem 8.01. Other Events.
On September 12, 2017, Town Square Bank (the "Bank"), the wholly-owned bank subsidiary of Poage Bankshares, Inc. (the "Company"), uncovered evidence of suspected fraud involving the origination of fictitious loans by an employee of the Bank. The Bank has terminated the employee, and the employee is under custody of law enforcement as of the filing date of this Current Report on Form 8-K. The Bank has informed its fidelity blanket bond insurer of the suspected fraud and engaged an outside firm to perform a forensic audit. To date, the Bank believes it has identified suspected fraudulent loans totaling approximately $1.4 million, but this amount may change based on the results of the ongoing investigation. The Bank believes that it may recognize losses on the loans involved in the suspected fraud, but it is not possible at this time to determine the amount and timing of such losses.
This Current Report on Form 8-K contains certain forward-looking statements that are based on assumptions and that describe future expectations of the Company and the Bank. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and often include words like "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." The Company does not undertake any obligation to update any forward-looking statements to reflect changes in belief, expectations or events, except as required by law.
About POAGE BANKSHARES, INC. (NASDAQ:PBSK)
Poage Bankshares, Inc. is a holding company for Town Square Bank (Town Square). Town Square is a federal savings association. The Company operates in banking segment. Town Square’s business consists of accepting savings accounts, checking accounts and certificates of deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, primarily in first lien one-to-four-family mortgage loans, commercial and multi-family real estate loans, commercial and industrial loans consumer loans, consisting primarily of automobile loans and home equity loans and lines of credit, and construction loans. Town Square purchases investment securities consisting of mortgage-backed securities issued by the United States Government agencies and government-sponsored enterprises, and obligations of state and political subdivisions. Town Square provides financial services to individuals, families and businesses, through its banking offices.