Centrue Financial in Ottawa, Ill., has sold $35.2 million in classified loans and other assets.
The $868 million-asset company said it will record a $4.5 million charge to reflect the roughly 23% discount it took from the sale.
The sale reduced the company's ratio of nonperforming assets to total assets to 2.7% from 5.1%.
"This transaction is another positive step towards reducing risks and strengthening our balance sheet," Kurt Stevenson, Centrue's president and chief executive, said in a press release. "After careful consideration, both the board and management believe that taking this clean-up step now allows us to recognize losses upfront that otherwise would have created a lingering cloud of uncertainty and significantly distracted from our sales and growth efforts."
Centrue received a $75 million capital infusion earlier this year from private equity firm Capital Z Partners.