Two companies — Lakeland Bancorp Inc. in Oak Ridge, N.J., and Green Bankshares Inc. in Greeneville, Tenn. — are warning of credit troubles that will affect fourth-quarter earnings.
Lakeland said Thursday that it expects to report an additional loan-loss provision and chargeoff of about $3.1 million for the quarter because of a commercial and industrial loan that has become uncollectible.
Green said after the market closed Wednesday that its nonperforming loans are spiking because of the deteriorating residential real estate market.
The $2.9 billion-asset Tennessee bank estimated its nonperformers would be $33 million to $35 million by yearend, or 1.42% to 1.50% of total loans. The company said it intends to increase its loan-loss provision.
Green said its fourth-quarter profit will be 28 cents to 33 cents share. The Federal Reserve's decisions to cut interest rates would reduce its net interest margin by 25 to 28 basis points from the third-quarter level of 4.22%, Green said.
