First Internet Bancorp in Fishers, Ind., said a chargeoff tied to a commercial and industrial loan will hurt its third-quarter results.
The $1.7 billion-asset company disclosed in a regulatory filing Monday that its maximum pretax loss exposure on the loan is $1.2 million, or $800,000 after taxes, after applying the existing special loan-loss allowance.
First Internet previously reported that it had placed the $4.7 million loan on nonaccrual status in the second quarter, adding that it had set aside $500,000 to cover the loan. It said it received payments from the unnamed borrower during the third quarter that reduced the loan's outstanding balance to $1.7 million.
Recent events have "negatively impacted the operation of the borrower's business," making repayment of the balance "unlikely," the filing said.
First Internet said it could receive additional payments that it would apply to the loan balance.