First Ipswich Bancorp in Massachusetts said Monday that it narrowed its third-quarter net loss to $386,000, from $626,000 a year earlier.
It blamed the loss mainly on a one-time writedown of a loan, increased federal deposit insurance costs, and expenses incurred while implementing a strategic plan to consolidate operations and boost profitability.
The company's First National Bank of Ipswich been operating under a formal agreement with the Office of the Comptroller of the Currency since June 2006 that required it to increase capital levels, retain competent management, develop a strategic plan, and improve liquidity and profitability, among other things.
First Ipswich attributed its lower third-quarter loss to the new strategic plan. So far this year it has sold a branch and $15 million of loans, closed a branch, and raised $1 million of capital with a private placement. This quarter it expects to close on the sale of its 10-story office building in downtown Boston and use the proceeds to book more loans. The $300 million-asset company said that it would continue to operate a branch in the building under a long-term lease agreement.
Additionally, the company said in September that it planned to go private to reduce regulatory expenses and improve profitability.
