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BLOOMINGTON, Ill. - Citizens First Financial Corp. said it expects to post a third-quarter loss because of a $1.22 million provision for potential loan losses associated with $4.1 million in loans outstanding to PAK Builders, a real estate developer.

Last year Citizens First recorded third-quarter earnings of $317,000, or 16 cents a share, with a provision of $120,000 for loan losses.

In a press release Tuesday the company said the provision will also hurt year-to-date earnings.

The Bloomington bank holding company also said that it thinks the problem is limited to one of its creditors, but that it is conducting a thorough review of other loans and lending relationships.

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