Mid-America Bancorp in Louisville, Ky., reported a fourth-quarter loss of $14.8 million that it blamed on expenses and penalties from a seven-year-old court case concluded in November.
Mid-America had earnings of $5.2 million in the year-earlier period. The loss hurt the company's yearend earnings, which plunged 79%, to $4.6 million
Mid-America's Bank of Louisville subsidiary was ordered to pay $16.5 million to the state because of bad loans made in connection with Kentucky Central Life Insurance, which collapsed in 1993.
Mid-America said it had to increase its provision for loan losses by $16.5 million in the fourth quarter and include $13.5 million in provision for other lawsuit costs.
The company is appealing the ruling.
