First Federal Bankshares Inc. of Sioux City, Iowa, said its plunged 85% from the year earlier in the June quarter, to $172,000.
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Diluted earnings per share were down 84%, to 5 cents, the $587 million-asset company said late Tuesday.
The quarter was the last of its fiscal year, in which its earnings dropped 25%, to $4.2 million. Diluted earnings per share for the year were down 23%, to $1.16.
First Federal attributed the earnings decline to a more than 12-fold increase in its loan-loss provision, to $2 million. It increased the provision during the June quarter after concluding that additional reserves were needed on previously classified loans to two commercial borrowers.
