Earnings at Sturgis Bancorp Inc. fell 35% last year, to $1.7 million, the Michigan company said Wednesday.
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The $314 million-asset parent of Sturgis Bank and Trust Co. said the decline was caused by a slowdown in mortgage lending and refinancings.
Purchase loan originations fell 68%, to $37.3 million, largely because of a decrease in home sales in its market, Sturgis Bancorp said. Fee income from mortgage-related activities dropped 69%, to $825,000.
Eric L. Eishen, Sturgis' president and chief executive officer, said it has added more commercial lenders as part of its effort to decrease its reliance on residential lending.
At yearend Sturgis had $82.8 million of commercial real estate loans on its books, up 25% from a year earlier.
