OTTAWA, Ill. UnionBancorp said late Tuesday that it will add $2.9 million for its loan losses this quarter because of deterioration of a single nonperforming commercial credit.
UnionBancorp had extended additional credit to the borrower through the third quarter, but in early December reviewed the credit and decided to increase its allowance by 84%, to $6.4 million, the company said in a news release.
The $750 million-asset company said it expects to take an after-tax charge of 44 cents per fully diluted share for the fourth quarter. UnionBancorp is a four-bank holding company whose territory extends from the far western suburbs of Chicago to the Mississippi River on the Illinois border.
