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.

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