Shares of Indiana Community Bancorp fell sharply Thursday after the Columbus company warned that its second-quarter earnings would be reduced by about $1.2 million, or 37 cents per share, because of a higher loan-loss provision and an impairment charge.
The $920 million-asset company said its second-quarter loss provision is $1.9 million, or 375% more than it had planned to take. Much of the unexpected increase was attributed to flooding in the Midwest, though the company also mentioned a $600,000 writedown on a $3 million residential land development loan that has been on nonperforming status since 2007.
It also said it took a $419,000 other-than-temporary impairment charge on its $4.2 million investment in Asset Management Fund's $1.9 billion-asset AMF Ultra Short Mortgage Fund, which has lost about 5.5% of its value this year and been downgraded by rating firms. The company's stock fell 10.3% Thursday. It is to report earnings on July 22.
