An Iowa community banking company that has posted weak earnings this year boosted its loan-loss reserves by almost 80%, primarily to cover chargeoffs relating to its struggling commercial credit subsidiary.

Mahaska Investment Co. of Oskaloosa said it hopes to sell the assets of its unit, On-Site Credit Services Inc., by Thanksgiving. In the meantime, the $488 million-asset company raised its loan-loss reserves to $3.3 million in the third quarter, from $1.9 million a year earlier.

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