Battered by loan troubles, Princeton National Bancorp Inc. Illinois announced after markets closed Friday that it lost $2.9 million, or 88 cents per share, in the quarter that ended June 30.
The $1.1 billion-asset company turned a $99,000 profit in the same quarter last year.
The loss can be traced to a declining real estate values in several of its markets, which forced the company to write down the value of many of its loans and substantially increase its loan-loss provision.
For the quarter, the company set aside $8.1 million for problem loans, an increase of 204% year over year, and charged off $18.8 million of loans, compared to $2.7 million a year earlier.
In all, $97 million of loans, or 14.74% of total loans, were no longer performing at June 30.
