Independent Takes A Hit
Independent identified the increase in the provision for loan losses during the regular credit quality review process where further stress, particularly within the commercial real estate loan portfolio, was noted.
Independent revealed that the higher provision for loan losses primarily reflects the following factors:
- Increases in specific reserves or charge-offs totaling approximately $6 million on seven credit relationships, a total of $24 million. The largest of the relationships totals about $10.4 million and consists of three loans.
- Elevated levels of loan net charge-offs, delinquencies and risk rating downgrades.
- An increased provision for loan losses of $500,000 on a $5 million non-performing commercial loan that was sold and funded in June, and a $1.1 million non-performing commercial loan that was sold and funded the same month.