Bank of Princeton sees Q4 loan loss provision of $2.5M-$2.8M
In a regulatory filing, The Bank of Princeton reported that it has identified a $2.18M credit impairment related to loans made to one of its commercial borrowers based on its review of the loans and a new appraisal of the property securing the loans. Prior to the fourth quarter of 2017, these loans had been classified as substandard and had a specific allowance for loan losses related to them of $373,000. In addition, the Bank has determined that there has been adverse developments with regard to certain other unrelated loans resulting in an additional $368,000 credit impairment. Mainly due to these fourth quarter credit impairments, the Bank expects to record a loan loss provision in the fourth quarter in the range of $2.5M-$2.8M. By comparison, the Bank did not have any loan loss provision in the fourth quarter of 2016. The impact of this fourth quarter 2017 loan loss provision will reduce the Bank's basic earnings per share by between 28c-31c, and its diluted earnings per share by between 26c-29c, the bank noted.