Independent Alliance Banks Inc. today reported second-quarter earnings of $1.23 million, or 30 cents per common share, a 45 percent plunge from the $2.29 million, or 55 cents a share, posted for the same three months of 2012.
The Fort Wayne-based holding company for iAB Financial Bank said losses on one commercial loan prompted the company to divert more profit than usual to a fund to cover bad loans.
Independent Alliance Banks set aside $1.39 million for loan losses during the quarter just ended, compared with $545,000 during last year’s second quarter.
The company also conducted a 3-for-1 stock split, which increased total shares outstanding to 4.1 million, and initiated a share repurchase plan to improve stock liquidity during the quarter ended June 30.
Mike Marhenke, president and CEO, said the company’s capital remains strong despite the hiccup in earnings.
“This interruption in our normal, consistently strong financial performance was related to an isolated issue with a single credit,” he said in a statement.
The issues have been addressed, he said.