Independent Alliance Banks Inc. has reported third-quarter earnings of $2.01 million, or 49 cents per common share, a 12 percent decrease from the $2.29 million, or 56 cents a share, posted for the same three months of 2012.
The Fort Wayne-based holding company for iAB Financial Bank reported earnings on Friday.
Earnings declined because higher mortgage rates prompted fewer customers to seek new or refinanced mortgages, officials said. As a result, the bank made less money from processing mortgage applications.
The company also reduced the amount it set aside to cover bad loans to $300,000 during the quarter, just more than half of the $565,000 funneled into reserves during last year’s third quarter.