The Windham parent of Savings Institute Bank and Trust, as expected, lost money in the third quarter on rising problem loans and securities losses.
For three months ended Sept. 30, parent SI Financial Group Inc. lost a net $700,000, or 7 cents a diluted share, reversing a net gain of $740,000, or 7 cents a share, the same quarter last year.
SI declared earlier this month that it would likely post an earnings deficit for the period.
CEO Rheo A. Brouillard said higher charge-offs of loans, commercial mortgages among them, deemed uncollectible and a um reserved to cover credits that have fallen more than 90 days behind in their payments chewed up what money it made on good loans and service fees.
Brouillard said the bank also lost $466,000 on the sale of securities in the quarter.
SI also posted lower noninterest income in the period, due largely to the first-quarter sale of SI Trust Servicing, which provides trust outsourcing services for community banks.
