United Bank and Trust just announced its third quarter results. For the first time in several quarters it announced a profit for the quarter
For the third quarter, the bank showed a profit of just over $1M ($1.027M to be exact). Of course a quarter million dollars of that profit had to march off to Washington to pay the dividend on the preferred stock investment of the US Treasury in our bank (TARP Money).
What I don't understand is how the bank could take (yet again) a loan loss expense for the quarter of $3.15M and still make a $1M profit. I have to analyze that and see what I can find, because in the previous post I predicted that the bank wouldn't take any further loan loss expense this year.
By the way, in case you're still keeping track, since January of 2007, the bank has written off just under $50M in loans ($49.97M to be exact), and has taken $63.6M in loan loss expense.
That is the reason the bank took the TARP money. That is the reason it had to reduce staff. That is the reason ther have been no executive bonuses. That is the reason it is looking for new capital investment. And maybe most importantly, that is the reason there have been no dividends for the past almost two years.
Check back in a few days, and I hope to have some more explanations and analysis.