October 4, 2012

SI Financial's investments took a 3Q toll

Windham lender Savings Institute Bank & Trust says that despite its best efforts, its borrowers' inability to repay their debt and securities losses will turn its third-quarter quarter operating results red.

The bank's publicly traded parent, SI Financial Group Inc., announced after the close of the stock market late Thursday a projected net operating loss between $700,000 to $750,000 for the three-month period ended Sept. 30.

Operating results reflect businesses' overall revenues and expenses, from which net income and per-share earnings are calculated.

SI said the operating loss includes a higher, $1.3 million setaside for loan losses, security losses and writedowns of so-called "long-lived assets." SI said the loan-loss provision reflects the bank's write off of $925,000 in loans as uncollectible.

The bank also declared it sustained a $324,000 loss on the sale an unidentified mortgage-backed security that was rated below grade.

Official third-quarter results are due on or around Oct. 24.

Its Nasdaq shares closed Thursday 6 cents higher, at $11.69.

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