First National in Strasburg, Va., reported a quarterly loss due to issues with commercial loans originated by a third-party lender.
The $1.4 billion-asset company said in a press release that it lost $851,000 in the fourth quarter. The company set aside $6 million in the quarter to cover potential loan losses.
First National said the quarter included $2.7 million in chargeoffs and $2.4 million in specific reserves largely tied to C&I loans originated to health care professionals through an outside lender.
The release did not identify the lender.