First Busey in Leawood, Kan., took an earnings hit tied to a commercial relationship.
The $18.5 billion-asset company said in a press release that its third-quarter profit fell by 1.4% from a year earlier, to $55.8 million.
First Busey said in the release that it is dealing with a $37.6 million commercial relationship in its Central region. The relationship had previously been rated special mention, and “emerging circumstances” forced First Busey to move it to nonaccrual during the quarter.
The bank took a $10 million partial chargeoff and created a $17.8 million specific reserve against the remaining $27.6 million balance. All told, that covers about three-fourths of the exposure. Busey did not disclose the borrower’s industry or the nature of the problem.
Provision expense totaled $9.6 million and net chargeoffs represented 0.35% of loans. Nonperforming assets totaled $83.6 million, or 0.45% of total assets.