PSB Group, the bank holding company for the Peoples State Bank, has reported a net loss for the fourth quarter of 2008 of $9.61m vs. $1.83m for the corresponding quarter of 2007.
Net operating loss, excluding non-recurring items, before taxes was $3.1m for the fourth quarter of 2008, compared with a net operating loss before taxes of $2.8m for the corresponding quarter of 2007.
For the year ended December 31, 2008 the company has recorded a net operating loss, excluding non-recurring items, before tax of $9.5 million compared with a net operating loss before tax of $4.6m for 2007.
The full year 2008 loss including the one-time charges was $13.797m, versus $2.74m in 2007. Total assets at December 31, 2008 were $460.52m compared to $492.27m at December 31, 2007.
Michael Tierney, president and CEO of the PSB Group, said: The loss in the fourth quarter and for the full year was concentrated on two fronts. First, credit issues and the efforts to manage through a very difficult Michigan economy caused the bank to set aside a substantial provision for loan losses. The fourth quarter was impacted by a loan loss provision of $3.99m dollars. This allowed us to build the loan loss reserve to 1.90% at year end or $7.12m dollars.
