Only 2 of 11 area banks reported losses in 3rd quarter

Of 11 area banking companies with publicly traded stock, only two – First Busey Corp. and Regions Financial – reported net losses for the quarter that ended Sept. 30.

Eight others announced profitable quarters, and one has yet to report.

But several banks – including profitable ones – say the economy remains soft and loan demand is weak.

Reporting profitable third quarters were: JPMorganChase, PNC Financial Services Group, Commerce Bancshares, Old National Bancorp, First Midwest Bancorp, MainSource Financial Group, First Financial Corp. and First Mid-Illinois Bancshares.

Still to report is Centrue Financial, which is expected to release earnings Friday or Monday, according to Chief Financial Officer Kurt Stevenson.

Here's a roundup of third-quarter results, starting with the losses:

First Busey Corp.

With $4.2 billion in assets, First Busey had a net loss of $283.7 million, compared with net income of $8.8 million for the same quarter a year ago.

Most of the Champaign-based company's loss was due to a $208.2 million write-off of goodwill. Without that write-off, the parent company of Busey Bank would have had a net loss of $75.5 million. Van Dukeman, First Busey's chairman and CEO, attributed much of the problem to "credit challenges" in Florida and Indianapolis.

Regions Financial

With $140 billion in assets, Regions Financial had a net loss of $377 million, compared with net income of $79 million a year ago.

The Birmingham, Ala.-based company said the loss reflects "loan portfolio stress" as well as a charge related to branch consolidation. Regions plans to close 121 of its 1,900 branches in early 2010. Slated to close are four of the 70 offices in Illinois – one office each in Lincoln, East Alton, Martinsville and Mount Carmel.

Regions Chairman and CEO Dowd Ritter said circumstances were challenging and loan demand "relatively sluggish" in the third quarter.

"However, the economy appears to have bottomed, and that bodes well for customers and for us," he said in a release.

JPMorganChase

With $2.04 trillion in assets, JPMorganChase reported net income of $3.6 billion, up from $527 million a year ago. The New York-based company said its commercial banking segment had net income of $341 million.

PNC Financial

With $271 billion in assets, PNC Financial reported net income of $559 million, up from $259 million a year ago.

The Pittsburgh-based company, which acquired National City on Dec. 31, plans to begin converting some National City customers to the PNC brand this month. Conversion of the Illinois offices, including those in Champaign, is scheduled for mid-June 2010, spokesman Brian Goerke said.

Commerce Bancshares

With $18 billion in assets, Commerce Bancshares reported net income of $51.6 million, up from $24.7 million a year ago.

"Loan balances continue to decline this quarter as a result of weak demand, while deposits were relatively flat," said David W. Kemper. chairman and CEO of the Kansas City, Mo.-based company.

Old National Bancorp

With $8 billion in assets, Old National Bancorp reported net income of $6 million, down from $17 million a year ago. Like First Busey, the Evansville, Ind.-based company strengthened its capital position with a stock offering this fall.

President and CEO Bob Jones said the economy in Old National's territory "continues to be challenging, as evidenced by soft loan demand and a subsequent decrease in our loan portfolio."

First Midwest Bancorp

With $7.7 billion in assets, First Midwest Bancorp reported net income of $3.4 million, down from $24.2 million a year ago.

The Itasca-based company recently boosted its capital ratios by exchanging $68.8 million of debt for common stock.

MainSource Financial Group

With $2.94 billion in assets, MainSource Financial Group reported net income of $1.4 million, down from $5.4 million a year ago.

President and CEO Archie M. Brown Jr. said the Greensburg, Ind.-based company took a $13.5 million provision for loan losses as a result of "several larger construction and development loans" that were downgraded or deemed nonperforming.

"One of these loans, a $13.5 million land development loan in our Illinois affiliate, was the sole reason that our nonperforming loans increased for the quarter," he said.

First Financial Corp.

With $2.5 billion in assets, First Financial Corp. reported net income of $7.72 million, up from $3.5 million a year ago. Part of the earnings boost for the Terre Haute, Ind.-based company stemmed from the acquisition of First National Bank of Danville from the Federal Deposit Insurance Corp.

First Mid-Illinois Bancshares

With $1.1 billion in assets, Mattoon-based First Mid-Illinois Bancshares reported net income of $1.4 million, down from $2.3 million a year ago.

Chairman and CEO William S. Rowland attributed the decline to "lack of opportunities for quality loan growth, increases in reserves, write-downs on specific securities and a significant increase in FDIC insurance premiums."

Also on this date

• Urbana council OKs higher fines for parking offenders
• Investigators seek help from public in solving murder
• Woman denies having anything to do with murders
• Restaurant will be closed till inspection after fire
• Governor's deputy chief of staff quits amid investigation
• Rantoul children will receive H1N1 vaccines today
• CRIS Senior Services begins implementing changes
• Fallen major's body to return home Tuesday
• Bar checks bring 32 tickets in Champaign
• Obituaries

» More