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MidWestOne to record higher credit impairment over substandard loan

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MidWestOne to record higher credit impairment over substandard loan

A large commercial loan at MidWestOne Financial Group Inc. will be behind an additional $7.3 million credit impairment in fourth-quarter earnings. MidWestOne expects to record a loan loss provision of $10.3 million to $10.8 million.

The Iowa City, Iowa-based company had earlier classified the loan as substandard and allotted it a loan loss allowance of $1.9 million. CEO Charles Funk said in a press release that no impact on future earnings is expected, as the loan's balance is supported by collateral and reserves.