Recently identified credit impairments will likely cause Bank of Princeton to record a loan loss provision of $2.5 million to $2.8 million in the fourth quarter.
Included is a $2.18 million credit impairment related to commercial loans earlier classified as substandard. A $373,000 allowance for loan losses has been allotted for those. Another $368,000 credit impairment was found in connection with other loans.
The projected provision is expected to lower the Princeton, N.J.-based company's EPS by between 26 cents and 29 cents.