Bank to report loss on sour Indianapolis loans

Back to TopCommentsE-mailPrintBookmark and Share

Indiana Community Bancorp expects to report a $5.8 million loss in the third quarter largely due to several bad commercial loans in the Indianapolis area.

The Columbus-based parent of Indiana Bank & Trust said on Wednesday that it is writing off $13.3 million for the period ending Sept. 30, primarily due to nine commercial customers in the area with total loan balances of $32.7 million.

Indiana Bank & Trust has 20 branches in Indiana, including six in Columbus and three in Greenwood.

Of the nine commercial customers, three are real estate investment firms that accounted for $18.5 million of the loan balance and $8.1 million of the write-offs, the bank said.

Its provision for loan losses in the quarter grew $737,000, to $14.8 million. As a result, Indiana Bank & Trust expects to report a $5.8 million loss, or $1.80 per share.

The bank, however, said it has noticed an uptick in commercial real estate activity in the Indianapolis market and is pursuing several letters of intent and purchase agreements to pay down non-performing loans.

Indiana Bank & Trust is set to report third-quarter earnings on Oct. 25.


  • Indiana Bank
    When loans are written off, the stockholders (OWNERS) of the bank should be able to access the names of the deadbeats. Not in this case so these entitites let the stockholders suffer...just like Irwin Financial.

Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. The deductible is entirely paid by the POWER account. No one ever has to contribute more than $25/month into the POWER account and it is often less. The only cost not paid out of the POWER account is the ER copay ($8-25) for non-emergent use of the ER. And under HIP 2.0, if a member calls the toll-free, 24 hour nurse line, and the nurse tells them to go to the ER, the copay is waived. It's also waived if the member is admitted to the hospital. Honestly, although it is certainly not "free" - I think Indiana has created a decent plan for the currently uninsured. Also consider that if a member obtains preventive care, she can lower her monthly contribution for the next year. Non-profits may pay up to 75% of the contribution on behalf of the member, and the member's employer may pay up to 50% of the contribution.

  2. I wonder if the governor could multi-task and talk to CMS about helping Indiana get our state based exchange going so Hoosiers don't lose subsidy if the court decision holds. One option I've seen is for states to contract with healthcare.gov. Or maybe Indiana isn't really interested in healthcare insurance coverage for Hoosiers.

  3. So, how much did either of YOU contribute? HGH Thank you Mr. Ozdemir for your investments in this city and your contribution to the arts.

  4. So heres brilliant planning for you...build a $30 M sports complex with tax dollars, yet send all the hotel tax revenue to Carmel and Fishers. Westfield will unlikely never see a payback but the hotel "centers" of Carmel and Fishers will get rich. Lousy strategy Andy Cook!

  5. AlanB, this is how it works...A corporate welfare queen makes a tiny contribution to the arts and gets tons of positive media from outlets like the IBJ. In turn, they are more easily to get their 10s of millions of dollars of corporate welfare (ironically from the same people who are against welfare for humans).