In the third quarter, measuring from July to September, MainSource Financial Group recorded a net income of $8.5 million, according to a press release from the group.
This is nearly 1 million dollars greater than third-quarter figures in 2013.
“We are very pleased with our third quarter results,” MainSource Financial Group President and Chief Executive Officer Archie Brown said in the release. “Our earnings per share increased 14 percent over the same period one year ago driven by continued improvement in overall loan quality and expense control.”
Because individual consumers and businesses borrowing money from the banks cannot guarantee they will pay it back, banks often rely on loan loss provision.
Loan loss provision is an expense banks set aside as an allowance for bad loans. It allows banks to ensure they will have sufficient funds to continue operations even if customers default on their loan payments.
According to the press release, MainSource “realized net recoveries in its allowance for loan losses account of $682 thousand” during the third quarter, leading the company to have zero dollars in loan loss provision expense.
Another factor leading to the company’s income increase was reduced operating costs.
Along with the increase in net income, MainSource’s Board of Directors approved a common dividend payment of 11 cents per share, payable in the fourth quarter to common shareholders of record prior to Dec. 5, 2014, the release said.
MainSource Bank first came to Bloomington in September 2013 on West Kirkwood Avenue. Construction of a second branch is happening on East Third Street.
The opening date is ?currently unknown.
Brian Seymour
