Pittsfield’s Legacy Bancorp Inc., the holding company for Legacy Banks, has reported a net loss of $3.8 million for the quarter ended Dec. 31, 2009, compared to a net loss of $451,000 at the same time in 2008.

Year-to-date, the company incurred a net loss of $7.8 million compared to net income of $1.4 million for the same period in 2008. Higher net losses taken on the sale or writedown of investments and an increase in the provision expense for loan losses was blamed for the loss, according to the company.

The year-to-date decrease is the result of the charges taken on investments deemed to be other-than-temporarily-impaired (OTTI), increases in the net losses on the sales of securities and the provision expense for loan losses, and an increase in the Federal Deposit Insurance Corporation (FDIC) deposit insurance expense.

"The challenges Legacy experienced in 2009 were directly related to the economic recession and the challenges faced by individuals and businesses throughout the country," said J. Williar Dunlaevy, chief executive officer. "Loss of employment is the driving factor for our regional economy, just as it is nationally. Painful as it is, we are objective and prudent in recognizing and valuing non-performing loans. The result is that in 2009 we increased our loan loss provisions substantially, and the overall reserve ratio is now 1.67 percent, the highest it has been in many quarters. Fortunately, actual loan charge-offs have been relatively low, and we continue to work problem loan situations very diligently."