MUNSTER – Citizens Financial Bank reported a loss of $12.6 million in the fourth quarter, compared to net income of $918,000 a year ago. The loss was blamed on a write-down of problem assets due to lower property values.

President and CEO Daryl Pomranke said the bank is moving to reduce costs in 2012, including closing two branches in Illinois by the end of March.

For the year, the bank posted a $10.5 million loss, compared to a profit of $3.5 million in 2010. Pomranke said the bank has made progress in addressing asset quality issues, but added that if the economy continues to be soft, additional losses could be reported this year.