Pittsfield-based Legacy Bancorp, the holding company for Legacy Banks, reported a net loss of $451,000 for the fourth quarter, an improvement of $43,000 from a net loss of $494,000 in the fourth quarter of 2007.

For all of 2008, the company generated net income of $1.4 million, an increase of $199,000 from 2007.

The loss in the quarter was primarily the result of an "other-than-temporary impairment charge of $2.3 million related to the write-down of certain investment securities owned by the bank, as well as a provision for loan losses in the amount of $890,000," the company said.

"Although we are reporting a loss for the fourth quarter of 2008, we are also pleased to be able to report a small increase in earnings for all of 2008 in comparison with 2007," said J. Williar Dunlaevy, chief executive officer. "These are solid results, particularly in the midst of the worst economic crisis in the last 70 years. 2008 earnings are up 16 percent compared with 2007, and earnings per share for 2008 are up 29 percent compared with 2007."