The Virginian-Pilot
©
PORTSMOUTH
TowneBank, citing the benefits of lower-cost deposits and continued loan growth, said Thursday that its second-quarter net in come rose almost 9 percent.
The Portsmouth-based bank earned $6.88 million for the April-through-June period, compared with $6.33 million in the year-earlier quarter. Diluted earnings per common share were unchanged at 16 cents.
The bank said its major source of earnings - net interest income - jumped almost 24 percent from the comparable quarter last year to $29.73 million, while income from fees, commissions and service charges rose 17 percent to $15.89 million. TowneBank's earnings included $1.98 million of gains on the sale of securities, which was down from $2.38 million of similar gains in last year's second quarter.
The bank, the largest based in Hampton Roads, said it boosted its provision for loan losses to $7.33 million, more than double its provision in the year-earlier quarter. The increase, it said, was partly because of $5.8 million in net loan losses.
As a percentage of total assets, the bank's troubled loans and foreclosed real estate at the end of June stood at 1.5 percent, up from 0.68 percent of total assets one year earlier. TowneBank said its nonperforming assets consisted of 25 residential properties and two commercial properties.
The bank announced an agreement two weeks ago to buy all of the deposit accounts and most of the assets of Bank of Currituck in Moyock, N.C. The agreement includes the purchase of all six of Bank of Currituck's offices, including three on the Outer Banks. The Moyock bank, which struggled during the past year with a rise in troubled loans and the need for capital, will keep all of its nonperforming loans and foreclosed real estate.
TowneBank's share price closed Thursday at $15.37, down 56 cents.
Tom Shean, (757) 446-2379, tom.shean@pilotonline.com
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stock
Sounds like a good stock to buy.
What a Crock
Gee Tom - I guess you could put this news that way...
Or, you could just say that Towne Bank's earnings were down 14.3% from last quarter (March 2010)...or that non-performing assets increased by $11.2 million, or 24% in the past 3 months (NPA's up $5.39 but the bank charged off $5.81 million = total increase of $11.2).
But instead, you report that income was up almost 9%.
Holy cow, this company has performed worse than it did 3 months ago and you've found a way to portray it as if they had reinvented banking.
Get off their payroll.
And they will continue to rissssse!!
By the time Part time Mayor/full time Banker, Will "Champagne" Sessoms has a few more closed door council meeting in the back room of his bank, they are sure to rise. The sweet heart deals with the Builders/Developers has already started. Let the good times roll~
Join a Credit Union
"while income from fees, commissions and service charges rose 17%"
Ever wonder how banks make money?
All other things being equal, in order to create income, they have to make more interest on the money they lend, than they pay in interest on their customers' deposits. Simple concept...no?
So, while they charge five to nine percent or more on mortgages and personal or business loans, they pay their customers around one-quarter to one percent interest on their CD's and savings accounts.
Said differently, while the bank president dines on steak and lobster, your grandmother is probably checking out the cat food aisle at Food Lion.
It's not hard to do when the
It's not hard to do when the gubbmint lends to banks at 0%, and then the banks lend it to whomever at higher rates.
Oh, and who knows how many bad loans banks are sitting on. Many of them are not moving in on foreclosure properties.
Ever wonder how banks make money?
All other things being equal, in order to create income, they have to make more interest on the money they lend, than they pay in interest on their customers' deposits. Simple concept...no?
So, while they charge five to nine percent or more on mortgages and personal or business loans, they pay their customers around one-quarter to one percent interest on their CD's and savings accounts.
Said differently, while the bank president dines on steak and lobster, your grandmother is probably checking out the cat food aisle at Food Lion.