The Virginian-Pilot
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TowneBank announced Tuesday that it earned $7.53 million in the quarter ended Sept. 30, up 5.8 percent from the $7.12 million it made in the third quarter of 2009.
Earnings per share slipped to 18 cents for the July-to-September period from 19 cents a year ago. The earnings were diluted because the bank issued about 3.8 million new shares in the past year.
Shares in TowneBank, based in Portsmouth, fell 60 cents in trading Tuesday, closing at $15.60 each.
The largest bank based in Hampton Roads, TowneBank reported that its assets stood at $3.66 billion as of Sept. 30, up from $3.58 billion a year earlier. The growth was driven largely by new lending. Its loans grew 5.8 percent year-over-year to $2.64 billion. TowneBank attributed its increased earnings to the growth of its loan portfolio and the reduced interest it must pay on deposits.
Asset quality deteriorated during the third quarter as nonperforming assets grew to $58.2 million on Sept. 30 from $56.1 million on June 30. That's more than double the $27.5 million from Sept. 30, 2009.
Nonperforming assets - including bad loans and foreclosed real estate - are about 1.6 percent of all TowneBank assets. The bank set aside $7.3 million to cover loan losses during the quarter.
"Overall, we are pleased with the trends seen in our third quarter operating results," said G. Robert Aston, Jr., TowneBank's chairman and CEO, in a statement.
Christopher Dinsmore, (757) 446-2271, chris.dinsmore@pilotonline.com
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Muddy waters
The DJIA is up about 80% since it's low near the end of 08. Still everyone's complaining??? I will conversly add, it is well overbought....maybe even setup for another tumble at some point. Towne slipped today just as most financial's did today. Yes, it works that way often. I wouldn't be quick to buy Towne (as their numbers are ugly) but their sound when stacked up against their competition.