TowneBank's income rises 13 percent in third quarter

By Tom Shean
The Virginian-Pilot
© October 29, 2011

TowneBank, the largest bank based in Hampton Roads, said Friday that its third-quarter income rose 13 percent, helped by less costly deposits and greater insurance commission income.

The Portsmouth-based bank said it earned $8.53 million, up from $7.53 million in the year-earlier quarter.

However, net income available to common shareholders after dividend payments on preferred stock fell 6 percent to $4.9 million from $5.2 million in last year's July-through-September quarter.

Earnings per share dipped to 17 cents from 18 cents.

Like many financial institutions, TowneBank continued to see deposit growth, which was up 15 percent, surpass loan growth.

TowneBank said its credit quality showed some improvement during the third quarter as the loans it charged off declined from previous quarters. Such charge-offs fell to $2.25 million in the recent quarter from $5.56 million in the second quarter and from $7.26 million a year earlier.

The bank's nonperforming assets at end of September totaled $89.1 million, up 53 percent from a year earlier.

As a percent of assets, they climbed to 2.2 percent, down from 2.3 percent at the end of June, but up from 1.6 percent a year earlier.

TowneBank's share price closed Friday at $13.09, down 38 cents.

COMMENTS ADVISORY: Users are solely responsible for opinions they post here; comments do not reflect the views of The Virginian-Pilot or its websites. Users must follow agreed-upon rules: Be civil, be clean, be on topic; don't attack private individuals, other users or classes of people. Read the full rules here.
- Comments are automatically checked for inappropriate language, but readers might find some comments offensive or inaccurate. If you believe a comment violates our rules, click the report violation link below it.