Tennessee Commerce Bancorp Reports Net Income Of $1.9 Million For Second Quarter

FRANKLIN, Tenn., July 27, 2010 (GLOBE NEWSWIRE) -- Tennessee Commerce Bancorp, Inc. (Nasdaq:TNCC), parent company of Tennessee Commerce Bank, reported the following quarterly highlights for the second quarter of 2010:

Quarterly Highlights

• Net income for the second quarter of 2010, before the preferred dividend, was $1.9 million, compared to a net loss of $6.5 million for the second quarter of 2009.
• Diluted earnings per common share for the second quarter of 2010 was $0.26, compared to a loss of $1.46 for the second quarter of 2009.
• Net interest income of $13.3 million for the second quarter of 2010 represented an improvement of 27.7% compared to net interest income of $10.5 million for the second quarter of 2009.
• Efficiency ratio improved to 47.14% for the second quarter of 2010, compared to an efficiency ratio of 71.82% for the second quarter of 2009. 
• Credit trends: At June 30, 2010, NPAs decreased $3.7 million, NPLs plus loans over 90 days past due decreased $4.0 million and early stage delinquencies improved significantly with a decrease of $26.7 million, compared to March 31, 2010.

Net interest income of $13.3 million for the second quarter of 2010 represents an improvement of 27.7% when compared to $10.5 million for the second quarter of 2009. As a result of the improvement in net interest income, the net interest margin remains strong at 4.25% for the second quarter of 2010 compared to 3.45% for the same period last year.  Funding costs for deposits decreased 93 basis points for the second quarter of 2010 compared to the second quarter of 2009, while the yield on loans increased 10 basis points over the same periods. Funding costs remained flat from the first quarter of 2010, while yield on loans increased 5 basis points from the first quarter of 2010. These favorable changes contributed to the increase of 80 basis points in our net interest margin compared to the second quarter of 2009 and to the continued strong margin compared to the first quarter of 2010.