Tennessee Commerce Bancorp Reports Third Quarter 2010 Results

FRANKLIN, Tenn., Oct. 29, 2010 (GLOBE NEWSWIRE) -- Tennessee Commerce Bancorp, Inc. (Nasdaq:TNCC) today reported financial results for the third quarter ended September 30, 2010. The Company reported a net loss of $1.1 million, before the preferred dividend or $0.12 per diluted share for the quarter ended September 30, 2010 compared with net income of $1.5 million, before the preferred dividend or $0.32 per diluted share, for the quarter ended September 30, 2009. The Company also reported net income of $2.5 million, before the preferred dividend, or $0.37 for the nine months ended September 30, 2010, compared to a net loss of $7.2 million before the preferred dividend, or $1.53 for the nine months ended September 30, 2009.

The net interest margin of 3.77% was impacted by loan interest reversals of $1.5 million during the quarter. The net interest margin would have been stable at 4.22%, excluding these interest reversals, when compared to the first two quarters of 2010. The net interest margin for the nine months ended September 30, 2010 was 4.09% up from 3.49% for the first nine months ended September 30, 2010.

The increase in non-performing assets to $86.5 million during the quarter compared to $74.2 million at June 30, 2010 was mainly attributed to one relationship that totaled $17.3 million. Non-performing assets would have been $69.2 million, a decrease of $5.0 million or 7.2%, when compared to the linked second quarter, exclusive of this relationship. Repossessed assets, consisting primarily of transportation assets, decreased for the second consecutive quarter by $3.6 million to $32.7 million at September 30, 2010. "While we saw a small pullback in the ATA truck tonnage index in August, we believe that industry trends will continue to rebound in response to economic recovery," stated Mike Sapp, President and Chief Executive Officer of Tennessee Commerce Bancorp, Inc.