Tennessee Commerce Bancorp Reports Fourth Quarter 2010 Results

FRANKLIN, Tenn., Jan. 21, 2011 (GLOBE NEWSWIRE) -- Tennessee Commerce Bancorp, Inc. (Nasdaq:TNCC) today reported financial results for the fourth quarter ended December 31, 2010. The Company reported net income of approximately $928,000, before the preferred dividend, or $0.08 per diluted share for the quarter ended December 31, 2010 compared with net income of $1.7 million, before the preferred dividend, or $0.35 per diluted share for the quarter ended December 31, 2009. The Company also reported net income of $3.4 million, before the preferred dividend, or $0.42 per diluted share for the twelve months ended December 31, 2010, compared to a net loss of $5.6 million, before the preferred dividend, or $1.17 per diluted share for the twelve months ended December 31, 2009.

Assets at December 31, 2010 increased $33.0 million or 2.3% from September 30, 2010. The increase in assets was mainly attributable to an increase of $48.4 million in the available-for-sale securities portfolio, which represented 8.8% of total assets at the end of the fourth quarter compared to 5.6% of total assets at the end of the third quarter. Assets at December 31, 2010 increased $69.6 million or 5.1% from December 31, 2009. Gross loans at December 31, 2010 decreased $11.9 million or 1.0% from September 30, 2010 and increased $58.5 million or 5.0% from December 31, 2009. The increase in gross loans from December 31, 2009 was mainly attributable to an increase of $48.2 million in commercial real estate during the same period. Total deposits at December 31, 2010 increased $38.0 million or 3.0% from September 30, 2010 and $56.5 million or 4.5% from December 31, 2009. The increase from December 31, 2009 was mainly attributable to an increase of $79.2 million in transactional and savings accounts.

The net interest margin improved to 3.93% for the three months ended December 31, 2010 compared to 3.77% for the linked third quarter. For the twelve months ended December 31, 2010, the net interest margin was 4.05% compared to 3.66% for the twelve months ended December 31, 2009. The improved net interest margin for 2010 was mainly attributed to a decrease of 81 basis points to the cost of interest bearing accounts during the period, which resulted in a decrease of $7.1 million or 21% in interest expense.