FORT WAYNE, Ind., Jan. 24, 2013 (GLOBE NEWSWIRE) -- Tower Financial Corporation (Nasdaq:TOFC) reported net income of $1.7 million or $0.36 per diluted share for the fourth quarter of 2012, compared with net income of $3.4 million, or $0.71 per diluted share, reported for the fourth quarter of 2011. Year to date earnings for 2012 were $5.7 million, or $1.18 per diluted share, compared to $6.6 million, or $1.36 per diluted share for 2011.
Our fourth quarter and annual highlights include:
- Our 2012 pre-tax earnings are the highest in our history. On a pre-tax basis our 2012 income was $1.9 million for the quarter and $7.4 million for the full year, compared to $966,000 for the fourth quarter of 2011 and $5.1 million for the full year. During the fourth quarter of 2011, our net income was positively impacted by the reversal of our previously established net deferred tax asset ("DTA") valuation allowance resulting in an income tax benefit of $2.5 million.
- Our 2012 "Core" earnings of $10.6 million represent the highest in our history. Our annual "core" earnings have exceeded $10 million for the second consecutive year. We define core earnings as income before taxes, loan loss provision, and unusual items not related to day to day operations (primarily securities sales and other real estate owned ("OREO") expenses).
- Total assets grew by $34.5 million during the fourth quarter and were $684.0 million as of December 31, 2012. The growth came in our investment portfolio, which grew by $39.3 million.
- Trust assets under management grew by approximately $78 million, or 13 percent, during 2012 and gross revenue for Tower Trust Company exceeded $4.0 million for the first time in our history.
- We reinstated our dividends in 2012, which included a total of $2.7 million in dividends paid to our shareholders during the fourth quarter. The dividends came in the form of a quarterly dividend of $0.055 per share and a special dividend of $0.50 per share.
- The Board of Directors approved a stock repurchase program for up to 250,000 shares of our common stock. As of December 31 2012, we had repurchased 141,850 shares.
Mike Cahill, President and Chief Executive Officer of Tower Financial Corporation stated, "Last year, I noted that even in light of a record year of net income in 2011, Tower's work was not complete, and we would continue to work to improve. The 2012 results demonstrate the continued hard work by my team members. Excluding the DTA valuation in 2011, 2012 was a record year for Tower, exceeding last year's pre-tax net income by over $2 million. This increase in income allowed us to reinstate the quarterly dividend, pay a special dividend, and institute a share repurchase program in order to reward our loyal shareholders.