This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TowneBank Reports Second Quarter Earnings

SUFFOLK, Va., July 23, 2014 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank (the "Bank") (Nasdaq:TOWN) reported earnings of $11.68 million for the quarter ended June 30, 2014, a 4.27% increase, or $478,000, over the $11.20 million reported for the comparative period in 2013. Earnings for the year-to-date period increased 5.25% to $22.81 million as compared to the $21.67 million earned in the same period last year.

Net income available to common shareholders increased 16.55% to $11.49 million after preferred dividend payments of $191,000. Fully diluted earnings per share increased 6.45% to $0.33 per share compared to $0.31 per share for the comparative period of 2013. For the six-month period ended June 30, 2014, fully diluted earnings per share increased 6.67% to $0.64 from $0.60 in the comparative prior year period.

The Bank's common dividend was $0.11 per share for the quarter with the common dividend totaling $3.90 million. The current dividend represents an increase of 22.22% over the dividend paid during the same quarter of 2013.

Earnings Highlights

Net interest income increased to $36.54 million, a $461,000, or 1.28%, increase from the second quarter of 2013. The primary driver of the increase was growth in average earning assets of $348.58 million, which was partially offset by a 24 basis point narrowing of the tax-equivalent net interest margin to 3.43% in the current quarter from 3.67% in the second quarter of 2013. On a linked quarter basis, net interest income increased $1.35 million, or 3.82%, in second quarter 2014 versus the first quarter, while tax-equivalent net interest margin was essentially flat at 3.43% versus 3.44% for first quarter of 2014.

Noninterest income, excluding gains or losses on investment securities, increased by $883,000, or 3.61%, to $25.35 million for the second quarter of 2014, compared to the second quarter of 2013. The majority of the increase is attributable to insurance commissions, which increased $2.06 million, or 30.06%, from the comparative period in 2013 due to the acquisition of two insurance agencies in the third quarter of 2013 and the acquisition of Southern Insurance Agency, Inc., based in Kitty Hawk, North Carolina, in May 2014. The increase was partially offset by decreases in residential mortgage banking income, which decreased $1.18 million, or 13.27%, from the comparative period in 2013 due to lower margins and decreased production volumes. However, Realty segment net income increased $1.46 million from a $25,000 loss in the first quarter of 2014. Mortgage production was $334.88 million in the second quarter of 2014, which was $131.11 million higher than first quarter 2014.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs