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.