3. Tower Bancorp Company Profile Shares of Tower Bancorp ( TOBC) of Harrisburg, Pa. closed at $21.95 Monday, up 1% year-to-date. Based on a quarterly payout of 28 cents, the shares have a dividend yield of 5.10%. On December 21, the company raised an estimated $47.8 million in common equity after expenses, through an offering of common shares. On December 10, Tower completed its acquisition of First Chester County Corp. of West Chester, Pa. in an exchange of shares valued at $49.5 million. First Chester had total assets of about $1.14 billion. Income Statement Net income for the third quarter was $2.5 million, or 35 cents a share, increasing from $1.7 million, or 30 cents a share, a year earlier. The company reported a third-quarter tax-adjusted net interest margin of 3.64%, increasing from 3.58% during the third quarter of 2009. The ROA for the third quarter was 0.63% and the dividend payout ratio was 89%. Balance Sheet Total assets were $1.6 billion as of September 30 and the nonperforming assets ratio was 1%. The third-quarter net charge-off ratio was a very low 0.16% and reserves covered 0.95% of total loans as of September 30. The Tier 1 leverage ratio was 9.45% and the total risk-based capital ratio was 13.18% as of September 30. The tangible common equity ratio was 9.41% according to SNL Financial. Stock Ratios The shares trade right at tangible book value according to SNL - the cheapest by that measure among this group of ten holding companies. The forward price-to-earnings ratio is 10, based on the 2011 consensus earnings estimate of $2.17 a share. Analyst Ratings Tower Bancorp appears to be a bargain based on its stock price ratios, and two out of three analysts covering the company rate the shares a buy, with the remaining analyst recommending investors hold.