TOWER FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - TOWER FINANCIAL CORPORATION 8-K 01-27-2011 - TOWER FINANCIAL CORP	form8k.htm

Exhibit 99.1

FOR FURTHER INFORMATION:

	FOR INVESTORS:	FOR MEDIA:
	Richard R. Sawyer	Tina M. Farrington
	Chief Financial Officer	Executive Vice President
	260-427-7150	260-427-7155
	rick.sawyer@towerbank.net	tina.farrington@towerbank.net

TOWER FINANCIAL CORPORATION REPORTS FOURTH QUARTER EARNINGS OF $884,000 AND YEAR TO DATE EARNINGS OF $3.2 MILLION

FORT WAYNE, INDIANA – JANUARY 27, 2011 –Tower Financial Corporation (NASDAQ: TOFC) reported net income of $884,000 or $0.18 per diluted share for the fourth quarter of 2010, compared with a net loss of $1.2 million, or ($0.29) per diluted share, reported for the fourth quarter 2009. This brings year to date net income to $3.2 million, or $0.69 per diluted share, compared to a year to date net loss of $5.6 million, or ($1.37) per diluted share at December 31, 2009.

Our fourth quarter and annual highlights include:

Record “Core” earnings of $9.6 million for 2010 which was an increase of $3.1 from 2009. Core earnings are defined as income before taxes, loan loss provision, and unusual items not related to day to day operations (primarily securities sales and OREO (other real estate owned) related expenses). Our 2010 Core earnings represent the best year in our history for this measurement, exceeding our previous best year (2005) by $1.6 million.

Net interest margin of 3.70 percent for the fourth quarter and year to date, representing a significant improvement from the 3.47 percent and 3.15 percent reported for the fourth quarter 2009 and year to date 2009, respectively.

Capital ratios continue to increase and remain well above the regulatory standards necessary to be considered “well-capitalized.” As of December 31, 2010, our leverage ratio was 10.6 percent and our Total Risked Based Capital ratio was 14.3 percent, compared to regulatory requirements of 5.0 percent and 10.0 percent, respectively.

Record net income of $738,000 reported for our Trust subsidiary which was a 5.6 percent increase from 2009.

Mike Cahill, our President and Chief Executive Officer stated: “In the face of a challenging economy and uncertain banking environment, we were pleased by the progress we made in our earnings, capital, and asset quality in 2010. The significant turnaround experienced in 2010 is indicative of the planning and hard work of our board, our management team, and all of my fellow team members. Our work is not done, and we will continue to focus on our efforts to deliver the consistent level of earnings our shareholders expect.”

Capital

The Company’s regulatory capital ratios continue to remain above the “well-capitalized” levels of 6 percent for Tier 1 capital and 10 percent for risked-based capital. Tier 1 capital at December 31, 2010, increased to 13.1 percent, compared to 12.7 percent at September 30, 2010 and 10.9 percent at December 31, 2009. Total risked-based capital at December 31, 2010, increased to 14.3 percent, compared to 14.0 percent at September 30, 2010 and 12.5 percent at December 31, 2009. Leverage capital increased to 10.6 percent at December 31, 2010, more than double the regulatory requirement of 5 percent to be considered “well-capitalized”.

The following table shows the current capital position as of December 31, 2010 in both dollars and percentages, compared to the minimum amounts required per regulatory standards for “well-capitalized” institutions.

Minimum Dollar Requirements ($000's omitted)	Regulatory Minimum (Well-Capitalized)		Tower 12/31/10			Excess
Tier 1 Capital / Risk Assets	$	31,871	$	69,418		$	37,547

Total Risk Based Capital / Risk Assets	$	53,119	$	75,759		$	22,640

Tier 1 Capital / Average Assets (Leverage)	$	32,889	$	69,418		$	36,529

Minimum Percentage Requirements	Regulatory Minimum (Well-Capitalized)		Tower 12/31/10
Tier 1 Capital / Risk Assets	6% or more			13.10	%

Total Risk Based Capital / Risk Assets	10% or more			14.30	%

Tier 1 Capital / Quarterly Average Assets	5% or more			10.55	%

Asset Quality

Nonperforming assets plus delinquencies were $27.8 million, or 4.2 percent of total assets as of December 31, 2010. This compares with $20.0 million, or 3.1 percent of total assets at September 30, 2010 and $21.1 million, or 3.0 percent of assets at December 31, 2009. Net charge-offs were $49,000 for the fourth quarter 2010, bringing year to date net charge-offs to $3.9 million, or 0.76 percent of average loans. This compares to net charge-offs of $9.8 million, or 1.8 percent of average loans for calendar year 2009. Loan loss provision through December 31, 2010 was $4.8 million compared to $10.7 million for calendar year 2009.

The current and historical breakdown of non-performing assets is as follows:

($000's omitted)	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Non-Accrual loans
Commercial		6,859			6,924			5,364			5,463			6,667
Acquisition & Development		3,566			1,855			2,028			5,486			4,627
Commercial Real Estate		1,671			790			1,905			1,905			1,030
Residential Real Estate		843			1,093			1,063			1,120			1,142
Total Non-accrual loans		12,939			10,662			10,360			13,974			13,466
Trouble-debt restructered (TDR)		7,502			1,761			1,862			1,997			1,915
OREO		4,284			3,843			6,477			4,443			4,634
Deliquencies greater than 90 days		2,662			3,281			2,213			3,223			561
Impaired Securities		422			437			489			440			479

Total Non-Performing Assets		27,809			19,984			21,401			24,077			21,055

Allowance for Loan Losses (ALLL)		12,489			12,016			12,718			12,150			11,598

ALLL / Non-accrual loans		96.5	%		112.7	%		122.8	%		86.9	%		86.1	%

Classified Assets		50,115			51,409			55,688			56,297			55,406

The trouble-debt restructured (“TDR”) category consists of three loans, which account for 27 percent of our total non-performing assets. All three loans have had certain terms modified that cause these loans to be considered trouble-debt restructured under new accounting standards being proposed for adoption in 2011. The new, more stringent rules, once formally implemented by the Financial Accounting Standards Board (“FASB”), are retroactive to any loans restructured within one year of implementation. Therefore, we have elected to be proactive and classify these loans using the new standards. One loan, of approximately $1.8 million was modified to allow for the sale of the mortgaged property to occur. The sale is currently being negotiated between the borrower and the leasee of the facility and we expect resolution to occur sometime in 2011. The second loan has a balance of approximately $2.1 million and is considered a TDR because the loan was modified to take additional collateral of approximately $900,000. The third loan is for approximately $3.6 million and is considered a TDR because the amortization period for the loan was lengthened from 15 years to 17 years. The total impairment on these loans that is accounted for in our Allowance for Loan Losses is $500,000. As of December 31, 2010, all three loans were current and paying according to the modified terms.

Included in Delinquencies greater than 90 days is an accruing $1.8 million loan that has matured. The Bank has elected not to renew the loan and is seeking collection via legal process. The loan remains in accruing status because it is further supported by the unlimited guaranty of a third party whose guaranty is fully secured by a mortgage on a performing commercial real estate property that is unrelated to the borrower’s enterprise. This loan is expected to remain technically nonperforming during the pendency of our legal collection efforts but ultimate collection from the guarantor is not currently in doubt. The decrease from the third quarter relates to one loan relationship totaling $971,000 moving to non-accrual status. There are six relationships that comprise delinquencies, with two relationships making up 85 percent of the total amount past due.

Our commercial and industrial loan category remained relatively flat from the third quarter. Three loans totaling $422,000 were brought to resolution along with another $476,000 in partial reductions, however were replaced with three new loan relationships totaling 833,000. In total, nineteen relationships comprise this category, with six relationships making up $5.8 million, or 85 percent of the balance.

Our commercial real estate category increased by $881,000 during the fourth quarter, the net result of the addition of one relationship totaling $961,000 moving to non-accrual status from the 90 day delinquency category, offset by a small paydown on the only other loan in the commercial real estate category. Two loans totaling $981,000 were moved to OREO, while the third loan that made up the second quarter balance was paid off. These reductions were offset by a new relationship totaling $790,000 that was taken to non-accrual status at the end of the quarter. Our acquisition and development category increased by $1.7 million during the fourth quarter, the net result of the addition of one large, $2.1 million relationship, offset by the paydown of a portion of another non-accrual loan. A total of four relationships comprise the acquisition and development category. Our residential category had minimal changes during the fourth quarter, with the exception on one payoff in the amount of $300,000. There are nine loans within the residential category.

Classified assets are comprised of substandard and non-accrual loans, along with impaired investments and OREO. Classified assets reached their peak at the end of the second quarter of 2009 at $63.0 million. We have made steady progress over the past eighteen months to reduce these assets by $12.9 million, or 20.4 percent. As of December 31, 2010, classified assets comprised 63.4 percent of Tier 1 capital plus the Allowance for Loan Losses (“ALLL”).

The allowance for loan losses increased $473,000 during the fourth quarter of 2010 and was 2.56 percent of total loans at December 31, 2010, an increase from 2.43 percent at September 30, 2010 and an increase from 2.20 percent at December 31, 2009. The allowance for loan losses has increased by $1.2 million from December 31, 2009, as a result of loan provision of $4.8 million, offset by $3.6 million of net charge-offs.

Balance Sheet

Company assets were $659.9 million at December 31, 2010, a decrease of $20.2 million, or 3.0 percent from December 31, 2009. The decrease in assets was primarily attributable to decreases in total loans of $40.4 million, partially offset by an increase in securities of $20.3 million.

Total loans at December 31, 2010 were $486.9 million, compared to $527.3 million at December 31, 2009. We experienced decreases in all major loan categories with commercial and industrial loans decreasing by $19.7 million, residential mortgage loans by $6.6 million, commercial real estate by $11.9 million, consumer loans by $0.7 million and home equity loans by $1.7 million. This is consistent with the limited loan demand in our markets, along with purposeful reduction of our classified loans.

Long term investments at December 31, 2010 were $114.2 million, an increase of $20.3 million from December 31, 2009. Long-term investment now comprise 17.3 percent of total assets as we continue to expand our investment portfolio to enhance liquidity and yield opportunities in light of the planned reduction in our loan portfolio and recognition of fewer lending opportunities in the local economy. This is a continued purposeful change in asset allocation driven by profitability and liquidity targets, current economic conditions, and capital management guidelines.

Total deposits at December 31, 2010 were $576.4 million compared to $568.4 million at December 31, 2009, an increase of $8.0 million, or 1.4 percent. Core deposits declined slightly by $0.8 million, led by decreases in certificates of deposit less than $100,000 of $21.8 million, non-interest bearing checking accounts balances of $2.2 million, which were offset by growth in money market account balances of $7.2 million, interest bearing checking accounts of $11.4 million and $4.4 million in savings accounts. Certificates of deposit greater than $100,000 have decreased by $28.0 million since year end. Offsetting these decreases was an increase in brokered deposits totaling $36.8 million, which include both money market accounts and certificate of deposits. The growth in brokered deposits was purposeful as we took advantage of the favorable long term interest rate environment to lock in these favorable rates for an extended period of time. Terms for new brokered CD purchases ranged from two years to ten years, with an average life of just more than four years. The average rate on our brokered CD purchases was 1.9 percent and the average rate on brokered money market accounts was approximately 0.6 percent. Additionally, we have “put” options on $13.9 million of our longer termed, greater than five years, brokered CD’s in order to provide additional flexibility to interest rate changes and funding needs. $5.5 million of these brokered CD’s can be “put” as early as 2011 and carry an average interest rate of 3.5 percent. This increase in brokered deposits has also allowed us to reduce FHLB borrowings by $35.7 million since December 31, 2009. At December 31, 2010, FHLB borrowings totaled $7.5 million, which were fixed rate borrowings with specific maturity dates. $3.5 million of our FHLB borrowings, carrying a rate of 3.7 percent, mature during the first quarter of 2011 and our current expectations are to pay that debt off upon maturity.

Shareholders' equity was $53.1 million at December 31, 2010, an increase of 13.2 percent from the $46.9 million reported at December 31, 2009. Affecting the increase in stockholders’ equity was net income of $3.2 million, $47,000 of additional paid in capital from the FAS123R accounting treatment for stock options, $2.8 million net after expenses from the sale of 458,342 shares of common stock, and an increase of $155,000 in unrealized gains, net of tax, on securities available for sale. Current common shares outstanding are 4,724,023.

Operating Statement

Total revenue, consisting of net interest income and noninterest income, was $7.3 million for the fourth quarter 2010, a decrease of $891,000 from the third quarter 2010 and an increase of $475,000 from the fourth quarter 2009. The decrease from the third quarter of 2010 was due to a one-time extraordinary gain on investment sale of $888,000 that was recorded in the third quarter. Fourth quarter 2010 net interest income was $5.5 million a slight decrease of $60,000, or 1.1 percent from the third quarter 2010 and an increase of $140,000, or 2.6 percent compared to the fourth quarter 2009. The relatively flat quarter for net interest income was attributable to an increase of one basis point in our net interest margin, offset by a decrease in average earning assets of $6.8 million. The fourth quarter 2010 net interest margin of 3.70 percent represents a 23 basis point increase from the net interest margin of 3.47 percent posted for the fourth quarter 2009. Year to date net interest margin through December 31, 2010 was 3.70 percent compared to 3.15 percent for 2009.

Non-interest income was $1.8 million for the fourth quarter 2010, which represented 24.8 percent of total revenue. This is a decrease of 832,000 from the third quarter 2010 and an increase of $335,000 from the fourth quarter of 2009. The third quarter fee income includes an extraordinary gain on the sale of investment securities in the amount of $888,000 ($575,000 net of taxes). Taking out the extraordinary gain, non-interest income increased slightly, by $56,000, from the third quarter of 2010. The increase came primarily from trust and brokerage fees, which increased by $59,000, lead by brokerage fees. All other non-interest income categories remained relatively flat from the third quarter.

The increase from the fourth quarter of 2009 relates to various categories. Trust and brokerage fees increase by $59,000, mortgage origination fees increased by $48,000, and “other than temporary impairment” (“OTTI”) charges decreased by $98,000. The company has incurred OTTI charge on two investment securities. One is a trust preferred investment, which has now been written down to a book value of $110,000. Life to date OTTI on the trust preferred security is $850,000 through December 31, 2010. The other is a private label collateralized mortgage obligation (CMO) that has a current book value of $586,000. Life to date OTTI on the CMO is $58,000 through December 31, 2010.

Non-interest expenses were $5.3 million, unchanged from the third quarter of 2010 and a decrease of $733,000 from the fourth quarter of 2009.

The decrease from the fourth quarter of 2009 represents a 12.1 percent reduction in total non-interest expense. The majority of the reductions came in the following categories: employment expenses, $440,000; occupancy and equipment, $91,000; legal and professional, $97,000; and OREO, $317,000. The savings in employment expenses relates primarily to one-time costs associated with the former Chairman’s retirement on December 31, 2009. Occupancy expenses were reduced primarily due to a rent reduction achieved through renegotiating our lease on our headquarters facility. The savings were offset by increases in processing expense of $76,000, business development expenses of $27,000, and FDIC insurance premiums of $160,000. The increase in processing expenses relates to a migration of our core operating system to a new provider in early 2010, which provides for enhanced functionality and efficiency. The increase in FDIC premiums relates to the increases in assessment rates from 2009.

Year to date, non-interest expenses are $1.8 million lower than 2009. The savings comes primarily in our employment expense category, which was reduced by $1.4 million. The savings was the result of the down sizing that took place in the fall of 2009.

ABOUT THE COMPANY

Headquartered in Fort Wayne, Indiana, Tower Financial Corporation is a financial services holding company with one subsidiary; Tower Bank & Trust Company, a community bank headquartered in Fort Wayne. Tower Bank provides a wide variety of financial services to businesses and consumers through its six full-service financial centers in Fort Wayne, and one in Warsaw, Indiana. Tower Bank has a wholly-owned subsidiary, Tower Trust Company, which is a state-chartered wealth services firm doing business as Tower Private Advisors. Tower Financial Corporation's common stock is listed on the NASDAQ Global Market under the symbol "TOFC." For further information, visit Tower's web site at www.towerbank.net

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and about the Corporation and the Bank.

These forward-looking statements are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Actual results and outcomes may differ materially from what may be expressed or forecasted in the forward-looking statements. Future factors include changes in banking regulation; changes in governmental and regulatory policy or enforcement; changes in the national and local economy; changes in interest rates and interest-rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in tax laws; changes in prices; the impact of technological advances; the outcomes of contingencies, trends in customer behavior and their ability to repay loans; changes in local real estate values; and other factors, including various risk factors identified and described in the Corporation’s Annual Report on Form 10-K, quarterly reports of Form 10-Q and in other periodic reports we file from time to time with the Securities and Exchange Commission. These reports are available on the Commission’s website at www.sec.gov, as well as on our website at www.towerbank.net

# # # #

Tower Financial Corporation

Consolidated Balance Sheets

At December 31, 2010 and December 31, 2009

	(unaudited)
	December 31 2010			December 31 2009
ASSETS
Cash and due from banks	$	24,717,935		$	19,861,434
Short-term investments and interest-earning deposits		4,309,006			1,259,197
Federal funds sold		1,648,441			3,543,678
Total cash and cash equivalents		30,675,382			24,664,309

Securities available for sale, at fair value		110,108,656			85,179,160
Securities held to maturity, at cost		-			4,495,977
FHLBI and FRB stock		4,075,100			4,250,800
Loans Held for Sale		2,140,872			3,842,089

Loans		486,914,115			527,333,461
Allowance for loan losses		(12,489,400	)		(11,598,389	)
Net loans		474,424,715			515,735,072

Premises and equipment, net		8,329,718			8,011,574
Accrued interest receivable		2,391,953			2,439,859
Bank Owned Life Insurance		13,516,789			13,046,573
Other Real Estate Owned		4,284,263			4,634,089
Prepaid FDIC Insurance		2,864,527			4,777,797
Other assets		7,116,280			9,081,759

Total assets	$	659,928,255		$	680,159,058

LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$	92,872,957		$	95,027,233
Interest-bearing		483,483,179			473,353,118
Total deposits		576,356,136			568,380,351

Federal Home Loan Bank advances		7,500,000			43,200,000
Junior subordinated debt		17,527,000			17,527,000
Accrued interest payable		1,415,713			480,885
Other liabilities		4,000,654			3,634,713
Total liabilities		606,799,503			633,222,949

STOCKHOLDERS' EQUITY

Preferred stock, no par value, 4,000,000 shares authorized; 7,750 shares issued and outstanding		757,213			1,788,000
Common stock and paid-in-capital, no par value, 6,000,000shares authorized;4,789,023 and 4,155,432 shares issued; and 4,724,023 shares outstanding at December 31, 2010 and 4,090,432 shares outstanding at December 31, 2009		43,740,155			39,835,648
Treasury stock, at cost, 65,000 shares at December 31, 2010 and December 31, 2009		(884,376	)		(884,376	)
Retained earnings		8,450,579			5,286,808
Accumulated other comprehensive income (loss), net of tax of $548,730 at December 31, 2010 and $468,803 at December 31, 2009		1,065,181			910,029
Total stockholders' equity		53,128,752			46,936,109

Total liabilities and stockholders' equity	$	659,928,255		$	680,159,058

Tower Financial Corporation

Consolidated Statements of Operations

For the year ended December 31, 2010 and 2009

(unaudited)

	For the Three Months Ended December 31						For the Year ended December 31
	2010			2009			2010			2009
Interest income:
Loans, including fees	$	6,466,670		$	6,928,347		$	26,847,111		$	28,035,871
Securities - taxable		606,566			825,731			2,502,200			3,066,247
Securities - tax exempt		301,658			241,174			1,071,876			951,942
Other interest income		12,781			1,859			31,334			13,363
Total interest income		7,387,675			7,997,111			30,452,521			32,067,423
Interest expense:
Deposits		1,502,196			2,176,852			6,566,581			10,315,149
Fed Funds Purchased		8			83			138			1,656
FHLB advances		68,902			158,026			465,756			801,803
Trust preferred securities		296,349			281,648			1,158,956			1,128,017
Total interest expense		1,867,455			2,616,609			8,191,431			12,246,625

Net interest income		5,520,220			5,380,502			22,261,090			19,820,798
Provision for loan losses		805,000			1,230,000			4,745,000			10,735,000

Net interest income after provision for loan losses		4,715,220			4,150,502			17,516,090			9,085,798

Noninterest income:
Trust and brokerage fees		939,864			880,841			3,604,907			3,373,635
Service charges		281,103			294,468			1,125,707			1,121,446
Loan broker fees		181,373			133,081			720,615			685,632
Gain/(Loss) on sale of securities		175,136			54,220			1,109,743			264,112
Impairment on AFS securities		(128,169	)		(225,770	)		(158,303	)		(750,770	)
Other fees		376,054			352,896			1,411,435			1,393,777
Total noninterest income		1,825,361			1,489,736			7,814,104			6,087,832

Noninterest expense:
Salaries and benefits		2,509,822			2,927,892			9,578,932			10,947,014
Occupancy and equipment		644,037			735,483			2,533,688			2,905,929
Marketing		55,689			85,330			423,443			451,862
Data processing		369,669			293,199			1,128,096			1,172,625
Loan and professional costs		411,701			508,825			1,629,582			1,649,511
Office supplies and postage		53,190			90,681			245,938			348,230
Courier service		55,222			58,973			221,756			236,928
Business Development		128,695			101,879			406,775			456,483
Communication Expense		46,067			49,935			186,164			181,393
FDIC Insurance Premiums		525,878			365,926			2,059,524			1,681,862
OREO Expenses		293,221			609,282			1,703,791			1,724,626
Other expense		251,894			251,160			1,125,007			1,241,141
Total noninterest expense		5,345,085			6,078,565			21,242,696			22,997,604

Income/(loss) before income taxes/(benefit)		1,195,496			(438,327	)		4,087,498			(7,823,974	)
Income taxes expense/(benefit)		311,917			763,180			923,727			(2,216,637	)

Net income/(loss)	$	883,579		$	(1,201,507	)	$	3,163,771		$	(5,607,337	)
Less: Preferred Stock Dividends		-			-			-			1,579
Net income/(loss) available to common shareholders	$	883,579		$	(1,201,507	)	$	3,163,771		$	(5,608,916	)

Basic earnings/(loss) per common share	$	0.19		$	(0.29	)	$	0.73		$	(1.37	)
Diluted earnings/(loss) per common share	$	0.18		$	(0.29	)	$	0.69		$	(1.37	)
Average common shares outstanding		4,720,159			4,090,432			4,334,084			4,090,416
Average common shares and dilutive potential common shares outstanding		4,852,759			4,090,432			4,558,918			4,090,416

Total Shares outstanding at end of period		4,714,887			4,090,432			4,724,023			4,090,432
Dividends declared per common share	$	-		$	-		$	-		$	-

Tower Financial Corporation

Consolidated Financial Highlights

(unaudited)

	Quarterly																								Year-To-Date
($ in thousands except for share data)	4th 2010			3rd Qtr 2010			2nd Qtr 2010			1st Qtr 2010			4th Qtr 2009			3rd Qtr 2009			2nd Qtr 2009			1st Qtr 2009			2010			2009

EARNINGS
Net interest income	$	5,521			5,580			5,597			5,563			5,381			5,077			4,822			4,541			22,261			19,821
Provision for loan loss	$	805			1,500			1,100			1,340			1,230			1,995			6,550			960			4,745			10,735
NonInterest income	$	1,825			2,657			1,734			1,598			1,490			1,210			1,599			1,789			7,814			6,088
NonInterest expense	$	5,345			5,350			5,642			4,905			6,079			5,468			6,458			4,993			21,242			22,998
Net income/(loss)	$	884			1,045			514			721			(1,202	)		(721	)		(4,095	)		410			3,164			(5,608	)
Basic earnings per share	$	0.19			0.24			0.13			0.18			(0.29	)		(0.18	)		(1.00	)		0.10			0.73			(1.37	)
Diluted earnings per share	$	0.18			0.22			0.12			0.17			(0.29	)		(0.18	)		(1.00	)		0.10			0.69			(1.37	)
Average shares outstanding		4,720,159			4,427,370			4,090,432			4,090,432			4,090,432			4,090,432			4,090,432			4,090,365			4,334,084			4,090,416
Average diluted shares outstanding		4,852,759			4,669,965			4,394,419			4,394,419			4,090,432			4,090,432			4,090,432			4,090,365			4,558,918			4,090,416

PERFORMANCE RATIOS
Return on average assets *		0.53	%		0.63	%		0.31	%		0.43	%		-0.70	%		-0.42	%		-2.32	%		0.24	%		0.48	%		-0.81	%
Return on average common equity *		6.56	%		8.17	%		4.26	%		6.17	%		-9.83	%		-6.13	%		-32.65	%		3.33	%		6.33	%		-11.48	%
Net interest margin (fully-tax equivalent) *		3.72	%		3.69	%		3.72	%		3.66	%		3.47	%		3.24	%		3.02	%		2.85	%		3.70	%		3.14	%
Efficiency ratio		72.76	%		64.95	%		76.96	%		68.50	%		88.47	%		86.97	%		100.58	%		78.88	%		70.63	%		88.76	%
Full-time equivalent employees		150.75			149.25			145.75			150.25			146.25			159.25			172.75			176.50			150.75			146.25

CAPITAL
Equity to assets		8.05	%		8.09	%		7.44	%		7.12	%		6.90	%		7.14	%		6.70	%		7.03	%		8.05	%		6.90	%
Regulatory leverage ratio		10.55	%		10.35	%		9.50	%		9.20	%		9.05	%		9.04	%		8.56	%		9.52	%		10.55	%		9.05	%
Tier 1 capital ratio		13.10	%		12.73	%		11.62	%		11.14	%		10.90	%		11.00	%		10.38	%		11.47	%		13.10	%		10.90	%
Total risk-based capital ratio		14.30	%		13.98	%		13.11	%		12.66	%		12.46	%		12.53	%		11.96	%		12.77	%		14.30	%		12.46	%
Book value per share	$	11.09			11.15			11.53			11.30			11.04			11.87			11.24			12.29			11.09			11.04
Cash dividend per share	$	0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000

ASSET QUALITY
Net charge-offs	$	332			2,202			531			789			4,537			2,045			3,092			117			3,854			9,791
Net charge-offs to average loans *		0.27	%		1.74	%		0.41	%		0.61	%		3.38	%		1.49	%		2.21	%		0.08	%		0.76	%		1.78	%
Allowance for loan losses	$	12,489			12,016			12,718			12,150			11,598			14,905			14,105			11,498			12,489			11,598
Allowance for loan losses to total loans		2.56	%		2.43	%		2.50	%		2.32	%		2.20	%		2.78	%		2.53	%		2.06	%		2.56	%		2.20	%
Other real estate owned (OREO)	$	4,284			3,843			6,477			4,443			4,634			3,990			4,060			5,080			4,284			4,634
Non-accrual Loans	$	12,939			10,768			10,360			13,974			13,466			20,219			19,016			11,708			4,284			13,466
90+ Day delinquencies	$	2,688			3,175			2,213			3,223			561			1,477			2,509			1,304			12,939			561
Restructured Loans	$	7,502			1,761			1,862			1,997			1,915			163			184			191			7,502			1,915
Total Nonperforming Loans		23,129			15,704			14,435			19,194			15,942			21,859			21,709			13,203			23,129			15,942
Impaired Securities (Market Value)		422			437			489			440			479			779			-			-			422			479
Total Nonperforming Assets		27,835			19,984			21,401			24,077			21,055			26,628			25,769			18,283			27,835			21,055
NPLs to Total loans		4.75	%		3.17	%		2.83	%		3.67	%		3.02	%		4.08	%		3.89	%		2.37	%		4.75	%		3.02	%
NPAs (w/o 90+) to Total assets		3.81	%		2.55	%		2.91	%		3.09	%		3.01	%		3.70	%		3.39	%		2.37	%		3.81	%		3.01	%
NPAs+90 to Total assets		4.22	%		3.03	%		3.25	%		3.57	%		3.10	%		3.92	%		3.75	%		2.55	%		4.22	%		3.10	%

END OF PERIOD BALANCES
Total assets	$	659,928			660,141			658,327			674,152			680,159			679,394			686,307			715,634			659,928			680,159
Total earning assets	$	609,196			613,286			611,996			626,197			629,904			633,742			651,946			681,688			609,196			629,904
Total loans	$	486,914			494,818			509,656			523,437			527,333			536,074			557,530			558,148			486,914			527,333
Total deposits	$	576,356			577,094			564,988			559,291			568,380			592,731			594,594			618,705			576,356			568,380
Stockholders' equity	$	53,129			53,382			48,950			48,002			46,936			48,541			45,962			50,280			53,129			46,936

AVERAGE BALANCES
Total assets	$	657,397			658,898			663,825			677,967			678,445			686,752			708,282			696,431			664,522			692,478
Total earning assets	$	605,306			614,742			617,060			629,582			628,983			636,503			657,539			662,712			616,673			646,434
Total loans	$	485,125			503,334			514,962			526,814			532,627			542,921			561,828			559,607			507,559			549,246
Total deposits	$	574,072			561,966			569,759			564,238			581,018			597,792			612,649			598,807			567,509			597,567
Stockholders' equity	$	53,438			50,744			48,404			47,421			48,507			46,678			50,303			49,942			50,002			48,858

* annualized for quarterly data

Attached files

Stock widget

Investing forum

TOWER FINANCIAL CORP Reports

Also read