Tuesday, November 9, 2010
HomeTown Bank Returns to Profitability
HomeTown Bankshares Corporation, the parent company of HomeTown Bank, reported a net income of $310 thousand for the 3rd quarter of 2010. This compared to a net income of $155 thousand for the third quarter of 2009.
A net loss of $2.1 million was realized for the nine month period ended September 30, 2010 vs. net income of $300 thousand during the same period last year. After accumulated dividends on preferred stock of $150 thousand in the third quarter, the company had net income available to common shareholders of $.05 per share for the quarter ended September 30, 2010, compared with $.04 per share for the same period in 2009.
“We are pleased to have returned to profitability in the third quarter,” says Susan K. Still, president and CEO. “And for the fifth consecutive quarter we have grown the level of our core earnings.”
Core earnings represent a non-GAAP measure determined by taking income before income taxes and adding back any loan loss or OREO provision and backing out any securities gains or losses. Core earnings demonstrate that the basic or core engine of the bank is functioning well and producing revenue.
Earnings performance in the third quarter was enhanced by a 33 percentincrease in net interest income to $2.8 million, a substantial increase over last years $2.1 million. This increase is largely due to the increased size of our loan and investment portfolios.
The company’s net interest margin for the third quarter increased to 3.31 percentup from 2.97 percentfor the same period in 2009, primarily due to the re-pricing of deposit liabilities. Non-interest income increased 21 percentto $235 thousand for the quarter mainly due to increased mortgage loan brokerage fee income.