Tower Bancorp Inc. (TOBC), the holding company for Graystone Tower Bank, Wednesday reported a higher profit for the third quarter, as revenues increased.
For the third quarter, Tower Bancorp's net income rose to $6.2 million or $0.52 per share from $2.5 million or $0.35 per share in the year-ago period.
On average, 4 analysts polled by Thomson Reuters expected earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew to $29.6 million from $16.3 million in the year-ago quarter. Three Street analysts had a consensus revenue estimate of $29.3 million for the quarter.
Net interest income for the quarter increased to $23.9 million from $13.4 million in the year-ago quarter. Noninterest income increased to $5.7 million from $3.0 million.
Noninterest expense for the quarter increased 76.9 percent to $19.4 million from $10.9 million last year, primarily resulting from expenses related to operating a significantly larger organization in 2011 as compared to 2010.
The provision for loan losses for the quarter decreased to $1.3 million from $1.6 million for the third quarter of 2010.
The net interest margin for the quarter improved to 4.17 percent from 3.64 percent for the third quarter of 2010.
The Residential Mortgage Segment recognized a loss of $24 thousand during the quarter. This compares to a loss of $1.2 million during the second quarter of 2011. During the first six months of 2011, the company substantially restructured the residential mortgage operations acquired in connection with the First Chester Merger. As part of the restructuring, the company intentionally reduced the size of its residential mortgage operations, which resulted in a decrease of loans held for sale from $147.3 million at December 31, 2010 to $30.1 million at September 30, 2011.
The ratio of non-performing assets to total assets at September 30, 2011 declined to 1.30 percent from 1.64 percent at June 30, 2011.
Harrisburg, Pennsylvania-based Tower Bancorp declared a quarterly cash dividend of $0.14 per share, payable on November 30, 2011 to shareholders of record at the close of business on November 15, 2011.
The merger with with Susquehanna Bancshares, Inc. is anticipated to close in February 2012, subject to shareholder and regulatory approvals and other customary closing conditions.
TOBC is currently trading at $24.21, up $1.06 or 4.58%, on the Nasdaq. Over the past year, the stock traded in a range of $19.00 - $27.85.
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