- The Enterprise
- The Recorder
Tri-County Financial Corp., the holding company for Community Bank of Tri-County, reported consolidated net income available to common shareholders for the three months ending June 30 of $891,152, or 29 cents per common diluted share, compared with $1,008,063, or 33 cents per common diluted share, for the three months ending June 30, 2011. The decrease was primarily attributable to increased noninterest expense partially offset by an increase in net interest income after provision for loan losses. During the three months ending June 30, noninterest expense included a foreclosed real estate valuation allowance as well as one-time conversion costs for a change of the bank’s core service provider.
“While the one-time charges for core system conversion and the [foreclosed real estate] valuation allowance negatively impacted earnings, the Company’s net interest margin continued to improve during the second quarter to 3.28 percent, an increase of 13 basis points from the first quarter net interest margin of 3.15 percent,” William Pasenelli, the bank’s president and chief financial officer, said in a bank news release. “Net interest income is up $1.1 million or 8.07 percent from a year ago due primarily to increased loan average balances and reduced funding costs. Average deposit costs have fallen 11 basis points from 1.32 percent for the quarter ended March 31, 2012, to 1.21 percent for the quarter ended June 30, 2012. Our current year focus remains on improving financial performance and asset quality.”
Consolidated net income available to common shareholders for the six months ending June 30 increased $908,577, or 87.55 percent, to $1,946,405, or 64 cents per common fully diluted share, compared with $1,037,828, or 34 cents per common fully diluted share, for the six months ending June 30, 2011. The year-to-date increase in earnings per share was primarily attributable to an increase in net interest income after provision for loan losses partially offset by increased noninterest expense as a result of the bank’s increased asset size, one-time conversion costs for a change of the bank’s core service provider and increased costs related to foreclosed real estate valuation to reflect current appraisals or contracted sales amounts.
“I am pleased that the Company has been able to maintain its profitability every quarter during the Great Recession and the slow recovery, while maintaining its vision to create long-term shareholder value,” Michael Middleton, chairman and CEO of the bank, said in the release. “Our market presence, recent investments in a new core system, an operations annex, as well as expansion into Virginia should help ensure the relevancy of Tri-County Financial Corporation in an industry where scale is increasingly important.”