Multiple acquisitions weighed down quarterly profit at TowneBank in Suffolk, Va.
The $6.5 billion-asset company said in a press release Thursday that second-quarter net income fell 65% from a year earlier to $6.2 million, or 12 cents a share.
Noninterest expenses rose 46.5% to $71.8 million. TowneBank said the increase was largey due to pre-tax and operating costs tied to its purchase of three insurance agencies in October and operating expenses from its acquisition of a resort property management company.
Net interest income rose 6.4% to $47.7 million. Total loans increased 32% to $5.5 billion because of organic growth and the addition of $818 million loans from TowneBank's purchase of Monarch Financial Holdings. The net interest margin compressed by 16 basis points to 3.36%.
Noninterest income rose 17.5% to $36.4 million because of residential mortgages, and insurance commissions and other title fees tied to the insurance agencies deals.