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.
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TowneBank in Suffolk, Va., has agreed to buy Monarch Financial Holdings in Chesapeake, Va., for $220.6 million in stock.
December 17 -
The $6.1 billion-asset TowneBank acquired Invincia Insurance Solutions in Chesterfield, Total Insurance Planning in Midlothian and B.H. Baird Insurance in Warsaw.
October 9 -
Dollar Bank in Pittsburgh has agreed to buy Bank @lantec in Virginia Beach.
June 28
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.
