Appalachian Bancshares Inc. in Ellijay, Ga., said strong loan and deposit growth powered it to third-quarter earnings of $4.4 million, up nearly 21% from the year-earlier period.
The $743 million-asset company said loans increased 39%, to $593 million, and deposits rose 32%, to 599 million. It announced the results Friday.
Its returns on assets and equity declined, however, which the company attributed largely to higher expenses related to its expansion and November 2005 stock offering that increased its number of shareholders. Its return on assets was 0.92%, down 4 basis points from a year earlier, and its return on equity declined by 343 basis points, to 9.44%.
Its net interest margin, however, rose 37 basis points, to 5.09%
Appalachian has opened four branches this year and is creating a thrift subsidiary in Tennessee that is to open in early 2007.
