Despite strong loan, deposit, and revenue growth, Pennsylvania Commerce Bancorp Inc. in Camp Hill said its first-quarter net income fell 17% from the same period a year earlier, to $2 million.
Earnings per share fell 18%, to 32 cents, Pennsylvania Commerce said Tuesday.
Richard D. Weiss, an analyst at Janney Montgomery Scott LLC in Philadelphia, blamed the earnings drop on the flat yield curve, which continues to put pressure on margins.
Pennsylvania Commerce said its net interest margin shrank 72 basis points, to 3.39%.
Higher overhead also contributed to the earnings drop. The $1.7 billion-asset company said expenses rose 25%, to $13.9 million, largely because of costs associated with its ongoing branch expansion.
Otherwise, the company posted solid results. Deposits rose 23%, to $1.45 billion, and the loan book increased 28%, to $869 million. The company also reported a 33% increased in noninterest income, to $4.3 million.
