TowneBank in Hampton Roads, Va., reported a lower quarterly profit due to higher costs tied to its recent acquisitions.
The $5 billion-asset companys fourth-quarter earnings fell 22% from a year earlier, to $7.8 million, or 20 cents a share.
Towne's profits were weighed down by expansion-related expenses. The company completed its purchase of the $1.1 billion-asset Franklin Financial earlier this year. The acquisition was announced last July.
In the past year, the company also bought Southern Insurance Agency in Kitty Hawk, N.C., and Beach Properties of Hilton Head, a resort property management company in South Carolina.
Noninterest expenses surged 19%, to $49 million. The company attributed the increases primarily to non-recurring charges associated with its acquisitions.
Fee-based income increased 19%, to $22.4 million, largely from insurance commissions and brokerage revenue.
Net interest income edged up 2%, to $37.1 million. Loans grew 5%, to $3.4 billion, while the net interest margin narrowed by 18 basis points, to 3.38%.