Friday, March 05, 2010
HomeTown Bank earnings up
The latest from The Ticker blog
The Roanoke-based parent company of HomeTown Bank reported on Thursday improved fourth-quarter and annual financial results for 2009.
HomeTown Bankshares Corp. said it earned $493,000 for the year ended Dec. 31, compared with a net loss of $2.18 million for 2008. After paying dividends due as part of the Capital Purchase Program, the net income to shareholders was $323,000, or 11 cents per share.
For the fourth quarter, the company reported earnings of $193,000, compared with a loss of $905,000 for the same period a year earlier.
A 45 percent increase in earning assets, as well as improving returns on those assets and a reduction in funding costs, were the primary reasons for earnings growth, officials said in a news release.
"In view of the challenging economy, we continue to be pleased with our continued profitability during 2009," President Susan Still said in the release. "We remain committed to actively serving our communities, prudently working with our customers during these difficult times, and continuing to grow our market share."
Total assets grew to a record $338 million, up 44 percent over 2008, while total loans grew 20 percent to $253 million and total deposits improved 44 percent to $272 million.
Nonperforming assets grew slightly to 1.4 percent of total assets, but officials believe the portfolio continues to perform well "compared to industry peers."
-- Chris Winston
