Wednesday, April 21, 2010

Tennessee Commerce Bancorp makes a profit, despite bad loans

Tennessee Commerce Bancorp, Inc. made $1.35 million in profits during the first quarter of the year, or 24 cents per share, compared to a loss of $2.7 million during the same quarter a year ago, the bank reported today.
The Franklin-based business bank’s bottom line benefited from cutting its provision for loan losses nearly in half to $4.6 million and it net-charge offs for bad loans declined by one-third from a year ago to $4.4 million.

Although bad loans, or non-performing assets, edged upward to a record high of $41.5 million during the quarter, compared to $39 million a year ago, and past-due loans also increased, the bank has been increasing its portfolio of loans to $1.2 billion and its profit margins have been improving.

“This represents the fifth consecutive quarter of net interest margin expansion and is a direct reflection of our continued focus on driving down the cost of funds and maintaining loan yields," stated Mike Sapp, President and Chief Executive Officer of Tennessee Commerce Bancorp.

The company had make a profit of $1.3 million in the fourth quarter of last year.

The bank’s stock edged up 6.4 percent to $9.23 per share on the Nasdaq in trading this morning. The stock price has more than doubled from a low of $4.29 per share at the end of last year.

Real Estate Outlook: Faster Recovery?Streamlined First Tennessee narrows loss