Roanoke-based HomeTown Bank reported earnings from operations of ,000 for the second quarter of 2009 vs. an operating loss of 3,000 for the second quarter of 2008. June 30, 2009, all banks were assessed a special FDIC charge. This amounted to 0,000 for HomeTown Bank, which resulted in a net loss of ,000 for the quarter.
The Bank continues to be profitable year-to-date, with net income of $145,000, through June 30, 2009 vs. a net loss of $876,000 in 2008. Earnings per common share were $0.05 per share thru June 30, 2009 vs. a loss of $0.35 per share in 2008.
For the second quarter, net interest income was $1.7 million, an increase of 68.1% over last year.
The increase in net interest income was due primarily to loan growth of $75.1 million over last year. The Bank’s net interest margin in the second quarter was 2.92% as compared to 2.87% for the same period last year. The Bank’s margin increased from 2.89% in the first quarter of 2009.
“We are very pleased to report positive earnings for the first six months of 2009, particularly in view of our heavy investment in growth, our being just three and a half years old, and considering the current economy and market conditions,” stated Susan K. Still, President and CEO. “Maintaining profitability under these circumstances is a tribute to our employees and directors and continues to be a validation of our business plan. During the protracted recession, we have continued to grow profitably and serve our communities.”
Total bank assets grew to a record level of $285.2 million, an increase of $99.7 million over second quarter 2008. HomeTown Bank has issued loans reaching $240.5 million, an increase of 45.4% over the second quarter 2008. Total deposits increased $107.3 million to $245.9 million, representing a 77% increase over the comparable period of 2008.
HomeTown Bank held its Annual Shareholders Meeting Thursday, August 6, where the shareholders voted to approve the formation of a bank holding company, HomeTown Bankshares Corporation. With this approval, each existing share of the Bank’s common stock will be converted into an equal interest in the new holding company.
