Towne Bancorp reports lower net loss for Q3 over last year

The holding company for Towne Bank of Arizona (TBA), Towne Bancorp (OTCBB:TWNE.OB), on Thursday reported a net loss of USD1.8m or USD1.10 per diluted share for the quarter ended 30 September 2009, compared to a loss of USD2.2m or USD1.35 per diluted share for the same quarter last year.

The continued loss relates to the very high level of non-performing assets held by TBA. Costs associated with these assets include USD1m for charge-offs; USD277,000 for additional provisions to the Allowance for Loan and Lease Losses; and USD229,000 for increased FDIC deposit insurance premiums together with other real estate expenses.

Towne Bancorp's net interest income was higher at USD725,000 as of 30 September 2009, compared to USD336,000 at the end of the prior quarter. This improvement followed a reduction in the number and amount of loans entering non-accrual status. TBA is working to dispose of its non-earning assets or return them to a contributing status, while reducing the cost of deposits and borrowings.