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Tennessee Commerce Bancorp Reports Record Fourth Quarter and 2005
FRANKLIN, Tenn., Jan. 20 /PRNewswire-FirstCall/ -- Tennessee Commerce Bancorp, Inc. (OTC Bulletin Board: TNCC) today announced record results for the fourth quarter and year ended December 31, 2005.
Net income rose 73% to $1.1 million for the fourth quarter ended December 31, 2005 compared with $615,000 in the same period in 2004. Earnings per share increased to $0.33 for the fourth quarter of 2005 compared with $0.19 per share for the same quarter in 2004.
Tennessee Commerces earnings accelerated in 2005 due to strong loan growth, contribution from non-interest income sources and improved operating efficiencies, stated Mike Sapp, President of Tennessee Commerce Bancorp. Our record results for 2005 capped six years in business and six years of solid growth for us.
We believe our success is due to our business banking model coupled with the strength of the markets we serve. Net loans grew 61.3% to $344.2 million and deposits rose 66.1% to $367.7 million compared with 2004. We continue to gain new accounts and increase our services to existing customers to fuel our growth, continued Mr. Sapp.
Record Fourth Quarter
Net interest income rose 28.2% to $3.6 million in the fourth quarter of 2005 compared with $2.8 million in the fourth quarter of 2004. The growth in net interest income was due to an increase in loans offset somewhat by a decline in net interest margin. In the fourth quarter, Tennessee Commerce implemented SFAS 140 (Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities) that requires certain loan fees be amortized over the term of the loan. As a result of implementing SFAS 140, fourth quarter interest income was reduced by approximately $134,000 and correspondingly reduced net interest margin for the quarter. The $134,000 was treated as deferred income and will be added to future periods that correspond to the term of the loans.
Non-interest income grew 80.5% to $527,000 compared with $292,000 in the fourth quarter of 2004. The growth in non-interest income benefited from higher fee income and the sale of loans.
Return on average assets rose to 1.11% and return on average equity increased to 16.25% for the fourth quarter of 2005.
Record 2005 Results
Net income for 2005 rose 84% to a record $3.1 million, or $0.95 per share, compared with $1.7 million, or $0.57 per share, in 2004. Return on average assets improved to 0.97% and return on average equity increased to 12.29% in 2005.
Net interest income rose 52.8% to $13.6 million in 2005 compared with $8.9 million in 2004. Net interest income benefited from a 62.9% increase in earning assets to $388.7 million, offset somewhat by a 12 basis point decline in net interest margin to 4.44% and an increase in provision for loan losses from $2.4 million to $3.7 million.
The following information was filed by Tennessee Commerce Bancorp, Inc. (TNCC) on Friday, January 20, 2006 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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