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Tennessee Commerce Bancorp Reports Record Fourth Quarter and 2006 Results
FRANKLIN, Tenn., Jan. 24 /PRNewswire-FirstCall/ -- Tennessee Commerce Bancorp, Inc. (Nasdaq: TNCC) today reported record net income, loans and deposits for the fourth quarter and year ended December 31, 2006.
Fourth quarter net income rose 48.3% to $1.6 million, or $0.33 per diluted shares, for the quarter ended December 31, 2006 compared with $1.1 million, or $0.30 per diluted share, for the fourth quarter in 2005.
Tennessee Commerce reported record earnings in 2006 due to strong growth in loans, net interest income and improved operating efficiencies, stated Mike Sapp, President of Tennessee Commerce Bancorp. Loan volume jumped 56.5% to $538.6 million in the fourth quarter of 2006 compared with the prior year and was a primary factor in net interest income rising 52.9% to $5.6 million. Our growth in loan volume also allowed us to sell a record amount of loans in 2006. We have been very successful in building income through loan sales and syndication of larger loans.
We continued to leverage our business banking model in 2006. We achieved an industry leading efficiency ratio of 39.08% in the fourth quarter. At the end of the fourth quarter, our average assets per employee of $12.5 million were over three and a half times higher than the Tennessee bank average of $3.5 million per employee, continued Mr. Sapp.
Interest income rose 77.4% to $12.5 million, up from $7.0 million in the fourth quarter of 2005. The growth in interest income was primarily due to a 52.3% increase in average loans to $497.6 million for the fourth quarter of 2006. Net interest income rose 52.9% to $5.6 million for the fourth quarter of 2006 compared with $3.6 million for the fourth quarter of 2005. The growth in net interest income was due to an increase in loans offset somewhat by a decline in net interest margin. Net interest margin was 3.80% in the fourth quarter of 2006 compared with 3.97% in the fourth quarter of 2005.
Provision for loan losses rose 33.3% to $1.2 million for the fourth quarter of 2006 compared with $0.9 million for the fourth quarter of 2005. Net interest income after the provision for loan losses increased 59.4% to $4.4 million, up from $2.7 million in the prior years fourth quarter.
Asset quality remained strong in 2006, stated George Fort, Chief Financial Officer. Our non-performing loans accounted for only 0.85% of total loans at year end and net charge offs to average loans were only 0.41% for 2006. Loan reserves to total loans were 1.28% at year-end 2006.
Non-interest income grew 21.3% to $639,000 compared with $527,000 in the fourth quarter of 2005. Non-interest income benefited from growth in service charges on deposit accounts and gain on sale of loans. Gain on loan sales rose 75.5% to a record $846,000 in the fourth quarter of 2006 compared with $482,000 in the fourth quarter of 2005. The 2006 gain was offset somewhat by a $296,000 loss associated with the disposal of repossessed assets in other non-interest income.
Average weighted diluted shares outstanding increased 33.8% to 4.9 million in the fourth quarter of 2006 from 3.6 million in the fourth quarter of 2005. The increase in shares was due to the Companys initial public stock offering of 1.15 million shares sold in June 2006.
Annualized return on average assets was 1.05% and return on average equity was 12.58% for the fourth quarter of 2006. Tennessee Commerces efficiency ratio was 39.08% in the fourth quarter of 2006 compared with 41.25% in the fourth quarter of 2005.
The following information was filed by Tennessee Commerce Bancorp, Inc. (TNCC) on Wednesday, January 24, 2007 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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