Exhibit 99.1
 
 
FOR FURTHER INFORMATION:
 
   
FOR INVESTORS:
FOR MEDIA:
Michael D. Cahill
Trois Hart
COO and CFO
VP, Marketing
260-427-7013
260-427-7053
mike.cahill@towerbank.net
trois.hart@towerbank.net 
 
TOWER FINANCIAL CORP. REPORTS FISCAL YEAR 2006 EARNINGS OF $3.7 MILLION, UP 7.2%

FORT WAYNE, Ind., January 16, 2007 -- Tower Financial Corporation (NASDAQ: TOFC) today announced fiscal year 2006 net income of $3.7 million, an increase of 7.2 percent from the $3.4 million reported for the fiscal year 2005. Diluted earnings per share were $0.89, up 6.0 percent from the $0.84 per diluted share reported for the prior fiscal year. Strong balance sheet and non-interest income growth were partially offset by margin compression and expenditures related to expansion and restructuring activities.

For the fourth quarter of 2006, earnings were $810,000, or $0.20 per diluted share, compared with $938,000 or $0.23 per diluted share for the fourth quarter of 2005. Earnings for the 2006 fourth quarter were further impacted by the disproportionately higher share of 2006 operating expenses taken in the fourth quarter to support expansion and restructuring activities.

Fiscal year 2006 highlights include:
 
 
·
Robust loan growth, up $100.1 million or 22.2 percent over the last twelve months; growth was largely derived from the commercial sector, namely, commercial & industrial (C&I) loans plus commercial real estate (CRE) loans which together contributed approximately $60 million of the increase.
 
 
·
Net interest income increased 15.3 percent to $20.2 million for the year, primarily from exceptional growth in average earnings assets, up 19.1 percent, which more than offset net interest margin compression.
 
 
·
Non-interest income increased 23.0 percent year-over-year, primarily from trust fees and brokerage fees, up 32.5 percent. This was Tower Trust Company’s first year as a separate subsidiary of Tower Financial Corp.; net income for its first year of operations was $521,000, more than double 2005 pro forma earnings.
 
 
·
Non-interest expense increased by $4.0 million, or 28.4 percent above 2005 levels from a combination of activities:
 
 
o
Increased operating expense related to expansion activities during 2006, namely, infrastructure and personnel costs, totaled approximately $606,000 pre-tax ($445,000 after-tax, or $0.10 per share):
 
 
§
Increased operating expense related to in-market expansion activities (a total of $288,000 pretax) including the completion of a sixth banking office in Fort Wayne, the opening of a Warsaw loan production office (LPO), the conversion of the Angola LPO into a branch, and the seven full-time equivalent (FTE) bankers hired to staff the three facilities;
 
 
o
Formation of a de novo community bank (Tower Bank of Central Indiana) serving greater Indianapolis and Central Indiana and the hiring of its four-person staff incurred 2006 expenses of $318,000; the bank should be operational by Spring 2007 pending receipt of regulatory approval.
 
 
o
The formation of two investment subsidiaries on July 1, 2006 that will provide Tower Financial with additional flexibility to raise capital for future needs. The one-time start-up cost for the two entities was $140,000, while the ongoing benefit will be a reduction of approximately five percent in Tower's effective tax rate; for 2006, the Company saved approximately $386,000 in taxes, for a 2006 net positive impact of $262,000, or $0.06 per diluted share.
 

 
 
o
Salary and benefits expense for 2006 increased by $2.5 million or 29.8 percent. Of this total:
 
 
§
$396,000 of expenses had no counterpart in 2005, including the $111,000 cost of expensing stock options and a one-time cost of $285,000 relating to a severance package for a senior executive. The after-tax impact was $277,000 or $0.07 per share.
 
 
§
In addition to the employees mentioned above to staff the new facilities, 25 FTEs more were added to enhance back-office support and expand lending activities, bringing the total to 186 FTEs, an increase of 36 people or 24 percent above year-end 2005.
 
 
·
The initiation of a quarterly cash dividend of $0.04 per share in the first quarter of 2006; Tower returned a total of $643,000 to shareholders in 2006, representing a payout of 17.4 percent of 2006 net income.
 
Donald F. Schenkel, Chairman, President and CEO, commented, "This has been an exciting year for Tower. Robust loan growth continues to drive growth in net interest income, offsetting the impact of margin compression, and trust activities made an outstanding contribution to income in their first year as a separate corporation. We increased our share of our traditional Fort Wayne Metropolitan Statistical Area (MSA) to nearly 11 percent based on deposit growth.

“We also made substantial progress positioning Tower to successfully deliver its growing product base to an expanded Indiana footprint. Our new bank, Tower Bank of Central Indiana, will allow us to serve the Greater Indianapolis business and professional community with the same high standards of service and lending expertise for which Tower is known. The investment in infrastructure and top-quality people has been expensive, accounting for approximately $0.05 per share in 2006 just for Indianapolis’ fourth quarter expansion activities. However, we are confident that these investments will contribute to Tower’s growth and profitability during 2007.”

Total revenue, consisting of net interest income and non-interest income, was $25.4 million for the fiscal year 2006, an increase of 16.8 percent over the $21.7 million reported for the prior fiscal year. Net interest income grew 15.3 percent to $20.2 million, reflecting a 19.1 percent increase in average earning assets, partially offset by a 12 basis point decline, year-over-year, in the net interest margin, from 3.70 percent for 2005 to 3.58 percent for the current year. Mr. Schenkel commented, “The quarterly decline in our net interest margin has moderated during the course of 2006 as we neutralized our balance sheet. We ended 2006 with a fourth quarter margin of 3.51 percent, just three basis points lower than the third quarter of 2006. While there might be some degree of additional compression, we believe our margin should be fairly stable in 2007.”

Non-interest income was $5.1 million, an increase of 23.1 percent above the $4.2 million reported in fiscal year 2005. Trust and brokerage fees contributed $2.8 million or 54.7 percent of fee income, up 32.5 percent over the prior fiscal year. Other fees, mainly BOLI and miscellaneous fee income, increased 39.0 percent to $1.5 million. Non-interest income accounted for 20.3 percent of total revenue for 2006, providing diversity of income sources and less reliance on deposits for revenue growth.

As an independent newly-incorporated wealth management subsidiary of Tower Financial, Tower Trust Company, doing business as Tower Private Advisors, continues to enhance its reputation for outstanding service and expertise. Not only did trust income and brokerage fees make important contributions to revenue, they also contributed substantially to the bottom line; net income for 2006 was $521,000, more than double 2005 pro forma earnings of $221,000. The group currently manages $567.2 million in combined trust and brokerage assets compared with $480.0 million in combined assets a year ago, an increase of 18.2 percent. Mr. Schenkel noted, “Tower offers a customized service provided by advisors with many years of experience in our local communities. Our established reputation has enabled us to expand successfully in existing markets, and we are optimistic that we will achieve similar success in our newer markets.”
 
Non-interest expense for the fiscal year 2006 was $18.1 million, a 28.5 percent increase over the $14.1 million reported for the fiscal year 2005. Salary and benefits expense, up 30.0 percent, accounted for approximately 63.0 percent of the total increase; this is related to the addition of 36 employees (full-time equivalent) year-over-year, up 24.0 percent, hired to support operations as well as to staff the new offices. Salary expense was also impacted by $111,000 for the reporting of options as an expense for the first time per the provisions of FASB 123(R), as well as $285,000 in severance costs associated with the departure of a former executive.

Growth in operating expense also reflected Tower's significant expansion initiatives over the past year. During 2006, Tower spent a total of $288,000 to expand its existing franchise, adding a sixth full-service financial center in Fort Wayne, opening loan production offices in Indianapolis and Warsaw, and converting its Angola LPO into a full-service financial center.

“Tower Bank of Central Indiana represents a new market for Tower,” commented Mr. Schenkel. “We are organizing a de novo community bank so we can better serve the Greater Indianapolis marketplace with a strong management team in place -- a local team making decisions based on local market conditions. Our application has been accepted by the regulators, and is pending final approval."

As a result of these initiatives, the efficiency ratio for the fiscal year 2006 was 71.23 percent compared with 64.75 percent for the fiscal year 2005.



Non-performing assets increased over the course of the year, and remained relatively high at year-end -- $4.3 million, or 0.65 percent of total assets. Net charge-offs, however, improved substantially compared to last year despite Tower’s shift to a more aggressive charge-off policy implemented in 2005. During the third quarter, one large non-performing relationship was paid off. However, a second relationship totaling $2.1 million deteriorated sharply at quarter-end, returning problem loans back to third quarter levels. Mr. Schenkel added, “Our loans are well-collateralized, and we believe we will resolve this relationship by mid-year without taking a loss.” At December 31, 2006, non-performing assets plus delinquencies were $4.8 million, or 0.72 percent of total assets, compared with $2.8 million or 0.50 percent twelve months ago. Net charge-offs were $970,000 for the fiscal year 2006, or 0.19 percent of average loans, compared with $2.4 million, or 0.55 percent of loans for fiscal year 2005. Tower's allowance for loan losses was 1.25 percent of total loans at December 31, 2006, unchanged from 2005 year-end.
 
Asset growth remains strong, reaching $671.2 million at December 31, 2006, a $113.3 million or 20.3 percent increase over the $557.8 million reported twelve months ago. Loans outstanding grew $100.1 million, or 22.2 percent, reaching $550.5 million at period-end. Commercial loan growth (C&I plus CRE), Tower’s primary lending focus, continues at a solid pace. Since year-end 2005, commercial loans increased $59.9 million, or 16.9 percent, to $414.3 million, and now account for 75.3 percent of Tower's loan portfolio. Throughout the year, Tower has been retaining fixed-rate mortgages in its portfolio to neutralize the interest-rate sensitivity of its balance sheet; year-to-date, residential mortgages increased $33.3 million, up 66.2 percent to $83.6 million. Residential mortgages now account for 15.2 percent of Tower's loan portfolio, compared with $50.3 million or 11.2 percent at year-end 2005.

Deposits reached $586.8 million at December 31, 2006, up 27.3 percent compared with the year-ago period. Tower’s deposit share of the Fort Wayne MSA continues to grow. As of June 30, 2006, Tower’s share was 10.81 percent, up 129 basis points from a year ago. Mr. Schenkel noted that Tower has been particularly creative developing products to attract lower-cost deposits to the bank. Money market accounts, in particular, increased by $47.0 million, or 61.4 percent, largely as a result of a sweep product introduced earlier this year that enabled Tower to retain these accounts on its balance sheet rather than transfer them to a different financial institution for overnight investment. Total time deposits, including retail, local jumbo and out-of-market CDs, now account for 57.2 percent of total deposits, compared to 58.8 percent a year ago. Since year-end, non-interest bearing demand deposits increased $11.0 million to $77.8 million, up 16.5 percent.

Shareholders' equity was $51.0 million at December 31, 2006, an increase of 7.8 percent from the $47.3 million reported twelve months ago; period-end common shares outstanding were 4,043,882. The Company initiated a quarterly cash dividend of $0.04 per share in the first quarter of 2006.

Tower continues to meet the requirements for "well-capitalized" banks; total risk-based capital ratio improved to 13.05 percent, largely as a result of $9.0 million of Trust Preferred Securities (at a rate of 6.56%, fixed for five years) added in the fourth quarter of 2006. The new issue is replacing $3.5 million of Trust Preferred with a rate of 9.0%; the write-off of costs associated with the early extinguishment of the $3.5 million note were $50,000. The majority of the new trust preferred issue will eventually be used to fund the de novo Tower Bank of Central Indiana.

Mr. Schenkel concluded, "Tower has been moving ahead vigorously on several fronts, and we are pleased with our accomplishments this past year. Our Tower model of community banking is based on building a strong corporate culture, a solid infrastructure, and an increasingly diverse revenue stream. All of these factors contribute to our growing reputation and support our expansion into new markets with attractive demographics. We believe Tower’s growth and profitability opportunities remain very bright despite the challenges of today’s banking environment.”

ABOUT THE COMPANY
Headquartered in Fort Wayne, Indiana, Tower Financial Corporation is a financial services holding company for two subsidiaries: Tower Bank & Trust Company, a growing community bank headquartered in Fort Wayne that opened in February 1999; and Tower Trust Company, a state-chartered wealth services firm doing business as Tower Private Advisors. Tower Bank provides a wide variety of financial services to businesses and consumers located in Indiana through its six full-service financial centers in Fort Wayne and a seventh in Angola, and business development offices in Indianapolis and Warsaw, Indiana. The Company has also applied for a charter to open a de novo bank to serve the Greater Indianapolis market. Tower Financial Corporation's common stock is listed on the Nasdaq Global Market under the symbol "TOFC." For further information, please visit Tower's web site at www.TOFC.net.

FORWARD-LOOKING STATEMENTS
This news release contains some predictive statements about future events, including statements related to conditions in the financial services industry, the economy, and about Tower Financial Corporation and its banking and trust company subsidiaries. These statements are intended to be made as "forward-looking," subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Such predictive statements are not guarantees of future performance, and actual results could differ materially from our current expectations.
Factors that could cause such predictive statements to turn out other than as anticipated or predicted include, among others: changes in general economic conditions affecting the demand for or the cost of credit; changes in interest rates and in interest rate relationships; the degree of competition by both traditional and non-traditional competitors; changes in banking regulation; changes in the tax laws; the impact of technological advances; changes in the national or local economies, including those that affect borrowers' ability to repay loans; and other factors, including various "risk factors" as set forth in our most recent Annual Report on Form 10-K and in other reports which we from time to time file with the Securities and Exchange Commission. These reports are available publicly on the SEC website, www.sec.gov, and on Tower Financial Corporation's website, www.TOFC.net.



Forward-looking or predictive statements we make are based on our knowledge of our businesses and the environment in which they operate as of the date on which the statements are made. Due to these risks and uncertainties, as well as other matters beyond our control which can affect forward-looking statements, you are cautioned not to place undue reliance on these predictive statements, which speak only as of the date of this presentation. We undertake no duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

# # # #
 

 
Tower Financial Corporation
         
Consolidated Balance Sheets
         
At December 31, 2006 and 2005
         
   
(unaudited)
     
   
December 31
 
December 31
 
   
2006
 
2005
 
ASSETS
         
Cash and due from banks
 
$
14,393,790
 
$
14,326,710
 
Short-term investments and interest-earning deposits
   
8,863,112
   
16,393,439
 
Federal funds sold
   
5,608,064
   
7,188,188
 
Total cash and cash equivalents
   
28,864,966
   
37,908,337
 
               
Securities available for sale, at fair value
   
69,491,806
   
50,642,276
 
FHLBI and FRB stock
   
3,078,400
   
3,421,300
 
               
Loans
   
550,450,313
   
450,390,935
 
Allowance for loan losses
   
(6,870,442
)
 
(5,645,301
)
Net loans
   
543,579,871
   
444,745,634
 
               
Premises and equipment, net
   
5,870,699
   
4,638,436
 
Accrued interest receivable
   
3,620,368
   
2,802,189
 
Bank Owned Life Insurance
   
10,851,519
   
10,462,402
 
Other assets
   
5,797,183
   
3,200,086
 
               
Total assets
 
$
671,154,812
 
$
557,820,660
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY
             
LIABILITIES
             
Deposits:
             
Noninterest-bearing
 
$
77,772,481
 
$
66,742,748
 
Interest-bearing
   
508,997,823
   
394,208,113
 
Total deposits
   
586,770,304
   
460,950,861
 
               
Short-term borrowings
   
-
   
-
 
Federal Home Loan Bank advances
   
11,200,000
   
34,700,000
 
Junior subordinated debt
   
17,527,000
   
11,856,000
 
Accrued interest payable
   
1,716,994
   
954,075
 
Other liabilities
   
2,982,675
   
2,091,670
 
Total liabilities
   
620,196,973
   
510,552,606
 
               
STOCKHOLDERS' EQUITY
             
Preferred stock, no par value, 4,000,000 shares authorized; no shares issued and outstanding
             
Common stock and paid-in-capital, no par value, 6,000,000 shares authorized; issued and outstanding - 4,043,882 shares at December 31, 2006 and , 4,007,936 shares at December 31, 2005
   
38,536,406
   
38,006,929
 
Retained earnings
   
12,523,750
   
9,478,812
 
Accumulated other comprehensive income (loss) , net of tax of $(53,785) at December 31, 2006, $(122,449) at December 31, 2005
   
(102,317
)
 
(217,687
)
Total stockholders' equity
   
50,957,839
   
47,268,054
 
               
Total liabilities and stockholders' equity
 
$
671,154,812
 
$
557,820,660
 
 

 
             
Consolidated Statements of Operations
             
For the three and twelve months ended December 31, 2006 and 2005
         
(unaudited)
             
   
For the Three Months Ended
 
For the Twelve Months Ended
 
   
December 31
 
December 31
 
   
2006
 
2005
 
2006
 
2005
 
Interest income:
                 
Loans, including fees
 
$
10,386,071
 
$
7,675,629
 
$
37,648,724
 
$
26,893,186
 
Securities - taxable
   
575,974
   
333,983
   
2,156,655
   
1,038,112
 
Securities - tax exempt
   
182,661
   
132,216
   
681,615
   
533,455
 
Other interest income
   
144,188
   
236,580
   
569,560
   
591,032
 
Total interest income
   
11,288,894
   
8,378,408
   
41,056,554
   
29,055,785
 
Interest expense:
                         
Deposits
   
5,517,162
   
3,304,895
   
18,642,725
   
10,298,929
 
Short-term borrowings
         
-
         
288
 
FHLB advances
   
241,006
   
183,233
   
1,334,608
   
833,226
 
Trust preferred securities
   
181,728
   
116,750
   
809,419
   
360,290
 
Total interest expense
   
5,939,896
   
3,604,878
   
20,786,752
   
11,492,733
 
                           
Net interest income
   
5,348,998
   
4,773,530
   
20,269,802
   
17,563,052
 
Provision for loan losses
   
500,000
   
675,000
   
2,195,000
   
2,392,000
 
                           
Net interest income after provision for loan losses
   
4,848,998
   
4,098,530
   
18,074,802
   
15,171,052
 
                           
Noninterest income:
                         
Trust and brokerage fees
   
693,997
   
538,502
   
2,806,267
   
2,118,275
 
Service charges
   
228,918
   
209,921
   
723,725
   
759,553
 
Loan broker fees
   
61,339
   
89,008
   
122,322
   
264,526
 
Gain/(Loss) on sale of securities
         
(33,694
)
       
(33,694
)
Other fees
   
396,567
   
324,802
   
1,473,856
   
1,074,863
 
Total noninterest income
   
1,380,821
   
1,128,539
   
5,126,170
   
4,183,523
 
                           
Noninterest expense:
                         
Salaries and benefits
   
3,186,788
   
2,274,505
   
10,939,447
   
8,417,091
 
Occupancy and equipment
   
592,583
   
481,199
   
2,139,751
   
1,825,788
 
Marketing
   
155,217
   
184,714
   
598,324
   
609,797
 
Data processing
   
203,248
   
112,371
   
704,081
   
448,266
 
Loan and professional costs
   
265,116
   
170,287
   
1,012,805
   
835,516
 
Office supplies and postage
   
129,272
   
94,033
   
463,011
   
310,714
 
Courier service
   
93,775
   
84,330
   
365,107
   
330,334
 
Business Development
   
170,275
   
138,458
   
560,677
   
443,932
 
Other expense
   
432,720
   
257,159
   
1,306,220
   
859,720
 
Total noninterest expense
   
5,228,994
   
3,797,056
   
18,089,423
   
14,081,158
 
                           
Income before income taxes
   
1,000,825
   
1,430,013
   
5,111,549
   
5,273,417
 
Income taxes expense
   
190,937
   
492,440
   
1,423,637
   
1,834,760
 
                           
Net income
 
$
809,888
 
$
937,573
 
$
3,687,912
 
$
3,438,657
 
                           
Basic earnings per common share
 
$
0.20
 
$
0.23
 
$
0.92
 
$
0.86
 
Diluted earnings per common share
 
$
0.20
 
$
0.23
 
$
0.89
 
$
0.84
 
Average common shares outstanding
   
4,030,081
   
4,007,936
   
4,020,004
   
4,006,170
 
Average common shares and dilutive potential common shares outstanding
   
4,129,774
   
4,037,920
   
4,136,138
   
4,083,004
 
 


          
Consolidated Financial Highlights
          
Fourth Quarter 2006
          
(unaudited)
          
   
 
 
 
 
Quarterly
 
 Year-To-Date
 
   
 4th Qtr
 
3rd Qtr
 
2nd Qtr
 
1st Qtr
 
4th Qtr
 
3rd Qtr
 
2nd Qtr
          
($ in thousands except for share data)
 
 2006
 
2006
 
2006
 
2006
 
2005
 
2005
 
2005
 
 2006
 
2005
 
                                         
EARNINGS
                                       
Net interest income
 
$
5,347
   
5,182
   
4,944
   
4,773
   
4,774
   
4,453
   
4,304
   
20,246
   
17,564
 
Provision for loan loss
 
$
500
   
645
   
475
   
575
   
675
   
600
   
536
   
2,195
   
2,392
 
NonInterest income
 
$
1,380
   
1,259
   
1,118
   
1,391
   
1,129
   
1,147
   
1,001
   
5,148
   
4,184
 
NonInterest expense
 
$
5,227
   
4,417
   
4,343
   
4,100
   
3,797
   
3,578
   
3,460
   
18,087
   
14,081
 
Net income
 
$
810
   
973
   
912
   
993
   
938
   
933
   
842
   
3,688
   
3,440
 
Basic earnings per share
 
$
0.20
   
0.24
   
0.23
   
0.25
   
0.23
   
0.23
   
0.21
   
0.92
   
0.86
 
Diluted earnings per share
 
$
0.20
   
0.24
   
0.22
   
0.24
   
0.23
   
0.23
   
0.21
   
0.89
   
0.84
 
Average shares outstanding
   
4,030,081
   
4,022,071
   
4,017,254
   
4,008,000
   
4,007,936
   
4,007,697
   
4,005,824
   
4,020,004
   
4,006,170
 
Average diluted shares outstanding
   
4,129,774
   
4,123,773
   
4,128,151
   
4,105,496
   
4,037,920
   
4,093,426
   
4,073,011
   
4,136,138
   
4,083,004
 
                                                         
PERFORMANCE RATIOS
                                                       
Return on average assets *
   
0.49
%
 
0.62
%
 
0.61
%
 
0.72
%
 
0.70
%
 
0.71
%
 
0.69
%
 
0.61
%
 
0.68
%
Return on average common equity *
   
6.41
%
 
7.92
%
 
7.58
%
 
8.42
%
 
7.92
%
 
8.02
%
 
7.48
%
 
7.57
%
 
7.52
%
Net interest margin (fully-tax equivalent) *
   
3.51
%
 
3.54
%
 
3.58
%
 
3.74
%
 
3.79
%
 
3.64
%
 
3.75
%
 
3.58
%
 
3.70
%
Efficiency ratio
   
77.70
%
 
68.58
%
 
71.64
%
 
66.52
%
 
64.32
%
 
63.89
%
 
65.22
%
 
71.23
%
 
64.75
%
Full-time equivalent employees
   
186.25
   
180.50
   
167.50
   
155.50
   
150.50
   
147.00
   
138.50
   
186.25
   
150.50
 
                                                         
CAPITAL
                                                       
Equity to assets
   
7.59
%
 
7.75
%
 
7.92
%
 
8.37
%
 
8.47
%
 
8.58
%
 
9.01
%
 
7.59
%
 
8.47
%
Regulatory leverage ratio
   
10.46
%
 
9.92
%
 
10.24
%
 
10.76
%
 
11.08
%
 
9.67
%
 
10.12
%
 
10.46
%
 
11.08
%
Tier 1 capital ratio
   
11.93
%
 
11.23
%
 
11.52
%
 
11.88
%
 
12.16
%
 
10.44
%
 
10.69
%
 
11.93
%
 
12.16
%
Total risk-based capital ratio
   
13.05
%
 
12.35
%
 
12.62
%
 
13.00
%
 
13.24
%
 
11.62
%
 
11.90
%
 
13.05
%
 
13.24
%
Book value per share
 
$
12.60
   
12.39
   
12.02
   
11.96
   
11.79
   
11.61
   
11.41
   
12.60
   
11.79
 
Cash dividend per share
 
$
0.04
   
0.04
   
0.04
   
0.04
   
n/a
   
n/a
   
n/a
   
0.16
   
n/a
 
                                                         
ASSET QUALITY
                                                       
Net charge-offs
 
$
210
   
238
   
364
   
158
   
860
   
697
   
334
   
970
   
2,355
 
Net charge-offs to average loans *
   
0.15
%
 
0.18
%
 
0.30
%
 
0.14
%
 
0.77
%
 
0.63
%
 
0.32
%
 
0.19
%
 
0.55
%
Allowance for loan losses
 
$
6,870
   
6,581
   
6,174
   
6,062
   
5,645
   
5,830
   
5,927
   
6,870
   
5,645
 
Allowance for loan losses to total loans
   
1.25
%
 
1.23
%
 
1.22
%
 
1.28
%
 
1.25
%
 
1.31
%
 
1.38
%
 
1.25
%
 
1.25
%
Nonperforming loans
 
$
3,977
   
4,034
   
3,118
   
1,833
   
1,688
   
1,961
   
2,175
   
3,977
   
1,688
 
Other real estate owned (OREO)
 
$
370
   
465
   
430
   
509
   
244
   
-
   
400
   
370
   
244
 
Nonperforming assets (NPA)
 
$
4,347
   
4,499
   
3,548
   
2,342
   
1,932
   
1,961
   
2,575
   
4,347
   
1,932
 
90+ Day delinquencies
 
$
487
   
23
   
1,304
   
1,380
   
864
   
1,136
   
765
   
487
   
864
 
NPAs plus 90 Days delinquent
 
$
4,834
   
4,522
   
4,852
   
3,722
   
2,796
   
3,097
   
3,340
   
4,834
   
2,796
 
NPAs to Total assets
   
0.65
%
 
0.70
%
 
0.58
%
 
0.41
%
 
0.35
%
 
0.36
%
 
0.51
%
 
0.65
%
 
0.35
%
NPAs+90 to Total assets
   
0.72
%
 
0.70
%
 
0.80
%
 
0.65
%
 
0.50
%
 
0.57
%
 
0.66
%
 
0.72
%
 
0.50
%
NPAs to Loans + OREO
   
0.79
%
 
0.84
%
 
0.70
%
 
0.49
%
 
0.43
%
 
0.44
%
 
0.60
%
 
0.79
%
 
0.43
%
                                                         
END OF PERIOD BALANCES
                                                       
Total assets
 
$
671,155
   
643,725
   
609,781
   
572,632
   
557,821
   
542,632
   
507,519
   
671,155
   
557,821
 
Total earning assets
 
$
637,491
   
607,114
   
574,053
   
539,187
   
528,036
   
513,036
   
479,241
   
637,491
   
528,036
 
Total loans
 
$
550,450
   
533,057
   
506,077
   
473,998
   
450,391
   
443,365
   
429,331
   
550,450
   
450,391
 
Total deposits
 
$
586,780
   
554,335
   
510,235
   
472,178
   
460,951
   
467,538
   
429,678
   
586,780
   
460,951
 
Stockholders' equity
 
$
50,958
   
49,895
   
48,319
   
47,951
   
47,268
   
46,537
   
45,712
   
50,958
   
47,268
 
                                                         
AVERAGE BALANCES
                                                       
Total assets
 
$
650,721
   
621,597
   
596,293
   
556,479
   
534,172
   
518,540
   
487,429
   
606,272
   
504,470
 
Total earning assets
 
$
612,944
   
591,632
   
563,858
   
526,423
   
507,361
   
492,937
   
468,357
   
573,714
   
481,695
 
Total loans
 
$
540,227
   
520,260
   
491,533
   
458,642
   
441,719
   
437,426
   
418,564
   
502,665
   
425,626
 
Total deposits
 
$
567,469
   
528,961
   
501,012
   
459,803
   
455,988
   
440,969
   
410,019
   
514,311
   
424,832
 
Stockholders' equity
 
$
50,117
   
48,731
   
48,232
   
47,846
   
46,997
   
46,182
   
45,131
   
48,731
   
45,726
 

*
annualized for quarterly data
 
 


The following information was filed by Tower Financial Corp (TOFC) on Wednesday, January 17, 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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