Exhibit 99.1

logo
 
FOR FURTHER INFORMATION:

 
FOR INVESTORS:
FOR MEDIA:
 
Richard R. Sawyer
Tina M. Farrington
 
Chief Financial Officer
Executive Vice President
 
260-427-7150
260-427-7155
 
rick.sawyer@towerbank.net
tina.farrington@towerbank.net
 
TOWER FINANCIAL CORPORATION REPORTS FOURTH QUARTER EARNINGS OF $884,000 AND YEAR TO DATE EARNINGS OF $3.2 MILLION
 
FORT WAYNE, INDIANA – JANUARY 27, 2011 –Tower Financial Corporation (NASDAQ: TOFC) reported net income of $884,000 or $0.18 per diluted share for the fourth quarter of 2010, compared with a net loss of $1.2 million, or ($0.29) per diluted share, reported for the fourth quarter 2009.  This brings year to date net income to $3.2 million, or $0.69 per diluted share, compared to a year to date net loss of $5.6 million, or ($1.37) per diluted share at December 31, 2009.

Our fourth quarter and annual highlights include:

 
·
Record “Core” earnings of $9.6 million for 2010 which was an increase of $3.1 from 2009.  Core earnings are defined as income before taxes, loan loss provision, and unusual items not related to day to day operations (primarily securities sales and OREO (other real estate owned) related expenses).  Our 2010 Core earnings represent the best year in our history for this measurement, exceeding our previous best year (2005) by $1.6 million.

 
·
Net interest margin of 3.70 percent for the fourth quarter and year to date, representing a significant improvement from the 3.47 percent and 3.15 percent reported for the fourth quarter 2009 and year to date 2009, respectively.

 
·
Capital ratios continue to increase and remain well above the regulatory standards necessary to be considered “well-capitalized.” As of December 31, 2010, our leverage ratio was 10.6 percent and our Total Risked Based Capital ratio was 14.3 percent, compared to regulatory requirements of 5.0 percent and 10.0 percent, respectively.

 
·
Record net income of $738,000 reported for our Trust subsidiary which was a 5.6 percent increase from 2009.

 
1

 

Mike Cahill, our President and Chief Executive Officer stated: “In the face of a challenging economy and uncertain banking environment, we were pleased by the progress we made in our earnings, capital, and asset quality in 2010. The significant turnaround experienced in 2010 is indicative of the planning and hard work of our board, our management team, and all of my fellow team members. Our work is not done, and we will continue to focus on our efforts to deliver the consistent level of earnings our shareholders expect.”

Capital
The Company’s regulatory capital ratios continue to remain above the “well-capitalized” levels of 6 percent for Tier 1 capital and 10 percent for risked-based capital.  Tier 1 capital at December 31, 2010, increased to 13.1 percent, compared to 12.7 percent at September 30, 2010 and 10.9 percent at December 31, 2009.  Total risked-based capital at December 31, 2010, increased to 14.3 percent, compared to 14.0 percent at September 30, 2010 and 12.5 percent at December 31, 2009.  Leverage capital increased to 10.6 percent at December 31, 2010, more than double the regulatory requirement of 5 percent to be considered “well-capitalized”.

The following table shows the current capital position as of December 31, 2010 in both dollars and percentages, compared to the minimum amounts required per regulatory standards for “well-capitalized” institutions.

Minimum Dollar Requirements
($000's omitted)
 
Regulatory
Minimum (Well-Capitalized)
   
Tower
12/31/10
   
Excess
 
Tier 1 Capital / Risk Assets
  $ 31,871     $ 69,418     $ 37,547  
                         
Total Risk Based Capital / Risk Assets
  $ 53,119     $ 75,759     $ 22,640  
                         
Tier 1 Capital / Average Assets (Leverage)
  $ 32,889     $ 69,418     $ 36,529  
                         
Minimum Percentage Requirements
 
Regulatory
Minimum (Well-Capitalized)
   
Tower
12/31/10
         
Tier 1 Capital / Risk Assets
 
6% or more
      13.10 %        
                         
Total Risk Based Capital / Risk Assets
 
10% or more
      14.30 %        
                         
Tier 1 Capital / Quarterly Average Assets
 
5% or more
      10.55 %        

Asset Quality
Nonperforming assets plus delinquencies were $27.8 million, or 4.2 percent of total assets as of December 31, 2010. This compares with $20.0 million, or 3.1 percent of total assets at September 30, 2010 and $21.1 million, or 3.0 percent of assets at December 31, 2009.  Net charge-offs were $49,000 for the fourth quarter 2010, bringing year to date net charge-offs to $3.9 million, or 0.76 percent of average loans.  This compares to net charge-offs of $9.8 million, or 1.8 percent of average loans for calendar year 2009.  Loan loss provision through December 31, 2010 was $4.8 million compared to $10.7 million for calendar year 2009.

 
2

 

The current and historical breakdown of non-performing assets is as follows:

($000's omitted)
 
12/31/10
   
9/30/10
   
6/30/10
   
3/31/10
   
12/31/09
 
Non-Accrual loans
                             
Commercial
    6,859       6,924       5,364       5,463       6,667  
Acquisition & Development
    3,566       1,855       2,028       5,486       4,627  
Commercial Real Estate
    1,671       790       1,905       1,905       1,030  
Residential Real Estate
    843       1,093       1,063       1,120       1,142  
Total Non-accrual loans
    12,939       10,662       10,360       13,974       13,466  
Trouble-debt restructered (TDR)
    7,502       1,761       1,862       1,997       1,915  
OREO
    4,284       3,843       6,477       4,443       4,634  
Deliquencies greater than 90 days
    2,662       3,281       2,213       3,223       561  
Impaired Securities
    422       437       489       440       479  
                                         
Total Non-Performing Assets
    27,809       19,984       21,401       24,077       21,055  
                                         
Allowance for Loan Losses (ALLL)
    12,489       12,016       12,718       12,150       11,598  
                                         
ALLL / Non-accrual loans
    96.5 %     112.7 %     122.8 %     86.9 %     86.1 %
                                         
Classified Assets
    50,115       51,409       55,688       56,297       55,406  
 
The trouble-debt restructured (“TDR”) category consists of three loans, which account for 27 percent of our total non-performing assets.  All three loans have had certain terms modified that cause these loans to be considered trouble-debt restructured under new accounting standards being proposed for adoption in 2011.  The new, more stringent rules, once formally implemented by the Financial Accounting Standards Board (“FASB”), are retroactive to any loans restructured within one year of implementation.  Therefore, we have elected to be proactive and classify these loans using the new standards. One loan, of approximately $1.8 million was modified to allow for the sale of the mortgaged property to occur.  The sale is currently being negotiated between the borrower and the leasee of the facility and we expect resolution to occur sometime in 2011.  The second loan has a balance of approximately $2.1 million and is considered a TDR because the loan was modified to take additional collateral of approximately $900,000.  The third loan is for approximately $3.6 million and is considered a TDR because the amortization period for the loan was lengthened from 15 years to 17 years.  The total impairment on these loans that is accounted for in our Allowance for Loan Losses is $500,000.  As of December 31, 2010, all three loans were current and paying according to the modified terms.

Included in Delinquencies greater than 90 days is an accruing $1.8 million loan that has matured. The Bank has elected not to renew the loan and is seeking collection via legal process.  The loan remains in accruing status because it is further supported by the unlimited guaranty of a third party whose guaranty is fully secured by a mortgage on a performing commercial real estate property that is unrelated to the borrower’s enterprise.  This loan is expected to remain technically nonperforming during the pendency of our legal collection efforts but ultimate collection from the guarantor is not currently in doubt.  The decrease from the third quarter relates to one loan relationship totaling $971,000 moving to non-accrual status.  There are six relationships that comprise delinquencies, with two relationships making up 85 percent of the total amount past due.

 
3

 

Our commercial and industrial loan category remained relatively flat from the third quarter.  Three loans totaling $422,000 were brought to resolution along with another $476,000 in partial reductions, however were replaced with three new loan relationships totaling 833,000.  In total, nineteen relationships comprise this category, with six relationships making up $5.8 million, or 85 percent of the balance.

Our commercial real estate category increased by $881,000 during the fourth quarter, the net result of the addition of one relationship totaling $961,000 moving to non-accrual status from the 90 day delinquency category, offset by a small paydown on the only other loan in the commercial real estate category.  Two loans totaling $981,000 were moved to OREO, while the third loan that made up the second quarter balance was paid off.  These reductions were offset by a new relationship totaling $790,000 that was taken to non-accrual status at the end of the quarter.  Our acquisition and development category increased by $1.7 million during the fourth quarter, the net result of the addition of one large, $2.1 million relationship, offset by the paydown of a portion of another non-accrual loan.  A total of four relationships comprise the acquisition and development category.  Our residential category had minimal changes during the fourth quarter, with the exception on one payoff in the amount of $300,000.  There are nine loans within the residential category.

Classified assets are comprised of substandard and non-accrual loans, along with impaired investments and OREO.  Classified assets reached their peak at the end of the second quarter of 2009 at $63.0 million.  We have made steady progress over the past eighteen months to reduce these assets by $12.9 million, or 20.4 percent.  As of December 31, 2010, classified assets comprised 63.4 percent of Tier 1 capital plus the Allowance for Loan Losses (“ALLL”).

The allowance for loan losses increased $473,000 during the fourth quarter of 2010 and was 2.56 percent of total loans at December 31, 2010, an increase from 2.43 percent at September 30, 2010 and an increase from 2.20 percent at December 31, 2009.  The allowance for loan losses has increased by $1.2 million from December 31, 2009, as a result of loan provision of $4.8 million, offset by $3.6 million of net charge-offs.
 
Balance Sheet
Company assets were $659.9 million at December 31, 2010, a decrease of $20.2 million, or 3.0 percent from December 31, 2009.  The decrease in assets was primarily attributable to decreases in total loans of $40.4 million, partially offset by an increase in securities of $20.3 million.

Total loans at December 31, 2010 were $486.9 million, compared to $527.3 million at December 31, 2009.  We experienced decreases in all major loan categories with commercial and industrial loans decreasing by $19.7 million, residential mortgage loans by $6.6 million, commercial real estate by $11.9 million, consumer loans by $0.7 million and home equity loans by $1.7 million.  This is consistent with the limited loan demand in our markets, along with purposeful reduction of our classified loans.

Long term investments at December 31, 2010 were $114.2 million, an increase of $20.3 million from December 31, 2009.  Long-term investment now comprise 17.3 percent of total assets as we continue to expand our investment portfolio to enhance liquidity and yield opportunities in light of the planned reduction in our loan portfolio and recognition of fewer lending opportunities in the local economy. This is a continued purposeful change in asset allocation driven by profitability and liquidity targets, current economic conditions, and capital management guidelines.

 
4

 

Total deposits at December 31, 2010 were $576.4 million compared to $568.4 million at December 31, 2009, an increase of $8.0 million, or 1.4 percent. Core deposits declined slightly by $0.8 million, led by decreases in certificates of deposit less than $100,000 of $21.8 million, non-interest bearing checking accounts balances of $2.2 million, which were offset by growth in money market account balances of $7.2 million, interest bearing checking accounts of $11.4 million and $4.4 million in savings accounts.  Certificates of deposit greater than $100,000 have decreased by $28.0 million since year end.  Offsetting these decreases was an increase in brokered deposits totaling $36.8 million, which include both money market accounts and certificate of deposits.  The growth in brokered deposits was purposeful as we took advantage of the favorable long term interest rate environment to lock in these favorable rates for an extended period of time.  Terms for new brokered CD purchases ranged from two years to ten years, with an average life of just more than four years.  The average rate on our brokered CD purchases was 1.9 percent and the average rate on brokered money market accounts was approximately 0.6 percent.  Additionally, we have “put” options on $13.9 million of our longer termed, greater than five years, brokered CD’s in order to provide additional flexibility to interest rate changes and funding needs.  $5.5 million of these brokered CD’s can be “put” as early as 2011 and carry an average interest rate of 3.5 percent.  This increase in brokered deposits has also allowed us to reduce FHLB borrowings by $35.7 million since December 31, 2009.  At December 31, 2010, FHLB borrowings totaled $7.5 million, which were fixed rate borrowings with specific maturity dates.  $3.5 million of our FHLB borrowings, carrying a rate of 3.7 percent, mature during the first quarter of 2011 and our current expectations are to pay that debt off upon maturity.

Shareholders' equity was $53.1 million at December 31, 2010, an increase of 13.2 percent from the $46.9 million reported at December 31, 2009.  Affecting the increase in stockholders’ equity was net income of $3.2 million, $47,000 of additional paid in capital from the FAS123R accounting treatment for stock options, $2.8 million net after expenses from the sale of 458,342 shares of common stock, and an increase of $155,000 in unrealized gains, net of tax, on securities available for sale.  Current common shares outstanding are 4,724,023.

Operating Statement
Total revenue, consisting of net interest income and noninterest income, was $7.3 million for the fourth quarter 2010, a decrease of $891,000 from the third quarter 2010 and an increase of $475,000 from the fourth quarter 2009.  The decrease from the third quarter of 2010 was due to a one-time extraordinary gain on investment sale of $888,000 that was recorded in the third quarter. Fourth quarter 2010 net interest income was $5.5 million a slight decrease of $60,000, or 1.1 percent from the third quarter 2010 and an increase of $140,000, or 2.6 percent compared to the fourth quarter 2009. The relatively flat quarter for net interest income was attributable to an increase of one basis point in our net interest margin, offset by a decrease in average earning assets of $6.8 million.  The fourth quarter 2010 net interest margin of 3.70 percent represents a 23 basis point increase from the net interest margin of 3.47 percent posted for the fourth quarter 2009.  Year to date net interest margin through December 31, 2010 was 3.70 percent compared to 3.15 percent for 2009.

Non-interest income was $1.8 million for the fourth quarter 2010, which represented 24.8 percent of total revenue.  This is a decrease of 832,000 from the third quarter 2010 and an increase of $335,000 from the fourth quarter of 2009.  The third quarter fee income includes an extraordinary gain on the sale of investment securities in the amount of $888,000 ($575,000 net of taxes).  Taking out the extraordinary gain, non-interest income increased slightly, by $56,000, from the third quarter of 2010.  The increase came primarily from trust and brokerage fees, which increased by $59,000, lead by brokerage fees.  All other non-interest income categories remained relatively flat from the third quarter.

 
5

 

The increase from the fourth quarter of 2009 relates to various categories.  Trust and brokerage fees increase by $59,000, mortgage origination fees increased by $48,000, and “other than temporary impairment” (“OTTI”) charges decreased by $98,000.  The company has incurred OTTI charge on two investment securities.  One is a trust preferred investment, which has now been written down to a book value of $110,000.  Life to date OTTI on the trust preferred security is $850,000 through December 31, 2010. The other is a private label collateralized mortgage obligation (CMO) that has a current book value of $586,000.  Life to date OTTI on the CMO is $58,000 through December 31, 2010.

Non-interest expenses were $5.3 million, unchanged from the third quarter of 2010 and a decrease of $733,000 from the fourth quarter of 2009.

The decrease from the fourth quarter of 2009 represents a 12.1 percent reduction in total non-interest expense.  The majority of the reductions came in the following categories:  employment expenses, $440,000; occupancy and equipment, $91,000; legal and professional, $97,000; and OREO, $317,000.  The savings in employment expenses relates primarily to one-time costs associated with the former Chairman’s retirement on December 31, 2009.  Occupancy expenses were reduced primarily due to a rent reduction achieved through renegotiating our lease on our headquarters facility.  The savings were offset by increases in processing expense of $76,000, business development expenses of $27,000, and FDIC insurance premiums of $160,000.  The increase in processing expenses relates to a migration of our core operating system to a new provider in early 2010, which provides for enhanced functionality and efficiency.  The increase in FDIC premiums relates to the increases in assessment rates from 2009.

Year to date, non-interest expenses are $1.8 million lower than 2009.  The savings comes primarily in our employment expense category, which was reduced by $1.4 million.  The savings was the result of the down sizing that took place in the fall of 2009.

ABOUT THE COMPANY
Headquartered in Fort Wayne, Indiana, Tower Financial Corporation is a financial services holding company with one subsidiary; Tower Bank & Trust Company, a community bank headquartered in Fort Wayne. Tower Bank provides a wide variety of financial services to businesses and consumers through its six full-service financial centers in Fort Wayne, and one in Warsaw, Indiana. Tower Bank has a wholly-owned subsidiary, Tower Trust Company, which is a state-chartered wealth services firm doing business as Tower Private Advisors. Tower Financial Corporation's common stock is listed on the NASDAQ Global Market under the symbol "TOFC." For further information, visit Tower's web site at www.towerbank.net

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and about the Corporation and the Bank.

 
6

 

These forward-looking statements are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Actual results and outcomes may differ materially from what may be expressed or forecasted in the forward-looking statements. Future factors include changes in banking regulation; changes in governmental and regulatory policy or enforcement; changes in the national and local economy; changes in interest rates and interest-rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in tax laws; changes in prices; the impact of technological advances; the outcomes of contingencies, trends in customer behavior and their ability to repay loans; changes in local real estate values; and other factors, including various risk factors identified and described in the Corporation’s Annual Report on Form 10-K, quarterly reports of Form 10-Q and in other periodic reports we file from time to time with the Securities and Exchange Commission. These reports are available on the Commission’s website at www.sec.gov, as well as on our website at www.towerbank.net
# # # #

 
7

 

Tower Financial Corporation
Consolidated Balance Sheets
At December 31, 2010 and December 31, 2009

   
(unaudited)
       
  
 
December 31
2010
   
December 31
2009
 
ASSETS
           
Cash and due from banks
  $ 24,717,935     $ 19,861,434  
Short-term investments and interest-earning deposits
    4,309,006       1,259,197  
Federal funds sold
    1,648,441       3,543,678  
Total cash and cash equivalents
    30,675,382       24,664,309  
                 
Securities available for sale, at fair value
    110,108,656       85,179,160  
Securities held to maturity, at cost
    -       4,495,977  
FHLBI and FRB stock
    4,075,100       4,250,800  
Loans Held for Sale
    2,140,872       3,842,089  
                 
Loans
    486,914,115       527,333,461  
Allowance for loan losses
    (12,489,400 )     (11,598,389 )
Net loans
    474,424,715       515,735,072  
                 
Premises and equipment, net
    8,329,718       8,011,574  
Accrued interest receivable
    2,391,953       2,439,859  
Bank Owned Life Insurance
    13,516,789       13,046,573  
Other Real Estate Owned
    4,284,263       4,634,089  
Prepaid FDIC Insurance
    2,864,527       4,777,797  
Other assets
    7,116,280       9,081,759  
                 
Total assets
  $ 659,928,255     $ 680,159,058  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
LIABILITIES
               
Deposits:
               
Noninterest-bearing
  $ 92,872,957     $ 95,027,233  
Interest-bearing
    483,483,179       473,353,118  
Total deposits
    576,356,136       568,380,351  
                 
Federal Home Loan Bank advances
    7,500,000       43,200,000  
Junior subordinated debt
    17,527,000       17,527,000  
Accrued interest payable
    1,415,713       480,885  
Other liabilities
    4,000,654       3,634,713  
Total liabilities
    606,799,503       633,222,949  
                 
STOCKHOLDERS' EQUITY
               
                 
Preferred stock, no par value, 4,000,000 shares authorized; 7,750 shares issued and outstanding
    757,213       1,788,000  
Common stock and paid-in-capital, no par value, 6,000,000shares authorized;4,789,023 and 4,155,432 shares issued;  and 4,724,023 shares outstanding at December 31, 2010 and 4,090,432 shares outstanding at December 31, 2009
    43,740,155       39,835,648  
Treasury stock, at cost, 65,000 shares at December 31, 2010 and December 31, 2009
    (884,376 )     (884,376 )
Retained earnings
    8,450,579       5,286,808  
Accumulated other comprehensive income (loss), net of tax of  $548,730 at December 31, 2010 and  $468,803  at December 31, 2009
    1,065,181       910,029  
Total stockholders' equity
    53,128,752       46,936,109  
                 
Total liabilities and stockholders' equity
  $ 659,928,255     $ 680,159,058  

 
8

 

Tower Financial Corporation
Consolidated Statements of Operations
For the year ended December 31, 2010 and 2009
(unaudited)

   
For the Three Months Ended
December 31
   
For the Year ended
December 31
 
  
 
2010
   
2009
   
2010
   
2009
 
Interest income:
                       
Loans, including fees
  $ 6,466,670     $ 6,928,347     $ 26,847,111     $ 28,035,871  
Securities - taxable
    606,566       825,731       2,502,200       3,066,247  
Securities - tax exempt
    301,658       241,174       1,071,876       951,942  
Other interest income
    12,781       1,859       31,334       13,363  
Total interest income
    7,387,675       7,997,111       30,452,521       32,067,423  
Interest expense:
                               
Deposits
    1,502,196       2,176,852       6,566,581       10,315,149  
Fed Funds Purchased
    8       83       138       1,656  
FHLB advances
    68,902       158,026       465,756       801,803  
Trust preferred securities
    296,349       281,648       1,158,956       1,128,017  
Total interest expense
    1,867,455       2,616,609       8,191,431       12,246,625  
                                 
Net interest income
    5,520,220       5,380,502       22,261,090       19,820,798  
Provision for loan losses
    805,000       1,230,000       4,745,000       10,735,000  
                                 
Net interest income after provision for loan losses
    4,715,220       4,150,502       17,516,090       9,085,798  
                                 
Noninterest income:
                               
Trust and brokerage fees
    939,864       880,841       3,604,907       3,373,635  
Service charges
    281,103       294,468       1,125,707       1,121,446  
Loan broker fees
    181,373       133,081       720,615       685,632  
Gain/(Loss) on sale of securities
    175,136       54,220       1,109,743       264,112  
Impairment on AFS securities
    (128,169 )     (225,770 )     (158,303 )     (750,770 )
Other fees
    376,054       352,896       1,411,435       1,393,777  
Total noninterest income
    1,825,361       1,489,736       7,814,104       6,087,832  
                                 
Noninterest expense:
                               
Salaries and benefits
    2,509,822       2,927,892       9,578,932       10,947,014  
Occupancy and equipment
    644,037       735,483       2,533,688       2,905,929  
Marketing
    55,689       85,330       423,443       451,862  
Data processing
    369,669       293,199       1,128,096       1,172,625  
Loan and professional costs
    411,701       508,825       1,629,582       1,649,511  
Office supplies and postage
    53,190       90,681       245,938       348,230  
Courier service
    55,222       58,973       221,756       236,928  
Business Development
    128,695       101,879       406,775       456,483  
Communication Expense
    46,067       49,935       186,164       181,393  
FDIC Insurance Premiums
    525,878       365,926       2,059,524       1,681,862  
OREO Expenses
    293,221       609,282       1,703,791       1,724,626  
Other expense
    251,894       251,160       1,125,007       1,241,141  
Total noninterest expense
    5,345,085       6,078,565       21,242,696       22,997,604  
                                 
Income/(loss) before income taxes/(benefit)
    1,195,496       (438,327 )     4,087,498       (7,823,974 )
Income taxes expense/(benefit)
    311,917       763,180       923,727       (2,216,637 )
                                 
Net income/(loss)
  $ 883,579     $ (1,201,507 )   $ 3,163,771     $ (5,607,337 )
Less: Preferred Stock Dividends
    -       -       -       1,579  
Net income/(loss) available to common shareholders
  $ 883,579     $ (1,201,507 )   $ 3,163,771     $ (5,608,916 )
                                 
Basic earnings/(loss) per common share
  $ 0.19     $ (0.29 )   $ 0.73     $ (1.37 )
Diluted earnings/(loss) per common share
  $ 0.18     $ (0.29 )   $ 0.69     $ (1.37 )
Average common shares outstanding
    4,720,159       4,090,432       4,334,084       4,090,416  
Average common shares and dilutive potential common shares outstanding
    4,852,759       4,090,432       4,558,918       4,090,416  
                                 
Total Shares outstanding at end of period
    4,714,887       4,090,432       4,724,023       4,090,432  
Dividends declared per common share
  $ -     $ -     $ -     $ -  
 
 
9

 

Tower Financial Corporation
Consolidated Financial Highlights

(unaudited)

   
Quarterly
   
Year-To-Date
 
($ in thousands except for share data)
 
4th
 2010
   
3rd Qtr
2010
   
2nd Qtr
2010
   
1st Qtr
2010
   
4th Qtr
2009
   
3rd Qtr
2009
   
2nd Qtr
2009
   
1st Qtr
2009
   
2010
   
2009
 
                                                             
EARNINGS
                                                           
Net interest income
  $ 5,521       5,580       5,597       5,563       5,381       5,077       4,822       4,541       22,261       19,821  
Provision for loan loss
  $ 805       1,500       1,100       1,340       1,230       1,995       6,550       960       4,745       10,735  
NonInterest income
  $ 1,825       2,657       1,734       1,598       1,490       1,210       1,599       1,789       7,814       6,088  
NonInterest expense
  $ 5,345       5,350       5,642       4,905       6,079       5,468       6,458       4,993       21,242       22,998  
Net income/(loss)
  $ 884       1,045       514       721       (1,202 )     (721 )     (4,095 )     410       3,164       (5,608 )
Basic earnings per share
  $ 0.19       0.24       0.13       0.18       (0.29 )     (0.18 )     (1.00 )     0.10       0.73       (1.37 )
Diluted earnings per share
  $ 0.18       0.22       0.12       0.17       (0.29 )     (0.18 )     (1.00 )     0.10       0.69       (1.37 )
Average shares outstanding
    4,720,159       4,427,370       4,090,432       4,090,432       4,090,432       4,090,432       4,090,432       4,090,365       4,334,084       4,090,416  
Average diluted shares outstanding
    4,852,759       4,669,965       4,394,419       4,394,419       4,090,432       4,090,432       4,090,432       4,090,365       4,558,918       4,090,416  
                                                                                 
PERFORMANCE RATIOS
                                                                               
Return on average assets *
    0.53 %     0.63 %     0.31 %     0.43 %     -0.70 %     -0.42 %     -2.32 %     0.24 %     0.48 %     -0.81 %
Return on average common equity *
    6.56 %     8.17 %     4.26 %     6.17 %     -9.83 %     -6.13 %     -32.65 %     3.33 %     6.33 %     -11.48 %
Net interest margin (fully-tax equivalent) *
    3.72 %     3.69 %     3.72 %     3.66 %     3.47 %     3.24 %     3.02 %     2.85 %     3.70 %     3.14 %
Efficiency ratio
    72.76 %     64.95 %     76.96 %     68.50 %     88.47 %     86.97 %     100.58 %     78.88 %     70.63 %     88.76 %
Full-time equivalent employees
    150.75       149.25       145.75       150.25       146.25       159.25       172.75       176.50       150.75       146.25  
                                                                                 
CAPITAL
                                                                               
Equity to assets
    8.05 %     8.09 %     7.44 %     7.12 %     6.90 %     7.14 %     6.70 %     7.03 %     8.05 %     6.90 %
Regulatory leverage ratio
    10.55 %     10.35 %     9.50 %     9.20 %     9.05 %     9.04 %     8.56 %     9.52 %     10.55 %     9.05 %
Tier 1 capital ratio
    13.10 %     12.73 %     11.62 %     11.14 %     10.90 %     11.00 %     10.38 %     11.47 %     13.10 %     10.90 %
Total risk-based capital ratio
    14.30 %     13.98 %     13.11 %     12.66 %     12.46 %     12.53 %     11.96 %     12.77 %     14.30 %     12.46 %
Book value per share
  $ 11.09       11.15       11.53       11.30       11.04       11.87       11.24       12.29       11.09       11.04  
Cash dividend per share
  $ 0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000  
                                                                                 
ASSET QUALITY
                                                                               
Net charge-offs
  $ 332       2,202       531       789       4,537       2,045       3,092       117       3,854       9,791  
Net charge-offs to average loans *
    0.27 %     1.74 %     0.41 %     0.61 %     3.38 %     1.49 %     2.21 %     0.08 %     0.76 %     1.78 %
Allowance for loan losses
  $ 12,489       12,016       12,718       12,150       11,598       14,905       14,105       11,498       12,489       11,598  
Allowance for loan losses to total loans
    2.56 %     2.43 %     2.50 %     2.32 %     2.20 %     2.78 %     2.53 %     2.06 %     2.56 %     2.20 %
Other real estate owned (OREO)
  $ 4,284       3,843       6,477       4,443       4,634       3,990       4,060       5,080       4,284       4,634  
Non-accrual Loans
  $ 12,939       10,768       10,360       13,974       13,466       20,219       19,016       11,708       4,284       13,466  
90+ Day delinquencies
  $ 2,688       3,175       2,213       3,223       561       1,477       2,509       1,304       12,939       561  
Restructured Loans
  $ 7,502       1,761       1,862       1,997       1,915       163       184       191       7,502       1,915  
Total Nonperforming Loans
    23,129       15,704       14,435       19,194       15,942       21,859       21,709       13,203       23,129       15,942  
Impaired Securities (Market Value)
    422       437       489       440       479       779       -       -       422       479  
Total Nonperforming Assets
    27,835       19,984       21,401       24,077       21,055       26,628       25,769       18,283       27,835       21,055  
NPLs to Total loans
    4.75 %     3.17 %     2.83 %     3.67 %     3.02 %     4.08 %     3.89 %     2.37 %     4.75 %     3.02 %
NPAs (w/o 90+) to Total assets
    3.81 %     2.55 %     2.91 %     3.09 %     3.01 %     3.70 %     3.39 %     2.37 %     3.81 %     3.01 %
NPAs+90 to Total assets
    4.22 %     3.03 %     3.25 %     3.57 %     3.10 %     3.92 %     3.75 %     2.55 %     4.22 %     3.10 %
                                                                                 
END OF PERIOD BALANCES
                                                                               
Total assets
  $ 659,928       660,141       658,327       674,152       680,159       679,394       686,307       715,634       659,928       680,159  
Total earning assets
  $ 609,196       613,286       611,996       626,197       629,904       633,742       651,946       681,688       609,196       629,904  
Total loans
  $ 486,914       494,818       509,656       523,437       527,333       536,074       557,530       558,148       486,914       527,333  
Total deposits
  $ 576,356       577,094       564,988       559,291       568,380       592,731       594,594       618,705       576,356       568,380  
Stockholders' equity
  $ 53,129       53,382       48,950       48,002       46,936       48,541       45,962       50,280       53,129       46,936  
                                                                                 
AVERAGE BALANCES
                                                                               
Total assets
  $ 657,397       658,898       663,825       677,967       678,445       686,752       708,282       696,431       664,522       692,478  
Total earning assets
  $ 605,306       614,742       617,060       629,582       628,983       636,503       657,539       662,712       616,673       646,434  
Total loans
  $ 485,125       503,334       514,962       526,814       532,627       542,921       561,828       559,607       507,559       549,246  
Total deposits
  $ 574,072       561,966       569,759       564,238       581,018       597,792       612,649       598,807       567,509       597,567  
Stockholders' equity
  $ 53,438       50,744       48,404       47,421       48,507       46,678       50,303       49,942       50,002       48,858  
 
* annualized for quarterly data
 
 
10


The following information was filed by Tower Financial Corp (TOFC) on Thursday, January 27, 2011 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.

View differences made from one year to another to evaluate Tower Financial Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Tower Financial Corp.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account