Greater Rome Bank showed a quarterly profit of $46,000, as opposed to a loss of $1,031,000 during the same three-month period a year ago. Year to date, Greater Rome Bank is reporting earnings of $128,000, as opposed to a $1,710,000 loss through the first six months of the year.
The bottom line figures at GRB show that total deposits at the end of the second quarter were $120.6 million, down 4 percent from a year ago. The bank’s total assets at the end of June were $152.8 million, down 4.9 percent from a year ago.
“I think all banks have shrunk a little bit and I think that we fit that model as well. Our capital numbers are good,” said Greater Rome Bank President David Lance. “We’ve made lots of progress compared to a year ago. We’re seeing improved earnings primarily because we’re not having as much money go to loan loss provision.”
Lance said the overall performance of the bank can and will get better moving forward.
River City Bank showed a quarterly profit of $8,000, as opposed to a loss of $44,000 a year ago. After six months River City is showing net earnings of $201,000, a vast improvement compared to the $526,000 loss posted for the first half of 2011.
River City Chief Operating Officer and Chief Financial Officer Connie Williams credited much of the turnaround to reduced provisions for loan losses.
“We’ve identified our problem assets as far as we know,” Williams said. “We’ve written them down to what we expect to be fair value, if we can’t get them performing, if we can’t get them performing then we need to purchase them off the balance sheet.”
Provision for loan losses through June last year were $1.6 million; halfway through 2012 that number is $680,000.
Fee income is up at River City Bank by about $160,000, most of which has to do with mortgages, trust and brokerage.
“Not every bank has a local trust shop,” Williams said.
River City has experienced a 17.6 percent drop in total deposits, to $142.6 million, as of the June 30 reporting period, compared to the same time frame last year. Total assets at River City at the end of June were $169.4 million, down 17.9 percent from last year.
Heritage First Bank lost $165,000 during the second quarter, as opposed to a $44,000 loss during the second quarter last year. Year-to-date figures show the same $165,000 loss as opposed to a $7,000 loss through the first half of last year.
Heritage First President Ryan Earnest said the board of directors has taken a proactive approach to addressing asset quality issues, which is what is plaguing the entire banking industry at this time.
“We’re doing that, knowing that earnings will suffer, to produce a healthier and cleaner bank,” Earnest said. “Our other real estate-owned category has dropped by a third, and when you’re selling things, you’re going to take losses to rid them off of the balance sheet.”
Heritage First lists $86.1 million in total deposits after the first half of the year, down 6.9 percent from a year ago. Total assets at the end of June were $96 million, down 4 percent from the previous year.
“A lot of banks are in shrink mode,” Earnest said, “Because they want to get their Tier One capital percentage as high as they can make it, because regulators under the Dodd-Frank action are going to require higher capital ratios for solvency, liquidity and all those type of things.”