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Record earnings for area banks

First-quarter results also higher for orthopedic device producer

A Fort Wayne bank almost doubled its profit in the first quarter while a competitor saw an earnings decrease and two Warsaw-based companies reported modest earnings growth for the three-month period ended March 31.

Tower Financial

Tower Financial Corp. on Thursday reported record first-quarter earnings of $2 million, or 43 cents per diluted common share, an 84 percent leap from the $1.09 million, or 22 cents a share, posted for the same time last year.

The Fort Wayne-based parent of Tower Bank repurchased 70,000 shares of common stock at an average price of $12.32 during the quarter.

Mike Cahill, president and CEO, said Tower set a record for the highest pre-tax earnings in the company’s history.

“We continue to work hard in this challenging low-interest-rate environment to find ways to improve our shareholders’ value, while maintaining focus on our clients,” he said in a written statement.

Lakeland Financial

Lakeland Financial Corp. also set an earnings record during the first quarter.

The Warsaw-based parent of Lake City Bank reported earnings of $9.25 million, or 56 cents per diluted common share, a 7 percent increase over the $8.63 million, or 52 cents a share, posted for the same period of 2012. The results were a first-quarter record.

David Findlay, president and chief financial officer, highlighted the bank’s 2 percent increase in average total loans to $2.26 billion – despite generally weak demand.

“As an Indiana bank serving Indiana clients, we believe it’s critical that we use our balance sheet to support the economic recovery in the state,” he said in a written statement.

Zimmer Holdings

Zimmer Holdings Inc. on Thursday reported first-quarter earnings of $219 million, or $1.28 per diluted common share, a 4 percent increase over the $210 million, or $1.17 a share, for the same three months of last year.

The Warsaw-based orthopedic devices manufacturer used $392 million of cash to repurchase 5.36 million shares of its stock during the period, which had two fewer billing days in several key markets, as compared to the prior year’s first quarter.

David Dvorak, president and CEO, said in a written statement that the company introduced “significant new product offerings across the portfolio” during the quarter.

Independent Alliance

Independent Alliance Banks Inc. reported first-quarter earnings of $2.03 million, or $1.48 per common share, a 14 percent decrease from the $2.35 million, or $1.71 a share, posted for the same three months of 2012.

The Fort Wayne-based holding company of iAB Financial Bank said in a statement that the company collected less in interest and fees because borrowing has decreased. Meanwhile, payroll and benefits costs increased.

Mike Marhenke, president and CEO, described the company’s capital position as strong.

“We remain committed to servicing the needs of our customers as well as contributing talents and resources to the economic well-being of our community,” he said in a written statement.