You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Deal reached to sell supermarket chain to ex-CEO
    A New England supermarket chain that has been in turmoil for weeks over a workers’ revolt and customer boycott has announced that the former CEO is buying the company from rival relatives.
  • FBI investigating reports of attacks on US banks
    The FBI said Wednesday it’s working with the Secret Service to determine the scope of recently reported cyberattacks against several U.S. financial institutions.  A report on Bloomberg.
  • IMF chief faces probe for fraud
    PARIS – Christine Lagarde, the chief of the International Mon­e­tary Fund, was put under of­fi­cial investigation for negli­gence in a French corruption probe that dates back to her days as France’s
Advertisement

Area banks log solid profit gains

Tower’s 17% rise steepest among 3

The three months ended June 30 were profitable for three northeast Indiana-based banks.

They released financial results Thursday.

1st Source Bank

1st Source Corp. reported second-quarter earnings of $13.9 million, or 56 cents per diluted common share, an 11 percent increase from the $12.6 million, or 51 cents a share, posted for the same period of 2012.

The South Bend-based holding company for 1st Source Bank set aside $1.29 million during the quarter to cover loan and lease losses. That amount was $762,000 less than what the company set aside for the same purpose during last year’s second quarter.

The company’s reduction in bad loan provisions accounted for more than half of its increase in quarterly profit.

Lake City Bank

Lakeland Financial Corp. reported second-quarter earnings of $9.24 million, or 56 cents per diluted common share, a 5 percent increase from the $8.82 million, or 54 cents a share, posted for the same three months of last year.

The Warsaw-based holding company for Lake City Bank marked record six-month earnings of $18.5 million for the first half of the year.

Increases were posted even after the company set aside $465,000 to offset future lower tax benefits resulting from a change in some state deferred tax items.

Because the economy and various borrowers are starting to thrive, Lakeland didn’t contribute this past quarter to its fund to cover bad loans. The company designated $500,000 for that fund in the second quarter of 2012. That one change more than pays for the $420,000 increase in the company’s quarterly profit.

Lakeland ended the quarter with $50.6 million in its reserves to cover defaulted loans, just 2 percent less than the balance reported for June 30, 2012.

Tower Bank

Tower Financial Corp. on Thursday reported second-quarter earnings of $1.60 million, or 34 cents a share, a 17 percent increase from the $1.36 million, or 28 cents a share, for the same three months of 2012.

The Fort Wayne-based holding company for Tower Bank reported that its capital ratios remain significantly above the well-capitalized levels that regulators require for banks to be considered financially healthy.

Mike Cahill, president and CEO, credited employees for a strong quarter.

“Our efforts to control overhead, expand our fee revenues and work through our non-performing assets has allowed our bottom line to improve during a period of lower loan demand and low interest rates,” he said in a statement. “We continue to add new customers and expand our existing relationship base, which will greatly benefit us as the economy continues to recover.”

sslater@jg.net

Advertisement