Investors in Tower Bank stock are once again reaping dividends.
Tower Financial Corp. on Thursday reported second-quarter earnings of $1.36 million, or 28 cents per diluted share, a 25 percent increase over the $1.09 million, or 22 cents a share, posted for the same three months of last year.
The Fort Wayne-based parent of Tower Bank also reported that its written agreement with the Federal Reserve Bank of Chicago was terminated July 10. The agreement was a kind of probation imposed in April 2010 after regulators determined the banks procedures for evaluating loan risk were inadequate.
With the written agreement lifted, Towers directors were once again allowed to declare a dividend. The board approved a 5.5 cents per share dividend payable on Aug. 21 to shareholders of record on Aug. 7.
Also during the second quarter, The Federal Deposit Insurance Corp. also lowered Tower Banks risk assessment rate. As a result, the FDIC charged Tower $213,000 less in premiums than the year-ago period.
Mike Cahill, Tower Financials president and CEO, said termination of the written agreement is proof of the companys success.
We are making solid marked progress each quarter on our loan issues, as our watch list of (problem) loans dipped below 10 percent for the first time since October 2007. And we expect this momentum to continue. However, we still have significant work to do in addressing known issues in this arena.
The three months ended June 30 marked the fifth consecutive quarter when Tower has earned more than $1 million, officials said.
Shares closed Thursday at $11.20, up 50 cents from the previous days close on the Nasdaq stock market.