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Photos by Michelle Davies | The Journal Gazette
Mel Mercer handles a drive-up customer’s transaction Thursday at the Lake City Bank branch on Jefferson Boulevard.

Area banks’ earnings up

Zimmer profits fall from 2011’s third quarter

Lake City Bank is owned by Lakeland Financial Corp. of Warsaw, which set an earnings record last quarter.

Public companies based in northeast Indiana reported mixed earnings Thursday.

Three banks bested last year’s third quarter, including one that set an earnings record. But an orthopedic devices maker saw profits slip during the three months ended Sept. 30.

Zimmer

Zimmer Holdings Inc. reported earnings of $178.1 million, or $1.02 per diluted common share, a 7 percent decline from the $191.5 million, or $1.01 a share, posted for the same three months of last year.

The Warsaw-based orthopedics company also reported net sales of almost $1.03 billion, which were flat compared with the third quarter of 2011.

Zimmer used $97.6 million to repurchase 1.56 million shares during the quarter. The company also finalized its acquisition of Dornoch Medical Systems Inc., which markets a disposal system for potentially infectious bodily fluids removed during medical procedures.

Lakeland

Lakeland Financial Corp. reported record quarterly earnings of $9.35 million, or 57 cents per diluted common share, an 11 percent increase from the $8.45 million, or 52 cents a share, posted for the 2011’s third quarter.

The Warsaw-based parent of Lake City Bank said the period was its most profitable quarter in the company’s 140-year history. The combined nine-month earnings of $26.8 million also set a company record.

Michael Kubacki, chairman and CEO, said “great” customer service and technology-driven products have combined for record returns.

“We’re proud of our legacy as a true Indiana community bank, and our continuing strong performance reaffirms our reputation as one of the leading community banks in the state and allows us to effectively compete with banks of all sizes,” he said in a written statement.

1st Source

1st Source Corp. reported third-quarter earnings of $13.01 million, or 53 cents per diluted common share, a 13 percent increase from the $11.54 million, or 47 cents a share, for the same three months of last year.

The South Bend-based parent of 1st Source Bank saw its nonperforming assets decline 35 percent during the quarter to $50.5 million, as compared with the prior year’s third quarter.

The company broke ground during the quarter on new branches in Columbia City and Nappanee. 1st Source also enhanced its online banking system and upgraded its ATM network.

Tower

Tower Financial Corp. reported third-quarter earnings of $1.56 million, or 32 cents per diluted common share, an 18 percent increase from the $1.32 million, or 27 cents a share, posted for the same period last year.

The Fort Wayne-based parent of Tower Bank said it is working through past issues involving bad loans. Rick Sawyer, Tower’s chief financial officer, said officials are encouraged by the quarter’s results.

“We believe this is a good indication that we have stabilized the asset quality in our current portfolio, allowing us to focus on” older problem loans, he said in a written statement.

Tower’s total non-performing loans increased 14 percent during the quarter just ended to $14.6 million, as compared with $12.8 million during the same three months of last year. The company’s total nonperforming assets inched up 2 percent to $17.2 million as of Sept. 30.

sslater@jg.net

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