Mainsource Financial announces 3Q results
Archie M. Brown, Jr., President and Chief Executive Officer of MainSource Financial Group, announced today the unaudited financial results for the third quarter of 2012.
For the three months ended September 30, 2012, the Company recorded net income of $7.0 million, or $0.32 per common share, compared to net income of $5.6 million, or $0.24 per common share, in the third quarter of 2011.
A $1.7 million decrease in net interest income was more than offset by a decrease of $3.0 million in loan loss pro- vision expense and a $1.3 million increase in non-interest income. While non-interest expenses increased by $500 thousand compared to the prior year, the increase was attributable to a $1.3 million prepayment penalty on the early extinguishment of an FHLB advance.
Mr. Brown commented on the third quarter, "I am very pleased with the continued growth in operating earnings. Our core earnings were at their highest point in the history of the company.
The increase in fee income combined with lower provision and non-interest expense accounted for the improvement in income. I am also pleased with our net interest margin. While it was down from the same period one year ago, it remained flat with the second quarter of this year despite the challenging interest rate environment.
Provision expense for the quarter was at its lowest level since the first quarter of 2008 and reflects continued improvement in our overall loan quality."
Mr. Brown concluded his comments by discussing several new growth initiatives, "I am excited about several new initiatives that were begun during the quarter, including our purchase of brokerage agencies in Seymour, Indiana and Indianapolis.