Mainsource Fi­nan­cial an­nounces 3Q re­sults

The Pak Banker - - Front Page -

GREENS­BURG, IN­DI­ANA

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.

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