The corporate parent of VantageSouth Bank reported lower third-quarter earnings because of a one-time income tax charge.
Raleigh-based VantageSouth Bancshares reported Wednesday morning before the markets opened that net income totaled $776,000, or 2 cents per share, down from $918,000 a year ago. That net income figure accounts for $708,000 in dividends paid to the U.S. Treasury for funds received from the Troubled Asset Relief Program, or TARP, up from $367,000 in dividends paid a year ago.
A one-time income tax charge of $1.2 million lowered net income for the quarter.
Net operating earnings – which excludes gains on investments and a one-time acquistion gain, merger costs and the income tax charge – totaled $3 million. That was an improvement from $2.8 million in the second quarter and $1.4 million in the year-ago quarter.
“We improved operating earnings and achieved annualized net loan growth of nine percent in the third quarter despite a general environment of economic uncertainty and slowing mortgage activity,” CEO Scott Custer said in a statement.
VantageSouth has 45 branches in Eastern North Carolina. It roughly doubled in size in April when it acquired East Carolina Bank.
VantageSouth shares closed Wednesday at $5, down 14 cents. Its shares have risen 9 percent this year.
Staff writer David Ranii