Tower Private Advisors
- Capital Markets Recap
- Amazing earnings
The Dow Jones Industrial Average is a dinosaur, created in a time when computers didn’t exist. Accordingly, it was created in a way that was easy to calculate. Holding in the DJIA are weighted by price, so an $80 stock has twice the weight in the index of a $40 stock, and that can often lead to distortions when the highest-priced stocks have significant moves. Today, that’s what happened. Just three stocks contributed 55% of the index’s drop.
A local financial institution with which I am well acquainted announced record earnings this week. Tower Financial, as you can read from the linked press release, my employer, announced that it had record core earnings in the fourth quarter of 2011 and for the full year. The quarter’s earnings were $2.8 million, for the full year, $10.1 million. Core earnings is another of saying no-fluff earnings. Core earnings are what we earn doing banking stuff. If we throw in some fluff, like a deferred tax asset that flowed to the bottom line, but which is really just an estimate of a future tax benefit, we had record earnings of $3.4 million for the quarter and a monster $6.6 million for the year. You can click here to view the entire press release.
As usual, Fort Wayne’s Journal Gazette just couldn’t say enough about our phenomenal results, as you can see below in the gushing write-up.
Tower’s earnings more than double
Tower Financial Corp. on Thursday reported record annual earnings of $6.6 million, or $1.36 per diluted share, for 2011. The results were more than double the $3.2 million, or 69 cents a share, posted for 2010.
The Fort Wayne-based parent of Tower Bank also reported record fourth-quarter earnings of $3.4 million, or 71 cents per diluted share, a four-fold increase over the $884,000, or 18 cents a share, reported for the same three months of the prior year.
Michael Cahill, Tower’s president and CEO, in a written statement, described the results as “a significant milestone” for the company. But, he added, that work isn’t complete.
“We still have significant opportunities to expand our impact in our local communities, improve our service levels and efficiencies, and acquire new customers,” Cahill wrote.
I didn’t have time to do a proper Weekly Recap, so here’s my daughter’s recipe for Pumpkin Apple Streusel Muffins (her artsy photo), which she got from another blog. Sorry; that’s going to have to suffice. Click on the recipe to go to the blog from whence it came.