Loan port continued to drift and interest income fell another 0.4 million. This was made up by a one-time $0.5 million in OREO property gain.
Pretax, pre-provision operating income, excluding the OREO gain, was $1.7 million VS $2.1 million the quarter before. An average bank with $760 million in asset ought to bring in closer to $3 million per quarter. Part of the reason maybe its gradual expansion cost, still...
The good news is that loan quality continued to improve, to where it only provisioned $0.1 million this quarter.
The bank is in ship shape, except that it is not earning enough. Part of the blame maybe weak demand for loans, the other, high overhead. Which was around 3.6% of asset as always, but way higher than peers. (Can they do something to bring it down? I wonder.)
At this point, I don't see why it did not already pay TARP back unless it's still hoping for an acquisition.
In sum, it's safe, but judging from prospective earnings, not cheap.