Town Center Bank announced unaudited earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company reported that total interest income was $866,000 compared to $1,027,000 a year ago. Net interest income was $750,000 compared to $881,000 a year ago. Net interest income after provision for loan losses was $1,184,000 compared to $881,000 a year ago. Loss before income taxes was $52,000 compared to income before income taxes of $2,000 a year ago. Net loss was $52,000 compared to net income of $2,000 a year ago. Basic and diluted loss was $0.02 per share compared to $0.00 per share a year ago. The decline in operating results for the quarter is primarily due to less interest income earned on loans from average loan balances decreasing and less fee income generated by mortgages. The decrease in net interest income is due to less interest income on loans as a result of the average loan balances decreasing from period over period offset by less interest expense from the decline in deposits.

For the nine months, the company reported that total interest income was $2,641,000 compared to $3,229,000 a year ago. Net interest income was $2,281,000 compared to $2,684,000 a year ago. Net interest income after provision for loan losses was $2,859,000 compared to $2,668,000 a year ago. Loss before income taxes was $239,000 compared to $274,000 a year ago. Net loss was $239,000 compared to $274,000 a year ago. Basic and diluted loss was $0.10 per share compared to $0.12 per share a year ago. The improvement in operating results is due primarily to not realizing an other real estate valuation and loan loss provision that impacts the income statement as well as a $193,000 FHLB prepayment penalty offset by less interest income earned on loans. The decrease in net interest income is due to less interest income on loans as a result of the average loan balances decreasing from period over period offset by less interest expense from the decline in deposits.