Due to perceived “less favorable” 2011 environment, bank will give more to shareholders this year
Oak Creek-based Tri City National Bank posted net income of $3.7 million for the third quarter of 2010, up from $2.24 million for the same quarter of 2009. The bank’s net earnings for the first nine months of 2010 were $12.6 million, a significant boost from its $7.3 million in earnings for the first nine months of 2009.
According to a filing with the Securities and Exchange Commission, the bank’s 2010 earnings have been significantly impacted by its Oct. 23, 2009 acquisition of selected assets of Racine-based Bank of Elmwood, which was ordered closed by state and federal officials last year.
Largely because of the acquisition, Tri City’s total assets have risen significantly so far this year – from $790.4 million last year to $1.07 billion this year.
In the same SEC filing, the bank announced that its board of directors has approved a special dividend to shareholders of record of Nov. 30. The dividend, payable on Dec. 10, will be $1.20 per share, and is being made because of what the bank will be a “less favorable tax treatment of dividend income in 2011.”
“The board intends to significantly reduce or eliminate dividend payments in 2011; in effect, we are ‘prepaying’ next year’s dividend in consideration of the potential advantage to our shareholders under the current dividend structure,” the bank said in its filing.
It also said it plans to resume dividend payments after 2011.
