Susquehanna Bancshares profits up 35%
Susquehanna Bancshares said Wednesday that its first-quarter earnings increased by 35 percent.
The Lititz, Pa., company said its net income was $28 million, or 33 cents per diluted share, compared to $20.7 million, or 40 cents per share, for the first quarter of 2007.
The bank completed an $860 million acquisition of Community Banks Inc. in November, which largely contributed to Susquehanna increasing its assets over the past year from $8 billion to $13 billion.
Excluding the Community Banks acquisition, Susquehanna said it grew its net loans and leases by 17 percent but saw deposits decline by 6 percent since March 31.
Susquehanna Chairman, President and CEO William J. Reuter said the challenging credit environment could impact some borrowers so the bank increased its loan loss reserve by $21 million instant payday loan.
Loan loss provision for the first quarter was $9.8 million, exceeding net charge offs by $4.4 million, and allowing the bank to build its reserve to 1.05 percent of total loans from 1.01 percent on Dec. 31.
Susquehanna Bancshares (NASDAQ:SUSQ) is a financial services holding company with assets of about $13 billion. It provides financial services through its three commercial banks at more than 230 branch locations in the mid-Atlantic region. Susquehanna Bank, one of the subsidiaries, has significant operations in southeastern Pennsylvania.