Asset quality issues, increase in stipulation from loan losses has resulted in 50 percent decrease of the net income for the Monroe Bancorp.
According to the annual and quarterly results from the Monroe Bancorp, the net income has dropped by 49 percent in 2008 compared to the income in 2007. There was also a 48.3 decrease in diluted earnings per share. The income of Monroe by the end of December 2008 has been calculated as $3,979,000 or $0.639 per diluted common share. This was $7,806,000 or $1.235 per diluted common share, in the previous year.
The increase in non-performing loans and other real estate owned has increased to $12,169,000 in 2008, from $3,763,000 in 2007. This resulted in decline in the Company’s net interest margin. There was also a distinguished increase of $6,845,000 in the provision for loan losses.
Whatever are the reasons, 2008 was bad for the financial industry and its firms; Monroe Bancorp was just one of them.
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