NATCHEZ — For the three months ended Sept. 30, 2009, Britton & Koontz Capital Corporation saw net income of $325,000, or $0.15 per diluted share, compared to $943,000, or $0.45 per diluted share, for the quarter ended Sept. 30, 2008.
For the nine-month period, net income and diluted earnings per share were $1.7 million and $0.79, respectively, compared to $2.6 million and $1.25, respectively, for the same period in 2008.
Although net interest income increased for both the three- and nine-month periods compared to the corresponding periods in 2008, these increases were offset by the bank’s higher provision for loan losses in 2009 and increases in Federal Deposit Insurance Corporation (FDIC) assessments. Britton & Koontz increased its provision by $800,000 and $1.5 million for the three and nine month periods, respectively. Also contributing to the lower earnings was higher FDIC assessments and special assessments to all FDIC-insured banks, which are part of the FDIC’s efforts to recapitalize the Deposit Insurance Fund. Increased provision expenses negatively impacted diluted earnings per share by approximately $0.24 and $0.45 for the three and nine months, respectively. Increased FDIC assessments reduced diluted earnings per share by approximately $0.03 and $0.14 for the three and nine months.