Bank of Vastopolis Net Rose On Strong Growth in Loans
April 03, 2011
Vastopolis -- Bank of Vastopolis Corp. reported a 13% increase in second-quarter earnings to $150 million, or $1.26 a share, before one-time gains. Including one-time gains for the quarter, Bank of Vastopolis's profit rose 34% to $178.1 million, or $1.54 a share. The quarter includes a gain of $28 million for the sale of its mortgage subsidiary; the bank has a 33% equity stake in that former subsidiary, now called Homeside Inc.. The results, buoyed by strong loan growth and gains in private equity investments, were three or four cents a share better than Wall Street estimates and continue a string of record quarters. But many analysts are taking a wait-and-see approach with the bank. The quarter represents the last before it receives final regulatory approval -- expected at the end of July -- to buy cross-town rival BayBanks. When the banks merge, Bank of Vastopolis will change its name and increase its assets by about 20% to $60 billion. Bank of Vastopolis's nonperforming loans increased by 4.3% to $387 million from the first quarter. Return on assets was 1.52%, compared with the year-ago 1.21%. Return on equity was 21.24%, compared with 17.22%. For the six months, the bank reported net income of $294.6 million, or $2.50 a share, including one-time items, compared with year-earlier net of $258.7 million, or $2.19 a share.
