Business Briefs: City Holding sets quarterly record
City Holding Co., the Charleston-based parent of City National Bank, on Thursday announced its third-quarter net income increased 32 percent to $14 million, of $0.88 per share, in the last quarter.
Chief Executive Officer Charles Hageboeck said the $0.88 a share set a new company record for quarterly earnings.
Hageboeck attributed the success to the company's acquisitions of Virginia Savings Bank in the second quarter of 2012 and Community Financial Corporation in the first quarter of 2013.
"We continue to be very pleased with the results from our acquisitions of Virginia Savings Bank and Community Bank, especially with our success in resolving problem loans associated with these acquisitions," he said.
He said that as a result of the company's efforts to work out a number of these problem loans, the company's overall past due loans and other asset quality indicators have shown improvement.
"While there is still work to be done in regards to credit-impaired loans, particularly those associated with Community Bank, we are pleased with our progress in resolving these acquired loans," Hageboeck said.
City's net interest margin also showed strength in the quarter at 4.47 percent. Additionally, Hageboeck said the company continues to expect solid commercial loan growth in the fourth quarter of 2013.
Charges sink AEP net income
COLUMBUS, Ohio -- Utility company American Electric Power said Wednesday its net income sank 11 percent in the third quarter, weighed down by impairment charges from its operations in Texas and Kentucky.
During the quarter AEP took a $111 million charge related to construction of a plant in Texas and a charge of $33 million for work on a project in Kentucky. AEP said the charges totaled $100 million after taxes, or 21 cents per share.
Excluding those charges the company said it earned $1.10 per share in the third quarter. That was more than analysts expected, and AEP offered a more optimistic forecast for the full year.
Its shares gained $1.55 or 3.4 percent, to $46.79 in morning trading.
American Electric Power Co. said its net income declined to $433 million, or 89 cents per share, for the three months ended Sept. 30. That was down from $487 million, or $1 per share, in the 2012 third quarter. Its revenue held steady at $4.2 billion.
Analysts, on average, had forecast net income of $1.08 per share and $4.54 billion in revenue, according to FactSet.
The company is now projecting net income of $3.15 to $3.25 per share in 2013, compared with its previous estimate of $3.05 to $3.25 per share.
Analysts were expecting $3.14 per share on average.
COMPILED FROM STAFF, WIRE REPORTS