LOUISVILLE, Ky. (WDRB) -- Limestone Bancorp has posted third-quarter profit of $2.3 million, down 6.4% from a year earlier, as expenses rose faster than revenue.
Limestone’s third-quarter interest income, at $12.5 million, was up 12.3% from the third quarter of last year, but interest expenses, at nearly $3.8 million, rose nearly 39%.
Third-quarter non-interest income, at $1.5 million, was up 1.7% from a year earlier. However, non-interest expenses were nearly $7.5 million, up 3.1%.
Limestone’s shares were up 0.72% at about 11 a.m. Thursday morning. The S&P 500 was up 0.13%. The financial corporation had posted results Wednesday after markets closed.
For the first nine months of the year, Limestone’s net income was nearly $8.8 million, up 38%. Results are better this year primarily because of lower income taxes, which fell 97%. In the first nine months of last year, the corporation paid income taxes of $1.4 million. During the same period this year, Limestone has paid income taxes of $43,000.
Limestone said in a news release Wednesday that a change in Kentucky law boosted its earnings by more than $1.5 million in the first and second quarters. The new law eliminates the Kentucky bank franchise tax, which is assessed at 1.1% of average capital, and implements a state income tax for the bank at a rate of 5%.
The Louisville-based corporation is the parent company of Limestone Bank, which has locations in 12 counties. The corporation has assets of $1.13 billion.
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