Fort Worth’s OmniAmerican Bancorp on Friday reported more than a 20 percent drop in net income for the quarter ending March 31 but declared a 5-cents-a-share dividend payable to stockholders as of May 16.
On Monday, the former credit union announced plans to merge with Tyler-based Southside Bank in a stock-and-cash deal that’s expected to close this year.
Net income totaled $1.5 million, down $404,000 from $1.9 million in the first quarter of 2013, because of lower gains from the sale of securities and loans. Loans decreased by $29.4 million, or 3.6 percent, as the company discontinued its indirect auto loan program and deposits increased by 2.3 percent to $832.6 million.
In a statement, CEO Tim Carter said that the company’s core earnings remained strong and that profits were helped by cost cuts.
“OmniAmerican continues our commitment to our strategic goals of commercial and mortgage loan growth,” he said. “Our earnings for the quarter reflected an increase in net interest income and a reduction in operating expenses, including an eight percent decrease in salaries and benefits costs.”
Its stock (ticker: OABC) closed down 1.3 percent, or 32 cents, at $24.28. That’s still up from Monday’s close of $22.93 before the merger announcement.