Tri City Bankshares Corp. announced unaudited earnings results for the second quarter and six months ended June 30, 2012. For the quarter, the company reported net income of $2,514,063 or $0.28 net income per common share compared to net income of $2,652,662 or $0.29 net income per common share for the corresponding period of last year. Net interest income was $10,937,699 against $12,414,209 of prior year period. Income before income taxes was $3,835,063 against $4,100,163 for the same period last year.

For the six months, net income was $5,083,628 or $0.57 net income per common share compared to net income of $4,938,348 or $0.55 net income per common share for the corresponding period of last year. The increase in earnings was due to a $2.0 million increase in non-interest income and a $0.3 million decrease in the provision for loan losses, which was partially offset by a decrease in net interest income of $1.4 million and a $0.3 million increase in non-interest expense. Net interest income was $22,548,216 against $23,929,716 of prior year period. Income before income taxes was $7,910,973 against $7,260,135 for the same period last year. Operating earnings during the first six months of 2012 were also positively affected by an increase in Acquisition-related purchase accounting income, which totaled $4.1 million during the first six months of 2012 compared to $3.5 million during the same period in 2011.

The Board of Directors declared a dividend of $0.21 per share payable on August 2, 2012 to shareholders as of the record date of July 24th 2012.