Town and Country Financial Corporation Reports First Quarter 2019 Financial Results
SPRINGFIELD, Ill., April 30, 2019 (GLOBE NEWSWIRE) -- Town and Country Financial Corporation (the “Company”), (OTC Pink: TWCF), today announced financial results for first quarter of 2019.
Key highlights included:
- Loans grew $65 million (12.8%) from March 31, 2018 to March 31, 2019;
- Loans grew $22 million (16.1% annualized) in the first quarter of 2019;
- Deposits grew $20.9 million from March 31, 2018, to $647 million as of March 31, 2019;
- 30.5% increase in core net income in the first quarter of 2019, to $1.6 million, compared to $1.2 million in the first quarter of 2018;
- Net interest margin increase of 14 basis points, to 3.48%, from 3.34% in the first quarter of 2018.
Core net income, which excludes securities gains and losses and other non-core items, increased $374,000 (30.5%) from the first quarter of 2018 to the first quarter of 2019, as noted above. Reported net income was $1.65 million ($0.58 per share) in the first quarter of 2019 and $1.41 million ($0.49 per share) in the first quarter of 2018. In comparing the first quarter of 2019 to the first quarter of 2018, revenue was higher by $475,000 while noninterest expenses were down $260,000.
President and Chief Executive Officer, Micah R. Bartlett, commented, “The great momentum of 2018 continued in the first quarter of 2019. Loan growth remained strong, particularly in commercial loans, where we saw an increase of $20.5 million or 18.7% annualized in the quarter. The mortgage business had a solid quarter during a time of year that is typically slow for the industry. And our focus on building revenue while also improving efficiency produced a significant improvement in profits.”
While deposits grew by $20.9 million from March 31, 2018 to March 31, 2019, the mix of deposit types also changed. Time deposits grew by $20.4 million, excluding brokered deposits, while transaction accounts, including checking, savings and money market accounts, declined by $14.4 million.
Short term funding, either with Federal funds purchased from correspondent banks or advances from the Federal Home Loan Bank of Chicago, were $58.8 million as of March 31, 2019. This was a $14.3 million increase from a year earlier, but it was a decline of $10.4 million during the first quarter of 2019, from $69.2 million as of December 31, 2018.
The net interest margin increased from 3.34% in the first quarter of 2018 to 3.48% in the first quarter of 2019. The primary reason for the increase is a change in asset mix. Loan growth was funded, in part, with funds from maturing investments, improving the earning asset yield. Net interest income was $6.0 million in the first quarter of 2019, compared to $5.6 million in the first quarter of 2018. The increase resulted from a higher net interest margin and a larger loan portfolio.
Noninterest income was unchanged in the first quarter of 2019, compared to the first quarter of 2018, at $2.3 million. Noninterest expenses were $6.0 million in the first quarter of 2019, compared to $6.3 million in the first quarter of 2018. Compensation, marketing, and professional fees expenses were lower in the first quarter of 2019 than a year earlier.
Assets grew to $796 million at March 31, 2019 from $756 million a year earlier, an increase of $40 million, of which $14 million occurred in the first quarter of 2019. The loan portfolio, excluding loans held for sale, grew to $576 million at March 31, 2019, from $510 million a year earlier, an increase of $66 million for the year, including the $22 million in the first quarter of 2019. Total deposits grew to $647 million as of March 31, 2019 from $626 million a year earlier.
Nonperforming loans increased slightly but credit quality remained strong, with nonperforming loans at 0.63% of net loans at quarter-end compared to 0.62% a year earlier. The allowance for loan loss as a percent of total loans was slightly lower, at 1.02% at March 31, 2019, compared to 1.07% at March 31, 2018. Delinquencies were lower, at 0.47% as of March 31, 2019, from 0.59% as of March 31, 2018.
Town and Country Bank’s capital levels remained strong at quarter-end, with a Tier 1 leverage ratio of 9.34% and a total risked-based ratio of 12.57%. These ratios compare to 9.08% and 12.71% a year earlier. Consolidated equity capital grew to $61.7 million at March 31, 2019, from $55.0 million at March 31, 2018. Book value was $21.70 per share as of March 31, 2019, compared to $19.34 per share as of March 31, 2018, an increase of 12.2%.
The holding company reported an investment in Town and Country Bank of $80.1 million at March 31, 2019, compared with $74.7 million as of March 31, 2018. Borrowings were $9.3 million and trust preferred securities were $13.5 million at quarter-end, as compared with $11.2 million in borrowings and $13.5 million in trust preferred securities as of March 31, 2018.
Town and Country Financial Corporation is the parent holding company for Town and Country Bank and Town and Country Banc Mortgage Services, Inc. with offices in Bloomington, Buffalo, Decatur, Edwardsville, Fairview Heights, Jacksonville, Lincoln, Mt. Zion, Springfield, and Quincy. The Quincy branch operates under the name of Peoples Prosperity Bank. Town and Country Financial Corporation shares are quoted under the symbol TWCF.
Contact:
Doug Cheatham
Executive Vice President and Chief Financial Officer
dcheatham@townandcountrybank.com
(217) 321-3424
| CONSOLIDATED STATEMENT OF CONDITION | ||||||||||
| As of the dates indicated: |
March 31, 2019 (unaudited) |
March 31, 2018 |
||||||||
| ASSETS | ||||||||||
| Cash and due from banks | $ | 10,525,404 | $ | 17,896,249 | ||||||
| Investments | 157,057,599 | 166,326,410 | ||||||||
| Loans held for sale | 1,776,218 | 7,562,656 | ||||||||
| Loans | 575,661,744 | 510,252,958 | ||||||||
| Less: Allowance for loan losses | 5,839,218 | 5,447,469 | ||||||||
| Net loans | 569,822,526 | 504,805,489 | ||||||||
| Other assets | 57,051,238 | 59,305,136 | ||||||||
| Total assets | $ | 796,232,985 | $ | 755,895,940 | ||||||
| LIABILITIES & EQUITY | ||||||||||
| Deposits | $ | 647,100,127 | $ | 626,165,178 | ||||||
| Borrowed money | 68,100,000 | 55,675,000 | ||||||||
| Other liabilities | 5,751,038 | 5,528,760 | ||||||||
| Total liabilities | $ | 720,951,165 | $ | 687,368,938 | ||||||
| Trust preferred securities | 13,542,510 | 13,489,804 | ||||||||
| Equity capital | 61,739,310 | 55,037,198 | ||||||||
| Total liabilities & equity | $ | 796,232,985 | $ | 755,895,940 | ||||||
| SUMMARY INCOME STATEMENT | Three Months Ended March 31, | |||||||||
|
2019 (Unaudited) |
2018 | |||||||||
| Interest income | $ | 7,748,861 | $ | 6,661,223 | ||||||
| Interest expense | 1,716,071 | 1,096,106 | ||||||||
| Net interest income | $ | 6,032,790 | $ | 5,565,117 | ||||||
| Provision for loan losses | 300,000 | 110,000 | ||||||||
| Noninterest income | 2,281,827 | 2,297,628 | ||||||||
| Noninterest expense | 5,999,925 | 6,260,218 | ||||||||
| Income before income taxes | $ | 2,014,692 | $ | 1,492,527 | ||||||
| Income taxes | 412,015 | 264,033 | ||||||||
| Core Net Income | 1,602,677 | 1,228,494 | ||||||||
| Non-Core items after tax | 43,250 | 181,123 | ||||||||
| Net income | $ | 1,645,927 | $ | 1,409,617 | ||||||
| Selected Highlights: | Three Months Ended March 31, | |||||||||
|
2019 (Unaudited) |
2018 | |||||||||
| Basic earnings per share | $ | 0.58 | $ | 0.49 | ||||||
| Net charge offs to average loans less HFS | 0.04 | % | 0.00 | % | ||||||
| Net revenue (in 000s) | $ | 8,315 | $ | 7,863 | ||||||
| Net interest margin | 3.48 | % | 3.34 | % | ||||||
| Fees from mortgage banking activities (in 000s) | $ | 1,075 | $ | 1,251 | ||||||
| Return on common equity | 10.70 | % | 10.35 | % | ||||||
| Return on assets | 0.83 | % | 0.77 | % | ||||||
| Balance Sheet Ratios | ||||||||||
| As of the dates indicated: |
March 31, 2019 (unaudited) |
December 31, 2018 |
March 31, 2018 |
|||||||
| Book value per common share | $ | 21.70 | $ | 20.90 | $ | 19.34 | ||||
| Tier 1 leverage ratio (TCB only per Basel III) | 9.34 | % | 9.28 | % | 9.08 | % | ||||
| Total risk-based capital ratio (TCB only per Basel III) | 12.57 | % | 12.85 | % | 12.71 | % | ||||
| Nonperforming loans | 0.63 | % | 0.67 | % | 0.62 | % | ||||
| Delinquent loans, excluding nonperforming | 0.47 | % | 0.80 | % | 0.59 | % | ||||
| Allowance for loan loss | 1.02 | % | 1.05 | % | 1.07 | % | ||||
| Coverage ratio (allowance to NPLs) | 163 | % | 156 | % | 172 | % | ||||
| Mortgage loans sold with servicing retained (in 000s) | $ | 678,499 | $ | 676,098 | $ | 629,113 | ||||
| Trust assets under management (in 000s) | $ | 162,281 | $ | 147,804 | $ | 162,321 | ||||
| HOLDING COMPANY ONLY | ||||||||||
| As of the dates indicated: |
March 31, 2019 (unaudited) |
March 31, 2018 |
||||||||
| ASSETS | ||||||||||
| Cash and other assets | $ | 5,245,957 | $ | 6,080,874 | ||||||
| Investment in TCB | 80,103,972 | 74,664,234 | ||||||||
| Total assets | $ | 85,349,929 | $ | 80,745,108 | ||||||
| LIABILITIES & EQUITY | ||||||||||
| Other liabilities | $ | 793,109 | $ | 1,043,106 | ||||||
| Borrowings | 9,275,000 | 11,175,000 | ||||||||
| Trust preferred securities | 13,542,510 | 13,489,804 | ||||||||
| Equity capital | 61,739,310 | 55,037,198 | ||||||||
| Total liabilities & equity | $ | 85,349,929 | $ | 80,745,108 | ||||||
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
