SPRINGFIELD, Ill., Nov. 24, 2015 (GLOBE NEWSWIRE) -- Town and Country Financial Corporation (OTC Pink:TWCF) reported third-quarter net income of $1.6 million, up 129% from net income in the third quarter 2014. Net income from the sale of equity securities was $650 thousand, or $0.23 per share compared with no gain recorded in the year-ago quarter. Excluding the gain on sale, net income was $986 thousand, up $270 thousand, or 38%, compared with net income in the third quarter of 2014. Including the dividend paid on preferred stock, net income available to common shareholders was $0.57 per share, compared with $0.25 per share in the year-ago period.
President and Chief Executive Officer, Micah R. Bartlett commented, “Our Company delivered another solid quarter of earnings and business performance driven by our focus on revenue diversity and the needs of our customers. During the quarter, we were tremendously pleased to announce the acquisition of West Plains Investors, Inc. and their subsidiary, Premier Bank of Jacksonville. The merger will create a $700 million bank with further expansion in Central Illinois and into the metro-east market of St. Louis. Through demonstrated earnings performance and our company’s steady growth, both organically and through acquisition, we have momentum that fosters even more prosperity for our customers, our communities, and our company.”
Discussion of Third Quarter Results
Net revenue including the gain on sale of securities was $7.3 million compared with $5.6 million in 2014. Normalized net revenue, excluding the gain on sale of securities, was up $679 thousand, an increase of 12.1% primarily due to a 63% increase in revenue from mortgage banking activities. In addition, net interest income was up 1.0% over the year-ago quarter based on 2.6% average loan growth, primarily commercial loans that were up 6.8%.
The tax equivalent net interest margin was 3.34% in the current quarter compared with 3.29% in the third quarter of 2014. As has been true in prior quarters, the improvement was primarily due to a higher mix of loans to total assets.
Noninterest expense was virtually unchanged in this quarter as compared to the year ago at $4.5 million. Expense reductions based on branch consolidations and other expense management practices were reinvested into technology, revenue-producing employees, and the cost to process a 78% increase in mortgage loan applications.
The provision for loan loss was $340 thousand compared to $35 thousand in the third quarter of 2014. Net charge offs were $218 thousand, or 0.06% of average loans, compared with $6 thousand in the prior year’s quarter.
Loans that were past due 30 days or more, including non-accrual loans, totaled 0.93% of loans outstanding at September 30, 2015 compared with 0.50% at December 31, 2014. The allowance for loan loss was 1.11% of total loans, excluding loans held for sale, compared with 1.03% at the prior year-end.
At September 30, 2015 total assets were $503 million and total net loans were $357 million compared with $499 million and $351 million, respectively, at December 31, 2014. Total deposits were $397 million and common equity capital was $44.0 million. The reported book value was $15.47 per common share compared with $15.44 per share at December 31, 2014. Town and Country Financial Corporation is considered a small bank holding company and therefore Basel III capital standards do not apply. Town and Country Bank’s capital levels remained strong in the quarter under the Basel III transitional standardized approach with common equity tier 1 capital of $47 million, or 11.84%, and total regulatory capital of $52 million, or 12.97%, both stated as a percentage of risk-weighted assets.
The Board of Directors declared a $0.03 per share quarterly cash dividend payable on December 15, 2015 to stockholders of record December 1, 2015.
Town and Country Financial Corporation is the parent holding company for Town and Country Bank and Town & Country Banc Mortgage Services, Inc. with offices in Buffalo, Decatur, Lincoln, Mt. Zion, Quincy, and Springfield. Town and Country Financial Corporation shares are quoted under the symbol TWCF.
Contact: Nancy Bahre (217) 787-3100 email@example.com
Source:Town and Country Financial Corporation