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Town and Country Financial Corporation Reports Fourth-Quarter Net Income

SPRINGFIELD, Ill., Feb. 08, 2016 (GLOBE NEWSWIRE) -- Town and Country Financial Corporation (OTC Pink:TWCF) reported fourth-quarter operating net income of $900 thousand, or $0.32 per share in the fourth quarter compared with $948 thousand, or $0.34 per share in the year ago. The current quarter’s earnings were impacted by non-operating items including net income from the sale of equity securities that was $146 thousand in the current quarter compared with $171 thousand in the year-ago quarter. Also in the quarter, the bank incurred certain after tax expense of $350 thousand, including costs to set up and implement a captive insurance entity and costs related to the planned first quarter 2016 acquisition of Premier Bank of Jacksonville. Net income including non-operating items was $695 thousand compared with $1.1 million in the fourth quarter 2014. Net income available to common shareholders was $0.24 per share, compared with $0.40 per share in the year-ago period, each period including the dividend paid on preferred stock.

Full year 2015 reported net income was $3.9 million compared with $3.0 million in the prior year. Earnings per share were $1.35 in 2015 compared with $1.05 in 2014. Operating net income, excluding security gains and other one-time items described above, was $3.5 million, up 23.6% compared to $2.8 million in 2014.

President and Chief Executive Officer, Micah R. Bartlett commented, “We are excited to have delivered another year of solid performance. Fourth quarter accomplishments include continued improvement in core profitability and significant progress towards achievement of our strategic plans to grow, expand, and diversification of revenue sources. Continued growth and improvements in each of our lines of business gives us confidence in our business model and in our future momentum. In addition to creating value for each of our clients on a daily basis, we are excited to be expanding our franchise into new markets with two pending acquisitions.”

Discussion of Fourth Quarter Results
Net revenue was $6.1 million, an increase of 6.1% compared with $5.8 million in 2014, each quarter adjusted to exclude equity security gains. Net interest income was up 6.1% over the year-ago quarter based on 2.7% average loan growth, while non-interest income was up 6.2%, primarily due to a 12.4% increase in the dollar amount of mortgage loans sold. Partially offsetting the favorable change was a $132 thousand decrease in the value of the mortgage servicing rights portfolio in the current quarter compared with a $95 thousand increase in the year ago quarter.

The tax equivalent net interest margin was 3.51% in the current quarter compared with 3.26% in the fourth quarter of 2014, the change due to a higher mix of loans to total assets and loan fees collected.

Noninterest expense was $5.1 million, including $576 thousand in acquisition and captive insurance implementation costs. Adjusted to exclude these costs, noninterest expense was up 5.9% as compared to expense in the fourth quarter of 2014 and primarily due to data processing and additions to customer staffing levels.

The provision for loan loss was $350 thousand compared to $75 thousand in the fourth quarter of 2014. Net charge offs were $23 thousand, or 0.01% of average loans, compared with $47 thousand in the prior year’s quarter.

Loans that were past due 30 days or more, including non-accrual loans, totaled 1.67% of loans outstanding at December 31, 2015 compared with 0.50% at December 31, 2014. The allowance for loan loss was 1.18% of total loans, excluding loans held for sale, compared with 1.03% at the prior year-end.

At December 31, 2015 total assets were $517 million and total net loans were $365 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 $15.57 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 $46 million, or 11.37%, and total regulatory capital of $51 million, or 12.52%, both stated as a percentage of risk-weighted assets.

The Board of Directors declared a $0.03 per share quarterly cash dividend payable on March 15, 2016 to stockholders of record March 1, 2016.

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, Springfield, and Quincy that operates under the name of Peoples Prosperity Bank. Town and Country Financial Corporation shares are quoted under the symbol TWCF.


Contact: Nancy Bahre (217) 787-3100 nbahre@townandcountrybank.com

Source:Town and Country Financial Corporation