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Town and Country Financial Corporation Reports Third-Quarter 2017 Net Income and Dividend

SPRINGFIELD, Ill., Nov. 02, 2017 (GLOBE NEWSWIRE) -- Town and Country Financial Corporation (OTC Pink:TWCF) reported third quarter net income of $1.3 million or $0.44 per share, compared with $1.3 million or $0.47 per share in the third quarter of 2016. While Mortgage Banking profits were down in the third quarter 2017 compared to third quarter 2016, Core Banking profits were up significantly in this period.

Discussion of Nine Month Results

For the first nine months of 2017, the company reported $3.9 million in net income or $1.37 per share, a 39% increase compared with $2.8 million or $1.00 per share in the same period last year. This year’s results include $245 thousand in after-tax security gains as compared to $56 thousand during the same period last year.

Total Assets were $745.7 million on September 30, 2017, slightly higher than $734.0 million on September 30, 2016. For the first nine months of 2017, net revenue was $24.4 million, up 9.4% compared with $22.3 million in 2016. The tax equivalent net-interest margin improved to 3.33% in 2017 compared to 3.23% for the comparable period last year. And loans grew a modest 2.3% to $492.7 million at September 30, 2017 over the same time last year. Non-interest expense was up by $685 thousand during the first nine months of 2017 over the comparable period last year, primarily reflecting the growth from the acquisitions in 2016.

The reported book value per share was $18.31 per common share compared with $16.52 per share one year ago. The parent holding company reported an investment in Town and Country Bank of $73 million at Sept. 30, 2017, borrowings of $12.5 million, and trust preferred securities of $13.5 million.

President and Chief Executive Officer, Micah R. Bartlett, commented, “The first nine months of 2017 yielded continued improvement including a return on equity of 10.44%. In addition, asset quality remained strong as the level of non-performing loans was just 0.45%, and total risk-based capital in Town and Country Bank was sound at approximately 12.6%.”

Mr. Bartlett added, “Town and Country continued to prosper and grow our markets during 2017. We focused on enhancing our franchise by capitalizing on last year’s entry into Metro-East and Morgan County and have since augmented our team with highly seasoned leaders in both markets as well as building a team of commercial relationship professionals. In addition, we recently announced our entry into McLean County through the addition of a Loan Production Office in Bloomington-Normal and recruited a seasoned leader who is now building a commercial team. And our plans call for augmenting this market with the addition of mortgage banking representatives in the near future.”

The Board of Directors declared a $0.04 per share quarterly cash dividend payable on December 15, 2017 to stockholders of record as of December 1, 2017.

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-Normal, Buffalo, Decatur, Edwardsville, Fairview Heights, Jacksonville, Lincoln, Mt. Zion, Springfield and Quincy. Quincy operates under the name of Peoples Prosperity Bank. Town and Country Financial Corporation shares are quoted under the symbol TWCF.

Contact: John E. Staudt (217) 787-3100

CONSOLIDATED STATEMENT OF CONDITION
AS OF SEPTEMBER 30 (UNAUDITED)2017 2016
ASSETS
Cash and due from banks$16,294,359 $12,168,021
Investments 187,105,878 194,643,781
Loans, net 487,513,993 476,660,559
Other assets 54,739,068 50,573,224
Total assets$745,653,298 $734,045,585
LIABILITIES & EQUITY
Deposits$589,865,763 $585,906,640
Borrowed money 85,500,000 83,000,000
Other liabilities 4,509,271 4,716,305
Total liabilities$693,338,484 $673,622,945
Trust preferred securities 13,463,451 13,410,745
Equity capital 52,314,813 47,011,895
Total liabilities & equity$745,653,298 $734,045,585
NINE MONTH PERIOD ENDED SEPTEMBER 30 (UNAUDITED)2017 2016
Interest income$19,228,372 $17,192,869
Interest expense 2,901,608 2,408,184
Net interest income$16,326,764 $14,784,685
Provision for loan losses 562,500 824,000
Noninterest income 7,640,799 7,459,781
Gain on sale of securities 401,792 91,248
Noninterest expense 18,481,539 17,797,262
Income before income taxes$5,325,316 $3,714,452
Income taxes 1,405,816 871,970
Net income$3,919,500 $2,842,482
Preferred dividend - 9,305
Net income available to common stockholders$3,919,500 $2,833,177
Selected Financial Comparison:
NINE MONTH PERIOD ENDED SEPTEMBER 30 (UNAUDITED)2017 2016
Basic earnings per share$1.37 $1.00
Book value per common share$18.31 $16.52
Net charge offs to average loans less HFS 0.10% 0.01%
Net revenue (in 000s)$24,369 $22,336
Net interest margin 3.33% 3.23%
Fees from mortgage banking activities (in 000s)$4,561 $4,451
Return on common equity 10.44% 8.18%
Return on assets 0.71% 0.56%
(UNAUDITED) AS OF
SEPTEMBER 30
2017
AS OF
DECEMBER 31
2016
Tier 1 leverage ratio (TCB only per Basel III) 8.60% 8.45%
Total risk-based capital ratio (TCB only per Basel III) 12.58% 12.48%
Nonperforming loans 0.45% 0.62%
Delinquent loans, excluding nonperforming 0.69% 0.40%
Allowance for loan loss 1.07% 1.09%
Coverage ratio (allowance to NPLs) 238% 164%
Mortgage loans sold with servicing retained (in 000s)$609,546 $583,598
Trust assets under management (in 000s)$153,496 $144,517
HOLDING COMPANY ONLY
AS OF SEPTEMBER 30 (UNAUDITED)2017 2016
ASSETS
Cash and other assets$6,709,805 $5,407,883
Investment in TCB 73,064,683 71,107,821
Total assets$79,774,489 $76,515,704
LIABILITIES & EQUITY
Other liabilities$1,496,225 $2,393,064
Borrowings 12,500,000 13,700,000
Trust preferred securities 13,463,451 13,410,745
Equity capital 52,314,813 47,011,895
Total liabilities & equity$79,774,489 $76,515,704

Source:Town and Country Financial Corporation