SPRINGFIELD, Ill., Aug. 6, 2014 /PRNewswire/ -- Town and Country Financial Corporation (TWCF) reported second-quarter core net income of $572 thousand, up 1% compared with $568 thousand in the second quarter of 2013 and $561 thousand in the first quarter of 2014. Including income from the gain on sale of securities and the dividend paid on preferred stock, net income available to common shareholders was $560 thousand, or $0.20 per share, compared with $0.25 per share in the year-ago period. There was no gain from the sale of securities in the current quarter compared with $.05 per share in the prior year's same quarter. First quarter 2014 earnings per share were $0.21 including $0.02 from gain on sale of securities.
President and Chief Executive Officer, Micah R. Bartlett commented, "Despite a precipitous decline in mortgage lending activity, we continue to deliver solid core earnings even as we invest in solutions and strategies that will take us forward for many years to come. The current quarter's results were made possible by loan growth of nearly 10% compared to the year-ago period and 4% compared with the linked quarter, as well as strong credit quality and expense management."
First half 2014 core net income was $1.1 million, up 3.8% from the year-ago. Net income available to common shareholders was $0.41 per share compared to $0.49 per share, the difference driven by the gain on sale of securities that contributed $0.02 per share in 2014 compared with $0.11 in 2013.
Net revenue was $10.4 million, down $0.5 million, or 4.2%, compared to the first six months of 2013. Net interest income was up 10.2% driven by 14.5% average loan growth, primarily loans to businesses, and 21.9% growth in non-interest bearing deposits. The net interest margin ratio improved to 3.31% compared to 3.11% in the second quarter of 2013. Non-interest income was $2.9 million and 28.2% below the year-ago led by a 52% decline in mortgage loans processed. Income from security gains was $74 thousand in 2014 compared to $509 thousand in 2013.
The provision for loan loss was $105 thousand compared to $275 thousand in the prior year. Net charge-offs were 0.05% of average loans compared with 0.03% in 2013. Non-interest expense declined 3.0% driven by reductions in costs associated with lower mortgage banking activities, particularly refinance volumes. The Company's recent investment in banker platforms and customers' mobile solutions and OREO asset management were areas that saw expense increases.
Loans that were past due 30 days or more, including non-accrual loans, totaled 0.44% of loans outstanding at June 30, 2014 compared with 0.77% at December 31, 2013. The allowance for loan loss was 418% of total non-performing loans and 1.02% of total loans compared with 286% and 1.04%, respectively, at the prior year-end.
At June 30, 2014 total assets were $501 million and total net loans were $342 million compared to $508 million and $344 million, respectively, on December 31, 2013. Total deposits were $407 million and common equity capital was $40.9 million. The reported book value was $14.63 per common share compared to $14.20 per share at December 31. Tier 1 capital was $52 million, or 10.5% of average assets, while total regulatory capital was $57 million, or 14.3% of risk-weighted assets.
The Board of Directors declared a $0.03 per share quarterly cash dividend payable on September 15, 2014 to stockholders of record September 1, 2014.
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, Forsyth, Lincoln, Mt. Zion, Quincy, and Springfield. Town and Country Financial Corporation shares are quoted under the symbol TWCF.
SOURCE Town and Country Financial Corporation