Town and Country Financial Corporation Reports Third-Quarter 2013 Net Income of $714 thousand on revenue of $5.4 million

SPRINGFIELD, Ill., Nov. 13, 2013 /PRNewswire/ -- Town and Country Financial Corporation (TWCF) reported third-quarter net income of $714 thousand compared to $825 thousand in the third quarter of 2012.  Net income available to common shareholders was $0.25 per share compared to $0.29 per share in the year-ago period.  Net interest income increased by 9% on loan growth of 15%, as compared to the year-ago quarter, while expenses declined by 10%.  Noninterest income, however, was down 37% driven by a decrease in mortgage banking activities. 

President and Chief Executive Officer, Micah R. Bartlett commented, "The core bank showed good strength with loans up 15% and trust assets up 40%, each result lending optimism to future revenue streams.  Moreover, we worked to cut expenses by 10% largely due to reductions in staff and volume-based costs.  But despite these very positive outcomes, third quarter results were mixed and speak to the unequivocal challenges that face banks today.   While rising rates provided some welcome opportunities to reinvest cash at slightly higher yields, it also significantly dampened mortgage lending activities resulting in a 44% decline in our mortgage volumes, as compared to the year-ago quarter, and compressed margins at their sale."

Year-to-date net income was $2.1 million, down 3.7% from the prior year due to a decline in income earned on mortgage banking activities.  Factors mitigating this event included higher net interest income, security gains, and a lower loan loss provision expense.  Net income available to common shareholders was $0.74 per share compared to $0.75 per share in the first nine months of 2012. 

Net year-to-date revenue was $16.7 million, unchanged from the prior year. Net interest income was up 5% from the first nine months of 2012 driven by higher loan balances and lower deposit costs.  The net interest margin, however, declined to 3.20% compared to 3.46% in 2012.  Security gains were $509 thousand compared to $118 thousand in 2012.   Non-interest income was 13.0% below the year ago led by a 22% reduction in mortgage fees and a 16% decline in mortgage loans originated.  The provision for loan loss was $391 thousand, down from $515 thousand in the prior year due primarily to net charge-offs that were 0.08% of average loans on 2013 compared with 0.15% in 2012.  Non-interest expense was up 2.3% due to nine months of normal operating costs associated with our Quincy, Illinois offices that were acquired and staffed near the end of the second quarter of 2012.

Loans that were past due 30 days or more, including non-accrual loans, totaled 1.18% of  loans outstanding at September 30 compared with 1.15% at December 31, 2012.  The allowance for loan loss was 178% of total non-performing loans and 1.05% of total loans compared with 138% and 1.16%, respectively, at the prior year-end.

At September 30, total assets were $492 million and total net loans were $325 million compared to $456 million and $272 million at year-end.  Total deposits were $388 million and common equity capital was $39.1 million.  The reported book value was $13.99 per common share compared to $13.18 per share on December 31, 2012.  Tier 1 capital was $50 million, or 10.5% of average assets, while total regulatory capital was $56 million, or an estimated 14.9% of risk-weighted assets.

Bartlett added, "2013 has been an incredibly productive year as we simplified our company's structure, offered advanced payment, deposit, and financial management electronic banking solutions, and capped the third quarter by improving the banker and customer core technology platform.   There is no denying that these investments have added costs to our infrastructure at a time when we would rather be reducing costs.  Notwithstanding these short-term economic challenges, we have confidence in our actions and are committed to our path."

The Board of Directors declared a $0.03 per share quarterly cash dividend payable on December 13, 2013 to stockholders of record December 2, 2013. 

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



RELATED LINKS
http://www.townandcountrybank.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.