Calvin B. Taylor Bankshares, Inc. Announces Financial Results for the Six Months Ended June 30, 2017

BERLIN, Md., July 20, 2017 /PRNewswire/ -- Calvin B. Taylor Bankshares, Inc. (OTCQX: TYCB), parent company of Calvin B. Taylor Bank, today reported unaudited financial results for the six months ended June 30, 2017.  Selected highlights of the company's financial performance are included below.

Total assets of the Company grew $14.4 million or 2.9% since December 31, 2016 and totaled $503.7 million as of June 30, 2017.  The increase was a result of continued organic growth in deposits which increased to $417.1 million as of June 30, 2017, an increase of $13.1 million or 3.3% since December 31, 2016.  Deposit growth was primarily deployed into the loan portfolio during the 6 months ended June 30, 2017 which resulted in a $18.3 million or 6.9% increase in loans since December 31, 2016.  Loan growth in the 1^st half of 2017 is a combination of new loan originations and seasonal borrowing by customers who operate tourism based businesses in the local beach resort areas.  Earnings growth of 16.8% during 1^st half of 2017 exceeded average asset growth of 3.3% and average equity growth of 0.2% during the same period.  As a result, Return on Average Assets (ROAA) and Return on Equity (ROE) for the 1^st half of 2017 increased to 1.11% and 6.72%, respectively.    

Net income for the six months ended June 30, 2017 was $2.7 million, an increase of $390 thousand or 16.8% compared to the same period last year.  The primary contributor to the increase in net income was a $405 thousand or 5.5% increase in net interest income which was the result of organic loan growth, higher investment yields and increases in the Federal Funds interest rate.   Net income also increased due to a reduction in the provision for loan losses by $370 thousand, a decrease of 94.9% compared to the same period last year.  The reduced provision expense was primarily the result of a reduction in loan charge offs by $170 thousand and an increase in loan recoveries by $95 thousand.  Higher net interest income and lower provision expense in the 1^st half of 2017 were partially offset by a $281 thousand or 6.3% increase in non-interest expense during the same period.  Non-interest expense increases were primarily due to higher salaries and employee benefits costs. 

Earnings per share increased 20.0% to $0.96 per share for the six months ended June 30, 2017, compared to $0.80 per share for the six months ended June 30, 2016.  The increase in earnings per share outpaced the growth in net income as the Company continues to repurchase and retire its common stock.  The Company repurchased and retired 69,210 shares during the six months ended June 30, 2017 which represents 2.4% of shares issued and outstanding as of December 31, 2016.  Total capital to total assets decreased from 16.64% as of December 31, 2016 to 16.33% as of June 30, 2017.  The decrease in this capital ratio was the result of asset growth and stock repurchases during the 1^st half of 2017.               

About Calvin B. Taylor Banking Company
Calvin B. Taylor Banking Company, the bank subsidiary of Calvin B. Taylor Bankshares, Inc. (OTCQX: TYCB), founded in 1890, offers a wide range of loan, deposit, and ancillary banking services through both physical and digital delivery channels.  The Company has 11 banking locations within the eastern coastal area of the Delmarva Peninsula including Worcester County, Maryland, Sussex County, Delaware and Accomack County, Virginia. 

SOURCE Calvin B. Taylor Bankshares, Inc.