SPRINGFIELD, Ill., Nov. 1, 2012 /PRNewswire/ -- Town and Country Financial Corporation (TWCF) reported third-quarter 2012 net income of $825 thousand, or $0.30 per share, as compared to $708 thousand, or $0.25 per share in the second quarter of 2011. The quarter's results were marked by record recurring revenue largely due to continued strong mortgage production from historic low rates, expansion of third-party processing, and wider margins on loans sold.
Year-to-date net income was $2.2 million, or $0.78 per share, compared to $2.1 million, or $0.74 per share, during the comparable year-ago period. Current year results include provision for loan loss of $0.11 per share, costs of $0.05 per share related to the second quarter acquisition of a banking office in Quincy Illinois, and $0.02 from the gain on sale of securities, all results reported after the effect of income taxes. 2011 net income included an after-tax gain on sale of securities of $0.04 per share and no provision.
Total revenue, excluding security gains, was $16.6 million and $3.3 million, or 24.5%, above the year ago on the strength of the Company's mortgage banking business and net interest income from lower funding costs and growth in the balance of loans outstanding. Despite a 5% year-over-year increase in net interest income, the net interest margin was 3.46% and down from 3.76% in 2011. Sustained low interest rates and excess cash invested as a result of the second quarter acquisition of the Quincy banking office were leading factors.
Non-interest expense was $12.8 million compared to $10.4 million in the first three quarters of 2011, the change due to costs to acquire the Quincy banking office, higher staffing levels that support the mortgage business and the new banking office, and other mortgage-related expense.
The year-to-date provision for loan losses was $515 thousand compared to no provision in 2011. Net charge-offs totaled 0.15% of average loans compared to a net recovery of .03% in the prior year. The allowance for loan losses was 144% of nonperforming loans and 1.13% of total portfolio loans at September 30. And finally, nonperforming loans were 0.79% of total loans, while all other past due loans were 0.44% of total loans, as compared to 0.64% and 0.12%, respectively, at December 31, 2011.
The Company reported total assets of $457 million, net loans of $282 million, and deposits of $371 million. The Quincy banking office acquisition and organic growth drove the balance sheet changes from the year ago. Common equity capital was $36 million with a reported book value of $12.84 per common share compared to $11.90 per share on December 31, 2011. Tier 1 capital was 10.7% of average assets while total regulatory capital was estimated at 15.5% of risk-weighted assets.
Micah R. Bartlett, President and CEO, commented on the financial results, "The Company reported strong third quarter and year-to-date results from virtually every line of business. Loan growth of 16.5% from the year ago more than offset the negative impact from the sustained low interest rate environment. At the same time, momentum from foundations that we began laying in our trust and mortgage businesses several years ago resulted in record levels of recurring non-interest income in the quarter and the year-to-date."
The Board of Directors declared a $0.03 per share quarterly cash dividend payable on December 14, 2012 to stockholders of record December 3, 2012.
Town and Country Financial Corporation is the parent holding company for Town and Country Bank with offices in Springfield, Mt. Zion, Forsyth, Decatur and Quincy, Town & Country Banc Mortgage Services, Inc., and Logan County Bank with offices in Lincoln and Buffalo. Peoples Prosperity Bank, a division of Town and County Bank, is the name used in Quincy. Town and Country Financial Corporation shares are quoted under the symbol TWCF.
SOURCE Town and Country Financial Corporation