Town and Country Financial Corporation Reports Third-Quarter Net Income
SPRINGFIELD, Ill., Nov. 6, 2014 /PRNewswire/ -- Town and Country Financial Corporation (OTC QB: TWCF) reported third-quarter core net income of $716 thousand, up slightly from earnings in the third quarter 2013. Core net income was $572 thousand in the second quarter of 2014. Including the dividend paid on preferred stock, net income available to common shareholders was $703 thousand, or $0.25 per share, unchanged from $0.25 per share in the year-ago period and compared with $0.20 in the second quarter.
Third quarter net revenue was $5.6 million, an increase of 3.6% over the year ago quarter driven by a 4.3% increase in net interest income and a 2.1% increase in noninterest income. Net interest income increased $160 thousand due primarily to loan growth. Noninterest income improved due to a 12% increase in mortgage volumes, primarily home purchase financing. Net revenue was also up 3.2% compared with the second quarter, the change driven by net interest income and noninterest income that were up 3.8% and 1.7%, respectively, and due to the same drivers.
The net interest margin was 3.29% in the current quarter, unchanged from the year-ago quarter and compared with 3.31% in the second quarter.
Noninterest expense increased by 7.0% in the third quarter of 2014 as compared to the third quarter of 2013, the change more than offsetting revenue gains. Expenses were higher due to significant technology investments that were implemented in the fourth quarter of 2013 and current quarter charges related to other real estate, debit card losses, and other expenses. Noninterest expense was essentially unchanged in the third quarter compared to the second quarter of 2014. The provision for loan loss was $35 thousand compared to $116 thousand in the year-ago quarter and $105 thousand in the second quarter. There were virtually no net charge-offs during the current quarter compared with 0.07% in the year ago and 0.01% in the linked quarter.
"Town and Country delivered solid results in the third quarter on many levels," commented President and Chief Executive Officer, Micah R. Bartlett. "Loans were up a little more than 8% from the year ago and up 4% from the end of June. Strong loan quality continued as evidenced by virtually no net charge offs and past due loans that are near historical lows for the organization. Mortgage revenues, while below desired levels, were up as compared to the year-ago quarter. Finally, although expenses were higher in the current quarter, salary expense was down and is a testament to our commitment to make wise use of the 2013 investment in technology and to otherwise control expenses."
Loans that were past due 30 days or more, including non-accrual loans, totaled 0.38% of loans outstanding at September 30, 2014 compared with 0.76% at December 31, 2013. The allowance for loan loss was 397% of total non-performing loans and 1.02% of total loans compared with 286% and 1.04%, respectively, at the prior year-end.
At September 30, 2014 total assets were $506 million and total net loans were $354 million compared to $508 million and $344 million, respectively, on December 31, 2013. Total deposits were $402 million and common equity capital was $41.4 million. The reported book value was $14.83 per common share compared to $14.20 per share at December 31. Tier 1 capital was $53 million, or 10.5% of average assets, while total regulatory capital was $59 million, an estimated 14.2% of risk-weighted assets.
The Board of Directors declared a $0.03 per share quarterly cash dividend payable on December 15, 2014 to stockholders of record December 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
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