Town and Country Financial Corporation Reports Fourth-Quarter and Full Year 2017 Net Income
Town and Country Financial Corporation (OTC Pink: TWCF) reported 2017 fourth-quarter core net income of $1.5 million, or $0.51 per share, an 18.6% increase from $1.2 million, or $0.43 per share in the fourth quarter of 2016.
Reported net income was $1.7 million or $0.60 per share compared with $1.9 million or $0.66 per share in the year-ago period. The current quarter’s reported earnings were impacted positively by $475 thousand in deferred tax adjustments that were somewhat offset by $80 thousand in after-tax security losses and $126 thousand in after-tax write-downs on certain bank properties. This compares to after-tax security gains and other non-core income of $651 thousand in the fourth quarter of 2016.
Core net income for the full year grew by 11.8% to $5.1 million or $1.80 per share, compared with $4.6 million, or $1.61 per share in 2016. Reported net income for the current year, including non-core items, grew by 19.5% to $5.7 million or $1.98 per share. This compares to reported net income of $4.7 million, and $1.66 per share in 2016.
President and Chief Executive Officer, Micah R. Bartlett commented “2017 was a good year for our company both in financial and non-financial terms. For the first time, profits exceeded $5.0 million and our core Return on Equity surpassed 10% for the second year in a row. Just as importantly, we added some great people to our team and expanded our markets during the year, building great momentum going into 2018.”
Discussion of Fourth Quarter Results
Net interest income grew to $5.6 million during the quarter with Net Revenue excluding security gains of $8.2 million compared to $8.0 million in the fourth quarter of 2016. Asset Quality remained strong with nonperforming loans totaling 0.46% of loans at year-end. Loans past due 30 days or more including non-performing loans totaled 0.74% of loans outstanding at year-end compared to 1.02% at December 31, 2016. The Allowance for Loan Losses covered nonperforming loans by 235% at December 31, 2017. Town and Country Financial Corporation is considered a small bank holding company and therefore Basel III capital standards do not apply. Town and Country Bank’s capital levels remained strong in the quarter under the transitional standardized approach with common equity Tier 1 capital of $64 million or 11.7%, and total regulatory capital of $70 million, or 12.7%, both stated as a percentage of risk-weighted assets.
At December 31, 2017, total assets were $747.5 million and total net loans were $501.9 million compared with $738.9 million and $476.7 million, respectively, at December 31, 2016. Total deposits were $592.4 million and common equity capital was $53.9 million. The reported book value was $18.85 per common share compared with $16.84 per share at December 31, 2016, an increase of 12%.
The parent holding company reported an investment in Town and Country Bank of $74.0 million at December 31, 2017, compared with $70.5 million at the end of 2016. Borrowings were $12.2 million and trust preferred securities were $13.5 million at year-end, as compared with $13.4 million in borrowings and $13.4 million in trust preferred securities at the end of 2016.
It should be noted that these financial results are preliminary and unaudited.
The Board of Directors declared a $0.04 per share quarterly cash dividend payable on Thursday, March 15, 2018 to holders of record on Thursday, March 1, 2018.
Town and Country Financial Corporation is the parent holding company for Town and Country Bank and Town and Country Banc Mortgage Services, Inc. with offices in Bloomington, Buffalo, Decatur, Edwardsville, Fairview Heights, Jacksonville, Lincoln, Mt. Zion, Springfield, and Quincy. Quincy operates under the name of Peoples Prosperity Bank. Town and Country Financial Corporation shares are quoted under the symbol TWCF.
Contact: John Staudt (217) 787-3100