Town and Country Financial Corporation (the “Company”), (OTC Pink: TWCF), reported core net income of $1.23 million, or $0.43 per share, in the first quarter of 2018, a 1.6% increase from $1.21 million, or $0.43 per share in the first quarter of 2017. First quarter 2018 earnings were impacted positively by $240 thousand growth in net interest income, offset by $296 thousand higher noninterest expense, primarily related to investments in staffing the Company’s newer markets.
Net income was $1.41 million or $0.49 per share, compared with $1.44 million or $0.51 per share in the year-ago period. Securities gains, which are not included in core earnings, were $181,000 after tax in the first quarter of 2018 and $226,000 after tax in the first quarter of 2017.
President and Chief Executive Officer, Micah R. Bartlett commented “We are pleased with our first quarter results. Our net interest margin ratio grew to 3.34% over 3.28% from the first quarter of 2017 as we grew our loan portfolio by $37.6 million to $512 million. We have experienced a pick-up in business activity related to additional investments we made in people in the second half of 2017 to continue our future growth. At the same time, we have maintained strong asset quality and capital levels.”
Assets grew to $756 million at March 31, 2018 from $739 million last year, and total deposits grew $26 million to $626 million. Asset quality remained strong, with nonperforming loans totaling 0.62% of loans at quarter-end. Loans past due 30 days or more, including non-performing loans, totaled 0.59% of loans outstanding at quarter-end compared to 0.28% at March 31, 2017. The allowance for loan losses covered nonperforming loans by 172% at March 31, 2018.
Town and Country Bank’s capital levels remained strong in the quarter under the transitional standardized approach, with common equity Tier 1 capital of $67 million or 11.8%, and total regulatory capital of $72 million, or 12.7%, each stated as a percentage of risk-weighted assets.
Equity Capital grew to $55 million at March 31, 2018, from $49 million at March 31, 2017. Book value was $19.26 per common share compared with $17.35 per share at March 31, 2017, an increase of 11%.
The holding company reported an investment in Town and Country Bank of $74.7 million at March 31, 2018, compared with $71.5 million as of March 31, 2017. Borrowings were $11.2 million and trust preferred securities were $13.5 million at quarter-end, as compared with $13.1 million in borrowings and $13.4 million in trust preferred securities as of March 31, 2017.
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 Friday, June 15, 2018 to holders of record on Friday, June 1, 2018.