Town and Country Financial Corporation (OTC Pink: TWCF) reported second quarter net income of $1.2 million or $0.43 per share, a 62% increase from $754 thousand or $0.27 per share in the second quarter of 2016. The second quarter 2016 earnings were impacted by data processing conversion and other acquisition expenses. Adjusting for these items, second quarter 2016 operating income was $1.2 million or $0.42 per share. While Mortgage Banking profits were down in the second quarter 2017 compared to second quarter 2016, core banking profits were up approximately 15% for the same period.
For the first six months of 2017, the company reported $2.7 million in net income or $0.93 per share compared with $1.5 million or $0.52 per share in the same period last year. This year’s results include $245 thousand in after-tax security gains as compared to $15 thousand after- tax during the same period last year. Also, last year’s first six months included $601 thousand in after-tax costs related to conversions and acquisitions. Adjusting both periods, operating income was $2.4 million for 2017 as compared to $2.0 million for 2016.
Total Assets were $745 million on June 30, 2017, slightly higher than $739 million on June 30, 2016. For the first six months of 2017, net revenue was $16.3 million, up 16.4% compared with $14.0 million in 2016. Net interest income grew to $10.8 million compared with $9.5 million for the comparable period last year and the tax equivalent net-interest margin improved to 3.31% in 2017 compared to 3.22% for the comparable period last year. Loans grew $13.3 million during this six-month period. Non-interest expense was up by $672 thousand during the first six months of 2017 over the comparable period last year, primarily reflecting the growth from the acquisitions last year.
The reported book value was $17.96 per common share compared with $15.90 per share one year ago. The parent holding company reported an investment in Town and Country Bank of $72.5 million at June 30, 2017, borrowings of $12.8 million, and trust preferred securities of $13.5 million.
President and Chief Executive Officer, Micah R. Bartlett, commented, “The first six months of 2017 yielded sound financial and non-financial results, including a return on equity of 10.95% and a return on assets of 0.72%. In addition, asset quality improved as the level of non-performing loans was just 0.35% and total risk-based capital in Town and Country Bank was sound at approximately 12.6%.”
Mr. Bartlett added, “Town and Country continued to prosper and grow during 2017. We focused on enhancing our franchise by capitalizing on last year’s entry into Metro-East and have since embarked on augmenting our team of professionals in Madison and St. Clair counties. Over the same period, we continued to rationalize our physical locations as evidenced by the recent consolidation of our Waverly and White Hall offices into the Jacksonville office. We also opened a new office in downtown Decatur.”
Mr. Bartlett further mentioned the Board recognized two professionals who have had long and distinguished careers in banking. Nancy Bahre retired as CFO in July after 38 years in banking, over 13 of which were spent at Town and Country Financial Corporation. And Dewey Yaeger retired as a Director of Town and Country Financial Corporation in April with over 55 years in the banking industry of which 11 years was spent with us. Our Board of Directors and professional associates are very grateful for their years of service and we wish them well.
The Board of Directors declared a $0.04 per share quarterly cash dividend payable on
September 15, 2017 to stockholders of record on September 1, 2017.
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 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 E. Staudt (217) 787-3100