SPRINGFIELD, Ill., Nov. 01, 2019 (GLOBE NEWSWIRE) -- Town and Country Financial Corporation (the “Company”) (OTC Pink: TWCF) today announced financial results for the third quarter of 2019.

Key highlights included:

  • Record core net income of $2.1 million in the third quarter,
  • Core net income in the first nine months of 2019, 25% above the first nine months of 2018,
  • Portfolio loans exceeded $600 million for the first time,
  • Commercial loans, including commercial real estate, grew 15% in the twelve months ended September 30, 2019,
  • Mortgage banking fees reached a new high,
  • Reduced overhead in the first nine months of 2019, compared to the first nine months of 2018,
  • Strong credit quality, with nonperforming loans net of government guarantees of 0.53% as of September 30, 2019, and 0.55% as of September 30, 2018;

Core net income was $2.1 million in the third quarter of 2019, compared to $1.9 million in the third quarter of 2018. Core net income was $5.6 million in the nine months ended September 30, 2019, compared to $4.4 million in the nine months ended September 30, 2018, an increase of 25%. Core net income excludes securities gains and losses and other non-core items. Strong loan growth, solid noninterest income, and reduced expenses contributed to the increases in quarterly and nine-month results.

Net income was $2.1 million ($0.72 per share) in the third quarter of 2019, compared to $1.9 million ($0.65 per share) in the third quarter of 2018. Net income, including non-core items, increased $974,000 (21%) from the first nine months of 2018 to the first nine months of 2019. Net income was $5.6 million ($1.97 per share) in the first nine months of 2019, compared to $4.6 million ($1.61 per share) in the first nine months of 2018.

In announcing the financial results, President and Chief Executive Officer, Micah R. Bartlett said, “We are very pleased with our continued momentum in all major aspects of our performance. Our expertise in commercial lending and mortgage banking is clearly evident in the results. Solid commercial loan growth and a new high for mortgage banking income were the primary forces behind increased revenue. On top of that, reduced expenses and continued strong credit quality set a solid foundation on which to continue building value for our shareholders.”

Loans were $601 million as of September 30, 2019, an increase of $48 million during the nine months ended September 30, 2019, and an increase of $62 million compared to $539 million as of September 30, 2018. Commercial loan growth, including commercial real estate, was the primary reason for the increase. Commercial loans were $485 million as of September 30, 2019, an increase of $64 million (15%) compared to $420 million as of September 30, 2018.

Loan growth was funded with deposits, borrowed money, reallocations from the investment portfolio, and retained earnings. Deposits grew to $639 million as of September 30, 2019, compared to $625 million as of December 31, 2018, and $612 million as of September 30, 2018. Borrowed money was $104 million as of September 30, 2019, compared to $79 million as of December 31, 2018, and $81 million as of September 30, 2018. Investment portfolio reductions of $13 million in the first nine months of 2019, and $22 million compared to September 30, 2018, were also used to fund loan growth. Equity capital grew $7.8 million, to $65.7 million as of September 30, 2019, compared to September 30, 2018.

Net interest income was $6.3 million in the third quarter of 2019 and $5.9 million in the third quarter of 2018. The net interest margin was 3.38% in the third quarter of 2019, and 3.41% in the third quarter of 2018. Net interest income increased to $18.6 million in the first nine months of 2019, compared to $17.3 million in the first nine months of 2018. The net interest margin was 3.45% in the nine months ended September 30, 2019, compared to 3.43% in the nine months ended September 30, 2018.

Noninterest income was $3.3 million in the third quarter of 2019, compared to $3.1 million in the third quarter of 2018. Noninterest income was $8.6 million in the first nine months of 2019, compared to $8.2 million in the first nine months of 2018. Mortgage banking fees were $2.1 million in the third quarter of 2019 and $2.0 million in the third quarter of 2018. Noninterest income was 34% of revenue in the third quarter of 2019, and 35% of revenue in the third quarter of 2018. Noninterest income was 32% of revenue in the first nine months of 2019 and in the first nine months of 2018.

Noninterest expenses declined from $6.6 million in the third quarter of 2018 to $6.5 million in the third quarter of 2019. Noninterest expenses were $19.1 million in the first nine months of 2019, compared to $19.3 million in the first nine months of 2018.

Nonperforming loans as a percent of total loans were 0.76% as of September 30, 2019, compared to 0.67% as of December 31, 2018, and 0.72% as of September 30, 2018. A portion of these loans has government guarantees. Excluding the guaranteed portion, the adjusted ratio was 0.53%, 0.48%, and 0.55% as of September 30, 2019, December 31, 2018, and September 30, 2018, respectively.

Town and Country Bank’s capital levels remained strong at quarter-end, with a Tier 1 leverage ratio of 9.42% and a total risked-based ratio of 12.74%. These ratios compare to 9.14% and 13.03% a year earlier. Book value was $23.08 per share as of September 30, 2019, compared to $20.23 per share as of September 30, 2018, an increase of 14%.

On October 31, 2019, the board of directors declared a $0.07 per share dividend payable Friday, December 13, 2019, to shareholders of record as of Monday, December 2, 2019. This represents a 40% increase from the prior dividend of $0.05 per share.

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. The Quincy branch operates under the name of Peoples Prosperity Bank. Town and Country Financial Corporation shares are quoted under the symbol TWCF.

Contact:  Doug Cheatham
  Executive Vice President and Chief Financial Officer
  dcheatham@townandcountrybank.com
  (217) 321-3424
  


Financial Highlights
(Unaudited)
CONSOLIDATED STATEMENT OF CONDITION      
As of the dates indicated:  September 30,
2019		December 31,
2018		September 30,
2018
ASSETS        
Cash and due from banks  $29,113,729 $14,748,796 $9,799,978 
Investments   144,199,896  157,664,916  166,271,027 
Loans held for sale   3,850,578  1,450,806  2,578,207 
Loans   600,953,373  553,402,968  538,738,963 
Less: Allowance for loan losses   6,310,185  5,355,387  5,752,048 
Net loans   594,643,188  548,047,581  532,986,915 
Other assets   55,251,851  61,993,515  57,854,826 
Total assets  $827,059,242 $783,905,614 $769,490,953 
         
LIABILITIES & EQUITY        
Deposits  $639,448,862 $624,628,228 $612,024,688 
Borrowed money   104,175,000  78,805,000  81,350,000 
Other liabilities   4,125,173  7,462,129  4,610,034 
Total liabilities  $747,749,035 $710,895,357 $697,984,722 
Trust preferred securities   13,568,863  13,529,333  13,516,157 
Equity capital   65,741,344  59,480,924  57,990,074 
Total liabilities & equity  $827,059,242 $783,905,614 $769,490,953 
         
         
CONSOLIDATED INCOME STATEMENT  
 Three Months EndedNine Months Ended
 September 30, September 30,
 2019 2018  2019  2018 
Interest income$8,323,221 $7,360,485 $24,278,153 $21,133,712 
Interest expense 2,037,932  1,455,829  5,674,260  3,788,325 
Net interest income$6,285,289 $5,904,656 $18,603,893 $17,345,387 
Provision for loan losses 400,000  100,000  1,075,000  760,000 
Noninterest income 3,299,816  3,144,259  8,618,801  8,179,388 
Noninterest expense 6,531,052  6,604,136  19,080,346  19,319,139 
Income before income taxes$2,654,053 $2,344,779 $7,067,348 $5,445,636 
Income taxes 597,708  487,166  1,504,443  997,589 
Core Net Income 2,056,345  1,857,613  5,562,905  4,448,047 
Non-Core items after tax 4,300  (3,982) 48,097  188,609 
Net income$2,060,645 $1,853,631 $5,611,002 $4,636,656 
         
         
Selected Highlights:  
 Three Months EndedNine Months Ended
 September 30, September 30,
 2019 2018  2019  2018 
Basic earnings per share$0.72 $0.65 $1.97 $1.61 
Net charge offs to average loans less HFS 0.02% 0.01% 0.09% 0.07%
Net revenue (in 000s)$9,585 $9,049 $27,223 $25,525 
Net interest margin 3.38% 3.41% 3.45% 3.43%
Fees from mortgage banking activities (in 000s)$2,065 $1,954 $4,991 $4,802 
Return on common equity 12.69% 12.98% 12.05% 10.94%
Return on assets 1.00% 0.95% 0.94% 0.80%
         
         
Balance Sheet Ratios        
As of the dates indicated:    September 30,
2019		  December 31,
2018		  September 30,
2018
Book value per common share  $23.08 $20.90 $20.23 
Tier 1 leverage ratio (Bank only)   9.42% 9.28% 9.14%
Total risk-based capital ratio (Bank only)   12.74% 12.85% 13.03%
Nonperforming loans   0.76% 0.67% 0.72%
Delinquent loans, excluding nonperforming   0.44% 0.80% 0.56%
Allowance for loan loss   1.05% 1.05% 1.07%
Coverage ratio (allowance to NPLs)   138% 156% 148%
Mortgage loans sold with servicing retained (in 000s) $709,379 $676,098 $671,024 
Trust assets under management (in 000s)  $148,290 $147,804 $160,586 
         
         
HOLDING COMPANY ONLY STATEMENT OF CONDITION      
As of the dates indicated:      September 30,
2019		  September 30,
2018
ASSETS        
Cash and other assets    $5,004,702 $5,565,066 
Investment in Town and Country Bank     83,313,658  76,601,564 
Total assets    $88,318,360 $82,166,630 
         
LIABILITIES & EQUITY        
Other liabilities    $908,153 $1,085,399 
Borrowings     8,100,000  9,575,000 
Trust preferred securities     13,568,863  13,516,157 
Equity capital     65,741,344  57,990,074 
Total liabilities & equity    $88,318,360 $82,166,630