BERLIN, Md., July 29, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Calvin B. Taylor Bankshares, Inc. (the “Company”) (OTCQX: TYCB), parent company of Calvin B. Taylor Bank, today reported the unaudited financial results for the six months ended June 30, 2019. Selected highlights of the company’s financial performance are included below.
| At Period End | June 30, 2019 | December 31, 2018 | % Change | ||||||||
| Assets | $ | 523,958,010 | $ | 531,909,554 | -1.49 | % | |||||
| Deposits | $ | 434,309,020 | $ | 446,132,305 | -2.65 | % | |||||
| Loans | $ | 351,733,230 | $ | 327,861,211 | 7.28 | % | |||||
| Capital | $ | 87,990,075 | $ | 84,788,815 | 3.78 | % | |||||
| Book value per share | $ | 31.55 | $ | 30.40 | 3.78 | % | |||||
| Loans to deposits | 80.99 | % | 73.49 | % | |||||||
| Capital to assets | 16.79 | % | 15.94 | % | |||||||
| For the Six Months Ended | June 30, 2019 | June 30, 2018 | % Change | ||||||||
| Average assets | $ | 516,074,902 | $ | 511,563,261 | 0.88 | % | |||||
| Average loans | $ | 344,863,618 | $ | 304,035,787 | 13.43 | % | |||||
| Average deposits | $ | 428,319,095 | $ | 427,948,841 | 0.09 | % | |||||
| Average capital | $ | 86,761,799 | $ | 83,290,674 | 4.17 | % | |||||
| Average loans to average deposits | 80.52 | % | 71.04 | % | |||||||
| Average capital to average assets | 16.81 | % | 16.28 | % | |||||||
| Net interest income | $ | 9,768,179 | $ | 8,590,678 | 13.71 | % | |||||
| Income before income taxes | $ | 5,668,695 | $ | 4,522,866 | 25.33 | % | |||||
| Net income | $ | 4,274,695 | $ | 3,433,017 | 24.52 | % | |||||
| Net income per share | $ | 1.53 | $ | 1.22 | 25.41 | % | |||||
| Dividend per share | $ | 0.50 | $ | - | |||||||
| Dividend payout ratio | 32.62 | % | 0.00 | % | |||||||
| Stock Repurchased | |||||||||||
| Number of shares | - | - | 0.00 | % | |||||||
| Repurchase amount | $ | - | $ | - | 0.00 | % | |||||
| Average price per share | $ | - | $ | - | 0.00 | % | |||||
| Ratios | |||||||||||
| Return on average assets | 1.66 | % | 1.34 | % | |||||||
| Return on average equity | 9.85 | % | 8.24 | % | |||||||
| Efficiency ratio | 47.71 | % | 57.01 | % | |||||||
Total assets were $524.0 million at June 30, 2019, which is a decrease of $8.0 million or 1.5% since December 31, 2018. The decrease in total assets during this period is the result of seasonal outflows of deposits which decreased total deposits to $434.3 million as of June 30, 2019, a decrease of $11.8 million or 2.7% since December 31, 2018. Seasonal deposit outflows were primarily funded by reductions in cash and cash equivalents which decreased $11.1 million or 16.7% since December 31, 2018 and totaled $55.7 million as of June 30, 2019. The Company continued to experience growth in loans which increased $23.9 million or 7.3% since December 31, 2018 and totaled $351.7 million as of June 30, 2019. Loan growth in the 1st six months of 2019 was primarily funded by maturing investments including time deposits in other financial institutions and debt securities. Total investments including time deposits in other financial institutions and debt securities decreased by $21.4 million or 19.0% during the 1st six months of 2019 and totaled $91.4 million as of June 30, 2019. Loan growth combined with seasonal deposit runoff resulted in an increase in the loans to deposit ratio from 73.5% as of December 31, 2018 to 81.0% as of June 30, 2019.
Average assets for the six months ended June 30, 2019 increased $4.5 million or 0.9% compared to the same period in the previous year. The increase in average assets is primarily the result of undistributed profits of the bank which corresponded to an increase in average capital of $3.5 million or 4.2%. Average deposits during this period increased less than 1.0% due to several large temporary deposits made by certain customers during the 1st six months of 2018. Organic loan growth has resulted in an increase of average loans of $40.8 million or 13.4% for the six months ended June 30, 2019 compared to the same period in 2018. The aforementioned growth in average loans resulted in an increase in the average loans to average deposits ratio from 71.0% to 80.5%.
Net income growth for the six months ended June 30, 2019 outpaced growth in average assets and average equity during the same period. This resulted in an increase in Return on Average Assets from 1.34% to 1.66% and an increase in Return on Equity from 8.24% to 9.85% compared to the same period in the previous year. Net income per share increased 25.4% to $1.53 per share for the six months ended June 30, 2019, compared to $1.22 per share for the six months ended June 30, 2018. Quarterly dividends totaling $0.50 per share have been declared during the six months ending June 30, 2019.
Net income for the six months ended June 30, 2019 was $4.3 million, an increase of $842 thousand or 24.5% compared to the same period last year. The primary contributor to the increase was a $1.2 million or 13.7% increase in net interest income resulting from a combination of organic loan growth, higher investment yields and increases in the Federal Funds interest rate. Non-interest income for the six months ended June 30, 2019 decreased $165 thousand or 10.8% primarily as a result of a $389 thousand gain recognized upon the sale of an investment security in the 1st quarter of 2018. Excluding this gain, non-interest income increased $223 thousand or 19.7% in the 1st six months of 2019 compared to the same period in the prior year and is attributable to increased loan swap referral fees and bank-owned life insurance income. In the six months ended June 30, 2019, non-interest expense decreased $283 thousand or 5.1% compared to the same period in the prior year. The decrease in non-interest expense is primarily attributable to a loss of $411 thousand recorded in the 1st quarter of 2018 as a result of an unauthorized wire transfer by a bank employee. Excluding this wire loss, non-interest expense increased $128 thousand or 2.5% in the 1st six months of 2019 compared to the same period in the previous year. This increase in non-interest expense is primarily attributable to increased salaries and data processing costs. The growth in net interest income and a decrease in non-interest expense resulted in a significant decrease in the Company’s efficiency ratio which decreased to 47.7% for the six months ended June 30, 2019 as compared to 57.0% for the same period in the prior year.
About Calvin B. Taylor Banking Company
Calvin B. Taylor Banking Company, the bank subsidiary of Calvin B. Taylor Bankshares, Inc. (OTCQX: TYCB), founded in 1890, offers a wide range of loan, deposit, and ancillary banking services through both physical and digital delivery channels. The Company has 11 banking locations within the eastern coastal area of the Delmarva Peninsula including Worcester County, Maryland, Sussex County, Delaware and Accomack County, Virginia. There is also a loan production office located in Onley, Virginia.
Contact
M. Dean Lewis, Vice President and Chief Financial Officer
410-641-1700, taylorbank.com