SPRINGFIELD, Ill., Aug. 18, 2015 (GLOBE NEWSWIRE) -- Town and Country Financial Corporation (OTC Pink:TWCF) reported second-quarter net income of $831 thousand, up 45.2% from net income in the second quarter 2014. Including the dividend paid on preferred stock, net income available to common shareholders was $818 thousand, or $0.29 per share, compared with $0.20 per share in the year-ago period.
President and Chief Executive Officer, Micah R. Bartlett commented, “Not only were mortgage banking profits up 170% for reasons common to the industry, we are pleased that core banking profits were up 41% on strong loan demand and a reduction in expenses. The success of the quarter is especially compelling because of the multiple drivers of revenue, balance sheet growth, and expense management.”
Discussion of Second Quarter Results
Net revenue was $5.8 million, an increase of 7.9% over the year ago quarter driven by a 31% increase in revenue from mortgage banking activities and a 4.4% increase in net interest income. Higher net interest income was based on 5.3% average loan growth, primarily loans to businesses.
The tax equivalent net interest margin was 3.38% in the current quarter compared with 3.31% in the year-ago quarter. The improvement was due to a higher mix of loans to total assets, partially offset by a decline in average loan yields.
Noninterest expense declined by 1.5% to $4.4 million, the change primarily driven by actions taken in late 2014 and early 2015 to consolidate the number of branches from 12 to 9. In addition, expenses and asset losses declined due to the disposition of commercial assets referred to as other real estate owned in 2015 as compared to 2014.
The provision for loan loss was $215 thousand compared to $105 thousand in the second quarter of 2014. Net charge offs were unchanged from the prior year and approximately 0.00% in both years.
Loans that were past due 30 days or more, including non-accrual loans, totaled 0.28% of loans outstanding at June 30, 2015 compared with 0.50% at December 31, 2014. The allowance for loan loss was 563% of total non-performing loans (all loans 90 days or more past due or on non-accrual) and 1.10% of total loans, excluding loans held for sale, compared with 577% and 1.03%, respectively, at the prior year-end.
At June 30, 2015 total assets were $516 million and total net loans were $358 million compared with $499 million and $354 million, respectively, at December 31, 2014. Total deposits were $406 million and common equity capital was $44.1 million. The reported book value was $15.78 per common share compared with $15.44 per share at December 31, 2014. 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 Basel III transitional standardized approach with common equity tier 1 capital of $47 million, or 12.15%, and total regulatory capital of $53 million, or 13.69%, both stated as a percentage of risk-weighted assets.
The Board of Directors declared a $0.03 per share quarterly cash dividend payable on September 15, 2015 to stockholders of record September 1, 2015.
Town and Country Financial Corporation is the parent holding company for Town and Country Bank and Town & Country Banc Mortgage Services, Inc. with offices in Buffalo, Decatur, Lincoln, Mt. Zion, Quincy, and Springfield. Town and Country Financial Corporation shares are quoted under the symbol TWCF.