Town and Country Financial Corporation Reports Fourth Quarter 2021 Financial Results; Record 2021 Net Income and Earnings Per Share
Town and Country Financial Corporation (TWCF) reported strong financial results for Q4 2021 and record net income for the full year, posting $2.67 million in net income for Q4 and $11.2 million for 2021, up from $7.1 million in 2020. EPS for the year reached $3.95, a significant increase from $2.49 in 2020. The company maintained solid asset quality with a zero provision for loan losses and a ROTCE of 15.23%. Total assets rose to $907 million, supported by a $53 million increase in deposits. Although mortgage banking fees declined, the tangible book value per share increased by 14% to $27.60.
- Record full-year 2021 net income of $11.2 million, up from $7.1 million in 2020.
- EPS for 2021 increased to $3.95 from $2.49 in 2020.
- Zero provision for loan losses reported for the year.
- ROTCE of 15.23% for 2021, exceeding 10% for six consecutive years.
- 14% increase in tangible book value per share to $27.60.
- Q4 2021 net income decreased to $2.67 million from $2.93 million in Q4 2020.
- Noninterest income for Q4 2021 decreased to $3.4 million, down from $5.7 million in Q4 2020.
- Mortgage banking fees declined due to lower mortgage volumes.
SPRINGFIELD, Ill., Feb. 02, 2022 (GLOBE NEWSWIRE) -- Town and Country Financial Corporation (the “Company”) (OTC Pink: TWCF) today announced financial results for the fourth quarter of 2021 and record 2021 net income and earnings per share.
Key highlights included:
- Fourth quarter 2021 net income of
$2.67 million , including$406 thousand ($290 thousand after-tax) in Paycheck Protection Program (“PPP”) fee income and a negative$600 thousand ($429 thousand after-tax) provision for loan losses bringing the total provision for loan losses for the year to zero. - Mortgage banking fees of
$2.5 million in the fourth quarter of 2021, partially reduced due to retaining$15.6 million in the fourth quarter 2021 production, forgoing the gain on sale. - Return on Tangible Common Equity (ROTCE) of
13.63% for the quarter-to-date period ending December 31, 2021 and15.23% for the year. - Record full-year 2021 net income of
$11.2 million ($3.95 per share), compared to$7.1 million ($2.49 per share) in 2020.
Micah R. Bartlett, President and Chief Executive Officer, noted, “We are pleased to report strong fourth quarter results culminating in a record 2021 earnings performance. While PPP fees certainly helped our earnings like many banks, we are proud that our core performance exceeded our plans for the year. Throughout the year, we were proactive in managing our cost of funds and balance sheet to improve performance while also positioning ourselves for possible future economic scenarios. We continue to execute well in our areas of core focus, with increased commercial loan demand in the second half of the year and another good year in the mortgage business, albeit off the highs of 2020. We also finished the year with solid asset quality successfully weathering the disruption from COVID and its aftermath. For the year, we are pleased to have delivered strong results to our shareholders with a
The Company’s fourth quarter 2021 net income of
Total assets at December 31, 2021 were
Total deposits were
Net interest income was
Noninterest income was
The fourth quarter 2021 noninterest expense of
The Company’s nonperforming loans as a percentage of total loans were
Town and Country Bank maintains solid capital levels, with a tier 1 leverage ratio of
On January 27, 2022, the board of directors declared a
The Company also announced that as of April 29, 2022, it will be consolidating the Buffalo and Mt. Zion offices into other existing locations.
Town and Country Financial Corporation, headquartered in Springfield, Illinois, operates as the parent holding company for Town and Country Bank including the Bank's subsidiary, Town and Country Banc Mortgage Services, Inc. (TCBMSI), with locations throughout the central, west-central, and metro-east areas of Illinois. While the Company specializes in commercial banking and mortgage lending, additional products and services offered through its 12 branch offices include retail banking, affordable housing finance options, Small Business Administration 504 and 7(a) loan programs, trust and investments, and agricultural banking. The Company, under TCBMSI, operates Community Mortgage Partners as a third-party provider for residential mortgages to other financial institutions throughout the United States. Town and Country Financial Corporation shares are quoted under the symbol TWCF.
Contact:
Denise Skiles, Vice President and Controller
dskiles@townandcountrybank.com
217-321-3425
| Financial Highlights | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| CONSOLIDATED STATEMENT OF CONDITION | ||||||||||||||||
| As of the dates indicated: | December 31, 2021 | December 31, 2020 | ||||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 70,154,840 | $ | 77,730,790 | ||||||||||||
| Investments | 151,703,226 | 117,415,852 | ||||||||||||||
| Loans held for sale | 2,840,208 | 11,659,187 | ||||||||||||||
| Loans | 631,820,690 | 640,502,103 | ||||||||||||||
| Less: Allowance for loan losses | (10,183,297 | ) | (10,115,197 | ) | ||||||||||||
| Net loans | 621,637,393 | 630,386,906 | ||||||||||||||
| Other assets | 60,654,092 | 60,471,720 | ||||||||||||||
| Total assets | $ | 906,989,759 | $ | 897,664,455 | ||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||
| Deposits | $ | 780,014,370 | $ | 726,977,699 | ||||||||||||
| Borrowed money | 21,903,136 | 70,608,000 | ||||||||||||||
| Other liabilities | 5,863,524 | 10,275,571 | ||||||||||||||
| Total liabilities | 807,781,030 | 807,861,270 | ||||||||||||||
| Jr. subordinated debt of unconsolidated subsidiaries | 14,136,451 | 14,083,745 | ||||||||||||||
| Equity capital | 85,072,278 | 75,719,440 | ||||||||||||||
| Total liabilities & equity | $ | 906,989,759 | $ | 897,664,455 | ||||||||||||
| CONSOLIDATED INCOME STATEMENT | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Interest income | $ | 7,319,362 | $ | 7,861,669 | $ | 29,771,988 | $ | 31,378,087 | ||||||||
| Interest expense | 417,193 | 968,267 | 2,115,420 | 5,324,371 | ||||||||||||
| Net interest income | 6,902,169 | 6,893,402 | 27,656,568 | 26,053,716 | ||||||||||||
| Provision for loan losses | (600,000 | ) | 1,000,000 | - | 5,000,000 | |||||||||||
| Noninterest income | 3,439,272 | 5,734,666 | 16,669,006 | 17,395,247 | ||||||||||||
| Noninterest expense | 7,357,078 | 7,688,321 | 29,242,682 | 29,286,371 | ||||||||||||
| Income before income taxes | 3,584,363 | 3,939,747 | 15,082,892 | 9,162,592 | ||||||||||||
| Income taxes | 918,090 | 1,016,390 | 3,851,700 | 2,095,930 | ||||||||||||
| Net income | $ | 2,666,273 | $ | 2,923,357 | $ | 11,231,192 | $ | 7,066,662 | ||||||||
| Financial Highlights | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Selected Highlights: | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Basic earnings per share | $ | 0.94 | $ | 1.03 | $ | 3.95 | $ | 2.49 | ||||||||
| Net charge offs to average loans less HFS | 0.00 | % | 0.04 | % | -0.01 | % | 0.12 | % | ||||||||
| Net revenue (in 000s) | $ | 10,341 | $ | 12,628 | $ | 44,326 | $ | 43,449 | ||||||||
| Net interest margin | 3.36 | % | 3.43 | % | 3.45 | % | 3.34 | % | ||||||||
| Fees from mortgage banking activities (in 000s) | $ | 2,546 | $ | 4,363 | $ | 12,452 | $ | 12,027 | ||||||||
| Return on common equity | 12.55 | % | 15.72 | % | 13.95 | % | 10.06 | % | ||||||||
| Return on tangible common equity | 13.63 | % | 17.34 | % | 15.23 | % | 11.18 | % | ||||||||
| Return on assets | 1.17 | % | 1.30 | % | 1.25 | % | 0.81 | % | ||||||||
| Balance Sheet Ratios | ||||||||||||||||
| (Dollars in thousands, except per share data) AS of the dates indicated: | December 31, 2021 | December 31, 2020 | ||||||||||||||
| Book value per common share | $ | 29.93 | $ | 26.62 | ||||||||||||
| Tangible book value per common share | $ | 27.60 | $ | 24.20 | ||||||||||||
| Tier 1 leverage ratio (Bank only) | 10.07 | % | 9.36 | % | ||||||||||||
| Total risk-based capital ratio (Bank only) | 14.69 | % | 13.51 | % | ||||||||||||
| Nonperforming loans, excluding government guarantee | 0.36 | % | 0.50 | % | ||||||||||||
| Delinquent loans, excluding nonperforming | 0.33 | % | 0.28 | % | ||||||||||||
| Allowance for loan loss | 1.61 | % | 1.58 | % | ||||||||||||
| Coverage ratio (allowance to NPLs) | 206 | % | 170 | % | ||||||||||||
| Mortgage loans sold with servicing retained (in 000s) | $ | 868,966 | $ | 862,944 | ||||||||||||
| Trust assets under management (in 000s) | $ | 170,209 | $ | 166,775 | ||||||||||||
| HOLDING COMPANY ONLY STATEMENT OF CONDITION | ||||||||||||||||
| As of the dates indicated: | December 31, 2021 | December 31, 2020 | ||||||||||||||
| ASSETS | ||||||||||||||||
| Cash and other assets | $ | 7,139,580 | $ | 5,788,746 | ||||||||||||
| Investment in Town and Country Bank | 98,343,923 | 91,610,013 | ||||||||||||||
| Total assets | $ | 105,483,503 | $ | 97,398,759 | ||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||
| Other liabilities | $ | 579,774 | $ | 1,230,574 | ||||||||||||
| Borrowings | 5,695,000 | 6,365,000 | ||||||||||||||
| Jr. subordinated debt of unconsolidated subsidiaries | 14,136,451 | 14,083,745 | ||||||||||||||
| Equity capital | 85,072,278 | 75,719,440 | ||||||||||||||
| Total liabilities & equity | $ | 105,483,503 | $ | 97,398,759 | ||||||||||||
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