Town and Country Financial Corporation Reports Record Third Quarter 2021 Financial Results; Increases Quarterly Dividend 40%
Town and Country Financial Corporation (TWCF) reported record third quarter net income of $2.9 million with earnings per share of $1.04, compared to $2.1 million ($0.73) in Q3 2020. The company achieved net revenue of $11.5 million, supported by a strong net interest income of $7.1 million and mortgage banking fees of $3.1 million. The tangible book value per share rose 16% year-over-year to $27.00. A 40% dividend increase to $0.14 reflects strong profitability. Total assets increased to $892.6 million, primarily driven by a $65.8 million rise in deposits.
- Record net income of $2.9 million in Q3 2021, up from $2.1 million in Q3 2020.
- Net revenue of $11.5 million, supported by strong net interest income of $7.1 million.
- Tangible book value per share increased by 16% year-over-year to $27.00.
- 40% increase in quarterly dividend to $0.14 per share.
- Total assets grew to $892.6 million, driven by a $65.8 million increase in deposits.
- Noninterest income decreased to $4.4 million from $5.5 million in Q3 2020 due to lower mortgage volumes.
- Commercial loan demand remains low, indicating potential challenges ahead.
SPRINGFIELD, Ill., Nov. 01, 2021 (GLOBE NEWSWIRE) -- Town and Country Financial Corporation (the “Company”) (OTC Pink: TWCF) today announced record financial results for the third quarter of 2021.
Key highlights included:
- Record third quarter 2021 net income of
$2.9 million , including$820 thousand ($586 thousand after-tax) in Paycheck Protection Program (“PPP”) fee income and no provision for loan losses. - Quarterly net revenue of
$11.5 million , driven by continued growth in net interest income and strong mortgage volumes. - Mortgage banking fees of
$3.1 million in the third quarter of 2021. - Return on Tangible Common Equity of
15.54% for the quarter-to-date period ending September 30, 2021.
Micah R. Bartlett, President and Chief Executive Officer, noted, “We are pleased to report yet another strong quarter. We continue to be proactive in managing our cost of funds and margins in this difficult rate environment. Nevertheless, the level of monetary supply and excess liquidity in the banking industry, coupled with lower commercial loan demand continues to present challenges for our bank and the industry overall. We continued to experience good mortgage volumes in the third quarter, although demand is down this year compared to last year’s record activity. Our employees have been working hard on PPP forgiveness for the benefit of our commercial customers, now having completed the forgiveness applications for round one of PPP lending. We are pleased to have delivered increased value to our shareholders through a
The Company reported a record third quarter 2021 net income of
Total assets at September 30, 2021 were
Total deposits were
Net interest income was
Noninterest income was
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 October 28, 2021, the board of directors declared a
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: | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 105,450,016 | $ | 77,730,790 | $ | 17,631,717 | ||||||||||
| Investments | 134,303,652 | 117,415,852 | 124,420,731 | |||||||||||||
| Loans held for sale | 4,554,054 | 11,659,187 | 21,644,574 | |||||||||||||
| Loans | 598,468,836 | 640,502,103 | 656,392,265 | |||||||||||||
| Less: Allowance for loan losses | (10,789,717 | ) | (10,115,197 | ) | (9,373,033 | ) | ||||||||||
| Net loans | 587,679,119 | 630,386,906 | 647,019,232 | |||||||||||||
| Other assets | 60,596,852 | 60,471,720 | 62,271,486 | |||||||||||||
| Total assets | $ | 892,583,693 | $ | 897,664,455 | $ | 872,987,740 | ||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||
| Deposits | $ | 767,633,283 | $ | 726,977,699 | $ | 701,823,568 | ||||||||||
| Borrowed money | 21,326,000 | 70,608,000 | 71,645,500 | |||||||||||||
| Other liabilities | 6,058,817 | 10,275,571 | 12,468,538 | |||||||||||||
| Total liabilities | 795,018,100 | 807,861,270 | 785,937,606 | |||||||||||||
| Jr. subordinated debt of unconsolidated subsidiaries | 14,123,274 | 14,083,745 | 14,070,568 | |||||||||||||
| Equity capital | 83,442,319 | 75,719,440 | 72,979,566 | |||||||||||||
| Total liabilities & equity | $ | 892,583,693 | $ | 897,664,455 | $ | 872,987,740 | ||||||||||
| CONSOLIDATED INCOME STATEMENT | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Interest income | $ | 7,571,323 | $ | 7,774,076 | $ | 22,452,626 | $ | 23,516,418 | ||||||||
| Interest expense | 458,208 | 1,142,196 | 1,698,227 | 4,356,104 | ||||||||||||
| Net interest income | 7,113,115 | 6,631,880 | 20,754,399 | 19,160,314 | ||||||||||||
| Provision for loan losses | - | 1,500,000 | 600,000 | 4,000,000 | ||||||||||||
| Noninterest income | 4,383,535 | 5,526,110 | 13,229,734 | 11,660,581 | ||||||||||||
| Noninterest expense | 7,532,781 | 7,949,700 | 21,885,604 | 21,598,050 | ||||||||||||
| Income before income taxes | 3,963,869 | 2,708,290 | 11,498,529 | 5,222,845 | ||||||||||||
| Income taxes | 1,020,460 | 642,390 | 2,933,610 | 1,079,540 | ||||||||||||
| Net income | $ | 2,943,409 | $ | 2,065,900 | $ | 8,564,919 | $ | 4,143,305 | ||||||||
| Financial Highlights | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Selected Highlights: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Basic earnings per share | $ | 1.04 | $ | 0.73 | $ | 3.01 | $ | 1.46 | ||||||||
| Net charge offs to average loans less HFS | 0.00 | % | 0.00 | % | -0.01 | % | 0.08 | % | ||||||||
| Net revenue (in 000s) | $ | 11,497 | $ | 12,158 | $ | 33,984 | $ | 30,821 | ||||||||
| Net interest margin | 3.53 | % | 3.35 | % | 3.58 | % | 3.31 | % | ||||||||
| Fees from mortgage banking activities (in 000s) | $ | 3,053 | $ | 4,084 | $ | 9,906 | $ | 7,727 | ||||||||
| Return on common equity | 14.26 | % | 11.99 | % | 14.45 | % | 8.02 | % | ||||||||
| Return on tangible common equity | 15.54 | % | 12.72 | % | 15.81 | % | 8.97 | % | ||||||||
| Return on assets | 1.31 | % | 0.94 | % | 1.28 | % | 0.64 | % | ||||||||
| Balance Sheet Ratios | ||||||||||||||||
| (Dollars in thousands, except per share data) AS of the dates indicated: | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||
| Book value per common share | $ | 29.35 | $ | 26.62 | $ | 25.67 | ||||||||||
| Tangible book value per common share | $ | 27.00 | $ | 24.20 | $ | 23.22 | ||||||||||
| Tier 1 leverage ratio (Bank only) | 10.17 | % | 9.36 | % | 9.22 | % | ||||||||||
| Total risk-based capital ratio (Bank only) | 15.29 | % | 13.51 | % | 13.25 | % | ||||||||||
| Nonperforming loans, excluding government guarantee | 0.41 | % | 0.50 | % | 0.63 | % | ||||||||||
| Delinquent loans, excluding nonperforming | 0.08 | % | 0.28 | % | 0.23 | % | ||||||||||
| Allowance for loan loss | 1.80 | % | 1.58 | % | 1.43 | % | ||||||||||
| Coverage ratio (allowance to NPLs) | 198 | % | 170 | % | 144 | % | ||||||||||
| Mortgage loans sold with servicing retained (in 000s) | $ | 877,107 | $ | 862,944 | $ | 807,226 | ||||||||||
| Trust assets under management (in 000s) | $ | 177,483 | $ | 166,775 | $ | 154,974 | ||||||||||
| HOLDING COMPANY ONLY STATEMENT OF CONDITION | ||||||||||||||||
| As of the dates indicated: | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||
| ASSETS | ||||||||||||||||
| Cash and other assets | $ | 5,807,898 | $ | 5,788,746 | $ | 5,139,689 | ||||||||||
| Investment in Town and Country Bank | 98,321,946 | 91,610,013 | 89,180,567 | |||||||||||||
| Total assets | $ | 104,129,844 | $ | 97,398,759 | $ | 94,320,256 | ||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||
| Other liabilities | $ | 701,751 | $ | 1,230,574 | $ | 737,622 | ||||||||||
| Borrowings | 5,862,500 | 6,365,000 | 6,532,500 | |||||||||||||
| Jr. subordinated debt of unconsolidated subsidiaries | 14,123,274 | 14,083,745 | 14,070,568 | |||||||||||||
| Equity capital | 83,442,319 | 75,719,440 | 72,979,566 | |||||||||||||
| Total liabilities & equity | $ | 104,129,844 | $ | 97,398,759 | $ | 94,320,256 | ||||||||||
FAQ
What were the financial highlights for TWCF in Q3 2021?
How has Town and Country Financial's tangible book value changed?
What is the recent dividend declaration for TWCF?
How did TWCF's assets perform as of September 30, 2021?
What challenges does TWCF face regarding commercial loans?
