Calvin B. Taylor Bankshares, Inc. Reports Fourth Quarter and Year End Financial Results for 2023

Rhea-AI Summary

Calvin B. Taylor Bankshares, Inc. (TYCB) reported strong financial results for the year ended December 31, 2023, with net income of $13.5 million, a 14.6% increase from the previous year. Return on Average Assets and Equity also improved significantly. Despite a decrease in deposits, the company's financial condition remained robust, with a focus on core deposits and liquidity.

Positive

• Strong financial performance with a 14.6% increase in net income to $13.5 million for the year ended December 31, 2023.
• Improvement in Return on Average Assets to 1.52% and Return on Average Equity to 13.91% for the same period.
• Organic loan growth of $62.5 million, offset by a decrease of $65.8 million in deposits due to higher interest rates.
• On-balance sheet liquidity of 24.2% of total deposits, maintaining a strong financial position.
• Adoption of the CECL model in 2023 to estimate credit losses, resulting in a provision of $280 thousand.
• Increase in noninterest expenses by 14.0% due to higher salaries, benefits, and deposit insurance premiums.
• Quarterly net income of $2.7 million for the fourth quarter of 2023, with a decrease from the previous quarter.
• Focus on core deposits and liquidity to navigate disruptions in the banking industry.
• Membership in the IntraFi Network to provide FDIC insurance for large depositors and reciprocal deposits to the bank.

Negative

• None.

BERLIN, MD / ACCESSWIRE / April 10, 2024 / Calvin B. Taylor Bankshares, Inc. (the "Company") (OTCQX:TYCB), the holding company of Calvin B. Taylor Bank (the "Bank"), today reported financial results for the fourth quarter and year ended December 31, 2023. Highlights of the Company's financial results are noted below.

• Net income for the year ended December 31, 2023 was $13.5 million which is a 14.6% increase compared to the previous year.
• Return on Average Assets increased to 1.52% for the year ended December 31, 2023 as compared to 1.27% for the year ended December 31, 2022, an increase of 19.3%.
• Return on Average Equity increased to 13.91% for the year ended December 31, 2023 as compared to 11.55% in the prior year, an increase of 20.5%.
• Net interest margin was 3.59% in the fourth quarter of 2023, as compared to 3.44% in the fourth quarter of 2022 and 3.64% in the previous quarter.
• Organic loan growth continued in 2023 with loans growing $62.5 million, or 12.2%, since December 31, 2022.
• Following several years of significant growth, deposits decreased by $65.8 million or 8.1% since December 31, 2022, as significant increases in short term interest rates have encourage certain depositors to invest excess cash into short term government bonds.
• On-balance sheet liquidity, as measured by cash and unencumbered available for sale debt securities, remains strong as of December 31, 2023 and equaled 24.2% of total deposits.
• Noncore funding sources including Federal Home Loan Bank borrowings, brokered deposits, and the recently created Federal Reserve Bank Term Funding Program were not utilized in the year ended December 31, 2023.

President and Chief Executive Officer Raymond M. Thompson commented, "Net income increased to $13.5 million in 2023 as compared to $11.8 million in 2022. Loan growth accompanied with higher yields on investment securities resulted in a $4.0 million or 15.2% increase in net interest income. The combined effect of the increase in net income and the decrease in total assets increased Return on Average Assets (ROAA) to 1.52% in 2023, as compared to 1.27% in 2022, and ranked 5th highest among the 24 banks and thrifts headquartered in Maryland in 2023, regardless of asset size. The Company's financial condition remained strong in 2023. Total assets were $853.0 million at December 31, 2023, which was a decrease of $53.0 million as compared to December 31, 2022. The decrease in total assets was directly attributable to a decrease in deposits, which decreased $65.8 million as compared to the prior year. After several years of significant deposit growth, the outflow of deposits was anticipated due to elevated short-term interest rates. While the bank remains highly liquid, deposit outflow reports revealed that rate sensitive deposits moved primarily into short-term bond investments. Despite continued deposit outflow, on-balance sheet liquidity was 24.2% as of December 31, 2023 and the Bank continued to have no need to access other non-core funding sources to meet loan demand and other obligations. We continue to remain highly liquid and well-capitalized, and very well-positioned to meet the loan and deposit needs of our loyal existing, and prospective customers."

Year to Date Results of Operations
Net income was $13.5 million for the year ended December 31, 2023 as compared to $11.8 million for the year ended December 31, 2022, an increase of $1.7 million or 14.6%. A summary of the year to date results of operations are included in the table and comments that follow.

		For the Twelve Months Ended								% Change
Results of Operations		Dec 31, 2023				Dec 31, 2022				Prior Year
Net interest income		$	30,415,590			$	26,403,331				15.2	%
Provision for credit losses		$	280,000			$	105,000				166.7	%
Noninterest income		$	2,817,629			$	2,876,296				-2.0	%
Noninterest expense		$	15,631,227			$	13,709,282				14.0	%
Net income		$	13,485,992			$	11,769,345				14.6	%
Yield on earning assets			4.26	%			3.16	%			34.7	%
Cost of interest-bearing deposits			1.12	%			0.30	%			278.0	%
Net interest margin			3.57	%			2.98	%			20.1	%
Return on average assets (annualized)			1.52	%			1.27	%			19.3	%
Return on average equity (annualized)			13.91	%			11.55	%			20.5	%
Efficiency ratio			46.13	%			45.81	%			0.7	%

Net interest income increased $4.0 million or 15.2% for the year ended December 31, 2023, as compared to prior year, and was attributable to organic loan growth and higher yields on debt securities, federal funds sold and loans. The Federal Reserve Bank increased the federal funds rate an additional 150 bps since December 15, 2022, which has increased yields on debt securities, federal funds sold, and loans. Organic loan growth combined with higher yields increased interest revenue from loans by $5.7 million or 26.6% for the year ended December 31, 2023, as compared to the prior year. Interest revenue from debt securities and federal funds sold increased by $2.6 million or 39.1% for the year ended December 31, 2023, as compared to the prior year. Costs of interest-bearing deposits increased by 82 bps for the year ended December 31, 2023 as compared to the prior year. The Bank increased deposit rates over the last 12 months to remain competitive in local markets and to preserve on-balance sheet liquidity. Deposit interest expense for the year ended December 31, 2023 increased $4.2 million or 265.9%, as compared to the prior year.

On January 1, 2023, the Company adopted the CECL model pursuant to ASU 2016-13. The estimate of expected credit losses considers historical information, current information, and supportable forecasts, including estimates of prepayments. The provision for credit losses of $280 thousand recorded for the year ended December 31, 2023 was primarily the result of growth in the loan portfolio during the same period. The economic indicators and related forecasts utilized in the CECL model have not changed significantly since adoption.

Noninterest income for year ended December 31, 2023 decreased by $59 thousand or 2.0%, as compared to the prior year, due to a decrease in income from bank owned life insurance (BOLI) policies and annuities. BOLI and annuity income decreased $222 thousand or 54.2% in 2023, as compared to 2022. Increases in other sources of noninterest income including gain on transfer of other real estate owned and deposit network placement fees partially offset the decrease in noninterest income associated with BOLI and annuity income.

Noninterest expense increased by $1.9 million or 14.0% in 2023, as compared to the prior year, and relates to increases in employee salaries, employee benefits expenses, data processing costs, and deposit insurance premiums assessed by the FDIC. Higher salaries expense relates to the fulfillment of open positions and higher salaries paid to remain competitive in the current labor market and resulted in a 6.7% increase in salaries expense in 2023, as compared to the prior year. Employee health insurance is a partially self-funded plan and claims incurred by the plan were higher in 2023, resulting in a $636 thousand or 39.0% increase in employee benefits costs in 2023, as compared to 2022. Claims incurred by the plan in the prior year were well below average and resulted in lower expenses during this period. Deposit insurance premiums increased by $146k or 58.8% for the year ended December 31, 2023, as compared to the prior year, and is the result of a change in the assessment of FDIC deposit insurance premiums effective January 1, 2023. The Bank is subject to the FDIC's base assessment rate due to strong capital levels and other regulatory risk measurements. The changes implemented by the FDIC resulted in the increase of the base assessment rate from 3 bps to 5 bps, which is a 66.6% increase.

Per share data and repurchases of stock by the Company for each period is included in the following table.

		At or for the Twelve Months Ended									% Change
Per Share Data		Dec 31, 2023					Dec 31, 2022				Prior Year
Net income		$		4.89			$		4.26			14.7	%
Dividends		$		1.41			$		1.26			11.9	%
Dividend payout ratio		28.80			%		29.54			%		-2.5	%
Book value		$		38.34			$		34.15			12.3	%
Book value excluding OCI		$		42.43			$		39.17			8.3	%
Market value		$		44.00			$		42.03			4.7	%
Number of shares repurchased				5,146					1,720			199.2	%
Repurchase amount		$		206,047			$		62,797			228.1	%
Average repurchase price		$		40.04			$		36.51			9.7	%

Quarterly Results of Operations
Quarterly net income was $2.7 million for the fourth quarter ended December 31, 2023 ("4Q23"), as compared to $3.1 million for the fourth quarter ended December 31, 2022 ("4Q22") and $4.1 million for the third quarter ended September 30, 2023 ("3Q23"). A summary of the quarterly results of operations are included in the table and comments that follow.

		For the Quarters Ended									% Change
Results of Operations		Dec 31, 2023			Dec 31, 2022			Sept 30, 2023			Prior Year			Prior Quarter
Net interest income		$	7,573,392		$	7,757,754		$	8,009,970			-2.4	%		-5.5	%
Provision for credit losses		$	-60,000		$	-170,000		$	-80,000			-64.7	%		-25.0	%
Noninterest income		$	354,582		$	182,713		$	1,063,019			94.1	%		-60.3	%
Noninterest expense		$	4,549,549		$	4,089,661		$	3,863,655			11.2	%		23.2	%
Net income		$	2,738,425		$	3,089,306		$	4,133,334			-11.4	%		-33.7	%
Yield on earning assets			4.43	%		3.77	%		4.34	%		17.5	%		2.1	%
Cost of interest-bearing deposits			1.38	%		0.55	%		1.15	%		150.9	%		20.0	%
Net interest margin			3.59	%		3.44	%		3.64	%		4.4	%		-1.4	%
Return on average assets (annualized)			1.25	%		1.33	%		1.81	%		-6.0	%		-30.9	%
Return on average equity (annualized)			10.84	%		13.31	%		16.52	%		-18.6	%		-34.4	%
Efficiency ratio			53.92	%		47.57	%		41.09	%		13.4	%		31.2	%

Net interest income decreased $185 thousand or 2.4% in 4Q23, as compared to 4Q22, which is attributable to higher deposit interest expense. The Federal Reserve Bank increased the federal funds rate an additional 150 bps since December 15, 2022, which has increased the cost of interest-bearing deposits from 0.55% in 4Q22 to 1.38% in 4Q23. The Bank increased deposit rates over the last 12 months to remain competitive in local markets and to preserve on-balance sheet liquidity. Increases in interest revenue from loans and investments in 4Q23, as compared to 4Q22, partially offset the higher deposit interest expense. Net interest income decreased $437 thousand or 5.5% in 4Q23, as compared to the prior quarter, due to seasonal decreases in noninterest bearing deposits and migration of other deposits into higher yielding money market and CD products. Yields on earning-assets increased to 4.43% in 4Q23, as compared to 3.77% in 4Q22, and 4.34% in the prior quarter.

On January 1, 2023 the Company adopted the current expected credit losses ("CECL") model pursuant to ASU 2016-13. The estimate of expected credit losses considers historical information, current information, and supportable forecasts, including estimates of prepayments. The negative provision for credit losses of $60 thousand recorded in 4Q23 was primarily the result of improvement in loan risk ratings within the loan portfolio. No significant changes in the economic indicators and related forecasts utilized in the CECL model occurred in 4Q23. The negative provision for credit losses of $170 thousand in 4Q22 and $80 thousand in 3Q23 was the result of recoveries of loans previously charged off.

Noninterest income increased in 4Q23 by $172 thousand or 94.1%, as compared to 4Q22, due to a $148 thousand decrease in realized losses on sale of debt securities. Realized losses were $509 thousand in 4Q23 and $657 thousand in 4Q22 related to the sale of lower-yielding debt securities at a loss with proceeds reinvested into new securities or fund loans at substantially higher yields to maximize future interest revenue. Noninterest income decreased in 4Q23 by $538 thousand or 60.3%, as compared to the prior quarter, due to an increase of $425 thousand in realized losses on sale of debt securities and a decrease in gain on the transfer of other real estate owned by $92 thousand.

Noninterest expense increased by $460 thousand or 11.2% in 4Q23, as compared to 4Q22, and relates to increases in employee salaries, employee benefits expenses, and FDIC deposit insurance premiums. Higher salaries expense relates to the fulfillment of open positions and higher salaries paid to remain competitive in the current labor market and resulted in a 5.0% increase in salaries expense in 4Q23, as compared to 4Q22. Employee health insurance is provided through a partially self-funded plan and claims incurred by the plan were higher in 4Q23, resulting in the increase in employee benefits costs by 21.9%, as compared to 4Q22. Deposit insurance premiums increased by $26k or 39.0% in 4Q23, as compared to the same period last year, and is the result of a change in the FDIC assessment calculation effective January 1, 2023. Noninterest expense increased in 4Q23 by $857 thousand or 23.2%, as compared to the previous quarter, which primarily relates to higher salaries and employee benefits expenses. Employee benefits expense increased $319 thousand, or 69.9%, due to higher claims incurred by the plan in the current quarter. Salaries expense increased $475 thousand, or 30.0%, due to yearend bonuses and contributions to the employee 401K plan based on profit sharing.

Quarterly per share data and repurchases of stock by the Company for each period is included in the following table. The stock repurchase plan previously adopted by the Board of Directors remains in place and as of December 31, 2023 has 53,436 shares available for repurchase. The amount and timing of future stock repurchases will depend upon several factors including regulatory capital requirements, market value of the Company's stock, general market and economic conditions, liquidity, and other relevant considerations, as determined by the Company.

		At or for the Quarters Ended											% Change
Per Share Data		Dec 31, 2023			Dec 31, 2022				Sept 30, 2023				Prior Year		Prior Quarter
Net income		$	0.99		$		1.12		$		1.50		-11.2	%	-33.7	%
Dividends		$	0.40		$		0.33		$		0.34		21.2	%	17.6	%
Dividend payout ratio		40.23		%	29.47			%	22.65			%	36.5	%	77.6	%
Book value		$	38.34		$		34.15		$		35.98		12.3	%	6.6	%
Book value excluding OCI		$	42.43		$		39.17		$		41.83		8.3	%	1.4	%
Market value		$	44.00		$		42.03		$		42.25		4.7	%	4.1	%
Number of shares repurchased			192				320				-
Repurchase amount		$	8,024		$		12,160		$		-
Average repurchase price		$	41.79		$		38.00		$		-

Financial Condition
Disruption in the banking industry earlier this year has highlighted the importance of deposit insurance, core deposits, liquidity and capital. The Company relies mostly on core deposits, as defined by bank regulators, which are gathered from customers in local markets. The Company and the Bank remain well capitalized according to regulatory capital standards and exceed the threshold to be well capitalized (Community Bank Leverage Ratio) by 46% as of December 31, 2023. The Company's financial condition at quarter end is summarized in the table and comments that follow.

	At or for the Quarters Ended												% Change
Financial Condition	Dec 31, 2023				Dec 31, 2022				Sept 30, 2023				Prior Year			Prior Quarter
Assets		$	852,975,713			$	905,940,143			$	899,714,244			-5.8	%		-5.2	%
Cash + unencumbered debt securities		$	179,787,929			$	290,164,668			$	244,545,021			-38.0	%		-26.5	%
Loans		$	575,483,217			$	513,025,696			$	555,192,827			12.2	%		3.7	%
Deposits		$	743,215,077			$	809,008,459			$	797,524,704			-8.1	%		-6.8	%
Interest-bearing deposits		$	507,863,159			$	543,202,520			$	523,634,274			-6.5	%		-3.0	%
Stockholders' equity		$	105,577,205			$	94,224,247			$	99,105,109			12.0	%		6.5	%
Common stock - shares outstanding			2,753,894				2,759,040				2,754,086			-0.2	%		0.0	%
Stockholders' equity / assets	12.38			%	10.40			%	11.02			%		19.0	%		12.3	%
Average assets		$	876,869,845			$	931,189,952			$	914,671,398			-5.8	%		-4.1	%
Average loans		$	565,320,886			$	498,911,981			$	557,482,431			13.3	%		1.4	%
Average deposits		$	767,230,899			$	833,783,683			$	808,860,861			-8.0	%		-5.1	%
Average stockholders' equity		$	101,049,309			$	92,830,965			$	100,064,043			8.9	%		1.0	%
Average stockholders' equity / average assets			11.52	%			9.97	%			10.94	%		15.6	%		5.3	%
Tier 1 capital to average assets (leverage ratio)			13.14	%			11.42	%			12.42	%		15.1	%		5.8	%

Following several years of significant growth, deposits decreased by $65.8 million or 8.1% in the previous 12 months, which resulted in total assets decreasing by $53.0 million or 5.8% since December 31, 2022. Significant increases in short term interest rates have encourage certain depositors to invest excess cash into short term government bonds resulting in a decrease in deposits. The Bank operates with a high level of core deposits, defined by banking regulators as checking, money market, and savings accounts plus any time deposits less than $250,000. Bank failures earlier this year have increased the focus on concentrations of uninsured deposits. All deposit accounts with a balance in excess of the FDIC insurance limit of $250,000 are disclosed on quarterly regulatory reports filed with bank regulators. As of December 31, 2023, the Bank had deposit accounts with balances in excess of $250,000 totaling $187.4 million, which represents 25.2% of total deposits, as compared to $258.9 million or 32.0% as of December 31, 2022 and $236.4 million or 29.6% of total deposits as of September 30, 2023. The Company did not experience any significant outflow of uninsured deposits during the year ended December 31, 2023. The Bank is a member of the IntraFi Network which enables large depositors access to multi-million dollar FDIC insurance for funds placed into the network and provides an equal amount of reciprocal deposits under FDIC insurance limits to the bank. Recent events in the banking industry led to an increase in usage of the IntraFi Network by existing and new customers. Reciprocal deposits from the IntraFi Network were $102.4 million as of December 31, 2023, as compared to $82.8 million and $94.4 million as of December 31, 2022 and September 30, 2023, respectively.

On-balance sheet liquidity, as measured by cash and unencumbered available for sale debt securities, remains strong as of December 31, 2023 and equaled 24.2% of total deposits. Selected liquidity metrics are summarized in the table below.

		At or for the Quarters Ended												% Change
Liquidity		Dec 31, 2023				Dec 31, 2022				Sept 30, 2023				Prior Year				Prior Quarter
Cash + unencumbered debt securities / deposits			24.19	%			35.87	%			30.66	%			-32.6	%			-21.1	%
Debt securities pledged / total debt securities			12.68	%			11.28	%			11.59	%			12.4	%			9.4	%
Loans / deposits			77.43	%			63.41	%			69.61	%			22.1	%			11.2	%
Average loans / average deposits			73.68	%			59.84	%			68.92	%			23.1	%			6.9	%
Core deposits / total assets			86.86	%			88.99	%			88.45	%			-2.4	%			-1.8	%
Deposits > $250,000 / total deposits			25.22	%			32.01	%			29.64	%			-21.2	%			-14.9	%

Noncore funding sources are available to the Bank but are intended for contingency funding needs and not to pursue growth. As of December 31, 2023, the Bank has the ability to borrow up to $205.4 million from the Federal Home Loan Bank ("FHLB") that would require pledging of loans and/or debt securities as collateral. Debt securities currently pledged are collateral for public deposits.

Loans and Asset Quality

Increasing interest rates, economic uncertainty and other factors are influencing current loan demand as compared to demand experienced in previous years. Loan growth of $62.5 million or 12.2% in the previous 12 months was the result of strong demand for local real estate and borrowers seeking to lock in lower interest rates as the Federal Reserve engaged in aggressive interest rate increases. Growth in the loan portfolio during the rising interest rate environment over the last 12 months along with variable rate loans within the portfolio has expanded the yield on loans from 4.61% in 4Q22 to 5.08% in 4Q23. Loan yields increased 15 bps in 4Q23 as compared to 3Q23.

Loan performance has remained strong over the past 12 months as local economic conditions have remained stable. Inflation and higher interest rates have not resulted in a deterioration of credit quality as of December 31, 2023. Past due loans have remained stable and were 0.45% of total loans as of December 31, 2023, as compared to 0.46% as of December 31, 2022 and 0.49% as of September 30, 2023. The allowance for credit losses increased from 0.51% of total loans as of December 31, 2022 to 0.56% of total loans as of December 31, 2023, which related to adoption of the CECL model pursuant to ASU 2016-13 on January 1, 2023. The adoption of the CECL model resulted in an increase in the allowance for credit losses of $826 thousand. Selected asset quality metrics are summarized in the table below.

		At or for the Quarters Ended												% Change
Asset Quality		Dec 31, 2023				Dec 31, 2022				Sept 30, 2023				Prior Year				Prior Quarter
Allowance for credit losses / total loans			0.56	%			0.51	%			0.63	%			9.5	%			-10.7	%
Net charge-offs (recoveries) / average loans			0.01	%			-0.12	%			-0.01	%			-105.0	%			-166.5	%
Loans past due 30 days or more / total loans			0.45	%			0.46	%			0.49	%			-0.7	%			-7.3	%
Non-accrual loans / total loans			0.04	%			0.02	%			0.04	%			117.9	%			-6.0	%

Financial Statements
Consolidated balance sheets at period end and consolidated statements of income for the periods ended are presented below.

Calvin B. Taylor Bankshares, Inc. and Subsidiary
Consolidated Balance Sheets

										(unaudited)
		Dec 31, 2023				Dec 31, 2022				Sept 30, 2023
Assets
Cash and cash equivalents
Cash and due from banks		$	8,645,851			$	9,060,252			$	10,541,773
Federal funds sold and interest bearing deposits			32,112,570				133,316,028				87,769,625
Total cash and cash equivalents			40,758,421				142,376,280				98,311,398
Time deposits in other financial institutions			-				1,225,953				-
Debt securities available for sale, at fair value			155,031,208				167,934,059				161,582,511
Debt securities held to maturity, at amortized cost			40,363,590				39,110,156				42,306,978
Equity securities, at cost			748,833				748,833				748,833
Restricted stock, at cost			652,400				469,500				651,500
Loans			575,483,217				513,025,696				555,192,827
Less: allowance for credit losses			(3,224,796	)			(2,624,369	)			(3,482,333	)
Net loans			572,258,421				510,401,327				551,710,494
Accrued interest receivable			2,457,017				2,036,468				2,181,704
Debt securities sold receivable			-				1,789,635				-
Prepaid expenses			849,418				730,891				604,998
Other real estate owned			388,712				-				294,467
Premises and equipment, net			12,421,191				12,751,025				12,882,400
Computer software, net			156,557				238,009				175,755
Deferred income taxes, net			3,628,386				4,467,476				5,219,164
Bank owned life insurance and annuities			22,037,539				21,398,096				21,849,420
Other assets			1,224,020				262,435				1,194,622
Total assets		$	852,975,713			$	905,940,143			$	899,714,244
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing		$	235,351,918			$	265,805,939			$	273,890,430
Interest-bearing			507,863,159				543,202,520				523,634,274
Total deposits			743,215,077				809,008,459				797,524,704
Accrued interest payable			377,442				75,438				238,651
Dividends payable			1,101,582				910,483				936,389
Accrued expenses			826,258				703,052				226,962
Non-qualified deferred compensation			958,785				654,674				881,667
Other liabilities			919,364				363,790				800,762
Total liabilities			747,398,508				811,715,896				800,609,135
Stockholders' equity
Common stock, par value $1 per share;
authorized 10,000,000 shares; issued and outstanding			2,753,894				2,759,040				2,754,086
Additional paid-in capital			2,136,555				2,337,456				2,144,387
Retained earnings			111,951,675				102,963,224				110,314,830
Accumulated other comprehensive loss, net of tax			(11,264,919	)			(13,835,473	)			(16,108,194	)
Total stockholders' equity			105,577,205				94,224,247				99,105,109
Total liabilities and stockholders' equity		$	852,975,713			$	905,940,143			$	899,714,244

Calvin B. Taylor Bankshares, Inc. and Subsidiary
Consolidated Statements of Income

										(unaudited)
		For the twelve months ended								For the three months ended
		Dec 31, 2023				Dec 31, 2022				Dec 31, 2023				Dec 31, 2022
Interest income
Loans, including fees		$	27,114,755			$	21,423,142			$	7,239,123			$	5,797,668
U. S. Treasury and government agency debt securities			2,044,864				1,041,598				587,415				397,198
Mortgage-backed debt securities			2,649,416				1,826,957				675,263				636,438
State and municipal debt securities			433,221				412,724				107,243				105,325
Federal funds sold and interest-bearing deposits			4,017,830				3,262,234				743,919				1,567,249
Time deposits in other financial institutions			2,701				34,842				-				6,185
Total interest income			36,262,787				28,001,497				9,352,963				8,510,063
Interest expense
Deposits			5,847,197				1,598,166				1,779,571				752,309
Net interest income			30,415,590				26,403,331				7,573,392				7,757,754
Provision for credit losses			280,000				105,000				(60,000	)			(170,000	)
Net interest income after provision for credit losses			30,135,590				26,298,331				7,633,392				7,927,754
Noninterest income
Debit card interchange fees, net			764,563				748,159				186,077				177,174
Nonsufficient funds and overdraft fees, net			632,027				572,073				159,913				148,307
Merchant payment processing, net			459,027				490,013				95,640				93,613
Service charges on deposit accounts, net			270,524				340,081				55,118				80,388
Income from bank owned life insurance and annuities			587,758				399,518				189,455				155,216
Income from bank owned life insurance death proceeds			-				410,684				-				1,755
Dividends			86,754				64,879				55,353				47,552
Loss on disposition of debt securities			(651,654	)			(649,515	)			(508,974	)			(657,178	)
Gain on disposition of other real estate owned			110,334				-				9,243				-
Loss on disposition of fixed assets			-				(20,541	)			-				(20,601	)
Miscellaneous			558,296				520,945				112,757				91,814
Total noninterest income			2,817,629				2,876,296				354,582				182,713
Noninterest expenses
Salaries			6,711,310				6,289,401				2,055,955				1,958,714
Employee benefits			2,266,882				1,631,081				776,181				636,891
Occupancy			1,048,227				1,022,060				270,475				313,742
Furniture and equipment			778,912				802,919				183,014				144,668
Data processing			989,710				855,900				263,994				241,435
Marketing			584,846				460,015				120,652				85,356
Directors fees			298,075				312,350				74,150				74,550
Telecommunication services			263,643				316,534				66,163				86,207
Deposit insurance premiums			394,292				248,288				91,612				65,910
Other operating			2,295,330				1,770,734				647,353				482,188
Total noninterest expenses			15,631,227				13,709,282				4,549,549				4,089,661
Income before income taxes			17,321,992				15,465,345				3,438,425				4,020,806
Income taxes			3,836,000				3,696,000				700,000				931,500
Net income		$	13.485.992			$	11,769,345			$	2,738,425			$	3,089,306
Earnings per common share - basic and diluted		$	4.89			$	4.26			$	0.99			$	1.12

###

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.

Contact
M. Dean Lewis, Executive Vice President and Chief Financial Officer
410-641-1700, taylorbank.com

SOURCE: Calvin B. Taylor Bankshares, Inc.

View the original press release on accesswire.com

FAQ

What was Calvin B. Taylor Bankshares, Inc.'s net income for the year ended December 31, 2023?

Calvin B. Taylor Bankshares, Inc. reported a net income of $13.5 million for the year ended December 31, 2023, representing a 14.6% increase from the previous year.

What was the Return on Average Assets for Calvin B. Taylor Bankshares, Inc. for the year ended December 31, 2023?

The Return on Average Assets for Calvin B. Taylor Bankshares, Inc. was 1.52% for the year ended December 31, 2023, showing a significant improvement.

How did organic loan growth impact Calvin B. Taylor Bankshares, Inc.'s financial results?

Organic loan growth of $62.5 million was noted in 2023, contributing to the company's strong financial performance.

What was the on-balance sheet liquidity of Calvin B. Taylor Bankshares, Inc. as of December 31, 2023?

Calvin B. Taylor Bankshares, Inc.'s on-balance sheet liquidity was 24.2% of total deposits as of December 31, 2023, indicating a strong financial position.

Why did noninterest expenses increase for Calvin B. Taylor Bankshares, Inc. in 2023?

Noninterest expenses increased by 14.0% in 2023 for Calvin B. Taylor Bankshares, Inc. due to higher salaries, benefits, and deposit insurance premiums.

What was the quarterly net income for Calvin B. Taylor Bankshares, Inc. for the fourth quarter of 2023?

Calvin B. Taylor Bankshares, Inc. reported a quarterly net income of $2.7 million for the fourth quarter of 2023.

How does Calvin B. Taylor Bankshares, Inc. focus on core deposits and liquidity?

Calvin B. Taylor Bankshares, Inc. emphasizes core deposits and liquidity to navigate disruptions in the banking industry and maintain a strong financial position.

What is the purpose of Calvin B. Taylor Bankshares, Inc.'s membership in the IntraFi Network?

Calvin B. Taylor Bankshares, Inc. is a member of the IntraFi Network to provide FDIC insurance for large depositors and reciprocal deposits to the bank.