Calvin B. Taylor Bankshares, Inc. Announces Financial Results for the Nine Months Ended September 30, 2019
Loan growth in the 1st nine months of 2019 was primarily funded by maturing investments including time deposits in other financial institutions and debt securities.
BERLIN, Md., Nov. 11, 2019 (GLOBE NEWSWIRE) -- Calvin B. Taylor Bankshares, Inc. (the “Company”) (OTCQX: TYCB), parent company of Calvin B. Taylor Bank, today reported the unaudited financial results for the nine months ended September 30, 2019. Selected highlights of the company’s financial performance are included below.
| At Period End | September 30, 2019 | December 31, 2018 | % Change | ||||
| Assets | $ | 557,000,844 | $ | 531,909,554 | 4.72% | ||
| Deposits | $ | 466,010,504 | $ | 446,132,305 | 4.46% | ||
| Loans | $ | 352,734,996 | $ | 327,861,211 | 7.59% | ||
| Capital | $ | 89,166,512 | $ | 84,788,815 | 5.16% | ||
| Book value per share | $ | 32.13 | $ | 30.40 | 5.69% | ||
| Loans to deposits | 75.69% | 73.49% | |||||
| Equity to assets | 16.01% | 15.94% | |||||
| For the Nine Months Ended | September 30, 2019 | September 30, 2018 | % Change | ||||
| Average assets | $ | 527,416,265 | $ | 524,513,976 | 0.55% | ||
| Average loans | $ | 351,820,257 | $ | 306,419,193 | 14.82% | ||
| Average deposits | $ | 439,544,439 | $ | 440,088,481 | -0.12% | ||
| Average equity | $ | 86,159,363 | $ | 83,964,780 | 2.61% | ||
| Average loans to average deposits | 80.04% | 69.63% | |||||
| Average equity to average assets | 16.34% | 16.01% | |||||
| Net interest income | $ | 14,948,880 | $ | 13,332,997 | 12.12% | ||
| Income before income taxes | $ | 8,789,331 | $ | 7,231,710 | 21.54% | ||
| Net income | $ | 6,619,331 | $ | 5,499,361 | 20.37% | ||
| Net income per share | $ | 2.37 | $ | 1.97 | 20.30% | ||
| Dividend per share | $ | 0.75 | $ | 0.25 | 200.00% | ||
| Dividend payout ratio | 31.55% | 12.79% | 146.59% | ||||
| Stock Repurchased | |||||||
| Number of shares | 14,000 | 25,314 | -44.69% | ||||
| Repurchase amount | $ | 450,240 | $ | 757,395 | -40.55% | ||
| Average price per share | $ | 32.16 | $ | 29.92 | 7.49% | ||
| Ratios | |||||||
| Return on average assets | 1.67% | 1.40% | |||||
| Return on average equity | 10.24% | 8.73% | |||||
| Efficiency ratio | 47.34% | 54.20% | |||||
Total assets were $557.0 million at September 30, 2019, which is an increase of $25.1 million or 4.7% since December 31, 2018. The increase in total assets during this period is the result of seasonal inflows of deposits which increased total deposits to $466.0 million as of September 30, 2019, an increase of $19.9 million or 4.5% since December 31, 2018. Seasonal deposit inflows were primarily reinvested in cash and cash equivalents which increased $20.5 million or 30.7% since December 31, 2018 and totaled $87.4 million as of September 30, 2019. The Company continued to experience organic growth in loans which increased $24.9 million or 7.6% since December 31, 2018 and totaled $352.7 million as of September 30, 2019. Loan growth in the 1st nine 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 $21.9 million or 19.4% during the 1st nine months of 2019 and totaled $90.9 million as of September 30, 2019. Loan growth exceeded deposit growth during the 1st nine months of 2019 which resulted in an increase in the loans to deposit ratio from 73.5% as of December 31, 2018 to 75.7% as of September 30, 2019. Average assets for the nine months ended September 30, 2019 increased $2.9 million or 0.6% 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 equity of $2.2 million or 2.6%. Average deposits during this period decreased 0.1% due to several large temporary deposits made by certain customers during the 1st nine months of 2018. Organic loan growth has resulted in an increase of average loans of $45.4 million or 14.8% for the nine months ended September 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 69.6% to 80.0%.
Net income growth for the nine months ended September 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 1.40% to 1.67% and an increase in Return on Equity from 8.73% to 10.24% compared to the same period in the previous year. Net income per share increased 20.3% to $2.37 per share for the nine months ended September 30, 2019, compared to $1.97 per share for the nine months ended September 30, 2018. Quarterly dividends totaling $0.75 per share have been declared during the nine months ending September 30, 2019 compared to $0.25 per share during the nine months ended September 30, 2018. Dividends are higher for the nine months ended September 30, 2019 due to a change from annual to quarterly dividend payments starting in the 1st quarter of 2019. The $0.25 per share dividend for the nine months ended September 30, 2018 was a special dividend paid in the 2nd quarter of 2018 as a result of U.S. corporate income tax reform.
Net income for the nine months ended September 30, 2019 was $6.6 million, an increase of $1.1 million or 20.4% compared to the same period last year. The primary contributor to the increase in net income was a $1.6 million or 12.1% increase in net interest income resulting from a combination of organic loan growth, higher investment yields and an increase in the average federal funds interest rate. Non-interest income for the nine months ended September 30, 2019 decreased $18 thousand or 0.8% 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 $370 thousand or 21.2% in the 1st nine months of 2019 compared to the same period in the prior year and is attributable to increased loan swap referral fees and revenue from ATM and debit card services. In the nine months ended September 30, 2019, non-interest expense decreased $129 thousand or 1.6% 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 $282 thousand or 3.6% in the 1st nine 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 47.3% for the nine months ended September 30, 2019 as compared to 54.2% 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
