By a News Reporter-Staff News Editor at Investment Weekly News -- Town and Country Financial Corporation (TWCF) reported fourth-quarter net income of $968 thousand, up 19% compared to $816 thousand in the fourth quarter of 2012. Net income available to common shareholders was $0.34 per share compared to $0.29 per share in the year-ago period. Net interest income increased 11% on average net loan growth of 15% compared to the year-ago quarter. Operating expenses declined 11% while noninterest income declined 24%, both results driven by a decrease in mortgage loans processed.
President and Chief Executive Officer, Micah R. Bartlett commented, "We're pleased to report another successful quarter. In particular, our loan and balance sheet growth was rewarding despite an economy that remains tepid. For the first time ever, the company's total assets exceeded $500 million. Core banking profits improved again, and yet overall profitability growth was muted by the nearly 50% decline in mortgage lending activities and related profits. In response to these economic events, we made changes to reduce expense and staffing with positions dedicated to mortgage lending declining 22% at year-end compared to their number at the end of 2012."
Full year net income was $3.1 million, up 2.4% from the prior year. Net income available to common shareholders was $1.08 per share compared to $1.04 in 2012. After-tax income from the gain on sale of securities contributed $0.14 per share in 2013 and $0.05 in 2012.
Net revenue was $22 million, down $0.6 million, or 2.6%, from the prior year. Net interest income was up 6.6% driven by a 17% average growth in loans and lower deposit costs. The net interest margin ratio, however, declined to 3.23% compared to 3.41% in 2012 due to deposits acquired in 2012 and lending to borrowers who sought to secure low rate funding while it still lasted. Non-interest income was $8.4 million, 7.6% below the year ago led by a 28% decline in mortgage loans processed. Partially offsetting the decline were trust and investment fees, up 48%, and income from security gains that were $642 thousand in 2013 compared to $240 thousand in 2012.
The provision for loan loss was $566 thousand compared to $700 thousand in the prior year while net charge-offs were 0.11% of average loans compared with 0.16% in 2012. Non-interest expense declined 1.2% due primarily to lower mortgage banking volumes partially offset by a full year of operating expense related to a mid-2012 branch acquisition.
Loans that were past due 30 days or more, including non-accrual loans, totaled 0.77% of loans outstanding at December 31 compared with 1.15% at December 31, 2012. The allowance for loan loss was 286% of total non-performing loans and 1.04% of total loans compared with 138% and 1.16%, respectively, at the prior year-end.
At December 31, 2013 total assets were $508 million and total net loans were $344 million compared to $456 million and $281 million, respectively, at the prior year-end. Total deposits were $412 million and common equity capital was $39.7 million. The reported book value was $14.20 per common share compared to $13.18 per share on December 31, 2012. Tier 1 capital was $51 million, or 10.6% of average assets, while total regulatory capital was $57 million, or 14% of risk-weighted assets.
Bartlett added, "I'm tremendously proud of the hard work and accomplishments of the Town and Country team. 2013 was a pivotal year for our company as we exceeded $500 million in assets, navigated through the sudden end to a long-term mortgage refinance boom, and saw double-digit growth in our lending and trust lines of business. We managed to contain expenses even while we significantly upgraded our customer delivery channels and banker systems. And, we maintained our high quality balance sheet with strong capital, liquidity, and credit quality levels and metrics. Perhaps most importantly, we continued to challenge ourselves to be better, to think like entrepreneurs, and ask for the business. We believe that this is what it takes to be a successful community bank."
The Board of Directors declared a $0.03 per share quarterly cash dividend payable on March 14, 2014 to stockholders of record March 3, 2014.
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, Forsyth, Lincoln, Mt. Zion, Quincy and Springfield. Town and Country Financial Corporation shares are quoted under the symbol TWCF.
SOURCE Town and Country Financial Corporation
Town and Country Financial Corporation
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