Town And Country Financial Corporation Reports Third Quarter 2011 Net Income And Declares Quarterly Dividend
SPRINGFIELD, Ill., Nov. 2, 2011 /PRNewswire/ -- Town and Country Financial Corporation (OTCBB: TWCF) reported third-quarter 2011 net income of $708 thousand, or $0.25 per share compared to $673 thousand, or $0.24 per share in the third quarter of 2010. The current quarter's earnings included an after-tax charge of $188 thousand, or $0.07 per share, to reflect the value of servicing rights and contracts due to declines in market rates. The current quarter also demonstrated a stronger net interest margin of 3.73%, as compared to the year ago quarter of 3.56%, and asset quality that required no provision compared to after-tax provision of $174 thousand in 2010. The Company took an after tax impairment charge in 2010 of $45 thousand on certain trust preferred securities.
Through the first nine months of 2011, net income was $2.1 million, or $0.74 per share compared to $1.4 million, or $0.49 per share, in 2010. Net revenue, excluding equity security gains and impairment charges, was up 4% to $13.3 million while non-interest expense was $10.4 million and 1.8% higher than the year ago primarily due to expenses related to other real estate holdings. Strong asset quality and lack of charge offs resulted in no provision for loan losses compared to $585 thousand in the prior year. Pre-tax income from the gain on sale of equity securities was $121 thousand higher in the current year and no impairment charge on securities was taken in 2011 compared to a pre-tax charge of $279 thousand in 2010.
Loan quality remained strong with 0.83% of loans past due 30 days or more, including non-accrual loans, at September 30, 2011 compared to 1.15% at December 31, 2010 and 1.48% at September 30, 2010. The Company remained in a net loan recovery position, 0.03% through the first nine months, and the ratio of the allowance for loan loss to total loans was 1.25% compared to 1.32% on December 31, 2010.
As of September 30, 2011, total assets were $377 million, net loans were $242 million, and deposits were $308 million. The serviced mortgage portfolio grew to $353 million from $341 million at year-end 2010. In the quarter, the Company issued $5 million in senior preferred stock to the U.S. Treasury Department through their Small Business Lending Fund (SBLF). Regarding the Company's participation, Micah R. Bartlett, President and Chief Executive Officer, commented "We evaluated the program and determined that it was well-suited to the needs of our communities, our lending principles, and our Company's mission. We have increased our loan portfolio by nearly $16 million so far this year, and stand ready to make yet more capital available to our local communities."Total equity capital increased to $37.6 million with an $11.67 book value per common share compared to $11.13 per share on December 31, 2010. The company's capital position was improved in the quarter with Tier 1 capital of $48 million, or 13.1% of average assets, and total regulatory capital of $52 million, or an estimated 16.7% of risk-weighted assets. The SBLF capital is included in the Company's Tier 1 ratio. "This is an exciting time for the Company," Mr. Bartlett noted, "as we recorded another quarter of solid core earnings and maintained strong asset quality and capital ratios while also growing the Company."
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