May 7, 2012 /PRNewswire/ -- Town and Country Financial Corporation (TWCF) reported first quarter 2012 net income of
$675 thousand, or
$0.24 per share, up 11% as compared to
$607 thousand, or
$0.22 per share in the first quarter of 2011. The first quarter of 2011 included a gain of
$0.03 per share on the sale of equity securities. Excluding 2011 security gains, net income was up 30% as compared to the adjusted year-ago quarter.
Net revenue was $5.3 million in the quarter, 24% above the year ago on the strength of the Company's mortgage banking business and higher net interest income from growth in loans to businesses. Despite higher net interest income, the margin declined 0.13% to 3.59% driven by the persistent low rate environment that has lowered earning asset yields faster and farther than the cost of funds. The rate environment has also provided support to fee income through heavier mortgage volumes. The Company's investment in developing their wholesale mortgage business helped to maximize the opportunity and, as a result, non-interest income was up 73% from the year-ago quarter.
Non-interest expense was $4.3 million compared to $3.5 million in the first quarter of 2011, the change due to costs to acquire the Quincy branch that is scheduled to close in May 2012, as well as activity-based costs related to the mortgage banking volumes. Some expense relief has been provided in the current quarter from the decline in other real estate and FDIC expenses as compared to the year ago.
Micah R. Bartlett, President and Chief Executive Officer, commented: "It is gratifying to have yet another quarter of continued improvements in our financial performance. The results of our unique approach to banking—and our dedicated efforts over the past years to focus on our customers and their needs—has been demonstrated in our company's growth and profitability. We will continue to make smart investments in people, systems, and facilities that support our company's core strategy and improve service to our customers."
Loan portfolio credit quality remained strong with 0.84% of loans past due 30 days or more, including non-accrual loans, at March 31, 2012 compared to 0.76% at December 31, 2011. The allowance for loan loss to total non-performing loans was 195% on March 31, 2012 and was 1.25% of total loans.As of quarter-end, total assets were $390 million and total net loans were $242 million, including $13 million that were held for sale. Total deposits were $324 million and common equity capital was $34.6 million. The reported book value was $12.39 per common share compared to $11.90 per share on December 31, 2011, the change driven by earnings and valuation changes in the Company's securities portfolio. Tier 1 capital was $49 million, or 12.5% of average assets, while total regulatory capital was just under $54 million, or an estimated 16.7% of risk-weighted assets. According to Bartlett, "Town and Country Financial Corporation is one of the strongest banking organizations in Central Illinois. We know that only banks operating from a position of strength—in earnings, capital, asset quality, processes, and people—will achieve growth and prosperity in the future and build the trust of customers. We are excited as we look ahead to our second quarter and to our upcoming connection with the people in Quincy, Illinois." The Board of Directors declared a $0.03 per share quarterly cash dividend payable on June 15, 2012 to stockholders of record June 1, 2012. Town and Country Financial Corporation is the parent holding company for Town and Country Bank with offices in Springfield, Mt. Zion, Forsyth, and Decatur, Town & Country Banc Mortgage Services, Inc., and Logan County Bank with offices in Lincoln and Buffalo. Town and Country Financial Corporation shares are quoted under the symbol TWCF. SOURCE Town and Country Financial Corporation