Aug. 1, 2012
/PRNewswire/ -- Town and Country Financial Corporation (TWCF) reported second-quarter 2012 net income of
per share, as compared to
per share in the second quarter of 2011. The second quarter of 2012 included a recovery of
per share from a trust preferred security redemption and charges of
per share due to an adjustment in the value of the mortgage servicing rights asset (MSA). Comparable events in the year ago quarter contributed
to earnings per share.
First half 2012 net income was
per share, compared to
per share, during the first half of 2011. Current year results include costs of
per share to acquire the customers and accounts of a banking office in
per share negative adjustment to the MSA, and a
recovery from the security redemption. The first half of 2011 included a gain on sale of securities of
per share and
from a positive adjustment to the MSA.
Total revenue, excluding security gains, was
, or 20%, above the year ago on the strength of the Company's mortgage banking business and net interest income from lower funding costs. Partially offsetting the higher revenue were adjustments to the MSA that were
higher in 2012 than the prior year. The net interest margin, under pressure from loan and security portfolio cash flows that are being invested in lower yielding instruments, declined 0.23% to 3.54%. Contributing too to the lower margin was the
May 18, 2012
purchase of the loans and deposits of a banking office in
with excess cash invested in securities.
Non-interest expense was
in the first half of 2011, the change due to costs to acquire the
banking office, costs related to new staff that support the mortgage business and the Company, including the new banking office, and other activity-based costs related to the mortgage banking volumes. Partially offsetting the higher expense in 2012 is a decline in FDIC insurance the cost of holding other real estate.
Micah R. Bartlett
, President and Chief Executive Officer, commented: "We are pleased to deliver another quarter of solid earnings, particularly as we continue to make significant investments in our future. Our revenue growth is an early indication of the return on our investments."
Asset quality metrics remain good with nonperforming loans at 0.83% of total loans, while all other past due loans were 0.12% of total loans, as compared to 0.64% and 0.12%, respectively, at
, 2011. The allowance for loan loss to total non-performing loans was 142% on
June 30, 2012
and 1.18% of total loans.
The Company reported total assets of
, net loans of
, and deposits of
including the loans and deposits acquired at the
banking office. Common equity capital was
with a reported book value of
per common share compared to
per share on
, 2011. Tier 1 capital was 12.6% of average assets while total regulatory capital was estimated at 16.8% of risk-weighted assets.
According to Bartlett, "The acquisition of the customers, accounts, and employees of our newest banking office in
was completed on
May 18, 2012
and we couldn't be more pleased with the results. And, the icing on the cake was our success in hiring a talented and experienced group of commercial bankers who will extend our unique brand of banking to
-area businesses. Although this new office was negative to earnings in the first half, we look forward to the growth and profitability of that market, as well as our existing markets, for years to come."
The Board of Directors declared a
per share quarterly cash dividend payable on
September 14, 2012
to stockholders of record
Town and Country Financial Corporation is the parent holding company for Town and Country Bank with offices in
, Town & Country Banc Mortgage Services, Inc., and Logan County Bank with offices in
and Buffalo. Peoples Prosperity Bank, a division of Town and County Bank, is the name used in Quincy. Town and Country Financial Corporation shares are quoted under the symbol TWCF.
SOURCE Town and Country Financial Corporation