BERLIN, MD / ACCESSWIRE / October 22, 2018 / Calvin B. Taylor Bankshares, Inc. (the ''Company'') (OTCQX: TYCB), parent company of Calvin B. Taylor Bank, announced today that the Board of Directors has declared an annual cash dividend of $0.99 per share. This is the 28th consecutive year that the Board of Directors has increased the regular annual cash dividend. This dividend is payable on December 31, 2018 to stockholders of record as of the close of business on October 31, 2018. This annual cash dividend is in addition to the special dividend of $0.25 per share that was paid to stockholders on May 1, 2018. Calvin B. Taylor Bankshares, Inc. also reported today the unaudited financial results for the nine months ended September 30, 2018. Selected highlights of the company's financial performance are included below.
| At period end | September 30, 2018 | December 31, 2017 | % Change | |||||||||
| Assets | $ | 560,964,375 | $ | 521,968,436 | 7.47 | % | ||||||
| Deposits | $ | 474,803,298 | $ | 439,423,322 | 8.05 | % | ||||||
| Loans, net | $ | 318,283,548 | $ | 294,360,392 | 8.13 | % | ||||||
| Total capital | $ | 85,447,971 | $ | 81,922,879 | 4.30 | % | ||||||
| Book value per share | $ | 30.64 | $ | 29.11 | 5.26 | % | ||||||
| Total capital to total assets | 15.23 | % | 15.69 | % | ||||||||
| Loans to deposits | 67.03 | % | 66.99 | % | ||||||||
| For the nine months ended | September 30, 2017 | % Change | ||||||||||
| Average assets | $ | 524,513,976 | $ | 498,512,649 | 5.22 | % | ||||||
| Average deposits | $ | 440,088,481 | $ | 413,572,569 | 6.41 | % | ||||||
| Average equity | $ | 83,886,815 | $ | 81,412,125 | 3.04 | % | ||||||
| Net interest income | $ | 13,332,997 | $ | 11,962,386 | 11.46 | % | ||||||
| Income before income taxes | $ | 7,231,710 | $ | 6,589,639 | 9.74 | % | ||||||
| Net income | $ | 5,499,361 | $ | 4,220,639 | 30.30 | % | ||||||
| Net income per share | $ | 1.96 | $ | 1.49 | 31.54 | % | ||||||
| Stock Repurchased | ||||||||||||
| Number of shares | 25,314 | 69,218 | -63.43 | % | ||||||||
| Repurchase amount | $ | 757,395 | $ | 1,858,035 | -59.24 | % | ||||||
| Average price per share | $ | 29.92 | $ | 26.84 | 11.46 | % | ||||||
| Ratios | ||||||||||||
| Return on average assets | 1.40 | % | 1.13 | % | ||||||||
| Return on average equity | 8.74 | % | 6.91 | % | ||||||||
| Efficiency ratio | 54.20 | % | 51.93 | % | ||||||||
Total assets were $561.0 million at September 30, 2018, which is an increase of $39.0 million or 7.5% since December 31, 2017. Furthermore, growth in total assets since June 30, 2018 was $31.6 million or 6.0%. The increase since June 30, 2018 was primarily a result of seasonal growth in deposits which totaled $474.8 million as of September 30, 2018, an increase of $35.4 million or 8.1% since December 31, 2017 and an increase of $30.0 million or 6.7% since June 30, 2018. Seasonal deposit growth was primarily deployed into liquid assets due to expected seasonal deposit outflows in the next 6 months. The loan portfolio increased $23.9 million or 8.1% since the previous year end while increasing $7.9 million or 2.6% since the end of the previous quarter. Repayments of seasonal borrowings by customers who operate tourism based businesses in the local beach resort areas partially offset new loan originations this quarter.
Average assets for the nine months ended September 30, 2018 increased $26.0 million or 5.2% compared to the same period in the previous year. The increase in average assets is the result of continued organic growth in average deposits which increased to $440.1 million for the nine months ended September 30, 2018, an increase of $26.5 million or 6.4% compared to the same period last year. Significant fluctuations in deposits can occur from period to period due to customer activity, and therefore a comparison of average deposits provides a better measurement of overall deposit activity.
Net income growth for the nine months ended September 30, 2018 outpaced growth in average assets and average equity during the same period. This resulted in an increase in Return on Average Assets from 1.13% to 1.40% and an increase in Return on Equity from 6.91% to 8.74% compared to the same period in the previous year. Net income per share increased 31.5% to $1.96 per share for the nine months ended September 30, 2018, compared to $1.49 per share for the nine months ended September 30, 2017.
Income before taxes for the nine months ended September 30, 2018 was $7.2 million, an increase of $642 thousand or 9.7% compared to the same period last year. The primary contributor to the increase was a $1.4 million or 11.5% increase in net interest income resulting from a combination of organic loan growth, higher investment yields and increases in the Federal Funds interest rate. In addition, non-interest income for the nine months ended September 30, 2018 increased $319 thousand or 17.6% primarily as a result of a $389 thousand gain recognized upon the sale of an investment security in the 1st quarter of 2018. Partially offsetting the aforementioned increases in income was a $1.0 million or 14.6% increase in non-interest expense. During the 1st quarter of 2018 the Company recorded a $411 thousand loss related to an unauthorized wire transfer by a bank employee. The unauthorized wire transfer loss was previously disclosed as a subsequent event in the Company's 2017 financial statements and further discussed in Company's 1st quarter 2018 earnings release. The remaining $631 thousand increase in non-interest expense is primarily attributable to the Company's expansion into the Eastern Shore of Virginia market with a branch location in Chincoteague, Virginia and a Loan Production Office in Onley, Virginia. The increase in non-interest expense associated with these items also accounts for the increase in the Company's efficiency ratio to 54.2% for the nine months ended September 30, 2018 as compared to 51.9% the same period last year.
Net income for nine months ended September 30, 2018 was $5.5 million, an increase of $1.3 million or 30.3% compared to the same period last year. The increase in net income was a result of the $642 thousand or 9.7% increase in income before taxes as discussed above and a $637 thousand or 26.9% reduction in income tax expense. In December 2017, the Tax Cut and Jobs Act was enacted, which decreased the Company's federal income tax rate from 34% to 21% beginning January 1, 2018. As a result, the Company's effective income tax rate has dropped from 34.4% in 2017 to an estimated 24.0% for 2018.
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
SOURCE: Calvin B. Taylor Bankshares, Inc.
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