BERLIN, MD / ACCESSWIRE / February 16, 2018 / Calvin B. Taylor Bankshares, Inc. (OTCQX: TYCB), the parent company of Calvin B. Taylor Bank, today reported unaudited financial results for the year ended December 31, 2017. Selected highlights of the company's financial performance are included below.
Total assets of the Company grew $32.6 million or 6.7% since December 31, 2016 and totaled $522.0 million as of December 31, 2017. The increase was primarily the result of continued organic growth in deposits which increased to $439.4 million as of December 31, 2017, an increase of $35.5 million or 8.8%. Several large temporary deposits were made by certain customers just prior to December 31, 2017 which increased the total asset growth rate to 6.7%, as compared to 3.1% average total asset growth. Asset growth was primarily deployed into the loan portfolio which increased $28.7 million, or 10.8%, since the previous year-end. Earnings growth of 11.7% exceeded average asset growth of 3.1% and average equity growth of 1.0% in 2017. As a result, Return on Average Assets (ROAA) increased from 1.01% in 2016 to 1.09% in 2017 and Return on Equity (ROE) increased from 6.07% in 2016 to 6.72% in 2017.
Net income for the year ended December 31, 2017 was $5.5 million, an increase of 11.7% compared to the prior year. The primary contributor to the increase in net income was a $1.2 million, or 7.7%, increase in net interest income which was the result of organic loan growth, higher investment yields and increases in the Federal Funds interest rate. Noninterest income increased $281 thousand, or 13.3%, as a result of a reduction in Other Real Estate Owned (OREO) losses and increases in revenue from deposit account service charges and bank owned life insurance. Higher net interest income and noninterest income was partially offset by higher noninterest expenses which increased $727 thousand, or 7.7%, due primarily to the growth of the branch network which resulted in higher salaries, benefits, occupancy, and equipment expense. Other operating expenses increased by $308 thousand as a result of the acceleration of certain discretionary expenses in response to corporate tax reform enacted in late 2017. Also as a result of corporate tax reform, the Company was required to revalue deferred tax liabilities as of December 31, 2017 using the reduced corporate income tax rate applicable in future periods. The revaluation of deferred tax liabilities resulted in a one-time decrease in income tax expense of $77 thousand.
Earnings per share increased 14.7% to $1.95 per share in 2017, compared to $1.70 per share in the previous year. The increase in earnings per share outpaced the growth in net income as the Company continues to repurchase and retire its common stock. The Company repurchased and retired 69,318 shares during 2017 which represents 2.4% of shares issued and outstanding as of December 31, 2016. Total capital to total assets decreased from 16.64% as of December 31, 2016 to 15.69% as of December 31, 2017. Growth in total assets and the use of capital to repurchase stock contributed to the decrease in the capital ratio. The Company declared and paid a regular annual cash dividend of $0.98 per share in 2017 which is the 27th consecutive year the regular annual cash dividend has increased.
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. The Company also has a loan production office located in Onley, Virginia.
Contact
M. Dean Lewis
Vice President and Chief Financial Officer
410-641-1700
SOURCE: Calvin B. Taylor Bankshares, Inc.
