BERLIN, MD / ACCESSWIRE / February 22, 2023 / Calvin B. Taylor Bankshares, Inc. (the "Company") (OTCQX:TYCB), parent company of Calvin B. Taylor Bank, today reported net income of $11.77 million for the year ended December 31, 2022, as compared to $9.48 million for the year ended December 31, 2021. Net income was $3.09 million for the fourth quarter ended December 31, 2022 ("4Q22"), as compared to $2.14 million for the fourth quarter ended December 31, 2021 ("4Q21") and $3.71 million for the third quarter ended September 30, 2022 ("3Q22"). President and Chief Executive Officer Raymond M. Thompson remarked, "The Company experienced strong fourth quarter performance. Continued loan demand and substantial increases in the fed funds rate in the last 12 months contributed to a 44.3% increase in net income in the fourth quarter of 2022, as compared to the fourth quarter of 2021. Total loans increased $78.2 million, or 18.0% since December 31, 2021. Robust loan growth combined with higher yields on investment securities and fed funds contributed to yet another year of record earnings, with 2022 net income increasing 24.1% over the prior year. While the company continued to grow organically during 2022, the slowdown in asset growth was anticipated following the expiration of COVID-19 related stimulus programs. As a result of the Company's strong financial performance, the Board of Directors declared a total dividend of $1.26 per share in 2022, an 8.6% increase over the prior year. We will continue to monitor economic and industry trends heading into 2023, and make operational adjustments as circumstances dictate." Highlights of the company's financial results are noted below and included in the following tables.
- Organic loan growth, excluding Paycheck Protection Program ("PPP") loans, was $84.2 million, or 19.6%, since December 31, 2021. Loans increased $24.5 million, or 5.0%, since September 30, 2022.
- Average deposits were $101.3 million, or 14.0%, higher during the year ended December 31, 2022, as compared to the prior year.
- Loan growth combined with higher yields on securities and fed funds sold resulted in a $599 thousand, or 8.4%, increase in net interest income in 4Q22 as compared to the previous quarter. Net interest income for the year ended December 31, 2022 increased $4.7 million, or 21.8%, as compared to the prior year, due to higher revenue from loans, securities, and fed funds sold.
- Net interest margin increased to 3.44% in 4Q22, as compared to 2.64% in 4Q21 and 3.14% in 3Q22. Loan growth accompanied by rising yields on securities and fed funds sold increased net interest margin by 30 basis points in 4Q22 as compared to 3Q22. Net interest margin increased to 2.98% for the year ended December 31, 2022, as compared to 2.79% in 2021.
- The provision for loan losses decreased $20 thousand for the year ended December 31, 2022, as compared to the prior year. The provision expense related to 2022 loan growth was offset by a loan loss recovery received in 4Q22.
- Net income growth outpaced average asset growth, which increased Return on Average Assets ("ROA") to 1.27% in 2022, as compared to 1.15% in 2021.
- Dividends declared were $1.26 per share for the year ended December 31, 2022 compared to $1.16 per share for 2021, an increase of 8.6%.
Year to Date Results of Operations
Loan interest income, including fees, was $21.4 million for the year ended December 31, 2022, as compared to $20.7 million in the previous year, which is the result of continued organic loan growth and higher interest revenue on variable rate loans. Loan interest income, including fees, increased over the previous year despite a $2.1 million decrease in PPP loan interest income, including fees. Loan interest income, excluding PPP interest revenue, increased 15.1% in 2022 as compared to 2021. Loan yields were 4.49% for the year ended December 31, 2022, as compared to 4.63% in the previous year. PPP loan fees recognized in 2021 resulted in higher yields on loans during that period.
Net interest income increased 21.8% to $26.4 million for the year ended December 31, 2022, as compared to $21.7 million in the prior year. Increases in the average balances of loans, debt securities and fed funds sold combined with higher yields on those asset classes resulted in higher net interest income. Deposit costs increased $815 thousand, or 104.1%, for the year ended December 31, 2022, as compared to the prior year. Higher deposit costs were attributable to a $79.4 million, or 17.4%, increase in the average balance of interest-bearing deposits and an increase in the cost of interest-bearing deposits from 0.17% in 2021 to 0.30% in 2022. Average interest-earning assets for the year ended December 31, 2022 increased by $104.2 million, or 13.3%, when compared to the prior year. The growth in net interest income outpaced the growth in interest-earning assets in 2022, thus increasing net interest margin to 2.98% for the year ended December 31, 2022, as compared to 2.79% for the year ended December 31, 2021.
Provision for loan losses was $105 thousand for the year ended December 31, 2022, as compared to $125 thousand in the prior year. Net recoveries were $591 thousand for the year ended December 31, 2022, as compared to net recoveries of $75 thousand for the year ended December 31, 2021. The increase in net recoveries in 2022 was related to the resolution of a longstanding nonaccrual loan that required partial charge-offs in previous years due to decreases in the underlying collateral values. Changes in local real estate demand following the COVID-19 pandemic resulted in substantial increases in value of the underlying collateral and resulted in full recovery of principal previously charged-off. The total recovery related to this loan was $608 thousand. Higher provision expense associated with organic loan growth, excluding PPP loans, of 19.6% in 2022 was partially offset by this recovery. Government economic stimulus payments, PPP loans, foreclosure moratoriums, and increasing residential real estate prices have mitigated charge offs subsequent to the COVID-19 pandemic. However, uncertainty about borrowers' ability to repay absent government stimulus programs and rapid increases in real estate values have prevented a reduction in the allowance for loan losses at this time.
Noninterest income was $3.5 million for the year ended December 31, 2022, which is a decrease of $581 thousand, or 14.4%, as compared to the prior year. The decrease in noninterest income was primarily attributable to an increase in realized losses on available for sale debt securities and a decrease in noninterest income from death proceeds of bank owned life insurance policies. Realized losses on available for sale debt securities increased by $700 thousand in 2022 as a result of restructuring the debt securities portfolio to sell lower-yielding securities and purchase new securities at substantially higher yields to maximize future interest revenue. Noninterest income from death proceeds of bank owned life insurance policies decreased by $212 thousand for the year ended December 31, 2022, as compared to the prior year. While income from the increase in cash surrender value of bank owned life insurance is generally consistent and recurring income, the income from death proceeds is not, and occurs upon the death of an insured employee or former employee. Bank owned life insurance investments recover present and long-term costs of employee benefits and compensation. Increases in debit card interchange fees, merchant payment processing fees, and overdraft fees partially offset the decrease in noninterest income associated with unrealized losses on available for sale debt securities and bank owned life insurance death proceeds.
Noninterest expense increased 8.2% from $13.2 million for the year ended December 31, 2021 to $14.3 million for the year ended December 31, 2022, and was primarily attributable to an increase salaries, marketing and data processing expenses. Salaries expense increased in 2022 by $538 thousand, or 9.4%, as compared to the prior year, including a $111 thousand decrease in salaries expense deferred for loan origination activities. Significant PPP loan origination activity in the year ended December 31, 2021 resulted in a higher percentage of salaries expense deferred for loan origination activities. The remaining increase in salaries expense was related to fulfillment of open positions and higher salaries paid to remain competitive in the current labor market. Employee benefits costs decreased in 2022 by $225 thousand, or 12.1%, as compared to the prior year, and partially offset the increases in noninterest expense related to salaries, marketing and data processing costs. Employee health insurance is provided through a partially self-funded plan and claims incurred by the plan were lower in 2022, as compared to 2021, resulting in the decrease in employee benefits costs. Increases in net interest income exceeded the increases in noninterest expense, which caused the efficiency ratio to decrease from 51.5% for the year ended December 31, 2021 to 46.9% for the year ended December 31, 2022.
Net income increased 24.1% to $11.8 million for the year ended December 31, 2022, as compared to $9.5 million for the year ended December 31, 2021, and was primarily attributable to a 21.8% increase in net interest income. Sustained growth in deposits in the last 12 months associated with the COVID-19 pandemic resulted in an increase in average assets of 12.3% for the year ended December 31, 2022, as compared to the prior year. Net income growth outpaced the growth in average assets in 2022, which resulted in the Return on Average Assets ("ROA") increasing to 1.27% for the year ended December 31, 2022, as compared to 1.15% in 2021. Return on Average Stockholders' Equity ("ROE") increased from 9.7% for the year ended December 31, 2021 to 12.3% for the year ended December 31, 2022, due to a decrease in average equity of 2.3%, as compared to an 24.1% increase in net income in the same period. The decrease in average equity is due to an increase in unrealized losses, net of deferred income taxes, on available for sale debt securities that resulted from a rapid increase in market interest rates in 2022. Dividends declared were $1.26 per share for the year ended December 31, 2022, as compared to $1.16 per share in the previous year, an increase of 8.6%. Dividend payout ratios were 21.8% for the year ended December 31, 2022, as compared to 33.8% in the previous year.
Quarterly Results of Operations
Loan interest income, including fees, increased to $5.80 million in 4Q22, as compared to $5.37 million in 4Q21 and $5.49 million in 3Q22, as the result of continued organic loan growth and higher interest income on variable rate loans. Average loan balances in 4Q22 increased by 14.7% compared to 4Q21 and 1.8% compared to 3Q22. Higher loan interest income attributable to organic loan growth was partially offset by a decrease in PPP loan interest income, including fees. PPP loan interest income, including fees, was zero in 4Q22, as compared to $734 thousand in 4Q21 and $7 thousand in 3Q22. The outstanding balance of PPP loans as of December 31, 2022 was $3 thousand. Loan yields were 4.61% in 4Q22, as compared to 4.90% in 4Q21 and 4.45% in 3Q22. PPP loan fees recognized in 4Q21 resulted in higher yields on loans during that period.
Net interest income increased to $7.8 million in 4Q22, as compared to $5.7 million in 4Q21 and $7.2 million in 3Q22. Increases in the average balances of loans and debt securities combined with higher yields on fed funds sold and debt securities in 4Q22 resulted in higher net interest income. Deposit costs in 4Q22 increased $354 thousand, or 89.0%, as compared to 3Q22. Higher deposit costs were attributable to a $4.4 million, or 0.8%, increase in the average balance of interest-bearing deposits in 4Q22, as compared to 3Q22, and an increase in the costs of interest-bearing deposits from 0.29% in 3Q22 to 0.55% in 4Q22. Deposit costs in 4Q22 increased $542 thousand, or 257.0%, as compared to 4Q21. Higher deposit costs were attributable to a $29.0 million, or 5.6%, increase in the average balance of interest-bearing deposits in 4Q22, as compared to 4Q21, and an increase in the costs of interest-bearing deposits from 0.16% in 4Q21 to 0.55% in 4Q22. Net interest margin increased to 3.44% in 4Q22, as compared to 2.63% in 4Q21 and 3.14% in 3Q22. Growth in interest income outpaced the increase in deposit costs during the same period thus increasing net interest margin.
The provision for loan losses was ($170) thousand in 4Q22, as compared to $50 thousand recorded in 3Q22, while no provision was recorded in 4Q21. Net recoveries were $589 thousand in 4Q22, as compared to net charge-offs of $11 thousand in 4Q21 and $30 thousand in 3Q22. Charge-offs in 4Q21 and 3Q22 primarily relate to overdraft deposit accounts and consumer loans. Net recoveries recorded in 4Q22 relate to the resolution of a longstanding nonaccrual loan that required partial charge-offs in previous years due to decreases in the underlying collateral values. Changes in local real estate demand following the COVID-19 pandemic resulted in substantial increases in value of the underlying collateral and resulted in full recovery of principal previously charged-off. The total recovery related to this loan was $608 thousand. Higher provision expense associated with organic loan growth, excluding PPP loans, of 5.0% in 4Q22 was partially offset by this recovery. Government economic stimulus payments, PPP loans, foreclosure moratoriums, and increasing residential real estate prices have mitigated charge offs subsequent to the COVID-19 pandemic. However, uncertainty about borrowers' ability to repay absent government stimulus programs and rapid increases in real estate values have prevented a reduction in the allowance for loan losses at this time.
Noninterest income was $343 thousand in 4Q22, as compared to $888 thousand in 4Q21 and $1.2 million in 3Q22. The decrease in noninterest income in 4Q22, as compared to 4Q21 and 3Q22, is primarily attributable to an increase in realized losses on available for sale debt securities. Realized losses on available for sale debt securities increased by $652 thousand in 4Q22, as compared to 4Q21, and increased by $657 thousand compared to 3Q22. The increase was the result of restructuring the debt securities portfolio in 4Q22 to sell lower-yielding securities and purchase new securities at substantially higher yields to maximize future interest revenue. Noninterest income from death proceeds of bank owned life insurance policies decreased by $132 thousand in 4Q22, as compared to 3Q22. While income from the increase in cash surrender value of bank owned life insurance is generally consistent and recurring income, the income from death proceeds is not, and occurs upon the death of an insured employee or former employee. Bank owned life insurance investments recover present and long-term costs of employee benefits and compensation.
Noninterest expense increased 10.4% to $4.25 million in 4Q22, as compared to $3.85 million in 4Q21, and is primarily attributable to a $190 thousand, or 10.8%, increase in salaries expense. Higher salaries expense relates to the fulfillment of open positions and higher salaries paid to remain competitive in the current labor market. Other categories of noninterest expense have also increased due to vendor price increases associated with current inflation trends including higher labor costs. Increases in net interest income in 4Q22, compared to 4Q21, far exceeded increases in noninterest expense during the same period, which caused the efficiency ratio to decrease from 58.21% in 4Q21 to 48.53% in 4Q22. Noninterest expense increased in 4Q22 by $847 thousand, or 24.9%, as compared to 3Q22, and primarily relates to yearend bonuses and contributions to the employee 401K plan based on profit sharing. The increase in noninterest expense in 4Q22, compared to 3Q22, exceeded the increase in net interest income during the same period, which caused the efficiency ratio to increase from 40.76% in 3Q22 to 48.53% in 4Q22.
Net income increased 44.3% to $3.1 million in 4Q22, as compared to $2.1 million in 4Q21, and was primarily attributable to a 35.6% increase in net interest income and decrease in the provision for loan losses. Growth in deposits during the last 12 months has slowed following the rapid growth experienced during the COVID-19 pandemic. Average assets increased 2.0% in 4Q22, as compared to 4Q21. Net income growth outpaced the growth in average assets, which resulted in the ROA increasing from 0.94% 4Q21 to 1.33% in 4Q22. ROE increased from 8.6% in 4Q21 to 13.3% in 4Q22 due to a decrease in average equity of 6.7%, as compared to a 44.3% increase in net income. The decrease in average equity is due to an increase in unrealized losses, net of deferred income taxes, on available for sale debt securities that resulted from a rapid increase in market interest rates in 2022. Dividends declared were $0.33 per share in 4Q22 compared to $0.29 per share in 4Q21, which resulted in dividend payout ratios of 29.5% for 4Q22 and 37.4% for 4Q21. Compared to the prior quarter, net income in 4Q22 decreased $619 thousand, or 16.7%, and was related to an $848 thousand decrease in noninterest income and $847 thousand increase in noninterest expense as previously noted. ROA decreased from 1.56% in 3Q22 to 1.33% in 4Q22 and ROE decreased from 15.52% in 3Q22 to 13.31% in 4Q22.
Financial Condition
Total assets were $905.9 million as of December 31, 2022, an increase of 0.2%, as compared to total assets of $904.5 million as of December 31, 2021. Asset growth has recently slowed compared to growth experienced during and immediately after the COVID-19 pandemic. Growth during the COVID-19 pandemic was primarily the result of customer behavior changes and government economic stimulus programs, which resulted in a significant increase in customer deposits and total assets. Rapid increases in market interest rates during 2022 increased unrealized losses, net of deferred income taxes, on available for sale debt securities by $13.1 million since December 31, 2021. Asset growth excluding the change in unrealized loss, net of deferred incomes taxes, was $14.6 million, or 1.6%, since December 31, 2021. Total assets have decreased by $26.7 million, or 2.9%, since September 30, 2022 which is attributable to seasonal deposit decreases and outflows of other deposits that are earning higher interest rates currently offered by short term government bond investments.
Deposits have increased 0.7% to $809.0 million as of December 31, 2022, as compared to $803.2 million as of December 31, 2021. Interest-bearing deposits increased 4.4% since December 31, 2021 while noninterest-bearing deposits have decreased 6.1% in the same period. The rapid increase in short term interest rates during 2022 has motivated customers to move funds into interest-bearing accounts. Seasonal deposit decreases and outflows of other deposits that are earning higher interest rates currently offered by short term government bond investments resulted in a decrease in total deposits of $30.5 million, or 3.6%, since September 30, 2022.
Total loans as of December 31, 2022 were $513.0 million, as compared to $434.9 million as of December 31, 2021, which represents growth of $78.2 million, or 18.0%, in the last twelve months. Loan growth, excluding PPP loans, was $84.2 million, or 19.6%, since December 31, 2021 and is the result of strong commercial and residential real estate loan demand in our markets. Repayments of PPP loans resulted in a $6.0 million decrease in PPP loans since December 31, 2021, which relate to ongoing repayments by the Small Business Administration as customers receive forgiveness of their PPP loans. Loans increased $24.5 million, or 5.0%, since September 30, 2022. PPP loans, net of unamortized loan fees, were $3 thousand as of December 31, 2022, as compared to $6.0 million as of December 31, 2021. The loans to deposits ratio as of December 31, 2022 was 63.4%, as compared to 54.1% as of December 31, 2021 and 58.2% as of September 30, 2022.
Nonaccrual loans and loans past due 30 days or more totaled $2.4 million as of December 31, 2022, as compared to $2.1 million as of December 31, 2021 and $1.3 million as of September 30, 2022. Nonaccrual loans were $95 thousand as of December 31, 2022, as compared to $247 thousand as of December 31, 2021 and $214 thousand as of September 30, 2022. The majority of nonaccrual loans and loans past due 30 days or more as of December 31, 2022 were loans secured by residential mortgages. The allowance for loan losses was $2.6 million as of December 31, 2022 and represents 0.51% of total loans.
Average assets grew by 12.3% to $926.7 million for the year ended December 31, 2022, as compared to $825.1 million for the year ended December 31, 2021. Significant average asset growth was primarily the result of customer behavior changes and government economic stimulus programs related to the COVID-19 pandemic, which resulted in a significant increase in average deposits. Average deposits increased 14.0% for the year ended December 31, 2022, as compared to the previous year. Average loans increased $30.7 million, or 6.9%, to $477.5 million for the year ended December 31, 2022, as compared to $446.8 million for the year ended December 31, 2021. Growth in average loans occurred despite a $28.9 million decrease in the average balance of PPP loans for the year ended December 31, 2022, as compared to the previous year. The average balance of other loan categories increased in 2022 by $59.6 million as commercial and residential real estate loan demand continued. The average loans to average deposits ratio decreased to 57.8% for the year ended December 31, 2022, as compared to 61.6% in 2021, and relates to significant growth in average deposits associated with the COVID-19 pandemic.
Calvin B. Taylor Bankshares, Inc. & Subsidiary
Financial Highlights
| Three Months Ended | Year Ended | |||||||||||||||||||||
| December 31, | % | December 31, | % | |||||||||||||||||||
Results of Operations |
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||
Net interest income |
$ | 7,757,754 | $ | 5,721,130 | 35.6 | % | $ | 26,403,331 | $ | 21,680,227 | 21.8 | % | ||||||||||
Provision for loan losses |
$ | (170,000 | ) | $ | - | - | $ | 105,000 | $ | 125,000 | -16.0 | % | ||||||||||
Noninterest income |
$ | 342,840 | $ | 888,386 | -61.4 | % | $ | 3,468,391 | $ | 4,049,613 | -14.4 | % | ||||||||||
Noninterest expense |
$ | 4,249,788 | $ | 3,850,768 | 10.4 | % | $ | 14,301,377 | $ | 13,213,173 | 8.2 | % | ||||||||||
Net income |
$ | 3,089,306 | $ | 2,140,748 | 44.3 | % | $ | 11,769,345 | $ | 9,480,667 | 24.1 | % | ||||||||||
Net income per share |
$ | 1.12 | $ | 0.78 | 44.5 | % | $ | 4.26 | $ | 3.43 | 24.4 | % | ||||||||||
Dividend per share |
$ | 0.33 | $ | 0.29 | 13.8 | % | $ | 1.26 | $ | 1.16 | 8.6 | % | ||||||||||
Dividend payout ratio |
29.48 | % | 37.40 | % | 21.81 | % | 33.82 | % | ||||||||||||||
Average assets |
$ | 931,189,951 | $ | 912,895,443 | 2.0 | % | $ | 926,743,588 | $ | 825,119,989 | 12.3 | % | ||||||||||
Average loans |
$ | 498,911,981 | $ | 435,123,740 | 14.7 | % | $ | 477,481,342 | $ | 446,811,889 | 6.9 | % | ||||||||||
Average deposits |
$ | 833,783,684 | $ | 810,312,556 | 2.9 | % | $ | 826,721,654 | $ | 725,385,781 | 14.0 | % | ||||||||||
Average loans to average deposits |
59.84 | % | 53.70 | % | 57.76 | % | 61.60 | % | ||||||||||||||
Average stockholders' equity |
$ | 92,830,965 | $ | 99,522,182 | -6.7 | % | $ | 95,496,485 | $ | 97,707,915 | -2.3 | % | ||||||||||
Average stockholders' equity to average assets |
9.97 | % | 10.90 | % | 10.30 | % | 11.84 | % | ||||||||||||||
Ratios |
||||||||||||||||||||||
Net interest margin |
3.44 | % | 2.64 | % | 2.98 | % | 2.79 | % | ||||||||||||||
Return on average assets |
1.33 | % | 0.94 | % | 1.27 | % | 1.15 | % | ||||||||||||||
Return on average stockholders' equity |
13.31 | % | 8.60 | % | 12.32 | % | 9.70 | % | ||||||||||||||
Efficiency ratio |
48.53 | % | 58.21 | % | 46.86 | % | 51.46 | % | ||||||||||||||
Stock Repurchased |
||||||||||||||||||||||
Number of shares |
- | 4,404 | -100.0 | % | 1,720 | 12,172 | -85.9 | % | ||||||||||||||
Repurchase amount |
$ | - | $ | 158,254 | -100.0 | % | $ | 62,797 | $ | 421,834 | -85.1 | % | ||||||||||
Average price per share |
- | $ | 35.93 | -100.0 | % | $ | 36.51 | $ | 34.66 | 5.3 | % | |||||||||||
| December 31, | December 31, | % | December 31, | September 30, | % | |||||||||||||||||
Financial Condition |
2022 | 2021 | Change | 2022 | 2022 | Change | ||||||||||||||||
Assets |
$ | 905,940,143 | $ | 904,478,786 | 0.2 | % | $ | 905,940,143 | $ | 932,633,236 | -2.9 | % | ||||||||||
Loans |
$ | 513,025,696 | $ | 434,866,477 | 18.0 | % | $ | 513,025,696 | $ | 488,548,319 | 5.0 | % | ||||||||||
Deposits |
$ | 809,008,459 | $ | 803,245,622 | 0.7 | % | $ | 809,008,459 | $ | 839,553,890 | -3.6 | % | ||||||||||
Stockholders' equity |
$ | 94,224,247 | $ | 99,088,916 | -4.9 | % | $ | 94,224,247 | $ | 90,828,716 | 3.7 | % | ||||||||||
Common stock - shares outstanding |
2,759,040 | 2,760,760 | -0.1 | % | 2,759,040 | 2,759,360 | 0.0 | % | ||||||||||||||
Book value per share |
$ | 34.15 | $ | 35.89 | -4.8 | % | $ | 34.15 | $ | 32.92 | 3.7 | % | ||||||||||
Loans to deposits |
63.41 | % | 54.14 | % | 63.41 | % | 58.19 | % | ||||||||||||||
Equity to assets |
10.40 | % | 10.96 | % | 10.40 | % | 9.74 | % | ||||||||||||||
Calvin B. Taylor Bankshares, Inc. and Subsidiary
Consolidated Balance Sheets
| (unaudited) | (unaudited) | |||||||||||
| December 31, 2022 | December 31, 2021 | September 30, 2022 | ||||||||||
Assets |
||||||||||||
Cash and cash equivalents |
||||||||||||
Cash and due from banks |
$ | 9,060,252 | $ | 9,931,724 | $ | 10,274,435 | ||||||
Federal funds sold and interest-bearing deposits |
133,316,028 | 280,331,067 | 186,358,548 | |||||||||
Total cash and cash equivalents |
142,376,280 | 290,262,791 | 196,632,983 | |||||||||
Time deposits in other financial institutions |
1,225,953 | 3,478,221 | 1,726,929 | |||||||||
Debt securities available for sale, at fair value |
167,934,059 | 128,654,564 | 168,803,379 | |||||||||
Debt securities held to maturity, at amortized cost |
39,110,156 | 13,967,244 | 35,410,939 | |||||||||
Equity securities, at cost |
748,833 | 748,833 | 748,833 | |||||||||
Restricted stock, at cost |
469,500 | 355,000 | 467,000 | |||||||||
Loans |
513,025,696 | 434,866,477 | 488,548,319 | |||||||||
Less: allowance for loan losses |
(2,624,369 | ) | (1,998,728 | ) | (2,205,383 | ) | ||||||
Net loans |
510,401,327 | 432,867,749 | 486,342,936 | |||||||||
Accrued interest receivable |
2,036,468 | 1,701,446 | 1,660,109 | |||||||||
Debt securities sold receivable |
1,789,635 | - | - | |||||||||
Prepaid expenses |
730,891 | 645,725 | 436,997 | |||||||||
Other real estate owned |
- | - | - | |||||||||
Premises and equipment, net |
12,751,025 | 12,904,446 | 12,848,920 | |||||||||
Computer software, net |
238,009 | 342,148 | 276,546 | |||||||||
Deferred income taxes, net |
4,467,476 | - | 5,013,425 | |||||||||
Bank owned life insurance and annuities |
21,398,096 | 18,223,348 | 21,244,217 | |||||||||
Other assets |
262,435 | 327,271 | 1,020,023 | |||||||||
Total assets |
$ | 905,940,143 | $ | 904,478,786 | $ | 932,633,236 | ||||||
Liabilities and Stockholders' Equity |
||||||||||||
Deposits |
||||||||||||
Noninterest-bearing |
$ | 265,805,939 | $ | 283,096,833 | $ | 306,074,106 | ||||||
Interest-bearing |
543,202,520 | 520,148,789 | 533,479,784 | |||||||||
Total deposits |
809,008,459 | 803,245,622 | 839,553,890 | |||||||||
Accrued interest payable |
75,438 | 26,029 | 48,040 | |||||||||
Dividends payable |
910,483 | 800,620 | 910,589 | |||||||||
Accrued expenses |
703,052 | 623,132 | 244,502 | |||||||||
Non-qualified deferred compensation |
654,674 | 645,716 | 614,217 | |||||||||
Deferred income taxes |
- | 6,759 | - | |||||||||
Other liabilities |
363,790 | 41,992 | 433,282 | |||||||||
Total liabilities |
811,715,896 | 805,389,870 | 841,804,520 | |||||||||
Stockholders' equity |
||||||||||||
Common stock, par value $1 per share; authorized 10,000,000 shares |
2,759,040 | 2,760,760 | 2,759,360 | |||||||||
Additional paid-in capital |
2,337,456 | 2,398,533 | 2,349,297 | |||||||||
Retained earnings |
102,963,224 | 94,670,987 | 100,784,401 | |||||||||
Accumulated other comprehensive loss, net of tax |
(13,835,473 | ) | (741,364 | ) | (15,064,342 | ) | ||||||
Total stockholders' equity |
94,224,247 | 99,088,916 | 90,828,716 | |||||||||
Total liabilities and stockholders' equity |
$ | 905,940,143 | $ | 904,478,786 | $ | 932,633,236 | ||||||
Calvin B. Taylor Bankshares, Inc. and Subsidiary
Consolidated Statements of Income (unaudited)
| For the three months ended | For the twelve months ended | |||||||||||||||
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | |||||||||||||
Interest income |
||||||||||||||||
Loans, including fees |
$ | 5,797,668 | $ | 5,370,705 | $ | 21,423,142 | $ | 20,743,244 | ||||||||
U. S. Treasury and government agency debt securities |
397,198 | 107,108 | 1,041,598 | 316,116 | ||||||||||||
Mortgage-backed debt securities |
636,438 | 253,779 | 1,826,957 | 763,388 | ||||||||||||
State and municipal debt securities |
105,325 | 57,812 | 412,724 | 204,809 | ||||||||||||
Federal funds sold and interest-bearing deposits |
1,567,249 | 118,048 | 3,262,234 | 296,319 | ||||||||||||
Time deposits in other financial institutions |
6,185 | 24,421 | 34,842 | 139,461 | ||||||||||||
Total interest income |
8,510,063 | 5,931,873 | 28,001,497 | 22,463,337 | ||||||||||||
Interest expense |
||||||||||||||||
Deposits |
752,309 | 210,743 | 1,598,166 | 783,110 | ||||||||||||
Net interest income |
7,757,754 | 5,721,130 | 26,403,331 | 21,680,227 | ||||||||||||
Provision for loan losses |
(170,000 | ) | - | 105,000 | 125,000 | |||||||||||
Net interest income after provision for loan losses |
7,927,754 | 5,721,130 | 26,298,331 | 21,555,227 | ||||||||||||
Noninterest income |
||||||||||||||||
Debit card and ATM |
358,558 | 351,665 | 1,449,508 | 1,394,789 | ||||||||||||
Service charges on deposit accounts |
241,731 | 220,951 | 949,622 | 776,076 | ||||||||||||
Merchant payment processing |
93,613 | 90,453 | 490,147 | 454,985 | ||||||||||||
Income from bank owned life insurance and annuities |
155,216 | 79,862 | 399,518 | 362,890 | ||||||||||||
Income from bank owned life insurance death proceeds |
1,755 | 3,992 | 410,684 | 622,455 | ||||||||||||
Dividends |
47,552 | 39,780 | 64,879 | 57,746 | ||||||||||||
Gain (loss) on disposition of investment securities |
(657,178 | ) | (5,456 | ) | (649,515 | ) | 50,869 | |||||||||
Loss on disposition of fixed assets |
(20,601 | ) | (13,875 | ) | (20,541 | ) | (24,564 | ) | ||||||||
Miscellaneous |
122,194 | 121,014 | 374,089 | 354,367 | ||||||||||||
Total noninterest income |
342,840 | 888,386 | 3,468,391 | 4,049,613 | ||||||||||||
Noninterest expenses |
||||||||||||||||
Salaries |
1,958,714 | 1,768,257 | 6,289,401 | 5,751,045 | ||||||||||||
Employee benefits |
636,891 | 654,364 | 1,631,081 | 1,856,256 | ||||||||||||
Occupancy |
255,728 | 238,192 | 964,046 | 925,648 | ||||||||||||
Furniture and equipment |
202,682 | 188,168 | 860,933 | 777,574 | ||||||||||||
Data processing |
241,435 | 178,358 | 855,900 | 727,825 | ||||||||||||
Debit card and ATM |
159,966 | 157,161 | 635,243 | 545,657 | ||||||||||||
Marketing |
85,356 | 105,901 | 460,015 | 304,173 | ||||||||||||
Directors fees |
74,550 | 68,100 | 312,350 | 311,650 | ||||||||||||
Telecommunication services |
86,207 | 81,915 | 316,534 | 328,468 | ||||||||||||
Deposit insurance premiums |
65,910 | 60,300 | 248,288 | 217,306 | ||||||||||||
Other operating |
482,349 | 350,052 | 1,727,586 | 1,467,571 | ||||||||||||
Total noninterest expenses |
4,249,788 | 3,850,768 | 14,301,377 | 13,213,173 | ||||||||||||
Income before income taxes |
4,020,806 | 2,758,748 | 15,465,345 | 12,391,667 | ||||||||||||
Income taxes |
931,500 | 618,000 | 3,696,000 | 2,911,000 | ||||||||||||
Net income |
$ | 3,089,306 | $ | 2,140,748 | $ | 11,769,345 | $ | 9,480,667 | ||||||||
Earnings per common share - basic and diluted |
$ | 1.12 | $ | 0.78 | $ | 4.26 | $ | 3.43 | ||||||||
Calvin B. Taylor Bankshares, Inc. and Subsidiary
Consolidated Statements of Comprehensive Income (unaudited)
| For the three months ended | For the twelve months ended | |||||||||||||||
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | |||||||||||||
Net income |
$ | 3,089,306 | $ | 2,140,748 | $ | 11,769,345 | $ | 9,480,667 | ||||||||
Other comprehensive income (loss) |
||||||||||||||||
Net unrealized gain (loss) on available for sale debt securities, net of deferred income tax |
1,228,869 | (846,440 | ) | (13,094,109 | ) | (1,548,567 | ) | |||||||||
Total other comprehensive income (loss) |
1,228,869 | (846,440 | ) | (13,094,109 | ) | (1,548,567 | ) | |||||||||
Total comprehensive income (loss) |
$ | 4,318,175 | $ | 1,294,308 | $ | (1,324,764 | ) | $ | 7,932,100 | |||||||
Calvin B. Taylor Bankshares, Inc. and Subsidiary
Consolidated Statements of Cash Flows (unaudited)
| For the three months ended | For the twelve months ended | |||||||||||||||
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | |||||||||||||
Cash flows from operating activities |
||||||||||||||||
Net income |
$ | 3,089,306 | $ | 2,140,748 | $ | 11,769,345 | $ | 9,480,667 | ||||||||
Adjustments to reconcile net income to net cash provided by |
||||||||||||||||
operating activities |
||||||||||||||||
Premium amortization and discount accretion |
89,722 | 213,683 | 627,443 | 769,325 | ||||||||||||
Loss (gain) on disposition of investment securities |
657,178 | 5,456 | 649,515 | (50,869 | ) | |||||||||||
Provision for loan losses |
(170,000 | ) | - | 105,000 | 125,000 | |||||||||||
Depreciation and amortization |
236,376 | 235,114 | 943,882 | 963,237 | ||||||||||||
Loss on disposition of premises, equipment, and software |
20,601 | 13,875 | 20,541 | 24,564 | ||||||||||||
Income from bank owned life insurance and annuities |
(155,216 | ) | (124,473 | ) | (399,518 | ) | (407,501 | ) | ||||||||
Income from bank owned life insurance death proceeds |
(1,755 | ) | (3,982 | ) | (410,684 | ) | (622,445 | ) | ||||||||
Accrued and deferred income taxes |
(233,362 | ) | (91,501 | ) | 77,423 | 393,548 | ||||||||||
Decrease (increase) in |
||||||||||||||||
Deferred loan fees and costs, net |
18,053 | (633,214 | ) | (41,942 | ) | (113,035 | ) | |||||||||
Accrued interest receivable |
(376,359 | ) | 55,141 | (335,022 | ) | 700,776 | ||||||||||
Other assets |
463,691 | (107,826 | ) | (154,232 | ) | 339,385 | ||||||||||
Increase (decrease) in other liabilities |
608,443 | 482,298 | 436,960 | 173,281 | ||||||||||||
Net cash provided by operating activities |
4,246,678 | 2,185,319 | 13,288,711 | 11,775,933 | ||||||||||||
Cash flows from investing activities |
||||||||||||||||
Time deposits matured, net of purchases |
499,999 | 2,000,000 | 2,248,000 | 5,250,000 | ||||||||||||
Available for sale debt securities |
||||||||||||||||
Sales |
11,783,906 | 2,715,037 | 12,097,904 | 10,149,255 | ||||||||||||
Maturities, prepayments and calls |
5,985,343 | 8,575,189 | 18,733,714 | 27,161,328 | ||||||||||||
Purchases |
(15,745,155 | ) | (20,746,368 | ) | (88,847,204 | ) | (96,571,247 | ) | ||||||||
Held to maturity debt securities |
||||||||||||||||
Maturities, prepayments and calls |
- | 3,000,000 | - | 7,000,000 | ||||||||||||
Purchases |
(5,531,561 | ) | (14,991,229 | ) | (26,961,340 | ) | (14,991,229 | ) | ||||||||
Loans originated, net of principal reductions |
(23,906,443 | ) | 11,593,412 | (77,596,636 | ) | (11,248,399 | ) | |||||||||
Liquidating distribution from equity security |
- | - | 7,018 | - | ||||||||||||
Purchase of restricted stock, at cost |
(2,500 | ) | - | (114,500 | ) | - | ||||||||||
Redemption of restricted stock, at cost |
- | - | - | 136,400 | ||||||||||||
Proceeds from sale of premises and equipment |
- | - | 60 | 3,449 | ||||||||||||
Purchases of premises, equipment, and computer software |
(120,545 | ) | (623,998 | ) | (706,923 | ) | (897,098 | ) | ||||||||
Bank owned life insurance death proceeds |
1,755 | (11 | ) | 1,312,710 | 1,269,408 | |||||||||||
Purchase of bank owned life insurance and annuities |
- | - | (3,680,821 | ) | (5,057,031 | ) | ||||||||||
Net cash used by investing activities |
(27,035,201 | ) | (8,477,968 | ) | (163,508,018 | ) | (77,795,164 | ) | ||||||||
Cash flows from financing activities |
||||||||||||||||
Net increase (decrease) in |
||||||||||||||||
Time deposits |
(92,754 | ) | 404,927 | (141,665 | ) | 8,236,755 | ||||||||||
Other deposits |
(30,452,678 | ) | (5,062,019 | ) | 5,904,503 | 180,571,787 | ||||||||||
Common shares repurchased |
(12,160 | ) | (158,254 | ) | (62,797 | ) | (421,834 | ) | ||||||||
Dividends paid |
(910,588 | ) | (801,897 | ) | (3,367,245 | ) | (3,210,010 | ) | ||||||||
Net cash provided by financing activities |
(31,468,180 | ) | (5,617,243 | ) | 2,332,796 | 185,176,698 | ||||||||||
Net increase (decrease) in cash and cash equivalents |
(54,256,703 | ) | (11,909,892 | ) | (147,886,511 | ) | 119,157,467 | |||||||||
Cash and cash equivalents at beginning of period |
196,632,983 | 302,172,683 | 290,262,791 | 171,105,324 | ||||||||||||
Cash and cash equivalents at end of period |
$ | 142,376,280 | $ | 290,262,791 | $ | 142,376,280 | $ | 290,262,791 | ||||||||
Supplemental disclosure of cash flow information |
||||||||||||||||
Cash payments for: |
||||||||||||||||
Interest |
$ | 724,911 | $ | 211,544 | $ | 1,548,757 | $ | 783,918 | ||||||||
Income taxes |
$ | 1,164,862 | $ | 703,501 | $ | 3,618,577 | $ | 2,517,452 | ||||||||
###
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 12 banking locations within the eastern coastal area of the Delmarva Peninsula including Worcester County, Maryland, Sussex County, Delaware and Accomack County, Virginia.
Contact
M. Dean Lewis, Senior Vice President and Chief Financial Officer
410-641-1700, taylorbank.com
SOURCE: Calvin B. Taylor Bankshares, Inc.
View source version on accesswire.com:
https://www.accesswire.com/740250/Calvin-B-Taylor-Bankshares-Inc-Reports-Fourth-Quarter-and-Year-End-Financial-Results-for-2022
