Calvin B. Taylor Bankshares, Inc. Announces Annual Dividend and Financial Results for the Nine Months Ended September 30, 2017

BERLIN, Md., Oct. 26, 2017 /PRNewswire/ -- Calvin B. Taylor Bankshares, Inc. (OTCQX: TYCB), parent company of Calvin B. Taylor Bank, announced today that the Board of Directors has declared an annual cash dividend of $0.98 per share.  This is the 27th consecutive year that the Board of Directors has increased the regular annual cash dividend.  This dividend is payable on December 29, 2017 to stockholders of record as of the close of business on November 8, 2017.   

Calvin B. Taylor Bankshares, Inc. also reported today the unaudited financial results for the nine months ended September 30, 2017.  Selected highlights of the company's financial performance are included below.

Total assets of the Company grew $49.8 million or 10.2% since December 31, 2016 and totaled $539.2 million as of September 30, 2017.  Furthermore, growth in total assets since June 30, 2017 was $35.4 million or 7.0%.  The increase was primarily a result of seasonal growth in deposits which increased to $449.3 million as of September 30, 2017, an increase of $45.4 million or 11.2% since December 31, 2016 and an increase of $32.2 million or 7.7% since June 30, 2017.  Seasonal deposit growth was primarily deployed into liquid assets due to expected seasonal deposit outflows in the next 6 months.  The loan portfolio increased $18.3 million or 6.9% since the previous year end while remaining flat since the end of the previous quarter.  Repayments of seasonal borrowings by customers who operate tourism based businesses in the local beach resort areas offset new loan originations this quarter.  Earnings growth of 14.2% during the first nine months of 2017 exceeded average asset growth of 2.9% and average equity growth of 0.9% during the same period.  As a result, Return on Average Assets (ROAA) and Return on Equity (ROE) for the first nine months of 2017 increased to 1.13% and 6.91%, respectively.    

Net income for the nine months ended September 30, 2017 was $4.2 million, an increase of $526 thousand or 14.2% compared to the same period last year.  The primary contributor to the increase in net income was a $747 thousand or 6.7% increase in net interest income which was the result of organic loan growth, higher investment yields and increases in the Federal Funds interest rate.   Net income also increased due to a reduction in the provision for loan losses by $320 thousand, a decrease of 94.1% compared to the same period last year.  The reduced provision expense was primarily the result of a reduction in loan charge offs by $174 thousand and an increase in loan recoveries by $92 thousand.  Higher net interest income and lower provision expense in the nine months ended September 30, 2017 were partially offset by a $426 thousand or 6.3% increase in non-interest expense during the same period.  Non-interest expense increases were primarily due to higher salaries and employee benefits costs. 

Earnings per share increased 16.4% to $1.49 per share for the nine months ended September 30, 2017, compared to $1.28 per share for the nine months ended September 30, 2016.  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 69,218 shares during the nine months ended September 30, 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 15.51% as of September 30, 2017.  This capital ratio also decreased from 16.33% as of June 30, 2017.  Growth in total assets and the use of capital to repurchase stock contributed to the decrease in the capital ratio.                 

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.    

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SOURCE Calvin B. Taylor Bankshares, Inc.