Calvin B. Taylor Bankshares, Inc. Reports Third Quarter 2023 Financial Results

BERLIN, MD / ACCESSWIRE / December 7, 2023 / Calvin B. Taylor Bankshares, Inc. (the "Company") (OTCQX:TYCB), the holding company of Calvin B. Taylor Bank (the "Bank"), today reported unaudited financial results for the third quarter ended September 30, 2023. Highlights of the Company's financial results are noted below.

  • Net income for the nine months ended September 30, 2023 was $10.7 million which is a 23.8% increase compared to the same period in 2022.
  • Quarterly net income increased 11.5% to $4.1 million for the third quarter of 2023 as compared to the third quarter of 2022 and increased 25.8% compared to the previous quarter.
  • Return on Average Assets increased to 1.81% for the third quarter of 2023 and 1.60% for the nine months ended September 30, 2023.
  • Return on Average Equity increased to 16.52% for the third quarter of 2023 and 14.51% for the nine months ended September 30, 2023.
  • Net interest margin increased to 3.64% in the third quarter of 2023, as compared to 3.14% in the third quarter of 2022 and 3.55% in the previous quarter.
  • Organic loan growth continued in 2023 with loans growing $42.2 million, or 8.2%, since December 31, 2022. Loans have increased $66.6 million, or 13.6%, in the twelve months ended September 30, 2023.
  • Deposits decreased by $11.5 million or 1.4% since December 31, 2022 as a result of higher interest rates currently offered by short term government bond investments. Seasonal deposit inflows during the third quarter of 2023 related to the summer tourism season partially offset the deposit outflows seeking higher interest rates. The Company did not experience any significant outflow of uninsured deposits during the nine months ended September 30, 2023.
  • Following several years of significant growth, deposits decreased by $42.0 million or 5.0% in the previous 12 months which resulted in total assets decreasing by $33.0 million, or 3.5% since September 30, 2022.
  • On-balance sheet liquidity, as measured by cash and unencumbered available for sale debt securities, remains strong as of September 30, 2023 and equaled 30.7% of total deposits.
  • Noncore funding sources including Federal Home Loan Bank borrowings, brokered deposits, and the recently created Federal Reserve Bank Term Funding Program were not utilized in the nine months ended September 30, 2023.

President and Chief Executive Officer Raymond M. Thompson commented, "Strong earnings performance continued through the third quarter of 2023. Net income thru the first nine months of 2023 was $10.7 million, an increase of 23.8% over the prior year. Organic loan growth and higher market interest rates continued expansion of net interest margin contributing to higher earnings. Loan demand has continued in the local market despite higher interest rates. As of September 30, 2023, loans increased 8.2% compared to December 31, 2022, and 13.6% compared to September 30, 2022. Modest deposit outflow continued in the current quarter, however, the Bank continued to maintain strong liquidity. Total deposits have decreased 1.4% since December 31, 2022 and 5.0% since September 30, 2022. Deposit outflow reports reveal that interest rate sensitive deposits are predominately moving to short term U.S. Treasury securities and other short term bond investments. Despite continued deposit outflow, on-balance sheet liquidity was 30.7% as of September 30, 2023 and the Bank continued to have no need to access other non-core funding sources to meet loan demand and other obligations. We continue to remain highly liquid and well-capitalized, and very well-positioned to meet the loan and deposit needs of our loyal existing, and prospective customers."

Quarterly Results of Operations
Quarterly net income was $4.13 million for the third quarter ended September 30, 2023 ("3Q23"), as compared to $3.71 million for the third quarter ended September 30, 2022 ("3Q22") and $3.29 million for the second quarter ended June 30, 2023 ("2Q23"). A summary of the quarterly results of operations are included in the table and comments that follow.

For the Quarters Ended % Change
Results of Operations
Sept 30, 2023 Sept 30, 2022 Jun 30, 2023 Prior Year Prior Quarter
Net interest income
$8,009,970 $7,158,425 $7,415,953 11.9% 8.0%
Provision for credit losses
$(80,000) $50,000 $240,000 -260.0% -133.3%
Noninterest income
$1,063,019 $1,190,606 $936,651 -10.7% 13.5%
Noninterest expense
$3,863,655 $3,403,017 $3,895,207 13.5% -0.8%
Net income
$4,133,334 $3,708,014 $3,285,897 11.5% 25.8%

Yield on earning assets
4.34% 3.31% 4.20% 31.1% 3.3%
Cost of interest-bearing deposits
1.15% 0.29% 1.05% 296.6% 9.5%
Net interest margin
3.64% 3.14% 3.55% 15.9% 2.5%
Return on average assets (annualized)
1.81% 1.56% 1.50% 16.0% 20.7%
Return on average equity (annualized)
16.52% 15.52% 13.24% 6.4% 24.8%
Efficiency ratio
42.19% 40.76% 46.32% 3.5% -8.9%

Net interest income increased $852 thousand or 11.9% in 3Q23, as compared to 3Q22, which is attributable to organic loan growth and higher yields on debt securities, fed funds sold and loans. The Federal Reserve Bank has increased fed funds rates 300 bps since September 22, 2022, which has increased yields on debt securities and fed funds sold from 2.29% in 3Q22 to 5.40% in 3Q23 and also increased yields on loans from 4.45% to 4.93% in the same period. Interest revenue from loans increased $1.4 million in 3Q23, as compared to 3Q22, due to higher yields and a 13.7% increase in average loan balances in the same period. Costs of interest-bearing deposits increased 86 bps in 3Q23, as compared 3Q22, as deposit rates have been increased over the last 12 months to remain competitive in local markets and to preserve on-balance sheet liquidity. Net interest income increased 8.0% to $8.0 million in 3Q23, as compared to the previous quarter, as a result of seasonal deposit increases and the related increase in fed funds sold. The average balance of deposits increased $35.4 million or 4.6% in 3Q23, as compared to the previous quarter, while the average balance of fed funds sold increased $42.6 million or 76.1% during the same period. Yields on earning-assets increased to 4.34% in 3Q23, as compared to 4.21% in 2Q23, as the Federal Reserve increased fed funds rates an additional 25 bps since June 30, 2023.

On January 1, 2023 the Company adopted the current expected credit losses ("CECL") model pursuant to ASU 2016-13. The estimate of expected credit losses considers historical information, current information, and supportable forecasts, including estimates of prepayments. The negative provision for credit losses of $80 thousand recorded in 3Q23 was primarily the result of a loan recovery recorded during the same period. No significant changes in the economic indicators and related forecasts utilized in the CECL model were noted in 3Q23. The provision for credit losses of $50 thousand in 3Q22 and $240 thousand in 2Q23 were the result of growth in the loan portfolio during those periods.

Noninterest income decreased in 3Q23 by $128 thousand or 10.7%, as compared to 3Q22, due to a $133 thousand decrease in income from bank owned life insurance death proceeds and $84 thousand increase in realized losses on sale of debt securities. Realized losses of $84 thousand were recorded in 3Q23 related to the sale of lower-yielding debt securities at a loss so proceeds could be reinvested into new securities or fund loans at substantially higher yields to maximize future interest revenue. A gain on the transfer of other real estate owned of $101 thousand was recognized in 3Q23 which partially offset the decreases in noninterest income during the period. Noninterest income increased in 3Q23 by $126 thousand or 13.5%, as compared to 2Q23, due to seasonal increases in merchant payment processing revenue and the gain on the transfer of other real estate owned of $101 thousand recognized in 3Q23.

Current quarter noninterest expense increased by $461 thousand or 13.5%, as compared to 3Q22, and is a result of increases in employee salaries, employee benefits expenses, and deposit insurance premiums assessed by the FDIC. Higher salaries expense relates to the fulfillment of open positions and higher salaries paid to remain competitive in the current labor market and resulted in a 9.1% increase in salaries expense in 3Q23, as compared to 3Q22. Employee health insurance is provided through a partially self-funded plan and claims incurred by the plan were higher in 3Q23, resulting in the increase in employee benefits costs by 15.2%, as compared to 3Q22. Deposit insurance premiums increased by $45k or 71.6% in 3Q23, as compared to the same period last year, and is the result of a change in the FDIC assessment calculation effective January 1, 2023. The Bank is subject to the minimum deposit insurance assessment imposed by the FDIC as a result of strong levels of capital and other regulatory measurements. The changes implemented by the FDIC resulted in the increase of the minimum assessment from 3 bps to 5 bps which is a 66.6% increase. Noninterest expense decreased in 3Q23 by $32 thousand or 0.8%, as compared to the previous quarter, which primarily relates to a 19.5% decrease in employee benefits expenses attributable to a decrease in claims in the current quarter.

Quarterly per share data and repurchases of stock by the Company for each period is included in the following table. The stock repurchase plan previously adopted by the Board of Directors remains in place and as of September 30, 2023 has 53,628 shares available to be repurchased. The amount and timing of future stock repurchases will depend upon several factors including regulatory capital requirements, market value of the Company's stock, general market and economic conditions, liquidity, and other relevant considerations, as determined by the Company.


At or for the Quarters Ended % Change
Per Share Data
Sept 30, 2023 Sept 30, 2022 Jun 30, 2023 Prior Year Prior Quarter
Net income
$1.50 $ 1.34 $ 1.19 11.7%26.0%
Dividends
$0.34 $ 0.33 $ 0.34 3.0%0.0%
Dividend payout ratio
22.65%24.55%28.50%-7.7%-20.5%
Book value
$35.98 $ 32.92 $ 35.98 9.3%0.0%
Book value excluding OCI
$41.83 $ 38.38 $ 40.67 9.0%2.9%
Market value
$42.25 $ 38.00 $ 42.00 11.2%0.6%

Number of shares repurchased
- - 4,954
Repurchase amount
$- $ - $ 198,023
Average repurchase price
$- $ - $ 39.97

Year to Date Results of Operations
Net income was $10.7 million for the nine months ended September 30, 2023 as compared to $8.7 million for the nine months ended September 30, 2022, an increase of $2.1 million or 23.8%. A summary of the year to date results of operations are included in the table and comments that follow.


For the Nine Months Ended % Change
Results of Operations
Sept 30, 2023 Sept 30, 2022 Prior Year
Net interest income
$22,842,198 $18,645,577 22.5%
Provision for credit losses
$340,000 $275,000 23.6%
Noninterest income
$2,950,670 $3,125,551 -5.6%
Noninterest expense
$11,569,301 $10,051,589 15.1%
Net income
$10,747,567 $8,680,039 23.8%

Yield on earning assets
4.20% 2.96% 42.1%
Cost of interest-bearing deposits
1.03% 0.21% 388.9%
Net interest margin
3.57% 2.82% 26.5%
Return on average assets (annualized)
1.60% 1.25% 28.3%
Return on average equity (annualized)
14.51% 12.04% 20.5%
Efficiency ratio
44.61% 46.17% -3.4%

Net interest income increased $4.2 million or 22.5% for the nine months ended September 30, 2023, as compared to same period last year, and was attributable to organic loan growth and higher yields on debt securities, fed funds sold and loans. The Federal Reserve Bank has increased fed funds rates 300 bps since September 22, 2022, which has increased yields on debt securities, fed funds sold, and loans. Organic loan growth combined with higher yields increased interest revenue from loans by $4.3 million or 27.2% for the nine months ended September 30, 2023, as compared to the same period in the prior year. Interest revenue from debt securities and fed funds sold increased by $3.2 million or 82.0% for the nine months ended September 30, 2023, as compared to the same period in 2022. Loan balances increased $66.6 million or 13.6% since September 30, 2022 and the growth was primarily funded by decreases in debt securities and fed funds sold which decreased by $100.4 million or 24.9% in the same period. Costs of interest-bearing deposits increased by 82 bps for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022. Deposit rates have been increased over the last 12 months to remain competitive in local markets and to preserve on-balance sheet liquidity. Deposit interest expense has increased $3.2 million or 380.9% for the nine months ended September 30, 2023, as compared to the same period in 2022.

On January 1, 2023 the Company adopted the CECL model pursuant to ASU 2016-13. The estimate of expected credit losses considers historical information, current information, and supportable forecasts, including estimates of prepayments. The provision for credit losses of $340 thousand recorded for the nine months ended September 30, 2023 was primarily the result of growth in the loan portfolio during the same period. No significant changes in the economic indicators and related forecasts utilized in the CECL model were noted in 2023.

Noninterest income for the nine months ended September 30, 2023 decreased by $175 thousand or 5.6%, as compared to the nine months ended September 30, 2022, due to a decrease in income from death proceeds of bank owned life insurance policies. Nonrecurring income of $409 thousand was recognized in the nine months ended September 30, 2022 related to death proceeds of bank owned life insurance policies. Increases in realized losses on disposition of debt securities also reduced noninterest income by $143 thousand when comparing the same periods. Restructuring of the debt securities portfolio in 2023 resulted in the sale of lower-yielding debt securities at a loss so proceeds could be reinvested into new securities or fund loans at substantially higher yields to maximize future interest revenue. Increases in other sources of noninterest income including income from bank owned life insurance, gain on transfer of other real estate owned, and deposit network placement fees partially offset the aforementioned decreases in noninterest income.

Noninterest expense for the nine months ended September 30, 2023 increased by $1.5 million or 15.1%, as compared to the same period in 2022, and is primarily the result of increases in employee salaries, employee benefits expenses, data processing costs, and deposit insurance premiums assessed by the FDIC. Higher salaries expense relates to the fulfillment of open positions and higher salaries paid to remain competitive in the current labor market and resulted in a 7.5% increase in year to date salaries expense compared to the prior year. Employee health insurance is provided through a partially self-funded plan and year to date claims incurred by the plan were higher in 2023, resulting in the increase in year to date employee benefits costs by $497 thousand or 49.9% in 2023. Claims incurred by the plan in the nine months ended September 30, 2022 were well below average and resulted in lower expenses during this period. Deposit insurance premiums increased by $120k or 66.0% for the nine months ended September 30, 2023, as compared to the same period last year, and is the result of a change in the FDIC assessment calculation effective January 1, 2023. The Bank is subject to the minimum deposit insurance assessment imposed by the FDIC as a result of strong levels of capital and other regulatory measurements. The changes implemented by the FDIC resulted in the increase of the minimum assessment from 3 bps to 5 bps which is a 66.6% increase.

Per share data and repurchases of stock by the Company for each period is included in the following table.


At or for the Nine Months Ended % Change
Per Share Data
Sept 30, 2023 Sept 30, 2022 Prior Year
Net income
$ 3.90 $ 3.14 24.0%
Dividends
$ 1.01 $ 0.93 8.6%
Dividend payout ratio
25.89% 29.57% -12.4%
Book value
$ 35.98 $ 32.92 9.3%
Book value excluding OCI
$ 41.83 $ 38.38 9.0%
Market value
$ 42.25 $ 38.00 11.2%

Number of shares repurchased
4,954 1,400 253.9%
Repurchase amount
$ 198,023 $ 50,637 291.1%
Average repurchase price
$ 39.97 $ 36.17 10.5%

Financial Condition
Disruption in the banking industry earlier this year has highlighted the importance of deposit insurance, core deposits, liquidity and capital. The Company relies mostly on core deposits, as defined by bank regulators, which are gathered from customers in local markets. The Company and the Bank remain well-capitalized according to regulatory capital standards and exceed the threshold to be considered well-capitalized (Community Bank Leverage Ratio) by more than 35% as of September 30, 2023. The Company's financial condition at quarter end is summarized in the table and comments that follow.


At or for the Quarters Ended % Change
Financial Condition
Sept 30, 2023 Sept 30, 2022 Jun 30, 2023 Prior Year Prior Quarter
Assets
$899,714,244 $932,633,236 $886,325,009 -3.5% 1.5%
Cash + unencumbered debt securities
$244,545,021 $347,123,364 $227,516,889 -29.6% 7.5%
Loans
$555,192,827 $488,548,319 $560,033,006 13.6% -0.9%
Deposits
$797,524,704 $839,553,890 $784,337,394 -5.0% 1.7%
Interest-bearing deposits
$523,634,274 $533,479,784 $523,380,027 -1.8% 0.0%
Stockholders' equity
$99,105,109 $90,828,716 $99,083,210 9.1% 0.0%
Common stock - shares outstanding
2,754,086 2,759,360 2,754,086 -0.2% 0.0%
Stockholders' equity / assets
11.02%9.74%11.18% 13.1% -1.4%

Average assets
$914,671,398 $947,954,951 $877,431,152 -3.5% 4.2%
Average loans
$557,482,431 $490,127,223 $560,255,486 13.7% -0.5%
Average deposits
$808,860,861 $847,367,488 $773,425,984 -4.5% 4.6%
Average stockholders' equity
$100,064,043 $95,536,708 $99,251,206 4.7% 0.8%

Average stockholders' equity / average assets
10.94%10.08%11.31% 8.6% -3.3%
Tier 1 capital to average assets (leverage ratio)
12.42%11.06%12.59% 12.3% -1.3%

Following several years of significant growth, deposits decreased by $42.0 million or 5.0% in the previous 12 months which resulted in total assets decreasing by $33.0 million, or 3.5% since September 30, 2022. Significant increases in short term interest rates have encourage certain depositors to invest excess cash into short term government bonds resulting in a decrease in deposits. During the nine months ended September 30, 2023, deposits decreased by $11.5 million or 1.4% as a result of outflows of deposits seeking higher yields from short term government bonds. Seasonal deposit inflows during 3Q23 related to the summer tourism season partially offset the deposit outflows seeking higher yields. The Bank operates with a high level of core deposits which are defined by banking regulators as checking, money market, and savings accounts plus any time deposits less than $250,000. Bank failures earlier this year have increased the focus on concentrations of uninsured deposits. All deposit accounts with a balance in excess of the FDIC insurance limit of $250,000 are disclosed on quarterly regulatory reports filed with bank regulators. As of September 30, 2023, the Bank had deposit accounts with balances in excess of $250,000 totaling $236.4 million which represents 29.6% of total deposits, as compared to $221.9 million or 28.3% of total deposits as of June 30, 2023 and $258.9 million or 32.0% as of December 31, 2022. The Company did not experience any significant outflow of uninsured deposits during the nine months ended September 30, 2023. The Bank is a member of the IntraFi Network which enables large depositors access to multi-million dollar FDIC insurance for funds placed into the network and provides an equal amount of reciprocal deposits under FDIC insurance limits to the bank. Recent events in the banking industry led to an increase in usage of the IntraFi Network by existing and new customers. Reciprocal deposits from the IntraFi Network were $94.4 million as of September 30, 2023, as compared to $93.8 million and $82.8 million as of June 30, 2023 and December 31, 2022, respectively.

On-balance sheet liquidity, as measured by cash and unencumbered available for sale debt securities, remains strong as of September 30, 2023 and equaled 30.7% of total deposits. Selected liquidity metrics are summarized in the table below.


At or for the Quarters Ended % Change
Liquidity
Sept 30, 2023 Sept 30, 2022 Jun 30, 2023 Prior Year Prior Quarter
Cash + unencumbered debt securities / deposits
30.66% 41.35% 29.01% -25.8% 5.7%
Debt securities pledged / total debt securities
11.59% 12.30% 11.57% -5.8% 0.2%
Loans / deposits
69.61% 58.19% 71.40% 19.6% -2.5%
Average loans / average deposits
68.92% 57.84% 72.44% 19.2% -4.9%
Core deposits / total assets
88.45% 89.72% 88.27% -1.4% 0.2%
Deposits > $250,000 / total deposits
29.63% 38.20% 28.29% -22.4% 4.7%

Noncore funding sources are available to the Bank but are intended for contingency funding needs and not to pursue growth. As of September 30, 2023, the Bank has the ability to borrow up to $202.9 million from the Federal Home Loan Bank ("FHLB") that would require pledging of loans and/or debt securities as collateral. Debt securities currently pledged are collateral for public deposits.

Loans and Asset Quality

Increasing interest rates, economic uncertainty and other factors have impacted current loan demand as compared to demand experienced in the previous 12 months. Conversely, funding of previously committed construction loans, localized demand for commercial and residential real estate loans, and seasonal borrowings during the first nine months of 2023 resulted in continued organic loan growth with loans increasing $42.2 million or 8.2% since December 31, 2022. Loan growth of $66.6 million or 13.6% in the previous 12 months was the result of strong demand for local real estate and borrowers seeking to lock in lower interest rates as the Federal Reserve engaged in aggressive interest rate increases during the same period. Growth in the loan portfolio during the rising interest rate environment over the last 12 months along with variable rate loans within the portfolio has expanded the yield on loans from 4.45% in 3Q22 to 4.93% in 3Q23. Loan yields increased 4 bps in 3Q23 as compared to 2Q23.

Loan performance has remained strong over the past 12 months as local economic conditions have remained stable. Inflation and higher interest rates have not resulted in a deterioration of credit quality as of September 30, 2023. Past due loans have increased to 0.49% of total loans as of September 30, 2023, as compared to 0.25% as of September 30, 2022 and 0.36% as of June 30, 2023. Increases in past due loans relate primarily to residential mortgages which are well secured. The allowance for credit losses increased from 0.45% of total loans as of September 30, 2022 to 0.63% of total loans as of September 30, 2023 was primarily related to adoption of the CECL model pursuant to ASU 2016-13 on January 1, 2023. The adoption of the CECL model resulted in an increase in the allowance for credit losses of $826 thousand. Selected asset quality metrics are summarized in the table below.


At or for the Quarters Ended % Change
Asset Quality
Sept 30, 2023 Sept 30, 2022 Jun 30, 2023 Prior Year Prior Quarter
Allowance for credit losses / total loans
0.63% 0.45% 0.62% 38.9% 1.7%
Net charge-offs (recoveries) / average loans
-0.01% 0.01% 0.00% -247.0% -465.6%
Loans past due 30 days or more / total loans
0.49% 0.25% 0.36% 95.9% 35.1%
Non-accrual loans / total loans
0.04% 0.04% 0.02% -1.9% 168.5%

Financial Statements
Consolidated balance sheets at period end and consolidated statements of income for the periods ended are presented below.

Consolidated Balance Sheets






(unaudited)

(unaudited)
Sept 30,
2023
Dec 31,
2022
Sept 30,
2022
Assets






Cash and cash equivalents






Cash and due from banks
$10,541,773 $9,060,252 $10,274,435
Federal funds sold and interest bearing deposits
87,769,625 133,316,028 186,358,548
Total cash and cash equivalents
98,311,398 142,376,280 196,632,983
Time deposits in other financial institutions
- 1,225,953 1,726,929
Debt securities available for sale, at fair value
161,582,511 167,934,059 168,803,379
Debt securities held to maturity, at amortized cost
42,306,978 39,110,156 35,410,939
Equity securities, at cost
748,833 748,833 748,833
Restricted stock, at cost
651,500 469,500 467,000
Loans
555,192,827 513,025,696 488,548,319
Less: allowance for credit losses
(3,482,333) (2,624,369) (2,205,383)
Net loans
551,710,494 510,401,327 486,342,936
Accrued interest receivable
2,181,704 2,036,468 1,660,109
Debt securities sold receivable
- 1,789,635 -
Prepaid expenses
604,998 730,891 436,997
Other real estate owned
294,467 - -
Premises and equipment, net
12,882,400 12,751,025 12,848,920
Computer software, net
175,755 238,009 276,546
Deferred income taxes, net
5,219,164 4,467,476 5,013,425
Bank owned life insurance and annuities
21,849,420 21,398,096 21,244,217
Other assets
1,194,622 262,435 1,020,023
Total assets
$899,714,244 $905,940,143 $932,633,236

Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing
$273,890,430 $265,805,939 $306,074,106
Interest-bearing
523,634,274 543,202,520 533,479,784
Total deposits
797,524,704 809,008,459 839,553,890
Accrued interest payable
238,651 75,438 48,040
Dividends payable
936,389 910,483 910,589
Accrued expenses
226,962 703,052 244,502
Non-qualified deferred compensation
881,667 654,674 614,217
Other liabilities
800,762 363,790 433,282
Total liabilities
800,609,135 811,715,896 841,804,520
Stockholders' equity
Common stock, par value $1 per share;
authorized 10,000,000 shares; issued and outstanding
2,754,086 2,759,040 2,759,360
Additional paid-in capital
2,144,387 2,337,456 2,349,297
Retained earnings
110,314,830 102,963,224 100,784,401
Accumulated other comprehensive loss, net of tax
(16,108,194) (13,835,473) (15,064,342)
Total stockholders' equity
99,105,109 94,224,247 90,828,716
Total liabilities and stockholders' equity
$899,714,244 $905,940,143 $932,633,236

Consolidated Statements of Income (unaudited)
For the three months ended For the nine months ended
Sept 30, 2023 Sept 30, 2022 Sept 30, 2023 Sept 30, 2022
Interest income








Loans, including fees
$6,919,231 $5,489,970 $19,875,632 $15,625,474
U. S. Treasury and government agency debt securities
502,696 290,946 1,457,449 644,400
Mortgage-backed debt securities
671,450 487,148 1,974,153 1,190,519
State and municipal debt securities
108,174 119,376 325,978 307,399
Federal funds sold and interest-bearing deposits
1,345,316 1,161,494 3,273,911 1,694,985
Time deposits in other financial institutions
- 7,561 2,701 28,657
Total interest income
9,546,867 7,556,495 26,909,824 19,491,434
Interest expense
Deposits
1,536,897 398,070 4,067,626 845,857
Net interest income
8,009,970 7,158,425 22,842,198 18,645,577
Provision for credit losses
(80,000) 50,000 340,000 275,000
Net interest income after provision for credit losses
8,089,970 7,108,425 22,502,198 18,370,577
Noninterest income
Debit card and ATM
389,308 380,426 1,135,154 1,090,950
Service charges on deposit accounts
220,934 248,371 718,338 707,891
Merchant payment processing
211,272 233,975 364,068 396,534
Income from bank owned life insurance and annuities
115,208 97,910 398,303 244,302
Income from bank owned life insurance death proceeds
- 133,355 - 408,929
Dividends
8,180 4,755 31,401 17,327
Gain (loss) on disposition of debt securities
(84,394) - (142,680) 645
Gain on transfer of other real estate owned
101,091 - 101,091 -
Gain on disposition of fixed assets
- - - 60
Gain on equity securities, at cost
- - - 7,018
Miscellaneous
101,420 91,814 344,995 251,895
Total noninterest income
1,063,019 1,190,606 2,950,670 3,125,551
Noninterest expenses
Salaries
1,581,341 1,449,697 4,655,355 4,330,687
Employee benefits
456,799 396,463 1,490,701 994,190
Occupancy
259,011 229,279 777,752 708,318
Furniture and equipment
210,192 214,914 595,898 658,251
Data processing
248,162 210,053 725,716 614,465
Debit card and ATM
227,864 185,333 571,623 475,277
Marketing
159,203 99,126 464,194 374,659
Directors fees
74,350 80,500 223,925 237,800
Telecommunication services
66,534 66,768 197,480 230,327
Deposit insurance premiums
107,240 62,499 302,680 182,378
Other operating
472,959 408,385 1,563,977 1,245,237
Total noninterest expenses
3,863,655 3,403,017 11,569,301 10,051,589
Income before income taxes
5,289,334 4,896,014 13,883,567 11,444,539
Income taxes
1,156,000 1,188,000 3,136,000 2,764,500
Net income
$4,133,334 $3,708,014 $10,747,567 $8,680,039

Earnings per common share - basic and diluted
$1.50 $1.34 $3.90 $3.14

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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.



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https://www.accesswire.com/813881/calvin-b-taylor-bankshares-inc-reports-third-quarter-2023-financial-results