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

###

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 the original press release on accesswire.com


The Calvin B. Taylor Bankshares Stock at the time of publication of the news with a fall of -3,10 % to 43,12USD on Nasdaq OTC stock exchange (07. Dezember 2023, 02:10 Uhr).