TYCB), Parent Company of Calvin B. Taylor Bank, Reports First-Quarter 2021

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Berlin, Maryland, May 06, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — Calvin B. Taylor Bankshares, Inc. (the “Company”) (OTCQX: TYCB), parent company of Calvin B. Taylor Bank, today reported unaudited financial results for the first-quarter ended March 31, 2021.  Highlights of the company’s financial results for the first-quarter ended March 31, 2021 (“1Q21”) as compared to the first-quarter ended March 31, 2020 (“1Q20”) and the fourth-quarter ended December 31, 2020 (“4Q20”) are noted below and included in the following tables.

·         Net income increased $684 thousand to $2.60 million in 1Q21, a 35.8% increase compared to 1Q20

·         Net income increased $1.18 million in 1Q21 compared to 4Q20, a 83.6% increase

·         Nonrecurring and nontaxable income of $618 thousand related to bank owned life insurance death proceeds was recognized in 1Q21

·         Organic asset growth continued in 1Q21 with assets growing $39.6 million, or 5.6%, since December 31, 2020

·         Organic loan growth continued in 1Q21 with loans growing $32.2 million, or 7.6%, since December 31, 2020

·         Small Business Administration Paycheck Protection Program (“SBA PPP”) loans originated in 1Q21 totaled $29.2 million

·         Net interest margin improved from 2.99% in 4Q20 to 3.05% in 1Q21

·         Provision for loan losses decreased 43.2% to $125 thousand in 1Q21 as compared to $220 thousand in 1Q20 and decreased 24.2% compared to the $165 thousand recorded in 4Q20

Quarterly Results of Operations

Loan interest revenue, including fees, increased to $4.96 million in 1Q21, as compared to $4.50 million in 1Q20 and $4.81 million in 4Q20, as the result of continued organic loan growth and funding of Small Business Administration Paycheck Protection Program (“SBA PPP”) loans.  SBA PPP loan balances increased in 1Q21 as new loan origination activity associated with 2nd draw SBA PPP loans exceeded loan repayments by the SBA associated with loan forgiveness of existing 1st draw SBA PPP loans.  Upon repayment by the SBA, unamortized net loan fees are recognized and reported as loan interest revenue which resulted in an increase in loan interest revenue in 1Q21 as compared to 4Q20.  SBA PPP loan interest revenue increased from $335 thousand in Q420 to $458 thousand in 1Q21.  SBA PPP loan originations in 1Q21 resulted in an increase in unamortized net loan fees from $756 thousand as of December 31, 2020 to $1.9 million as of March 31, 2021. 

Net interest income increased 2.3% to $5.08 million in 1Q21, as compared to $4.96 million in 1Q20 and 4Q20.  Increases in loan interest revenue, as noted above, were partially offset by lower yields on other earning assets as interest rates remain historically low.  Net interest margin decreased to 3.05% in 1Q21, as compared to 3.93% in 1Q20, and is attributable to significant increases in average deposits from customer behavior changes and government economic stimulus programs related to the COVID-19 pandemic.  Average deposits increased in 1Q21 by $174.9 million, or 38.8%, when compared to 1Q20 and increased $17.5 million, or 2.9%, as compared to 4Q20.  SBA PPP loan originations of $29.2 million and additional government economic stimulus payments in 1Q21 was a primary factor in the continued growth in average deposits when compared to 4Q20.                      

The provision for loan losses was $125 thousand in 1Q21, as compared to $220 thousand in 1Q20 and $165 thousand in 4Q20.  The provision for loan losses recorded in 1Q21 was primarily attributable to loan portfolio growth and further adjustments to qualitative factors used to estimate the allowance for loan losses.  Qualitative factors were adjusted due to the…