Calvin B. Taylor Bankshares, Inc. Reports First Quarter 2025 Financial Results

Rhea-AI Summary

Calvin B. Taylor Bankshares (OTCQX:TYCB) reported strong Q1 2025 results with net income of $3.7M ($1.36/share), up from $3.5M in Q4 2024 and $3.0M in Q1 2024. The bank demonstrated solid growth with loans increasing 8.0% YoY and deposits up 9.4% YoY. Net interest margin expanded to 3.73%, while ROAA improved to 1.62%. A significant highlight was the $1.9M gain from selling excess land, with proceeds reinvested in a new Cape Charles, Virginia branch. Credit quality improved with past due loans decreasing to 0.29%. The bank maintains strong liquidity with cash and unencumbered debt securities at 29.4% of total deposits, and remains well-capitalized according to regulatory standards.

Positive

• Net income increased to $3.7M in Q1 2025, up 23.3% from Q1 2024
• Strong loan growth of 8.0% year-over-year with $47.6M increase
• Healthy deposit growth of 9.4% year-over-year with $71.1M increase
• Net interest margin expanded to 3.73% from 3.36% year-over-year
• Credit quality improved with past due loans decreasing to 0.29% from 0.63%
• $1.9M gain realized from sale of excess land property
• Efficiency ratio improved to 43.83% from 50.05% in previous quarter

Negative

• Net interest income decreased $172,000 (2.1%) compared to Q4 2024
• Higher provision expense for credit losses increased $139,000 compared to Q4 2024
• Realized loss of $761,000 on sale of investment securities
• Higher employee health insurance claims increased benefits expense

BERLIN, MD / ACCESS Newswire / June 4, 2025 / Calvin B. Taylor Bankshares, Inc. (the "Company") (OTCQX:TYCB), the holding company of Calvin B. Taylor Bank (the "Bank"), today reported net income for the first quarter 2025 ("1Q25") of $3.7 million, or $1.36 per share compared to net income of $3.5 million, or $1.29 per share for the fourth quarter of 2024 ("4Q24"), and net income of $3.0 million, or $1.08 per share for the first quarter of 2024 ("1Q24").

First Quarter 2025 Highlights

• Organic Loan Growth - Loans increased in 1Q25 by $13.2 million, or 2.1% when compared to the fourth quarter of 2024 and increased $47.6 million, or 8.0% when compared to 1Q24.

• Continued Deposit Growth - Total deposits increased $6.4 million, or less than 1% when compared to 4Q24 and increased $71.1 million, or 9.4% when compared to 1Q24.

• Net Interest Margin Expansion - Net interest margin ("NIM") increased to 3.73% for 1Q25, when compared to 3.67% for 4Q24 and 3.36% for 1Q24. NIM expansion was driven by an improvement in yield on earning assets including loans and investment securities.

• Higher Return on Average Assets ("ROAA") - The ROAA for 1Q25 was 1.62%, compared to 1.48% for 4Q24 and 1.38% for 1Q24. The ROAA this quarter was significantly impacted by the sale of excess land adjacent to an existing bank branch which resulted in a gain of $1.9 million. The proceeds received from the sale were reinvested in a tax-deferred exchange into a new branch located in Cape Charles, Virginia, which opened on May 5^th, 2025.

• Improved Credit Quality - Credit quality, specifically loans past due 30 days or more, improved to 0.29% of total loans at the end of 1Q25, when compared to 0.63% for at the end of both 4Q24 and 1Q24. The Company's credit team continues to actively manage past due loans to enhance collection efforts.

Chief Executive Officer and President, M. Dean Lewis commented, "We continue to see positive results from execution of our strategic initiatives including the enhancement of digital banking products and services, continued expansion of deposit market share on the Eastern Shore of Virginia, and proactive management of the balance sheet in the current interest rate and economic environment. We have a dedicated team of experienced banking professionals who continue to deliver exceptional customer service and superior operating efficiency. Our focus on growing core deposits is resulting in profitable asset growth and expansion of our net interest margin each quarter." CEO Lewis also noted, "Throughout this year we will celebrate the 135^th anniversary of the founding of Taylor Bank and last month we celebrated the opening of our 12^th branch, located in Cape Charles, Virginia. While our bank continues to grow and the banking industry continues to change, we remain committed to the core principles that have guided us to success for 135 years."

 

Quarterly Results of Operations

Quarterly net income was $3.7 million for 1Q25, as compared to $3.5 million for 4Q24 and $3.0 million for 1Q24. A summary of the quarterly results of operations are included in the table and comments that follow.

		March 31, 2025				March 31, 2024				December 31, 2024				Prior Year				Prior Quarter
Results of Operations
Net interest income		$	8,136,502			$	6,852,395			$	8,308,562				18.7	%			(2.1	)%
Provision for credit losses			399,000				475,000				260,000				(16.0	)			53.5
Noninterest income			1,908,390				1,173,420				1,315,471				62.6				45.1
Noninterest expense			4,736,681				3,939,317				4,817,219				20.2				(1.7	)
Income before income taxes			4,909,211				3,611,498				4,546,814				35.9				8.0
Income tax expense			1,185,000				641,500				1,026,000				84.7				15.5
Net income		$	3,724,211			$	2,969,998			$	3,520,814				23.3	%			5.8	%
Yield on earning assets			4.92	%			4.52	%			4.84	%			40	bp			8	bp
Cost of interest-bearing deposits			1.81				1.82				1.83				(1	)			(2	)
Net interest margin			3.73				3.36				3.67				37				6
Return on average assets			1.62				1.38				1.48				24				14
Return on average equity			12.96				11.22				12.31				174				65
Efficiency ratio			43.83	%			46.93	%			50.05	%			(310	)bp			(622	)bp

Net interest income decreased $172 thousand, or 2.1% in 1Q25, as compared to 4Q24, due to less interest income on deposits with other banks of $626 thousand, partially offset by an increase in interest and fees on loans of $301 thousand, interest on investment securities of $101 thousand and a lower interest expense on deposits of $51 thousand. The lower interest income on deposits with other banks was the direct result of lower average balances in 1Q25, primarily due to loan growth funding and decreases in seasonal deposits. The average balance of loans in 1Q25 increased $28.5 million and total loan yields improved 6 bps, when compared to 4Q24. Similarly, the average balance of investment securities in 1Q25 increased $1.4 million and yields improved 25 bps, when compared to 4Q24. The decrease in deposit interest expense was primarily due to lower rates paid on average interest-bearing deposits of 2 bps. Net interest income increased $1.3 million, or 18.7% in 1Q25, as compared to 1Q24, primarily due to an increase in average loan balances of $51.5 million coupled with a higher average yield of 35 bps. In addition, the average yield on investment securities improved by 68 bps and the average balance on deposits with other banks increased $23.7 million, which combined provided $377 thousand of additional interest income in 1Q25.

Provision expense for credit losses increased $139 thousand in 1Q25 and was primarily the result of new loan growth and the aging of the legacy loan portfolio when compared to 4Q24. Overall, credit quality metrics remained stable since 4Q24 with an improvement in loans past due 30 days or more to 0.29% of total loans in 1Q25 compared to 0.63% for both 4Q24 and 1Q24. The decrease in provision for credit losses of $76 thousand recorded in 1Q25 when compared to 1Q24 was primarily the result of significant loan growth last year. No significant changes in the economic indicators and related forecasts used in the CECL model occurred in 1Q25.

Noninterest income increased in 1Q25 by $593 thousand, or 45.1%, as compared to 4Q24, and $735 thousand, or 62.6%, as compared to 1Q24. The increase in 1Q25 when compared to both 4Q24 and 1Q24, was due to the sale of excess land adjacent to bank property which resulted in a gain of $1.9 million, partially offset by a realized loss of $761 thousand on the sale of certain investment securities. The sale of investment securities resulted in $14.0 million of net proceeds from securities yielding an average of 1.62%. The proceeds were reinvested into $12.2 million of various debt securities with an average yield of 4.73%. The earn back on this debt security swap loss is estimated to be 1.9 years.

Noninterest expense decreased by $81 thousand, or 1.7% in 1Q25, as compared to 4Q24, and primarily relates to higher employee salaries and benefits expense in 4Q24. Higher salaries expense in 4Q24 relates to yearend bonuses, 401K profit sharing contributions, and one-time conversion expenses. The Bank upgraded its core processing system with Jack Henry during 4Q24 which resulted in one-time expenses including overtime, training, and consulting. Employee health insurance is provided through a partially self-funded plan and claims incurred by the plan were higher in 1Q25 resulting in higher benefits expense. Lower compensation and benefits expense was partially offset by higher expenses related to data processing and donations. Noninterest expense increased in 1Q25 by $797 thousand, or 20.2%, as compared to 1Q24, which primarily relates to higher salaries, employee benefits, data processing and donations. Salaries expense increased $239 thousand, or 14.2%, due to compensation adjustments made to remain competitive in the current labor market and additional staff for a new branch. Employee benefits expense increased $164 thousand, or 34.3%, due to higher health insurance claims incurred by the plan in the current quarter compared to 1Q24.

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 March 31, 2025, the plan has 21,537 shares available for repurchase. 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.

		March 31, 2025				March 31, 2024				December 31, 2024				Prior Year				Prior Quarter
Per Share Data
Basic and diluted net income per common share		$	1.36			$	1.08			$	1.29				26.0	%			5.8	%
Dividends paid per common share			0.36				0.34				0.36				5.9				-
Dividend payout ratio			26.36				31.53				27.88				(16.4	)			(5.5	)
Book value per common share at period end			43.88				38.89				42.01				12.8				4.5
Book value per common share excluding OCI			46.73				43.16				45.79				8.3				2.0
Market value at period end		$	47.01			$	45.00			$	48.00				4.5	%			(2.1	)%
Number of shares repurchased			3,741				12,250				800				(8,509	)			2,941
Repurchase amount		$	183,309			$	539,000			$	36,089				(66.0	)%			407.9	%
Average repurchase price		$	49.00			$	44.00			$	45.52				11.4	%			7.6	%

Financial Condition

Core deposits, deposit insurance, liquidity and capital remain an area of focus for the Company and the entire banking industry. 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 well capitalized (Community Bank Leverage Ratio) as of March 31, 2025. The Company's financial condition at quarter end is summarized in the table and comments that follow.

		March 31, 2025				March 31, 2024				December 31, 2024				Prior Year				Prior Quarter
Financial Condition
Assets		$	948,831,131			$	863,532,850			$	936,931,577				9.9	%			1.3	%
Cash and unencumbered debt securities			242,304,088				175,767,554				243,387,978				37.9				(0.4	)
Loans			643,683,222				595,584,914				630,104,443				8.1				2.2
Deposits			824,748,066				753,643,370				818,397,805				9.4				0.8
Interest-bearing deposits			588,940,579				530,575,289				573,512,049				11.0				2.7
Stockholders' equity		$	119,613,303			$	106,633,373			$	114,509,982				12.2	%			4.5	%
Common stock outstanding			2,725,736				2,741,644				2,725,736				(15,908	)			-
Stockholders' equity / assets			12.61	%			12.35	%			12.22	%			26	bp			38	bp
Average assets		$	933,476,103			$	859,259,071			$	946,210,995				8.6	%			(1.3	)%
Average loans			633,436,485				585,898,042				604,996,135				8.1				4.7
Average deposits			812,946,602				745,377,620				827,996,566				9.1				(1.8	)
Average stockholders' equity		$	116,522,796			$	105,838,839			$	113,466,125				10.1	%			2.7	%
Average stockholders' equity / assets			12.28	%			12.32	%			12.11	%			(4	)bp			17	bp
Tier 1 capital to average assets (leverage ratio)			13.64	%			13.63	%			13.19	%			1	bp			45	bp

The Company's deposits increased by $6.4 million, or less than 1% when compared to the 4Q24. The Company usually experiences seasonal deposit outflow during the first quarter due to the off-season of the local tourism based economy. The ability to grow deposits in the first quarter is a positive trend and reflects core deposit gathering initiatives to reduce dependency on seasonal deposits. The Company's deposits increased by $71.1 million, or 9.4% when compared to 1Q24. The Bank operates with a high level of core deposits, defined by banking regulators as checking, money market, and savings accounts plus any time deposits less than $250,000. 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 1Q25, the Bank had deposit accounts with balances in excess of $250,000 totaling $198.2 million, which represents 24.0% of total deposits, as compared to $214.2 million or 26.2% as of 4Q24 and $173.5 million or 23.0% of total deposits as of 1Q24. The Bank is a member of the IntraFi Network which enables large depositor's access to multimillion-dollar FDIC insurance for funds placed into the network and provides an equal amount of reciprocal deposits under FDIC insurance limits to the bank. In recent years, the banking industry has experienced a surge in usage of the IntraFi Network by existing and new customers, due to the added insurance protection and the higher rates paid on these deposits. Reciprocal deposits from the IntraFi Network were $130.1 million as of 1Q25, as compared to $116.4 million and $130.6 million as of 4Q24 and 1Q24, respectively.

On-balance sheet liquidity, as measured by cash and unencumbered available for sale debt securities, remains strong as of 1Q25 and equaled 29.4% of total deposits. Selected liquidity metrics are summarized in the table below.

		March 31, 2025				March 31, 2024				December 31, 2024				Prior Year				Prior Quarter
Liquidity
Cash and unencumbered debt securities / total deposits			29.38	%			23.32	%			29.74	%			606	bp			(36	)bp
Debt securities pledged / total debt securities			11.23				11.45				12.00				(22	)			(77	)
Loans / deposits			78.05				79.03				76.99				(98	)			105
Average loans / average deposits			77.92				78.60				73.07				(68	)			485
Noninterest-bearing deposits / total deposits			28.59				29.60				29.92				(101	)			(133	)
Non-maturity deposits / total deposits			55.33				55.39				54.27				(6	)			106
Time deposits / total deposits			16.08	%			14.99	%			15.80	%			109	bp			27	bp

Noncore funding sources are available to the Bank but are intended for contingency funding needs and not to pursue growth. As of March 31, 2025, the Bank can borrow up to $215.9 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

Higher 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 real estate loans, and seasonal borrowings during 1Q25 resulted in continued organic loan growth with loans increasing $13.6 million, or 2.2%, since December 31, 2024. Loan growth of $48.1 million, or 8.1%, in the previous 12 months was the result of strong demand for local real estate and construction of both residential and commercial properties. Growth in the loan portfolio during the rising interest rate environment over the last 12 months along with variable rate loans within the portfolio have expanded the yield on loans from 5.18% in 1Q24 to 5.53% in 1Q25. Loan yields increased 6 bps in 1Q25 as compared to 4Q24.

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 1Q25. Past due loans have decreased and were 0.29% of total loans as of 1Q25, as compared to 0.63% for both 4Q24 and 1Q24. Selected asset quality metrics are summarized in the table below.

		March 31, 2025				March 31, 2024				December 31, 2024				Prior Year				Prior Quarter
Asset Quality Data
Allowance for credit losses / total loans			0.67	%			0.63	%			0.62	%			4	bp			5	bp
Net charge-offs (recoveries) / average loans			-				-				0.01				-				(1	)
Loans past due 30 days or more / total loans			0.29				0.63				0.63				(34	)			(34	)
Non-accrual loans / total loans			0.16	%			0.04	%			0.17	%			12	bp			(2	)bp

Financial Statements

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

Calvin B. Taylor Bankshares, Inc.
Consolidated Balance Sheets

		(unaudited)								(unaudited)
		March 31,				December 31,				March 31,
		2025				2024				2024
ASSETS
Cash and due from banks		$	5,853,106			$	5,780,779			$	7,366,058
Federal funds sold and interest bearing deposits			63,983,546				74,169,942				40,553,105
Cash and cash equivalents			69,836,652				79,950,721				47,919,163
Investment securities available for sale (at fair value)			169,242,941				159,645,861				142,554,068
Investment securities held to maturity (at amortized cost)			25,036,162				26,075,849				35,914,837
Equity securities, at fair value			748,833				748,833				748,833
Restricted securities			675,000				616,300				615,300
Loans held for investment			643,683,222				630,104,443				595,584,914
Less: allowance for credit losses			(4,290,182	)			(3,909,921	)			(3,757,190	)
Loans, net			639,393,040				626,194,522				591,827,724
Accrued interest receivable			2,596,332				2,724,206				2,311,763
Prepaid expenses			593,106				670,623				681,583
Other real estate owned, net			-				-				390,871
Premises and equipment, net			12,819,144				12,895,314				12,813,767
Computer software, net			124,393				142,306				149,946
Deferred income taxes, net			2,122,779				3,421,606				3,756,851
Bank owned life insurance and annuities			22,401,461				22,238,791				21,847,978
Other assets			3,241,288				1,606,645				2,000,166
Total assets		$	948,831,131			$	936,931,577			$	863,532,850
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing deposits		$	235,807,487			$	244,885,756			$	223,068,081
Interest-bearing deposits			588,940,579				573,512,049				530,575,289
Total deposits			824,748,066				818,397,805				753,643,370
Accrued interest payable			693,571				691,374				697,154
Accrued expenses			887,847				1,011,503				677,730
Deferred compensation and supplemental retirement benefits			1,397,495				1,341,748				1,036,868
Allowance for credit losses on off-balance sheet credit exposures			563,247				574,247				395,347
Other liabilities			927,602				404,918				449,008
Total liabilities			829,217,828				822,421,595				756,899,477
STOCKHOLDERS' EQUITY
Common stock, par value $1 per share; authorized 10,000,000			2,721,995				2,725,736				2,741,644
Additional paid in capital			728,112				909,513				1,609,805
Retained earnings			123,915,843				121,173,185				113,985,348
Accumulated other comprehensive loss, net of deferred income tax			(7,752,647	)			(10,298,452	)			(11,703,424	)
Total stockholders' equity			119,613,303				114,509,982				106,633,373
Total liabilities and stockholders' equity		$	948,831,131			$	936,931,577			$	863,532,850
Period-end common shares outstanding			2,725,736				2,725,736				2,741,644
Book value per common share		$	43.88			$	42.01			$	38.89

Calvin B. Taylor Bancshares, Inc.
Consolidated Statements of Income

		For the Three Months Ended
		March 31,
		2025				2024
INTEREST INCOME
Interest and fees on loans		$	8,698,313			$	7,565,911
Interest on investment securities:
U.S. Treasury and government agency debt securities			632,111				529,094
Mortgage-backed debt securities			744,466				576,324
State and municipal debt securities			96,925				104,976
Interest on federal funds sold and interest-bearing deposits			549,901				436,302
Total interest income			10,721,716				9,212,607
INTEREST EXPENSE
Interest on deposits			2,585,214				2,360,212
Total interest expense			2,585,214				2,360,212
NET INTEREST INCOME			8,136,502				6,852,395
Provision for credit losses			399,000				475,000
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES			7,737,502				6,377,395
NONINTEREST INCOME
Debit card interchange fees, net			167,566				180,947
Nonsufficient funds and overdraft fees, net			180,818				170,228
Merchant payment processing, net			63,709				57,862
Service charges on deposit accounts, net			42,580				56,653
Income from bank owned life insurance annuities			164,007				172,586
Income from bank owned life insurance death proceeds			-				792,574
Dividends			10,999				12,071
Loss on disposition of investment securities			(760,933	)			(368,821	)
Gain on disposition of fixed assets			1,929,954				-
Other noninterest income			109,690				99,320
Total noninterest income			1,908,390				1,173,420
NONINTEREST EXPENSE
Salaries and wages			1,919,681				1,681,143
Employee benefits			640,880				477,196
Occupancy expense			305,391				275,260
Furniture and equipment expense			202,465				199,272
Data processing			484,002				244,745
Marketing			103,998				192,823
Directors' fees			93,300				61,900
Telecommunication services			68,156				68,542
FDIC insurance premium expense			102,866				96,504
Professional fees			138,465				108,014
Other noninterest expenses			677,477				533,918
Total noninterest expense			4,736,681				3,939,317
Income before income taxes			4,909,211				3,611,498
Income tax expense			1,185,000				641,500
NET INCOME		$	3,724,211			$	2,969,998
Basic and diluted net income per common share		$	1.36			$	1.08
Net income		$	1.36			$	1.08

###

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 twelve full-service banking locations and one loan production office within the eastern coastal area of the Delmarva Peninsula including Worcester County and Wicomico County, Maryland, Accomack County and Northampton County, Virginia and Sussex County, Delaware.

Contact
Philip O'Neil, Executive Vice President and Chief Financial Officer
410‑641‑1700, taylorbank.com

SOURCE: Calvin B. Taylor Bankshares, Inc.

View the original press release on ACCESS Newswire

FAQ

What was TYCB's earnings per share for Q1 2025?

TYCB reported earnings of $1.36 per share for Q1 2025, compared to $1.29 in Q4 2024 and $1.08 in Q1 2024.

How much did TYCB's deposits grow in Q1 2025?

TYCB's deposits increased by $6.4 million (less than 1%) compared to Q4 2024, and grew by $71.1 million (9.4%) year-over-year.

What was the gain from TYCB's land sale in Q1 2025?

TYCB realized a gain of $1.9 million from selling excess land adjacent to an existing bank branch, with proceeds reinvested in a new Cape Charles, Virginia branch.

What is TYCB's current net interest margin?

TYCB's net interest margin was 3.73% for Q1 2025, an increase from 3.67% in Q4 2024 and 3.36% in Q1 2024.

How much did TYCB's loan portfolio grow year-over-year?

TYCB's loan portfolio grew by $47.6 million or 8.0% compared to Q1 2024, with a quarterly increase of $13.2 million (2.1%) from Q4 2024.