Calvin B. Taylor Bankshares, Inc. Reports Second Quarter and First Half 2026 Financial Results

Rhea-AI Summary

Calvin B. Taylor Bankshares (OTCQX:TYCB) reported 2Q26 net income of $3.7 million ($1.40 per share), slightly below 1Q26 ($3.8 million, $1.44) and 2Q25 ($3.9 million, $1.42). First-half 2026 net income was $7.5 million ($2.85 per share), compared with $7.6 million ($2.79) a year earlier.

Total assets surpassed $1.0 billion. Loans grew $39.0 million (5.9%) since year-end 2025, while deposits rose $27.0 million (3.2%). Net interest income increased 10.9% year-to-date to $18.7 million, and net interest margin expanded to 4.05% in 2Q26 from 3.84% in 2Q25.

Nonperforming loans and charge-offs remained low, though one $4.5 million commercial real estate loan moved to nonaccrual. Noninterest expense rose 24.4% year-over-year in 2Q26, mainly from higher compensation and professional services. Book value per share increased 10.3% year-over-year to $49.81, with quarterly dividends per share up 4.1% year-to-date and continued stock repurchases of 26,892 shares in the first half.

Positive

• Net interest income up 10.9% year-to-date to $18.7 million
• Loans up $39.0 million (5.9%) since year-end 2025
• Deposits up $27.0 million (3.2%) since year-end 2025
• Net interest margin improved to 4.05% in 2Q26 from 3.84% in 2Q25
• Book value per share up 10.3% year-over-year to $49.81
• Allowance for credit losses at 0.79% of total loans vs. 0.73% in 2025
• Dividends per share up 4.1% year-to-date to $0.76
• Share repurchases of 26,892 shares for $1.4 million year-to-date

Negative

• 2Q26 net income down 4.1% year-over-year and 3.5% sequentially
• Noninterest expense up 24.4% year-over-year in 2Q26 and 11.5% year-to-date
• Noninterest income down 44.1% year-to-date vs. 2025 due to prior-year property gain
• Efficiency ratio worsened to 50.69% in 2Q26 from 45.02% in 2Q25
• One $4.5 million commercial real estate loan placed on nonaccrual in 2Q26

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BERLIN, MD / ACCESS Newswire / August 11, 2026 / 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 second quarter 2026 ("2Q26") of $3.7 million, or $1.40 per share compared to net income of $3.8 million, or $1.44 per share for the first quarter of 2026 ("1Q26"), and net income of $3.9 million, or $1.42 per share for the second quarter of 2025 ("2Q25"). Net income for the first half of 2026 was $7.5 million or $2.85 per share, compared to net income for the first half of 2025 of $7.6 million, or $2.79 per share.

Second Quarter and First Half 2026 Highlights

Exceeded $1 Billion in Assets - Total assets surpassed $1.0 billion for the first time in 2026, reflecting continued growth while maintaining strong capital and liquidity positions.

Strong Loan and Deposit Growth - Loans increased $39.0 million, or 5.9% since the end of 2025 reflecting strong organic growth and sustained customer demand. Deposits increased by $22.4 million, or 2.6% during the second quarter of 2026 and were up $27.0 million, or 3.2%, from year-end 2025. Growth in deposits continued to outpace many industry peers and provided a stable funding source for organic loan growth without reliance on wholesale borrowings.

Net Interest Income Growth and Margin Expansion - Net interest margin ("NIM") increased to 4.05% in 2Q26 from 3.98% in 1Q26 and 3.84% in 2Q25, driven by higher yields on loans and investment securities. While net interest revenue trends remained favorable, earnings growth was impacted by elevated operating expenses.

Solid Asset Quality - Nonperforming loans and net charge-offs remained at low levels, reflecting continued credit discipline and strong asset quality.

Growing Stockholder Value - Continued returning capital to shareholders through stock repurchases and cash dividend growth. Quarterly cash dividends increased 4.1% compared to 2025, while book value per share increased 10.3% year over year.

Chief Executive Officer and President M. Dean Lewis commented, "During the first half of 2026, the Company continued to generate strong core earnings driven by double-digit net interest income growth and continued expansion in net interest margin. Our investment in expanding the retail banking and lending teams has strengthened customer relationships and been a key driver of the strong organic loan and deposit growth experienced during the first half of 2026. This growth also allowed us to surpass $1 billion in assets as of June 30th, a significant milestone for our Company that was achieved ahead of the seasonal balance sheet growth we typically experience during the third quarter. We remain focused on balancing strong financial performance with strategic investments in technology, banking solutions, and our employees, enabling us to meet evolving customer needs while creating long-term value for our stockholders."

Quarterly Results of Operations

Quarterly net income was $3.7 million for 2Q26, as compared to $3.8 million for 1Q26 and $3.9 million for 2Q25. A summary of the quarterly results of operations are included in the table and comments that follow.

		For the Three Months Ended												Prior Year				Prior Quarter
		Jun. 30, 2026				Jun. 30, 2025				Mar. 31, 2026				Change				Change
Results of Operations
Net interest income		$	9,521,285			$	8,726,865			$	9,172,477				9.1	%			3.8	%
Provision for credit losses			345,000				401,000				-				(14.0	)			100.0
Noninterest income			1,062,407				959,886				557,347				10.7				90.6
Noninterest expense			5,427,327				4,361,189				4,752,504				24.4				14.2
Income before income taxes			4,811,365				4,924,562				4,977,320				(2.3	)			(3.3	)
Income tax expense			1,106,000				1,061,500				1,139,000				4.2				(2.9	)
Net income		$	3,705,365			$	3,863,062			$	3,838,320				(4.1	)%			(3.5	)%
Yield on earning assets			5.20	%			5.01	%			5.12	%			19	bp			8	bp
Cost of interest-bearing deposits			1.74				1.80				1.72				(6	)			2
Net interest margin			4.05				3.84				3.98				21				7
Return on average assets			1.50				1.61				1.58				(11	)			(8	)
Return on average equity			11.38				12.84				11.99				(146	)			(61	)
Efficiency ratio			50.69	%			45.02	%			47.34	%			567	bp			335	bp

Net interest income increased $349 thousand, or 3.8% in 2Q26, as compared to 1Q26, primarily due to an increase in interest and fee income on loans of $462 thousand. Higher interest income on loans was partially offset by a $43 thousand decline in interest income from investment securities and deposits with other banks, coupled with a $70 thousand increase in interest expense on deposits. The average balance of loans in 2Q26 increased $19.3 million and total loan yields improved 5 bp, when compared to 1Q26. Net interest income increased $794 thousand, or 4.7% in 2Q26, as compared to 2Q25, primarily due to an increase in average loan balances of $49.7 million coupled with a higher average yield of 14 bps.

Provision expense for credit losses increased $345 thousand in 2Q26 when compared to 1Q26 and decreased $56 thousand when compared to 2Q25. The higher provision expense was primarily attributable to significant loan growth in 2Q26 which required an associated increase to the allowance for credit losses to support the expanded loan portfolio. One commercial real estate loan relationship totaling approximately $4.5 million was placed on nonaccrual status during the quarter. The credit is collateral-dependent and individually evaluated. Management believes collateral values remain sufficient and does not currently anticipate a loss. Despite this one relationship, asset quality metrics are stable when compared to prior quarters and continue to compare favorably with historical levels.

Noninterest income increased in 2Q26 by $557 thousand, or 90.6%, as compared to 1Q26, and $103 thousand, or 3.5%, as compared to 2Q25. Compared with 1Q26, noninterest income benefited from a one-time gain of $239 thousand on the sale of equity securities and a smaller realized loss from the repositioning of the available-for-sale securities portfolio. Realized losses on available-for-sale securities occurred in both 2Q26 and 1Q26, but to a lesser degree than in 1Q26, resulting in a favorable variance of $187 thousand. The increase in noninterest income in 2Q26 when compared to 2Q25, was also a result of the one-time gain from the sale of equity securities, partially offset by higher realized losses on available-for-sale securities repositioning. The Company sold a long-held equity investment in another financial institution and redeployed the proceeds toward its stock repurchase program.

Noninterest expense increased $675 thousand, or 14.2%, from 1Q26, primarily reflecting the completion of several periodic professional services engagements, including the annual financial audit, external loan review, and information technology audit. In addition, statement and postage expenses were higher in 2Q26 due to a timing difference in the billing process. Compared with 2Q25, noninterest expense increased $1.1 million, driven primarily by higher salaries, wages, and employee benefits. During the past 12 months, the Company has strengthened its team through strategic additions in several key positions and completed targeted compensation adjustments to remain competitive in attracting and retaining talent. The increase in employee benefits expense has been the result of higher healthcare claims and workforce growth. The professional services and the statement and postage billing previously mentioned also had an impact on the total increase in noninterest expense when compared to 2Q25.

Quarterly per share data, dividend payout ratio, and repurchase of stock by the Company for each period is included in the following table. 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.

		For the Three Months Ended												Prior Year				Prior Quarter
		Jun. 30, 2026				Jun. 30, 2025				Mar. 31, 2026				Change				Change
Per Share Data
Basic and diluted net income per common share		$	1.40			$	1.42			$	1.44				(1.4	)%			(2.8	)%
Dividends paid per common share			0.38				0.37				0.38				2.7				-
Market value at period end			55.00				55.00				57.50				-				(4.3	)
Book value per common share at period end			49.81				45.17				48.93				10.3				1.8
Book value per common share excluding OCI			51.92				47.84				50.95				8.5				1.9
Dividend payout ratio			27.04	%			26.08	%			26.36	%			96	bp			68	bp
Number of shares repurchased			1,000				119				25,892				740.3	%			(96.1	)%
Repurchase amount		$	53,000			$	5,968			$	1,347,507				788.1				(96.1	)
Average repurchase price		$	53.00			$	50.15			$	52.04				5.7	%			1.8	%

Year to Date Results of Operations

Net income was $7.5 million for the six months ended June 30, 2026, as compared to $7.6 million for the six months ended June 30, 2025, a decrease of $44 thousand, or less than 1%. A summary of the year-to-date results of operations are included in the table and comments below.

		For the Six Months Ended
		Jun. 30, 2026				Jun. 30, 2025				Change
Results of Operations
Net interest income		$	18,693,761			$	16,863,367				10.9	%
Provision for credit losses			345,000				800,000				(56.9	)
Noninterest income			1,619,752				2,897,443				(44.1	)
Noninterest expense			10,179,834				9,127,036				11.5
Income before income taxes			9,788,679				9,833,774				(0.5	)
Income tax expense			2,245,000				2,246,500				(0.1	)
Net income		$	7,543,679			$	7,587,274				(0.6	)
Yield on earning assets			5.16	%			4.93	%			23	bp
Cost of interest-bearing deposits			1.73				1.80				(7	)
Net interest margin			4.02				3.76				26
Return on average assets			1.54				1.63				(9	)
Return on average equity			11.68				12.90				(122	)
Efficiency ratio			49.07	%			49.11	%			(4	)bp

Net interest income increased $1.8 million, or 10.9%, for the six months ended June 30, 2026, as compared to same period last year, and was attributable to increases in interest income from loans and investment securities, partially offset by a decrease in interest income on deposits with other banks and higher interest expense on deposits. The average balance of loans in 2026 increased $45.2 million and total loan yields improved 18 bps, when compared to 2025. Although the average balance of investment securities decreased $5.0 million, yields improved by 45 bps, when compared to the prior year. Interest income on deposits with other banks decreased $298 thousand, or 25.0% in 2026 driven by both a $5.3 million reduction in average balances and a 72 bps reduction in yield following Federal Reserve rate cuts late in 2025. Deposit costs increased $96 thousand, or 1.8%, in the first six months of 2026, reflecting growth in average interest-bearing deposits, led by a $22.6 million increase in money market accounts, and a 3 bps increase in rates paid.

The allowance for credit losses was 0.79% of total loans as of June 30, 2026, compared to 0.73% as of June 30, 2025. The provision for credit losses recorded in the six months ended June 30, 2026, of $345 thousand was primarily the result of organic loan growth. Asset quality has remained strong with only isolated non-accrual loans and troubled loan modifications, neither of which indicate broader credit or economic concerns within the broader loan portfolio.

Noninterest income for the six months ended June 30, 2026, decreased by $1.3 million, or 44.1%, as compared to the six months ended June 30, 2025, primarily due to the sale of excess land adjacent to bank property in 2025, which resulted in a gain of $1.9 million. Excluding this one-time sale of property, noninterest income increased $659 thousand when compared to the six months ended June 30, 2025. The sale in 2025 allowed the Company to reinvest and leverage the proceeds to improve overall operating performance in 2026. Compared with 2025, noninterest income benefited from a one-time gain of $239 thousand on the sale of equity securities and a smaller realized loss from the repositioning of the available-for-sale securities portfolio. Realized losses on available-for-sale securities occurred in both 2026 and 2025, but to a lesser degree than in 2025, resulting in a favorable variance of $328 thousand.

Noninterest expense for the six months ended June 30, 2026, increased $1.1 million, or 11.5% as compared to the same period in 2025, primarily within salary and wages of $625 thousand and employee benefits of $410 thousand. During the past 12 months, the Company has strengthened its team through strategic additions in several key positions and completed targeted compensation adjustments to remain competitive in attracting and retaining talent. The increase in employee benefits expense has been the result of higher healthcare claims and workforce growth. Other operating costs decreased by $165 thousand, which related to prefunded donations and sponsorships completed at the end of 2025 as well as reductions in deposit and fraud losses due to strategic investments in improved detection and monitoring software.

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

		For the Six Months Ended
		Jun. 30, 2026				Jun. 30, 2025				Change
Per Share Data
Basic and diluted net income per common share		$	2.85			$	2.79				2.2	%
Dividends paid per common share			0.76				0.73				4.1
Market value at period end			55.00				55.00				-
Book value per common share at period end			49.81				45.17				10.3
Book value per common share excluding OCI			51.92				47.84				8.5
Dividend payout ratio			26.70	%			26.21	%			49	bp
Number of shares repurchased			26,892				3,860				596.7	%
Repurchase amount		$	1,400,507			$	189,277				639.9
Average repurchase price		$	52.08			$	49.77				4.6	%

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 June 30, 2026.

The Company's financial condition at quarter end is summarized in the table and comments that follow

		For the Three Months Ended												Prior Year				Prior Quarter
		Jun. 30, 2026				Jun. 30, 2025				Mar. 31, 2026				Change				Change
Financial Condition
Assets		$	1,020,289,521			$	968,447,227			$	994,487,122				5.4	%			2.6	%
Cash and unencumbered debt securities			248,693,233				254,574,943				236,829,989				(2.3	)			5.0
Loans			700,380,739				645,435,644				690,500,563				8.5				1.4
Deposits			880,995,723				841,657,576				858,603,408				4.7				2.6
Interest-bearing deposits			634,603,070				591,756,470				631,341,705				7.2				0.5
Stockholders' equity		$	131,456,630			$	122,940,229			$	129,033,855				6.9	%			1.9	%
Common stock outstanding			2,639,125				2,721,876				2,637,055				(3.0	)%			0.1	%
Stockholders' equity / assets			12.88	%			12.69	%			12.97	%			19	bp			(9	)bp
Average assets		$	992,624,512			$	954,686,841			$	984,499,030				4.0	%			0.8	%
Average loans			697,313,116				643,082,312				678,054,672				8.4				2.8
Average deposits			856,367,644				830,206,285				849,116,489				3.2				0.9
Average stockholders' equity		$	130,618,076			$	120,687,564			$	129,777,843				8.2				0.6
Average stockholders' equity / assets			12.80	%			12.46	%			13.05	%			34	bp			(25	)bp
Tier 1 capital to average assets (leverage ratio)			13.81	%			13.64	%			13.65	%			17	bp			16	bp

Deposits increased $27.0 million, or 3.2%, from 4Q25 and increased $39.3 million, or 4.7%, from 2Q25. The Company usually experiences seasonal deposit inflows during the second quarter due to the local tourism-based economy. The Company's deposits increased by $22.4 million, or 2.6% when compared to 1Q26. 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 2Q26, the Bank had deposit accounts with balances in excess of $250,000 totaling $204.5 million, which represents 23.2% of total deposits, as compared to $197.8 million or 23.0% as of 1Q26 and $207.8 million or 24.7% of total deposits as of 2Q25. The Bank is a member of the IntraFi Network which enables large depositors' 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 $159.3 million as of 2Q26, as compared to $157.0 million and $131.2 million as of 1Q26 and 2Q25, respectively.

On-balance sheet liquidity, as measured by cash and unencumbered available for sale debt securities, remains strong as of 2Q26 and equaled 28.2% of total deposits. Selected liquidity metrics are summarized in the table below.

		For the Three Months Ended												Prior Year				Prior Quarter
		Jun. 30, 2026				Jun. 30, 2025				Mar. 31, 2026				Change				Change
Liquidity
Cash and unencumbered debt securities / total deposits			28.23	%			30.25	%			27.58	%			(202	)bp			65	bp
Debt securities pledged / total debt securities			12.32				10.54				10.47				178				185
Loans / deposits			79.50				76.69				80.42				281				(92	)
Average loans / average deposits			81.43				77.46				79.85				397				158
Noninterest-bearing deposits / total deposits			27.97				29.69				26.47				(172	)			150
Non-maturity deposits / total deposits			54.47				54.55				56.21				(8	)			(174	)
Time deposits / total deposits			17.56	%			15.76	%			17.32	%			180	bp			24	bp

Noncore funding sources are available to the Bank but are intended for contingency funding needs and not to pursue growth. As of 2Q26, the Bank can borrow up to $282.1 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

Funding of previously committed construction loans, localized demand for commercial and residential real estate loans, and seasonal borrowings during 2Q26 resulted in continued organic loan growth with loans increasing $39.0 million, or 5.9%, since 4Q25. Loan growth of $54.9 million, or 8.5%, over the past twelve months reflected continued demand for commercial and residential real estate financing. Loan growth and the repricing of existing loans at current market rates contributed to an increase in the yield on loans from 5.65% in 2Q25 to 5.79% in 2Q26. Loan yields increased by 5 bp in 2Q26 as compared to 1Q26.

Loan performance has remained strong over the past 12 months as local economic conditions have remained stable. Credit quality remained strong during the quarter despite a prolonged period of elevated interest rates. The only significant change in 2Q26 when compared to both 1Q26 and 2Q25, was the result of one commercial real estate relationship totaling approximately $4.5 million placed on nonaccrual status during the quarter. The credit is collateral-dependent and individually evaluated. Management believes collateral values remain sufficient and does not currently anticipate a loss. Despite this one relationship, asset quality metrics are stable when compared to prior periods and continue to compare favorably with historical levels. Selected asset quality metrics are summarized in the table below.

		For the Three Months Ended												Prior Year				Prior Quarter
		Jun. 30, 2026				Jun. 30, 2025				Mar. 31, 2026				Change				Change
Asset Quality Data
Allowance for credit losses / total loans			0.79	%			0.73	%			0.75	%			6	bp			4	bp
Net charge-offs (recoveries) / average loans			-				0.01				-				(1	)			-
Loans past due 90 days or more / total loans			0.05				0.08				0.04				(3	)			1
Non-accrual loans / total loans			0.20				0.16				0.17				4				3
Accruing troubled loan modifications ("TLMs") / total loans			0.26	%			0.23	%			0.26	%			3	bp			-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)
		June 30				December 31,				June 30
		2026				2025				2025
ASSETS
Cash and due from banks		$	7,562,636			$	5,740,137			$	7,246,837
Federal funds sold and interest bearing deposits			70,728,710				61,119,244				61,964,700
Cash and cash equivalents			78,291,346				66,859,381				69,211,537
Investment securities available for sale (at fair value)			181,090,092				198,822,246				185,121,262
Investment securities held to maturity (at amortized cost)			13,244,373				13,166,812				22,081,458
Equity securities, at fair value			364,442				552,133				748,833
Restricted securities			711,500				675,800				675,000
Loans held for investment			700,380,739				661,363,200				645,435,644
Less: allowance for credit losses			(5,511,173	)			(4,998,223	)			(4,698,433	)
Loans, net			694,869,566				656,364,977				640,737,211
Accrued interest receivable			3,131,730				3,183,246				3,014,318
Prepaid expenses			753,440				744,624				379,387
Premises and equipment, net			16,242,051				16,485,407				16,258,409
Computer software, net			124,441				144,000				102,174
Deferred income taxes, net			1,588,197				1,294,479				1,963,254
Bank owned life insurance and annuities			29,020,774				28,499,211				27,657,716
Other assets			857,569				483,938				496,668
Total assets		$	1,020,289,521			$	987,276,254			$	968,447,227
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing deposits		$	246,392,653			$	234,602,011			$	249,901,106
Interest-bearing deposits			634,603,070				619,431,016				591,756,470
Total deposits			880,995,723				854,033,027				841,657,576
Accrued interest payable			739,491				675,335				679,741
Accrued expenses			1,969,681				1,492,517				734,343
Deferred compensation and supplemental retirement benefits			1,714,198				1,552,531				1,390,308
Allowance for credit losses on off-balance sheet credit exposures			555,247				767,247				543,247
Other liabilities			2,858,551				477,253				501,783
Total liabilities			888,832,891				858,997,910				845,506,998
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, par value $1 per share; authorized 10,000,000			2,639,125				2,662,947				2,721,876
Additional paid in capital			919,305				2,288,047				722,203
Retained earnings			133,476,738				127,947,058				126,771,768
Accumulated other comprehensive loss, net of deferred income tax			(5,578,538	)			(4,619,708	)			(7,275,618	)
Total stockholders' equity			131,456,630				128,278,344				122,940,229
Total liabilities and stockholders' equity		$	1,020,289,521			$	987,276,254			$	968,447,227
Period-end common shares outstanding			2,639,125				2,662,947				2,721,876
Book value per common share		$	49.81			$	48.17				45.17

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

		For the Three Months Ended								For the Six Months Ended
		June 30,								June 30,
		2026				2025				2026				2025
INTEREST INCOME
Interest and fees on loans		$	10,064,041			$	9,115,397			$	19,666,455			$	17,813,710
Interest on investment securities:
U.S. Treasury and government agency debt securities			805,107				728,485				1,583,042				1,360,596
Mortgage-backed debt securities			839,700				800,897				1,740,842				1,545,363
State and municipal debt securities			66,395				87,619				137,919				184,544
Interest on federal funds sold and interest-bearing deposits			445,710				642,948				895,095				1,192,849
Total interest income			12,220,953				11,375,346				24,023,353				22,097,062
INTEREST EXPENSE
Interest on deposits			2,699,668				2,648,481				5,329,592				5,233,695
Total interest expense			2,699,668				2,648,481				5,329,592				5,233,695
NET INTEREST INCOME			9,521,285				8,726,865				18,693,761				16,863,367
Provision for credit losses			345,000				401,000				345,000				800,000
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES			9,176,285				8,325,865				18,348,761				16,063,367
NONINTEREST INCOME
Debit card interchange fees, net			220,792				256,034				436,477				423,599
Nonsufficient funds and overdraft fees, net			195,721				174,142				403,302				354,960
Merchant payment processing, net			67,813				76,863				123,844				140,572
Service charges on deposit accounts, net			43,769				42,492				88,183				85,072
Income from bank owned life insurance annuities			297,685				257,592				524,277				421,599
Dividends			24,737				22,272				37,168				33,271
Loss on disposition of investment securities			(122,993	)			-				(432,602	)			(760,933	)
Gain on disposition of equity securities			239,409				-				239,409				-
Gain on disposition of fixed assets			-				7,484				650				1,937,437
Other noninterest income			95,474				123,007				199,044				261,866
Total noninterest income			1,062,407				959,886				1,619,752				2,897,443
NONINTEREST EXPENSE
Salaries and wages			2,276,587				1,977,121				4,522,014				3,896,803
Employee benefits			822,101				444,893				1,496,009				1,085,773
Occupancy expense			359,023				294,028				681,358				599,419
Furniture and equipment expense			236,230				214,021				452,997				416,486
Data processing			566,404				477,997				1,079,881				961,999
Marketing			87,819				135,169				133,602				239,168
Directors' fees			99,348				97,300				195,048				190,600
Telecommunication services			65,504				70,096				129,424				138,251
FDIC insurance premium expense			106,350				100,901				215,308				203,767
Professional fees			258,623				144,179				327,105				282,644
Other noninterest expenses			549,338				405,484				947,088				1,112,126
Total noninterest expense			5,427,327				4,361,189				10,179,834				9,127,036
Income before income taxes			4,811,365				4,924,562				9,788,679				9,833,774
Income tax expense			1,106,000				1,061,500				2,245,000				2,246,500
NET INCOME		$	3,705,365			$	3,863,062			$	7,543,679			$	7,587,274
Basic and diluted net income per common share		$	1.40			$	1.42			$	2.85			$	2.79

###

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 operates twelve full-service banking offices and two loan production office across the Delmarva Peninsula, serving communities in Maryland, Virginia, and Delaware through both physical and digital banking channels.

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

SOURCE: Calvin B. Taylor Bankshares, Inc.

View the original press release on ACCESS Newswire

FAQ

How did Calvin B. Taylor Bankshares (TYCB) perform in the second quarter of 2026?

Calvin B. Taylor Bankshares reported 2Q26 net income of $3.7 million, or $1.40 per share. According to the company, this compared with $3.8 million ($1.44) in 1Q26 and $3.9 million ($1.42) in 2Q25, reflecting modest year-over-year and sequential declines.

What were the first-half 2026 earnings for Calvin B. Taylor Bankshares (TYCB)?

For the six months ended June 30, 2026, Calvin B. Taylor Bankshares earned $7.5 million, or $2.85 per share. According to the company, this was slightly below $7.6 million ($2.79 per share) for the same period in 2025, a decrease of less than 1% in net income.

How did loans and deposits grow for TYCB through June 30, 2026?

According to Calvin B. Taylor Bankshares, loans increased $39.0 million, or 5.9%, since year-end 2025, reflecting organic growth. Deposits rose $27.0 million, or 3.2%, over the same period, with 2Q26 deposit growth of $22.4 million providing funding without wholesale borrowings.

What happened to Calvin B. Taylor Bankshares’ net interest margin in 2Q26?

Calvin B. Taylor Bankshares’ net interest margin rose to 4.05% in 2Q26 from 3.98% in 1Q26 and 3.84% in 2Q25. According to the company, this expansion was driven by higher yields on loans and investment securities, partially offset by increased deposit interest expense.

How strong is asset quality at Calvin B. Taylor Bankshares (TYCB) as of 2Q26?

Asset quality remained strong, with low nonperforming loans and charge-offs, according to Calvin B. Taylor Bankshares. One $4.5 million commercial real estate loan was placed on nonaccrual, but management believes collateral values are sufficient and does not currently anticipate a loss.

What drove changes in noninterest income and expense for TYCB in 2026?

Year-to-date noninterest income fell 44.1% mainly because 2025 included a $1.9 million land-sale gain. According to Calvin B. Taylor Bankshares, noninterest expense increased 11.5%, driven by higher salaries, employee benefits, and professional services, as the company expanded and adjusted compensation.

What dividends and share repurchases did Calvin B. Taylor Bankshares (TYCB) make in first-half 2026?

Calvin B. Taylor Bankshares paid $0.76 in dividends per share in first-half 2026, up 4.1% year-over-year. According to the company, it also repurchased 26,892 shares for about $1.4 million, at an average price of $52.08, continuing its capital return strategy.