Town Centre Bank (OTCMKTS: TCNB) announced its Q1 2021 financial results in which net income was $365,000 compared to $78,000 in Q1 2020.
Town Centre reports $1.444 million net interest income.
For the quarter ended March 31, 2021, the company’s net interest income was $1,444,000 compared to $936,000 in Q1 2020. The growth in the loan portfolio is responsible for the increase in net interest revenue. The bank was an active participant in the Small Business Administration’s (SBA) Paycheck Program of Protection (PPP). The PPP provided a direct incentive for small enterprises to retain their employees throughout the COVID-19 crisis, and the US SBA fully guarantees each loan.
For the three months ended December 31, 2021, and 2020, there was a provision for loan losses of $20,000 and $40,000, respectively. The bank continues to compensate for probable loan losses out of an abundance of caution due to the economic uncertainties of COVID-19. At the end of the quarter, total shareholders’ equity was $15.5 million, up from $15.2 million a year ago.
The bank’s total assets were $157.4 million at the end of the quarter, representing a $1.4 million increase from Q4 2020. Cash and cash equivalents declined by $5.4 million to $22.7 million on QoQ, while net loan balances rose by $8.7 million to $118.2 million.
Town Centre completed a $44 million Phase I PPP loan.
In 2020, the bank completed more than $44.0 million in Phase I PPP loans, and by the end of Q1 2021, the remaining Phase 1 PPP loans were $22.6 million. As of March 31, 2021, the Federal Reserve Bank of Chicago had pledged $16.2 million Phase I PPP loans, and Phase 2 PPP program commenced in February 2021. The company reported $23.7 million Phase II PP loans funded internally at the end of the quarter.