Updated 3/6/25
Calvin B. Taylor Bankshares, Inc. (TYCB) may not be a well-known name in the investing world, but for those who appreciate steady, community-focused banks, this one deserves a closer look. With a market cap sitting around $162.72 million, this small but stable financial institution has a solid track record of profitability and a shareholder-friendly approach to dividends.
Currently trading near its 52-week high of $60.00, TYCB has rewarded investors with steady gains while maintaining a commitment to dividends. While its 2.41% forward yield isn’t the highest in the banking sector, it’s backed by a conservative 23.32% payout ratio, meaning there’s room for future increases.
For income investors looking for a mix of stability and dividend growth potential, TYCB offers some attractive qualities. Let’s dive into what makes this stock worth considering.
Key Dividend Metrics
💰 Dividend Yield: 2.41%
📈 5-Year Average Dividend Yield: 3.14%
🔄 Dividend Growth: Steady but modest increases
⚖️ Payout Ratio: 23.32% (plenty of room for growth)
📅 Last Dividend Payment: August 8, 2024
📆 Next Ex-Dividend Date: January 27, 2025
Dividend Overview
TYCB’s dividend yield sits at 2.41%, which is slightly lower than its five-year average of 3.14%. This drop isn’t due to dividend cuts but rather strong stock price appreciation, which has pushed the yield down.
The bank has been consistent in rewarding shareholders, with its trailing annual dividend at $1.22 and its forward annual dividend expected to reach $1.44. The company has been increasing dividends cautiously while maintaining a conservative payout ratio, which helps ensure sustainability through various economic cycles.
A payout ratio of just 23.32% means the bank is distributing less than a quarter of its earnings as dividends. This leaves plenty of room for future growth, whether through higher payouts or reinvestment into the business.
Dividend Growth and Safety
While TYCB isn’t known for aggressive dividend hikes, it has a strong track record of steady and reliable payments. The company’s disciplined approach to dividend increases helps ensure that distributions remain sustainable, even during uncertain economic periods.
The bank’s financial health is a major reason why it can continue paying dividends with confidence. Its profit margin of 39.07% and operating margin of 54.61% are both strong indicators of a well-run business.
More importantly, its payout ratio remains low, meaning the company has a lot of flexibility. Many banks that pay out a larger percentage of their earnings may struggle to maintain dividends in a downturn, but TYCB has positioned itself well to keep rewarding shareholders even when the economy hits rough patches.
Chart Analysis
Price Trend
The stock has been on a strong upward trajectory, recently reaching $59.68, which is right at its high for the day. Over the past few months, there’s been a clear breakout, especially noticeable from late December into February when the stock surged past previous resistance levels. The 50-day moving average (orange line) has been steadily climbing, confirming the upward momentum. Meanwhile, the 200-day moving average (blue line) remains in an uptrend, reinforcing the stock’s longer-term strength.
Volume Activity
Volume has been relatively low for most of the year, with a few spikes indicating periods of heightened buying and selling pressure. The most notable surge in volume occurred during the breakout in February, which suggests strong demand driving the price higher. However, the most recent trading session shows extremely low volume (100 shares), which could indicate a lack of immediate buying interest or consolidation at these levels.
Relative Strength Index (RSI)
The RSI indicator at the bottom of the chart is hovering in the overbought territory, meaning the stock has been experiencing strong momentum but could be at risk of a pullback. Generally, when RSI remains elevated for an extended period, it can suggest that the stock is overheated and due for consolidation or a retracement. However, strong uptrends can keep RSI elevated for longer than expected.
Moving Averages and Support Levels
The 50-day moving average has acted as a guide for short-term price direction and is currently trending higher. This suggests that any pullback might find support around the $50 to $52 range, where previous consolidation occurred before the sharp rally. The 200-day moving average remains well below the current price, indicating that the broader trend remains bullish.
Recent Price Action
The last five candlesticks show some volatility, with price reaching new highs but also experiencing a pullback before stabilizing. There is evidence of some profit-taking, but buyers have stepped in to push prices back up after minor dips. The presence of wicks on recent candles suggests some hesitation at these levels, with both buyers and sellers actively participating.
Analyst Ratings
📉 Recent Downgrades: No recent downgrades have been reported for Calvin B. Taylor Bankshares, Inc. (TYCB).
📈 Recent Upgrades: No recent upgrades have been announced for TYCB either.
🔍 Consensus Price Target: There is currently no widely available consensus price target from analysts for this stock.
💡 Why No Ratings?
TYCB, being a small regional bank, does not receive as much attention from major analysts compared to larger financial institutions. Many smaller banks operate with limited analyst coverage, meaning investors often rely on the company’s financial statements, press releases, and regional economic trends to assess its outlook.
📊 Investor Takeaway
Since there are no recent upgrades or downgrades, investors tracking TYCB may need to focus on internal performance indicators such as earnings reports, dividend history, and loan growth. Market sentiment, trading volume, and local economic conditions can also provide insight into future stock movement.
Earnings Report Summary
Calvin B. Taylor Bankshares, Inc. (TYCB) recently reported its financial results for the third quarter of 2024, and overall, the numbers paint a solid picture. The bank posted a net income of $3.7 million, or $1.37 per share. That’s a nice improvement from the previous quarter’s $2.8 million ($1.03 per share), though it is slightly lower than the $4.1 million ($1.50 per share) recorded in the same period last year.
One of the bright spots in the report was net interest income, which climbed to $8.1 million, up from $7.2 million in the second quarter. This bump was mainly due to higher interest earnings on deposits with other banks, showing that TYCB is making the most of its assets in the current rate environment.
Another encouraging sign was the bank’s net interest margin, which expanded to 3.58% from 3.48% in the prior quarter. A rising margin suggests the bank is getting more return from its interest-earning assets while keeping funding costs in check—a good sign for profitability.
The return on average assets (ROAA) also showed improvement, reaching 1.59%, compared to 1.29% in the second quarter. Meanwhile, the efficiency ratio—a key measure of how well a bank manages expenses—improved to 46.6% from 50.6%, signaling stronger operational performance.
On the deposit front, TYCB saw impressive growth, adding $56 million in new deposits, a 7.1% increase. This was split between a $26.7 million jump in non-interest-bearing deposits and a $29.3 million increase in interest-bearing deposits. A healthy deposit base is critical for any bank, and this growth suggests that customers continue to trust TYCB as a reliable financial institution.
Loan performance remained steady, with no major changes in credit quality. The bank kept its provision for credit losses low, indicating confidence in the strength of its loan portfolio.
TYCB is also making moves to improve its banking systems and expand its reach. A major core banking system upgrade is set to wrap up by the end of the year, which should enhance customer experience and operational efficiency. Additionally, the new branch in Cape Charles, Virginia, is progressing as planned, reflecting the bank’s steady expansion strategy.
Overall, the third-quarter report showed strong financial health, solid deposit growth, and a focus on efficiency. With its technology upgrades and branch expansion in motion, TYCB appears to be setting itself up for continued growth in the coming quarters.
Financial Health and Stability
One of TYCB’s biggest strengths is its solid balance sheet. Unlike some banks that rely heavily on debt, TYCB has no reported debt, giving it an advantage in terms of stability and financial flexibility.
Key financial highlights include:
- $131.03 million in total cash, which translates to $48.06 in cash per share
- Book value per share of $42.15, reflecting strong asset backing
- Net income of $10.82 million, providing a consistent stream of earnings to support dividends
For investors who prioritize financial strength and conservative banking practices, TYCB is a reassuring pick. Its lack of debt, strong cash reserves, and stable profitability put it in a great position to navigate various market conditions.
Valuation and Stock Performance
TYCB has seen significant price appreciation, currently trading at $59.68, reflecting a 6.57% gain on March 6, 2025. The stock has moved up considerably from its 52-week low of $43.69, showing strong investor confidence.
Looking at valuation, the P/E ratio of 13.38 suggests the stock is fairly valued based on its earnings, though it’s no longer a deep value play. Its Price/Sales ratio of 5.11 and Price/Book ratio of 1.42 indicate that while the stock is not overpriced, it also isn’t trading at a discount.
For those looking for long-term dividend stability, TYCB remains an attractive option. Its low beta of -0.08 also means it doesn’t move in lockstep with broader market swings, making it a more stable choice for conservative investors.
Risks and Considerations
Every investment comes with some risks, and TYCB is no exception. Here are a few factors investors should keep in mind:
- Low Trading Volume – With a 10-day average volume of just 20 shares, this stock is extremely illiquid. Buying or selling in large quantities could impact the price.
- Slowing Growth – The company’s revenue dipped slightly (-0.80% YoY) and earnings fell 9.30% YoY, raising questions about future expansion.
- Regional Banking Risks – As a community bank, TYCB is closely tied to the local economy. A downturn in its primary markets could impact earnings.
- Valuation Concerns – With the stock trading near its 52-week high, investors might want to wait for a better entry point.
Final Thoughts
For investors seeking steady and sustainable dividends, Calvin B. Taylor Bankshares, Inc. offers a compelling option. It isn’t the highest-yielding stock out there, but its strong balance sheet, conservative payout ratio, and disciplined financial management make it a reliable long-term play.
The company’s low beta also makes it attractive for those looking to reduce volatility in their portfolios. However, investors should be mindful of its low liquidity and current valuation before jumping in.
Overall, TYCB is a stable, well-run bank that offers a safe and growing dividend, making it a worthwhile consideration for income-focused investors.
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