(OTCPINK: TDCB) - Third Century Bancorp (“Company”), the holding
company for Mutual Savings Bank (“Bank”), announced it recorded
unaudited net income of $228,000 for the quarter ended June 30,
2024, or $0.19 per basic and diluted share, compared to net income
of $175,000 for the quarter ended June 30, 2023, or $0.15 per basic
and diluted share.
“We were pleased to see our second quarter June 30, 2024
earnings level improve over the same period from a year earlier”,
noted David A. Coffey, President and CEO. Coffey continued,
“Several factors contributed to this improvement. Of particular
importance is the return of residential mortgage loan activity,
which helps generate loan sale fee income. In addition, our loan
portfolio yield continues to improve due to new loans being booked
at current higher interest rates and adjustable-rate loans are
adjusting at higher rates. Finally, we continue to see the impact
of being mindful of our non-interest expense as we make every
effort to operate efficiently.” Coffey concluded, “The key to a
successful year will be to continue to focus on improving our net
interest margin.”
For the quarter ended June 30, 2024, net income increased
$53,000, or 30.07%, to $228,000 as compared to $175,000 for the
same period in the prior year. Net interest income decreased to
$1.9 million for the three months ended June 30,2024 due to an
increase in total interest expense of $603,000, or 44.14%, to
$1,968,000 for the three-month period ended June 30, 2024, as
compared to $1,365,000 for the same period for the prior year. The
increase in total interest expense was due to the increase in
funding costs of both retail deposits and wholesale funding.
Offsetting the increase in total interest expense was an increase
in total interest income of $468,000, or 13.85% to $3,848,000 for
the three-month period ended June 30, 2024, compared to $3,380,000
for the same period for the prior year. The increase in total
interest income was the result of higher average yields on interest
earning assets and higher average loan balances. The provision for
credit losses during the current quarter was $0, compared to
$146,000 for the same quarter last year due to the ongoing strength
of our credit quality and zero non-performing loans for the last
several quarters. Non-interest income increased by $18,000, or
5.76%, to $333,000 for the quarter ended June 30, 2024, as compared
to $315,000 for the same period in the prior year. The increase in
non-interest income occurred due to a slightly higher volume of
residential loan sales compared to the same period for the prior
year. Non-interest expense decreased by $38,000, or 1.82%, to
$2,031,000 for the quarter ended June 30, 2024, as compared to
$2,069,000 for the same period in the prior year due to cost
savings in personnel and advertising expenses.
For the six-months ended June 30, 2024, net income increased
$64,000, or 12.88%, to $558,000 as compared to $494,000 for the
same period in the prior year. Net interest income decreased to
$3.8 million for the six-months ended June 30,2024 due to an
increase in total interest expense of $1,442,000, or 60.22%, to
$3,836,000 for the six-month period ended June 30, 2024, as
compared to $2,394,000 for the same period for the prior year. The
increase in total interest expense was due to the increase in
funding costs of both retail deposits and wholesale funding.
Offsetting the increase in total interest expense was an increase
in total interest income of $1,235,000, or 19.17% to $7,679,000 for
the six-month period ended June 30, 2024, compared to $6,444,000
for the same period for the prior year. The increase in total
interest income was the result of higher average yields on interest
earning assets and higher average loan balances. The provision for
credit losses during the first half of 2024 was $2,000 compared to
$176,000 for the same period last year due to the ongoing strength
of our credit quality and zero non-performing loans for the last
several quarters. Non-interest expense decreased by $70,000, or
1.71%, to $3,996,000 for the six-months ended June 30, 2024, as
compared to $4,066,000 for the same period in the prior year due to
cost savings in personnel, outside consultant fees, and advertising
expenses. Non-interest income increased by $57,000, or 9.41%, to
$664,000 for the six-months ended June 30, 2024, as compared to
$607,000 for the same period in the prior year. The increase in
non-interest income occurred due to a higher volume of residential
loan sales, increased service fee income, and income on other
assets as compared to the same period for the prior year.
Non-interest income for the current six-months was also offset by a
total of $42,000 in security sale losses due to balance sheet
restructuring.
Total assets rose to $316.5 million at June 30, 2024 compared to
$312.9 million at December 31, 2023. This increase was primarily
due to a $4.7 million, or 34.93%, increase in cash and due from
banks to $18.2 million at June 30, 2024. Loans held for investment
increased to $199.0 million as of June 30, 2024, which is an
increase of 1.14% compared to $196.7 million at December 31,2023.
Total investments decreased $4.1 million, or 4.92% to $79.2 million
at June 30, 2024 compared to $83.3 million at December 31, 2023.
Total deposits were $242.5 million at June 30, 2024, down from
$246.1 million as of December 31, 2023. As of June 30, 2023, the
weighted average rate of all FHLB advances was 3.93% compared to
3.72% at December 31, 2023, and total FHLB advance balances were
down $3.0 million, or 6.45% to $43.5 million at June 30, 2024
compared to $46.5 million at December 31, 2023.
Stockholders’ equity was $9.43 million at June 30, 2024, up from
$8.58 million at June 30, 2023 and down from $9.51 million at
December 31, 2023. Stockholders’ equity decreased during the
six-months ended June 30, 2024, largely due to dividend payouts but
increased over the twelve-month period since June 30, 2023 due to
continued earnings and lower net unrealized losses in the
available-for-sale-securities portfolio. The available-for-sale
securities are investments in government sponsored mortgage-backed
securities as well as investments in municipal bonds, which provide
cash flow for business purposes. Average equity as a percentage of
assets was 2.64% at June 30, 2024 compared to 2.74% at December 31,
2023.
Founded in 1890, Mutual Savings Bank is a full-service financial
institution based in Johnson County, Indiana. In addition to its
main office at 80 East Jefferson Street, Franklin, Indiana, the
Bank operates branches in Franklin at 1124 North Main Street,
Trafalgar and Greenwood, Indiana.
This press release contains certain forward-looking statements
that are based on assumptions and may describe future plans,
strategies and expectations of the Company. Forward-looking
statements can be identified by the fact that they do not relate
strictly to historical or current facts. They often include words
like “believe,” “expect,” “anticipate,” “estimate” and “intend” or
future or conditional verbs such as “will,” “would,” “should,”
“could” or “may.” Certain factors that could cause actual results
to differ materially from expected results include inflation,
changes in the interest rate environment, changes in general
economic conditions, geopolitical conflicts, public health issues,
legislative and regulatory changes that adversely affect the
business of the Company and the Bank, and changes in the securities
markets. Except as required by law, the Company does not undertake
any obligation to update any forward-looking statements to reflect
changes in belief, expectations, or events.
Condensed Consolidated
Statements of Income
(Unaudited)
In thousands, except per share
data
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2024
2024
2023
2024
2023
Selected Consolidated Earnings Data:
Total Interest Income
$
3,848
$
3,831
$
3,380
$
7,679
$
6,444
Total Interest Expense
1,968
1,868
1,365
3,836
2,394
Net Interest Income
1,881
1,963
2,015
3,844
4,050
Provision for Losses on Loans
-
2
146
2
176
Net Interest Income after Provision for Losses on Loans
1,881
1,961
1,869
3,842
3,874
Non-Interest Income
333
331
315
664
607
Non-Interest Expense
2,031
1,965
2,069
3,996
4,066
Income Tax Expense
(45
)
(3
)
(60
)
(48
)
(79
)
Net Income
$
228
$
330
$
175
$
558
$
494
Earnings Per Share -
basic
$
0.19
$
0.28
$
0.15
$
0.47
$
0.42
Earnings Per Share - diluted
$
0.19
$
0.28
$
0.15
$
0.47
$
0.42
Condensed Consolidated Balance
Sheet
(Unaudited)
In thousands, except per share
data
June 30,
December 31,
June 30,
2024
2023
2023
Selected Consolidated Balance Sheet Data:
Assets
Cash and Due from Banks
$
18,174
$
13,470
$
16,019
Investment Securities, Available-for-Sale, at Fair
Value
76,270
80,367
80,848
Investment Securities, Held-to-Maturity
2,950
2,950
2,950
Loans Held-for-Sale
690
552
-
Loans Held-for-Investment
198,961
196,722
188,319
Allowance for Credit Losses
2,976
2,972
2,904
Net Loans
195,985
194,302
185,415
Accrued Interest Receivable
1,528
1,547
1,347
Other Assets
20,874
20,269
19,619
Total Assets
$
316,471
$
312,905
$
306,198
Liabilities
Noninterest-Bearing Deposits
$
39,895
$
43,692
$
43,167
Interest-Bearing Deposits
202,624
202,426
194,502
Total Deposits
242,520
246,118
237,669
FHLB Advances and Other Borrowings
53,500
46,500
49,500
Subordinated Notes, Net of Issuances Costs
9,771
9,758
9,744
Accrued Interest Payable
773
485
445
Accrued Expenses and Other Liabilities
478
536
261
Total Liabilities
307,042
303,397
297,619
Stockholders' Equity
Common Stock
11,505
11,480
11,573
Retained Earnings
10,838
10,338
10,008
Accumulated Other Comprehensive Loss
(12,915
)
(12,310
)
(13,002
)
Total Stockholders' Equity
9,428
9,508
8,579
Total Liabilities and Stockholders' Equity
$
316,471
$
312,905
$
306,198
Three Months Ended
Six Months Ended
dollar figures are in thousands,
except per share data
June 30,
March 31,
June 30,
June 30,
June 30,
2024
2024
2023
2024
2023
Selected Financial Ratios and Other Data (Unaudited):
Interest Rate Spread During Period
2.09
%
2.14
%
2.46
%
2.12
%
2.50
%
Net Yield on Interest-Earning Assets
5.19
%
5.04
%
4.72
%
5.12
%
4.55
%
Non-Interest Expense, Annualized, to Average Assets
2.60
%
2.49
%
2.81
%
2.53
%
2.84
%
Return on Average Assets, Annualized
0.29
%
0.42
%
0.24
%
0.35
%
0.34
%
Return on Average Equity, Annualized
11.03
%
16.01
%
8.49
%
12.78
%
11.17
%
Average Equity to Assets
2.64
%
2.61
%
2.80
%
2.76
%
3.08
%
Average Net Loans
$
195,685
$
194,173
$
186,542
$
194,776
$
182,593
Average Net Securities
78,971
82,413
84,335
80,692
86,855
Average Other Interest-Earning Assets
22,009
27,430
15,743
24,719
13,872
Total Average Interest-Earning Assets
296,665
304,015
286,620
300,188
283,320
Average Total Assets
312,570
316,113
294,192
315,998
286,660
Average
Noninterest-Bearing Deposits
$
40,568
$
42,188
$
43,472
$
41,371
$
43,457
Average Interest-Bearing Deposits
205,295
206,220
191,787
205,758
195,237
Average Total Deposits
245,863
248,408
235,259
247,128
238,694
Average Wholesale Funding
48,764
51,104
49,693
49,934
38,755
Average Interest-Bearing Liabilities
254,059
257,325
241,480
255,692
233,992
Avg. Interest-Earnings
Assets to Avg. Interest-Bearings Liabilities
116.77
%
118.14
%
118.69
%
117.40
%
121.08
%
Average equity
$
8,253.62
$
8,245.26
$
8,219.00
$
8,725.74
$
8,842.00
Non-Performing Loans to Total Loans
0.00
%
0.00
%
0.00
%
0.00
%
0.00
%
Allowance for Credit Losses to Total Loans Outstanding
1.49
%
1.51
%
1.54
%
1.49
%
1.54
%
Allowance for Credit Losses to Non-Performing Loans
-
-
-
-
-
Net Loan Chargeoffs/(Recoveries) to Avg. Total Loans Outstanding
0.00
%
0.00
%
0.00
%
0.00
%
0.00
%
Effective Income Tax Rate
-24.85
%
-0.92
%
-52.17
%
-24.85
%
-19.04
%
Tangible Book Value Per Share
$
8.02
$
7.75
$
7.21
$
8.02
$
7.21
Market Closing Price at the End of Quarter
$
6.94
$
6.98
$
7.55
$
6.94
$
7.55
Price-to-Tangible Book Value
86.59
%
90.02
%
104.68
%
86.59
%
104.68
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731161400/en/
David A. Coffey, President and CEO S. Paul Arab, SVP and CFO
Tel. 317-736-7151