FRANKLIN, Ind., April 25, 2024--(BUSINESS WIRE)--(OTCPINK: TDCB) - Third Century Bancorp ("Company"), the holding company for Mutual Savings Bank ("Bank"), announced it recorded unaudited net income of $330,000 for the quarter ended March 31, 2024, or $0.28 per basic and diluted share, compared to net income of $319,000 for the quarter ended March 31, 2023, or $0.27 per basic and diluted share.
"Our first quarter earnings reflect a continued improvement in several quarterly earnings. Repricing of loans, and the addition of loans at higher rates, benefited our bank. However, our earnings continue to feel the impact of higher funding costs," said David A. Coffey, President and CEO. Coffey continued, "Moving into the rest of 2024, our focus will be to maintain our credit quality, which is among the best of the community banks in Indiana. We will remain engaged in pursuing our strategies to be a more efficient community bank and we will continue our efforts to pursue lower cost funding to positively impact our net-interest margin." Coffey concluded, "While we have high expectations for our bank in what will be a tough interest rate environment, our team is laser focused on achieving a successful year."
For the quarter ended March 31, 2024, net income increased $11,000, or 3.45%, to $330,000 as compared to $319,000 for the same period in the prior year. Net interest income decreased slightly to $2.0 million for the three months ended March 31,2024 due to an increase in total interest expense of $839,000, or 81.54%, to $1,868,000 for the three-month period ended March 31, 2024 as compared to $1,029,000 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. O?setting the increase in total interest expense was an increase in total interest income of $767,000, or 25.03% to $3,831,000 for the three-month period ended March 31, 2024 compared to $3,064,000 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 loan losses during the quarter was $28,000, or 93.33%, lower than the same quarter last year due to the strength of credit quality and zero non-performing loans for several quarters. Non-interest expense decreased by $32,000, or 1.60%, to $1,965,000 for the quarter ended March 31, 2024 as compared to $1,997,000 for the same period in the prior year due to cost savings in personnel and advertising expenses. Non-interest income increased by $39,000, or 13.36%, to $331,000 for the quarter ended March 31, 2024 as compared to $292,000 for the same period in the prior year. The increase in non-interest income occurred due to a higher volume of loan sales compared to the same period for the prior year.
Total assets remained flat at $312.9 million at both March 31, 2024 and December 31, 2023. However, the asset mix shifted at quarter end primarily due to a $3.7 million, or 27.37%, increase in cash and due from banks to $17.2 million at March 31, 2024. Loans held for investment were substantially unchanged at $196.8 million at March 31, 2024 as compared to $196.7 million at December 31,2023. Total investments decreased $2.99 million, or 3.59% to $80.33 million at March 31, 2024 compared to $83.32 million at December 31, 2023. Total deposits were $249.4 million at March 31, 2024, up from $246.1 million as of December 31, 2023. As of March 31, 2023, the weighted average rate of all FHLB advances was 3.40% compared to 3.72% at December 31, 2023, and total FHLBI advance balances were down $13.0 million, or 27.96% to $33.5 million at March 31, 2024 compared to $46.5 million at December 31, 2023.
Stockholders’ equity was $9.12 million at March 31, 2024, up from $8.68 million at March 31, 2023 and down from $9.51 million at December 31, 2023. Stockholders’ equity decreased during the quarter largely due to dividend payouts but increased from the prior year quarter end due to lower net unrealized losses in our 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 provided cash ?ow for business purposes. Average equity as a percentage of assets decreased to 2.61% at March 31, 2024 compared to 2.74% at December 31, 2023.
Founded in 1890, Mutual Savings Bank is a full-service ?nancial institution based in Johnson County, Indiana. In addition to its main o?ce at 80 East Je?erson 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 di?er materially from expected results include in?ation, changes in the interest rate environment, changes in general economic conditions, geopolitical conflicts, public health issues, legislative and regulatory changes that adversely a?ect 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 re?ect changes in belief, expectations, or events.
Condensed Consolidated Statements of Income
(Unaudited)
In thousands, except per share data
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
Selected Consolidated Earnings Data:
Total Interest Income
$
3,831
$
3,663
$
3,064
Total Interest Expense
1,868
1,707
1,029
Net Interest Income
1,963
1,956
2,035
Provision for Losses on Loans
2
27
30
Net Interest Income after Provision for Losses on Loans
1,961
1,929
2,005
Non-Interest Income
331
189
292
Non-Interest Expense
1,965
1,889
1,997
Income Tax Expense
(3
)
(23
)
(19
)
Net Income
$
330
$
252
$
319
Earnings Per Share - basic
$
0.28
$
0.22
$
0.27
Earnings Per Share - diluted
$
0.28
$
0.22
$
0.27
Condensed Consolidated Balance Sheet
(Unaudited)
In thousands, except per share data
March 31,
December 31,
March 31,
2024
2023
2023
Selected Consolidated Balance Sheet Data:
Assets
Cash and Due from Banks
$
17,157
$
13,470
$
4,562
Investment Securities, Available-for-Sale, at Fair Value
77,377
80,367
82,354
Investment Securities, Held-to-Maturity
2,950
2,950
3,000
Loans Held-for-Sale
155
552
-
Loans Held-for-Investment
196,832
196,722
184,491
Allowance for Credit Losses
2,975
2,972
2,830
Net Loans
194,012
194,302
181,661
Accrued Interest Receivable
1,408
1,547
1,264
Other Assets
20,015
20,269
18,152
Total Assets
$
312,919
$
312,905
$
290,993
Liabilities
Noninterest-Bearing Deposits
$
41,904
$
43,692
$
46,567
Interest-Bearing Deposits
207,482
202,426
189,878
Total Deposits
249,386
246,118
236,445
FHLB Advances and Other Borrowings
43,500
46,500
34,860
Subordinated Notes, Net of Issuances Costs
9,764
9,758
9,737
Accrued Interest Payable
497
485
171
Accrued Expenses and Other Liabilities
651
536
1,100
Total Liabilities
303,798
303,397
282,313
Stockholders' Equity
Common Stock
11,493
11,480
11,445
Retained Earnings
10,668
10,338
9,950
Accumulated Other Comprehensive Loss
(13,040
)
(12,310
)
(12,715
)
Total Stockholders' Equity
9,121
9,508
8,680
Total Liabilities and Stockholders' Equity
$
312,919
$
312,905
$
290,993
Three Months Ended
dollar figures are in thousands, except per share data
March 31,
December 31,
March 31,
2024
2023
2023
Selected Financial Ratios and Other Data (Unaudited):
Interest Rate Spread During Period
2.14
%
2.26
%
2.50
%
Net Yield on Interest-Earning Assets
5.04
%
5.04
%
4.31
%
Non-Interest Expense, Annualized, to Average Assets
2.49
%
2.51
%
3.03
%
Return on Average Assets, Annualized
0.42
%
0.34
%
0.48
%
Return on Average Equity, Annualized
16.01
%
12.23
%
15.53
%
Average Equity to Assets
2.61
%
2.74
%
3.11
%
Average Net Loans
$
194,173
$
193,190
$
178,599
Average Net Securities
82,413
81,084
86,497
Average Other Interest-Earning Assets
27,430
16,583
18,970
Total Average Interest-Earning Assets
304,015
290,858
284,066
Average Total Assets
316,113
300,494
264,016
Average Noninterest-Bearing Deposits
$
42,188
$
43,147
$
43,442
Average Interest-Bearing Deposits
206,220
196,655
198,726
Average Total Deposits
248,408
239,802
242,168
Average Wholesale Funding
51,104
49,279
27,964
Average Interest-Bearing Liabilities
257,325
245,934
226,690
Avg. Interest-Earnings Assets to Avg. Interest-Bearings Liabilities
118.14
%
118.27
%
125.31
%
Average equity
$
8,245.26
$
8,243.00
$
8,219.00
Non-Performing Loans to Total Loans
0.00
%
0.00
%
0.00
%
Allowance for Credit Losses to Total Loans Outstanding
1.51
%
1.51
%
1.53
%
Allowance for Credit Losses to Non-Performing Loans
0.00
%
0.00
%
0.00
%
Net Loan Chargeoffs/(Recoveries) to Avg. Total Loans Outstanding