FRANKLIN, Ind.--(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 | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
| Effective Income Tax Rate | -0.92 | % | -10.04 | % | -6.33 | % | ||||||
| Tangible Book Value Per Share | $ | 7.75 | $ | 8.18 | $ | 7.30 | ||||||
| Market Closing Price at the End of Quarter | $ | 6.98 | $ | 7.05 | $ | 9.30 | ||||||
| Price-to-Tangible Book Value | 90.02 | % | 86.23 | % | 127.44 | % | ||||||
Contacts
David A. Co?ey, President and CEO
S. Paul Arab, SVP and CFO
Tel. 317-736-7151
