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 $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 | % | ||||||||||
Contacts
David A. Coffey, President and CEO
S. Paul Arab, SVP and CFO
Tel. 317-736-7151
