Third Century Bancorp Releases Earnings for the Quarter Ended March 31, 2024

(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. Offsetting 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 flow 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 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
		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	%

 

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