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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

%

 

Contacts

David A. Coffey, President and CEO

S. Paul Arab, SVP and CFO

Tel. 317-736-7151

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