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Third Century Bancorp Releases Earnings for the Quarter Ended March 31, 2024
"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. OiEUR 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 ieow 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 inancial institution based in Johnson County, Indiana. In addition to its main oice at 80 East JeiEUR 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 diiEUR er materially from expected results include inieation, changes in the interest rate environment, changes in general economic conditions, geopolitical conflicts, public health issues, legislative and regulatory changes that adversely aiEUR 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 reieect changes in belief, expectations, or events.
Condensed Consolidated Statements of Income Condensed Consolidated Statements of Income Condensed Consolidated Statements of Income
(Unaudited) (Unaudited) (Unaudited)
In thousands, except per share data In thousands, except per share data In thousands, except per share data
Three Months Ended Three Months Ended Three Months Ended
------------------------------------------------------------------- ------------------------------------------------------ ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, March 31, March 31, December 31, December 31, March 31, March 31,
2024 2024 2024 2023 2023 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 Condensed Consolidated Balance Sheet Condensed Consolidated Balance Sheet
(Unaudited) (Unaudited) (Unaudited)
In thousands, except per share data In thousands, except per share data In thousands, except per share data
March 31, March 31, March 31, December 31, December 31, March 31, March 31,
2024 2024 2024 2023 2023 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 Three Months Ended Three Months Ended
------------------------------------------------------------------- ------------------------------------------------------ ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
dollar figures are in thousands, except per share data dollar figures are in thousands, except per share data dollar figures are in thousands, except per share data
March 31, March 31, March 31, December 31, December 31, March 31, March 31,
2024 2024 2024 2023 2023 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240425238522/en/
SOURCE: Third Century Bancorp
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David A. CoiEUR ey, President and CEO S. Paul Arab, SVP and CFO Tel. 317-736-7151
COMTEX_451421395/1006/2024-04-25T16:18:01