Third Century Bancorp Releases Earnings for the Quarter and Year Ended December 31, 2023
“Two primary factors impacted our earnings for the year. First, higher funding costs. Due to the movement in the Fed Funds rate and market competitive deposit rates, the costs of funding our quality loan growth was significant. Second, due to higher residential mortgage loan interest rates, our non-interest income continued to run below our desired levels. Higher rates led to low levels of residential loan originations causing residential loan sales on the secondary market to be non-existent. Our loan quality remains strong as we had no non-performing loans at December 31, 2023 ,” stated David A. Coffey, President and CEO. Coffey continued, “As we move into 2024, we are focusing on our strength of building quality broad relationships with our customers to help us shift our funding mix back to a retail funding mix. In addition, we will continue to focus on finding ways to be a more efficient financial institution.” Coffey concluded, “We have a talented team and are focused on providing quality banking products and services to our customers. In 2024, we will strive to find ways to make our stockholders, customers, and community proud of our performance.”
For the quarter ended December 31, 2023, net income decreased
For the year ended December 31, 2023, net income decreased
The allowance for credit losses increased by
Total assets increased
Stockholders’ equity was
Founded in 1890, Mutual Savings Bank is a full-service financial institution based in
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, the COVID-19 pandemic, 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 | Twelve Months Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||
2023 |
2023 |
2022 |
2023 |
2022 |
2021 |
|||||||||||||||
Selected Consolidated Earnings Data: | ||||||||||||||||||||
Total Interest Income | $ |
3,663 |
|
$ |
3,492 |
|
$ |
2,916 |
$ |
13,601 |
|
$ |
9,983 |
$ |
8,130 |
|||||
Total Interest Expense |
|
1,707 |
|
|
1,529 |
|
|
680 |
|
5,631 |
|
|
1,552 |
|
739 |
|||||
Net Interest Income |
|
1,956 |
|
|
1,963 |
|
|
2,236 |
|
7,970 |
|
|
8,431 |
|
7,391 |
|||||
Provision for Losses on Loans |
|
27 |
|
|
35 |
|
|
30 |
|
238 |
|
|
60 |
|
90 |
|||||
Net Interest Income after Provision for Losses on Loans |
|
1,929 |
|
|
1,928 |
|
|
2,206 |
|
7,732 |
|
|
8,371 |
|
7,301 |
|||||
Non-Interest Income |
|
189 |
|
|
346 |
|
|
163 |
|
1,142 |
|
|
1,287 |
|
2,411 |
|||||
Non-Interest Expense |
|
1,889 |
|
|
2,010 |
|
|
1,782 |
|
7,965 |
|
|
7,353 |
|
7,002 |
|||||
Income Tax Expense |
|
(23 |
) |
|
(7 |
) |
|
51 |
|
(109 |
) |
|
189 |
|
368 |
|||||
Net Income | $ |
252 |
|
$ |
271 |
|
$ |
536 |
$ |
1,018 |
|
$ |
2,116 |
$ |
2,342 |
|||||
Earnings Per Share - basic | $ |
0.22 |
|
$ |
0.23 |
|
$ |
0.46 |
$ |
0.88 |
|
$ |
1.83 |
$ |
2.00 |
|||||
Earnings Per Share - diluted | $ |
0.22 |
|
$ |
0.23 |
|
$ |
0.46 |
$ |
0.88 |
|
$ |
1.82 |
$ |
1.99 |
|||||
Condensed Consolidated Balance Sheet |
|||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
In thousands, except per share data | |||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Selected Consolidated Balance Sheet Data: | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and Due from Banks | $ |
13,470 |
|
$ |
8,068 |
|
$ |
3,747 |
|
$ |
13,470 |
|
$ |
3,747 |
|
$ |
4,857 |
|
|||||
Investment Securities, Available-for-Sale, at Fair Value |
|
80,367 |
|
|
76,842 |
|
|
85,571 |
|
|
80,367 |
|
|
85,571 |
|
|
84,661 |
|
|||||
Investment Securities, Held-to-Maturity |
|
2,950 |
|
|
2,950 |
|
|
3,000 |
|
|
2,950 |
|
|
3,000 |
|
|
- |
|
|||||
Loans Held-for-Sale |
|
552 |
|
|
- |
|
|
- |
|
|
552 |
|
|
- |
|
|
738 |
|
|||||
Loans Held-for-Investment |
|
196,722 |
|
|
191,968 |
|
|
171,619 |
|
|
196,722 |
|
|
171,619 |
|
|
143,927 |
|
|||||
Allowance for Credit Losses |
|
2,972 |
|
|
2,947 |
|
|
1,941 |
|
|
2,972 |
|
|
1,941 |
|
|
1,881 |
|
|||||
Net Loans |
|
194,302 |
|
|
189,021 |
|
|
169,678 |
|
|
194,302 |
|
|
169,678 |
|
|
142,784 |
|
|||||
Accrued Interest Receivable |
|
1,547 |
|
|
1,298 |
|
|
1,370 |
|
|
1,547 |
|
|
1,370 |
|
|
760 |
|
|||||
Other Assets |
|
20,269 |
|
|
21,083 |
|
|
17,130 |
|
|
20,269 |
|
|
17,130 |
|
|
8,499 |
|
|||||
Total Assets | $ |
312,905 |
|
$ |
299,262 |
|
$ |
280,496 |
|
$ |
312,905 |
|
$ |
280,496 |
|
$ |
241,561 |
|
|||||
Liabilities | |||||||||||||||||||||||
Noninterest-Bearing Deposits | $ |
43,692 |
|
$ |
43,003 |
|
$ |
44,631 |
|
$ |
43,692 |
|
$ |
44,631 |
|
$ |
40,988 |
|
|||||
Interest-Bearing Deposits |
|
202,426 |
|
|
187,492 |
|
|
195,518 |
|
|
202,426 |
|
|
195,518 |
|
|
173,666 |
|
|||||
Total Deposits |
|
246,118 |
|
|
230,495 |
|
|
240,149 |
|
|
246,118 |
|
|
240,149 |
|
|
214,654 |
|
|||||
FHLB Advances |
|
46,500 |
|
|
51,500 |
|
|
21,845 |
|
|
46,500 |
|
|
21,845 |
|
|
5,000 |
|
|||||
Subordinated Notes, Net of Issuances Costs |
|
9,758 |
|
|
9,751 |
|
|
9,731 |
|
|
9,758 |
|
|
9,731 |
|
|
- |
|
|||||
Accrued Interest Payable |
|
485 |
|
|
364 |
|
|
231 |
|
|
485 |
|
|
231 |
|
|
32 |
|
|||||
Accrued Expenses and Other Liabilities |
|
536 |
|
|
1,105 |
|
|
517 |
|
|
536 |
|
|
517 |
|
|
342 |
|
|||||
Total Liabilities |
|
303,397 |
|
|
293,215 |
|
|
272,473 |
|
|
303,397 |
|
|
272,473 |
|
|
220,028 |
|
|||||
Stockholders' Equity | |||||||||||||||||||||||
Common Stock |
|
11,480 |
|
|
11,467 |
|
|
11,440 |
|
|
11,480 |
|
|
11,440 |
|
|
11,412 |
|
|||||
Retained Earnings |
|
10,338 |
|
|
10,143 |
|
|
10,519 |
|
|
10,338 |
|
|
10,519 |
|
|
9,066 |
|
|||||
Accumulated Other Comprehensive Income/(Loss) |
|
(12,310 |
) |
|
(15,563 |
) |
|
(13,936 |
) |
|
(12,310 |
) |
|
(13,936 |
) |
|
1,055 |
|
|||||
Total Stockholders' Equity |
|
9,508 |
|
|
6,047 |
|
|
8,023 |
|
|
9,508 |
|
|
8,023 |
|
|
21,533 |
|
|||||
Total Liabilities and Stockholders' Equity | $ |
312,905 |
|
$ |
299,262 |
|
$ |
280,496 |
|
$ |
312,905 |
|
$ |
280,496 |
|
$ |
241,561 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended | Twelve Months Ended | ||||||||||||||||
dollar figures are in thousands, except per share data | dollar figures are in thousands, except per share data | ||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | December 31, | ||||||||||||
|
2023 |
|
2023 |
|
2022 |
2023 |
|
2022 |
|
2021 |
|||||||
Selected Financial Ratios and Other Data (Unaudited): | |||||||||||||||||
Interest Rate Spread During Period |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Yield on Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-Interest Expense, Annualized, to Average Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on Average Assets, Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on Average Equity, Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average Equity to Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average Net Loans | $ |
193,190 |
$ |
189,897 |
$ |
166,435 |
$ |
184,972 |
$ |
158,721 |
$ |
142,385 |
|||||
Average Net Securities |
|
81,084 |
|
82,795 |
|
87,234 |
|
85,966 |
|
88,765 |
|
73,674 |
|||||
Average Other Interest-Earning Assets |
|
16,583 |
|
19,314 |
|
10,351 |
|
12,203 |
|
9,057 |
|
11,025 |
|||||
Total Average Interest-Earning Assets |
|
290,858 |
|
292,006 |
|
264,020 |
|
283,141 |
|
256,543 |
|
227,083 |
|||||
Average Total Assets |
|
300,494 |
|
302,142 |
|
264,016 |
|
291,309 |
|
262,381 |
|
230,955 |
|||||
Average Noninterest-Bearing Deposits | $ |
43,147 |
$ |
42,464 |
$ |
43,578 |
$ |
43,471 |
$ |
43,459 |
$ |
37,829 |
|||||
Average Interest-Bearing Deposits |
|
196,655 |
|
190,553 |
|
195,028 |
|
194,411 |
|
191,318 |
|
163,399 |
|||||
Average Total Deposits |
|
239,802 |
|
233,017 |
|
238,606 |
|
237,882 |
|
234,777 |
|
201,228 |
|||||
Average Wholesale Funding |
|
49,279 |
|
59,670 |
|
22,658 |
|
39,396 |
|
16,499 |
|
6,854 |
|||||
Average Interest-Bearing Liabilities |
|
245,934 |
|
250,223 |
|
217,686 |
|
233,807 |
|
207,817 |
|
170,253 |
|||||
Avg. Interest-Earnings Assets to Avg. Interest-Bearings Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-Performing Loans to Total Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for Credit Losses to Total Loans Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for Credit Losses to Non-Performing Loans |
|
- |
|
- |
|
|
|
- |
|
|
|
|
|||||
Net Loan Chargeoffs/(Recoveries) to Avg. Total Loans Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Effective Income Tax Rate |
|
- |
|
- |
|
|
|
- |
|
|
|
|
|||||
Tangible Book Value Per Share | $ |
8.18 |
$ |
5.11 |
$ |
6.88 |
$ |
8.18 |
$ |
6.88 |
$ |
18.28 |
|||||
Market Closing Price at the End of Quarter | $ |
7.05 |
$ |
7.75 |
$ |
9.70 |
$ |
7.05 |
$ |
9.70 |
$ |
17.50 |
|||||
Price-to-Tangible Book Value |
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222364119/en/
David A. Coffey, President and CEO
S. Paul Arab, SVP and CFO
Tel. 317-736-7151
Fax 317-736-1726
Source: Third Century Bancorp