Third Century Bancorp Releases Earnings for the Quarter and Year Ended December 31, 2024

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 $492,000 for the quarter ended December 31, 2024, or $0.42 per basic and diluted share, compared to net income of $252,000 for the quarter ended December 31, 2023, or $0.22 per basic and diluted share. In addition, the Company recorded net income of $1,312,000 for the year ended December 31, 2024, or $1.13 per basic and diluted share, compared to net income of $1,018,000 for the year ended December 31, 2023, or $0.88 per basic and diluted share.

“Our decrease in personnel expenses and our increase in non-interest income were two of the areas that helped us exceed our financial projections for 2024. We feel this improved performance over 2023 is exciting for our company,” stated David A. Coffey, President and CEO. Coffey concluded, “Community banking in our competitive market is very challenging, yet very rewarding. Our bank, Mutual Savings Bank, turns 135 years old in 2025. After 135 years, we are the only locally based community bank in Johnson County, Indiana. We are proud of serving this community for so many years and look forward to another successful year.”

For the quarter ended December 31, 2024, net income increased $240,000, or 95.31%, to $492,000 as compared to $252,000 for the same period in the prior year. The increase in net income for the three-month period ended December 31, 2024 was driven primarily from the $196,000 increase in non-interest income and the $70,000 decrease in non-interest expense as compared to the same period in the prior year. Net interest income increased to $2,023,000 for the three months ended December 31, 2024, due to an increase in total interest income of $326,000, or 8.90%, to $3,989,000 for the three-month period ended December 31, 2024, as compared to $3,663,000 for the same period for the prior year. The increase in total interest income was due to an increase in average loan balances as well as higher average yields on interest earning assets. Offsetting the increase in total interest income was an increase in total interest expense of $259,000, or 15.19%, to $1,966,000 for the three-month period ended December 31, 2024, compared to $1,707,000 for the same period for the prior year. The increase in total interest expense was the result of higher fundings costs for retail deposits. The provision for credit losses during the current quarter was $35,000 compared to a provision of $27,000 for the same quarter last year. Non-interest income increased by $196,000, or 103.65%, to $385,000 for the quarter ended December 31, 2024, as compared to $189,000 for the same period in the prior year. The increase in non-interest income occurred due to a higher volume of residential loan sales compared to the same period for the prior year. Non-interest expense decreased by $70,000, or 3.72%, to $1,819,000 for the quarter ended December 31, 2024, as compared to $1,889,000 for the same period in the prior year, due primarily to decreased personnel expenses.

For the year ended December 31, 2024, net income increased $294,000, or 28.88%, to $1,312,000 as compared to $1,018,000 for the year ended December 31, 2023. The increase in net income for the year ended December 31, 2024, was due to several factors including lower credit loss provision expense, increased non-interest income, and reduced non-interest expense. Net interest income decreased by $123,000 or 1.54% to $7,847,000 for the year ended December 31,2024 as compared to $7,970,000 for the prior year. Net interest income decreased due to an increase in total interest expense of $2,211,000, or 39.26%, to $7,842,000 for the year ended December 31, 2024, as compared to $5,631,000 for the prior year. The increase in total interest expense was largely due to the increased costs of retaining retail deposits. Offsetting the increase in total interest expense was an increase in total interest income of $2,088,000, or 15.35%, to $15,689,000 for the year ended December 31, 2024 as compared to $13,601,000 for the prior year. The increase in total interest income was due to the increased levels of average loans with higher average loan yields in 2024 as compared to 2023. The provision for credit losses during 2024 was a credit of $15,000 compared to a provision of $238,000 for 2023. Non-interest income increased by $182,000, or 15.94%, to $1,324,000 for the year ended December 31, 2024 as compared to $1,142,000 for the prior year. The increase was largely due to increases in 1-4 family loan sales on the secondary market as well as increased service charges and other income. Non-interest expense decreased by $115,000, or 1.44%, to $7,850,000 for the year ended December 31, 2024 as compared to $7,965,000 for the prior year. The decrease in non-interest expenses was primarily due to cost-cutting measures and reduced personnel expenses.

The allowance for credit losses at December 31, 2024 decreased by $10,000, or 0.34%, to $3.0 million from December 31, 2023. The decrease was due to the strong credit quality of the loan portfolio, shifting pool balances, and changes to qualitative factors in the current expected credit loss (CECL) model. The allowance for credit losses totaled 1.42% of total loans as of December 31, 2024, compared to 1.51% of total loans as of December 31, 2023. Nonperforming loans totaled $1.8 million or 0.88% of total loans as of December 31, 2024, and consists of a single participation loan, as compared to $0 or 0.00% of total loans as of the end of December 31, 2023.

Total assets decreased $530,000 to $312.4 million at December 31, 2024 compared to $312.9 million at December 31, 2023. This decrease was due primarily to a reduction in cash of $4.3 million or 31.70% which funded an increase of $11.7 million, or 5.96%, in loans held for investment to $208.4 million at December 31, 2024. Total deposits were $241.0 million at December 31, 2024, down from $246.1 million at December 31, 2023. FHLB advances increased $4.5 million or 9.68% to $51.0 million at December 31,2024. At December 31, 2024, the weighted average rate of all FHLB advances was 3.81% compared to 3.73% at December 31, 2023, and the weighted average maturity was 4.2 years at December 31, 2024 compared to 3.6 years at December 31, 2023.

Stockholders’ equity was $9.46 million at December 31, 2024, compared to $9.51 million at December 31, 2023 and $8.02 million at December 31, 2022. Stockholders’ equity decreased due to an increase in net unrealized loss of $1,130,000 during the year ended December 31, 2024 as a result of the decrease in the fair value of our available- for-sale-securities due to the worsening in the forward rate curve compared to our portfolio at year end 2023. 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. Stockholders’ equity was also increased by net income of $1,312,000 and decreased by dividends of $232,000. Quarterly average equity as a percentage of average assets increased to 3.27% at December 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												Twelve Months Ended
		December 31,				September 30,				December 31,				December 31,				December 31,				December 31,
			2024				2024				2023				2024				2023				2022
Selected Consolidated Earnings Data:
Total Interest Income		$	3,989			$	4,021			$	3,663			$	15,689			$	13,601			$	9,983
Total Interest Expense			1,966				2,040				1,707				7,842				5,631				1,552
Net Interest Income			2,023				1,980				1,956				7,847				7,970				8,431
Provision/(Credit) for Losses on Loans			35				(52	)			27				(15	)			238				60
Net Interest Income after Provision for Losses on Loans			1,988				2,032				1,929				7,862				7,732				8,371
Non-Interest Income			385				386				189				1,324				1,142				1,287
Non-Interest Expense			1,819				2,146				1,889				7,850				7,965				7,353
Income Tax Expense			62				10				(23	)			24				(109	)			189
Net Income		$	492			$	262			$	252			$	1,312			$	1,018			$	2,116
Earnings Per Share - basic		$	0.42			$	0.22			$	0.22			$	1.13			$	0.88			$	1.83
Earnings Per Share - diluted		$	0.42			$	0.22			$	0.22			$	1.13			$	0.88			$	1.82
Condensed Consolidated Balance Sheet
(Unaudited)
In thousands, except per share data
		December 31,				September 30,				December 31,
			2024				2024				2023
Selected Consolidated Balance Sheet Data:
Assets
Cash and Due from Banks		$	9,200			$	19,351			$	13,470
Investment Securities, Available-for-Sale, at Fair Value			72,739				76,132				80,367
Investment Securities, Held-to-Maturity			2,950				2,950				2,950
Loans Held-for-Sale			67				834				552.00
Loans Held-for-Investment			208,438				206,293				196,722
Allowance for Credit Losses			2,962				2,928				2,972
Net Loans			205,477				203,365				194,302
Accrued Interest Receivable			1,524				1,385				1,547
Other Assets			20,419				20,451				20,269
Total Assets		$	312,376			$	324,468			$	312,905
Liabilities
Noninterest-Bearing Deposits		$	40,362			$	40,739			$	43,692
Interest-Bearing Deposits			200,626				207,341				202,426
Total Deposits			240,988				248,080				246,118
FHLB Advances and Other Borrowings			51,000				53,500				46,500
Subordinated Notes, Net of Issuances Costs			9,785				9,778				9,758
Accrued Interest Payable			527				793				485
Accrued Expenses and Other Liabilities			618				893				536
Total Liabilities			302,918				313,044				303,397
Stockholders' Equity
Common Stock			11,480				11,510				11,480
Retained Earnings			11,418				11,042				10,338
Accumulated Other Comprehensive Gain/(Loss)			(13,440	)			(11,128	)			(12,310	)
Total Stockholders' Equity			9,457				11,423				9,508
Total Liabilities and Stockholders' Equity		$	312,376			$	324,468			$	312,905
		Three Months Ended																Twelve Months Ended
		dollar figures are in thousands, except per share data
		December 31,				September 30,				December 31,								December 31,				December 31,
			2024				2024				2023								2024				2023
Selected Financial Ratios and Other Data (Unaudited):
Interest Rate Spread During Period			2.21	%			2.13	%			2.26	%							2.04	%			2.40	%
Net Yield on Interest-Earning Assets			5.31	%			5.30	%			5.04	%							5.21	%			4.80	%
Non-Interest Expense, Annualized, to Average Assets			2.27	%			2.69	%			2.51	%							2.48	%			2.73	%
Return on Average Assets, Annualized			0.62	%			0.33	%			0.34	%							0.41	%			0.35	%
Return on Average Equity, Annualized			19.03	%			10.61	%			12.23	%							13.93	%			12.35	%
Average Equity to Assets			3.27	%			3.09	%			2.74	%							2.97	%			2.83	%
Average Net Loans		$	204,241			$	199,422			$	193,190							$	198,323			$	184,972
Average Net Securities			77,644				79,135				81,084								79,535				85,966
Average Other Interest-Earning Assets			18,528				24,987				16,583								23,230				12,203
Total Average Interest-Earning Assets			300,413				303,544				290,858								301,088				283,141
Average Total Assets			316,650				319,355				300,494								317,006				291,309
Average Noninterest-Bearing Deposits		$	41,328			$	40,366			$	43,147							$	41,107			$	43,471
Average Interest-Bearing Deposits			202,162				204,469				196,655								204,530				194,411
Average Total Deposits			243,490				244,834				239,802								245,637				237,882
Average Wholesale Funding			51,734				53,500				49,279								42,786				39,396
Average Interest-Bearing Liabilities			253,896				257,969				245,934								247,316				233,807
Avg. Interest-Earnings Assets to Avg. Interest-Bearings Liabilities			118.32	%			117.67	%			118.27	%							121.74	%			121.10	%
Average equity		$	10,343			$	9,867			$	8,243							$	9,419			$	8,243
Non-Performing Loans to Gross Loans Held-for-Investment			0.88	%			0.87	%			0.00	%							0.88	%			0.00	%
Allowance for Credit Losses to Total Loans Outstanding			1.42	%			1.41	%			1.51	%							1.42	%			1.51	%
Allowance for Credit Losses to Non-Performing Loans			161.85	%			162.68	%			-								161.85	%			-
Net Loan Chargeoff/(Recovery) to Avg. Total Loans Outstanding			0.00	%			0.00	%			0.00	%							0.00	%			0.00	%
Effective Income Tax Rate			11.17	%			3.71	%			-10.04	%							1.80	%			-11.99	%
Tangible Book Value Per Share		$	8.14			$	9.71			$	8.18							$	8.14			$	8.18
Market Closing Price at the End of Quarter		$	9.03			$	7.32			$	7.05							$	9.03			$	7.05
Price-to-Tangible Book Value			110.91	%			75.38	%			86.23	%							110.91	%			86.23	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225098168/en/

David A. Coffey, President and CEO

S. Paul Arab, SVP and CFO

80 East Jefferson Street Franklin, IN 46131

Tel. 317-736-7151

Fax 317-736-1726

Source: Third Century Bancorp