Third Century Bancorp Releases Earnings for the Quarter and Year Ended December 31, 2025

FRANKLIN, Ind.--(BUSINESS WIRE)-- (OTCID: TDCB) - Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”), announced it recorded unaudited net income of $550,000 for the quarter ended December 31, 2025, or $0.47 per basic and diluted share, compared to net income of $492,000 for the quarter ended December 31, 2024, or $0.42 per basic and diluted share. In addition, the Company recorded net income of $1,871,000 for the year ended December 31, 2025, or $1.61 per basic and diluted share, compared to net income of $1,312,000 for the year ended December 31, 2024, or $1.13 per basic and diluted share.

“We had a strong Q4 for 2025, following a solid prior nine-months,” stated David A. Coffey, President and CEO. Coffey continued, “We continued to see loan growth due to the efforts of our outstanding loan team. We also saw deposit growth due to our focus on core deposits in our market area. Our earnings were driven by our ability to capitalize on two important areas. First, non-interest income continues to be a strategic emphasis for the Bank. From general service charges to Trust Department fees, these were an important part of our fourth quarter performance. Second, our ability to be proactive in managing our cost of funding to positively impact our net interest margin was equally as important.” Coffey concluded, “As a result of a strong year, I am pleased to see key shareholder metrics improved.”

For the quarter ended December 31, 2025, net income increased $58,000, or 11.68%, to $550,000 as compared to $492,000 for the same period in the prior year. The increase in net income for the three-month period ended December 31, 2025, was driven primarily as a result of a $364,000 increase in net interest income as compared to the same period in the prior year. Net interest income increased to $2.39 million for the three months ended December 31, 2025, due to an increase in total interest income of $363,000, or 9.09%, to $4.35 million for the three-month period ended December 31, 2025, as compared to $3.99 million for the same period for the prior year. The increase in total interest income was due to an increase in average loan balances and average cash balances, as well as higher average yields on interest earning assets. Further contributing to net interest margin expansion, there was a decrease in total interest expense of $1,000, or 0.06%, to $1.97 million for the three-month period ended December 31, 2025, as compared to the same period for the prior year. The decrease in total interest expense was the result of reduced expense in retail deposits and lower average borrowing balances.

The provision for credit losses increased during the current quarter to $190,000 compared to a provision of $35,000 for the same quarter last year due to higher gross loan balances at quarter end and a slight increase in non-performing loans during the quarter.

Non-interest income for the quarter ended December 31, 2025, increased by $237,000, or 65.90%, to $597,000, as compared to $368,000 for the same period in the prior year. The increase in non-interest income occurred due to a higher volume of residential loan sales, increased Trust revenue, and service charge income as compared to the same period in the prior year. Non-interest expense increased by $392,000, or 21.90%, to $2,186,000 as compared to $1,794,000 for the same period in the prior year, due primarily to increased personnel expenses.

For the year ended December 31, 2025, net income increased $559,000, or 42.59%, to $1,871,000 as compared to $1,312,000 for the year ended December 31, 2024. The increase in net income for the year ended December 31, 2025, was due to several factors including an increase in total interest income, increased non-interest income, and a decrease in total interest expense. Net interest income increased by $1,083,000, or 13.80%, to $8,930,000 for the year ended December 31, 2025, as compared to $7,847,000 for the prior year. Net interest income increased due to an increase in total interest income of $922,000, or 5.87%, to $16,610,000 for the year ended December 31, 2025, as compared to $15,689,000 for the prior year. The increase in total interest income was due to higher average loan balances and higher interest-earning cash balances. Complementing the increase in total interest income was a decrease in total interest expense of $161,000, or 2.05%, to $7,681,000 for the year ended December 31, 2025, as compared to $7,842,000 for the prior year. The decrease in total interest expense was largely due to lower average wholesale borrowing balances. The provision for credit losses during 2025 was $204,000 compared to a provision credit of $15,000 for 2024, as a result of loan growth and a specific reserve for one borrower relationship. The loans comprising that relationship were subsequently paid off in January. Non-interest income increased by $368,000, or 27.82%, to $1,692,000 for the year ended December 31, 2025, as compared to $1,324,000 for the prior year. The increase was due largely to increased Trust revenue and a higher volume of loan sales on the secondary market. Non-interest expense increased by $500,000, or 6.37%, to $8,349,000 for the year ended December 31, 2025, as compared to $7,850,000 for the prior year. The increase in non-interest expense was primarily due to increased personnel expenses.

Total assets increased $36.81 million to $349.19 million at December 31, 2025, compared to $312.38 million at December 31, 2024. This increase was due primarily to higher levels of cash which increased by $24.66 million or 268.08% since December 31, 2024, and higher total loans. The increase in cash was due to growth in retail deposits. Gross loans held for investment rose by $13.05 million to $221.49 million at December 31, 2025, compared to $208.44 million at December 31, 2024. Total deposits were $280.09 million at December 31, 2025, up from $240.99 million at December 31, 2024. FHLB advances decreased by $6.0 million or 11.76% to $45.0 million at December 31, 2025, from $51.0 million at December 31, 2024. As of December 31, 2025, the weighted average rate of all FHLB advances was 3.75% compared to 3.81% at December 31, 2024, and the weighted average maturity was 3.97 years at December 31, 2025, compared to 4.20 years at December 31, 2024.

Stockholders’ equity was $13.17 million at December 31, 2025, compared to $9.46 million at December 31, 2024. Stockholders’ equity increased due to retained net income for the year as well as a decrease in net unrealized loss of $2,082,000 during the twelve months ended December 31, 2025, as a result of the increase in the fair value of our available- for-sale-securities due to the improvement in the forward rate curve compared to our portfolio at prior year end. 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. Quarterly average equity as a percentage of average assets increased to 3.69% at December 31, 2025, compared to 3.27% at December 31, 2024.

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, tariffs, 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,
		2025			2025			2024			2025			2024
Selected Consolidated Earnings Data:
Total Interest Income		$	4,352		$	4,289		$	3,989		$	16,610		$	15,689
Total Interest Expense			1,965			2,027			1,966			7,681			7,842
Net Interest Income			2,387			2,262			2,023			8,930			7,847
Provision/(Credit) for Losses			190			27			35			204			(15	)
Net Interest Income after Provision for Losses			2,197			2,235			1,988			8,726			7,862
Non-Interest Income			597			368			360			1,692			1,324
Non-Interest Expense			2,186			2,074			1,794			8,349			7,850
Income Tax Expense			58			31			62			198			24
Net Income		$	550		$	498		$	492		$	1,871		$	1,312
Earnings Per Share - basic		$	0.47		$	0.43		$	0.42		$	1.61		$	1.13
Earnings Per Share - diluted		$	0.47		$	0.42		$	0.42		$	1.61		$	1.13

Condensed Consolidated Balance Sheet
(Unaudited)
In thousands, except per share data
		December 31,				September 30,				December 31,
			2025				2025				2024
Selected Consolidated Balance Sheet Data:
Assets
Cash and Due from Banks		$	33,865			$	41,283			$	9,200
Investment Securities, Available-for-Sale, at Fair Value			72,118				71,461				72,739
Investment Securities, Held-to-Maturity			2,950				2,950				2,950
Loans Held-for-Sale			-				2,102				67
Loans Held-for-Investment			221,485				212,353				208,438
Allowance for Credit Losses			3,157				2,968				2,962
Net Loans Held-for-Investment			218,327				209,385				205,477
Accrued Interest Receivable			1,641				1,507				1,524
Other Assets			20,287				20,274				20,419
Total Assets		$	349,188			$	348,963			$	312,376
Liabilities
Noninterest-Bearing Deposits		$	46,543			$	45,449			$	40,362
Interest-Bearing Deposits			233,543				222,819				200,626
Total Deposits			280,086				268,268				240,988
FHLB Advances and Other Borrowings			45,000				58,000				51,000
Subordinated Notes, Net of Issuances Costs			9,812				9,805				9,785
Accrued Interest Payable			472				404				527
Accrued Expenses and Other Liabilities			645				778				618
Total Liabilities			336,016				337,256				302,918
Stockholders' Equity
Common Stock			11,475				11,475				11,480
Retained Earnings			13,056				12,565				11,418
Accumulated Other Comprehensive Gain/(Loss)			(11,358	)			(12,332	)			(13,440	)
Total Stockholders' Equity			13,173				11,708				9,457
Total Liabilities and Stockholders' Equity		$	349,188			$	348,963			$	312,376

		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,
			2025				2025				2024				2025				2024
Selected Financial Ratios and Other Data (Unaudited):
Interest Rate Spread During Period			2.48	%			2.44	%			2.21	%			2.45	%			2.04	%
Net Yield on Interest-Earning Assets			5.33	%			5.43	%			5.31	%			5.36	%			5.21	%
Non-Interest Expense, Annualized, to Average Assets			2.54	%			2.49	%			2.27	%			2.55	%			2.48	%
Return on Average Assets, Annualized			0.64	%			0.60	%			0.62	%			0.57	%			0.41	%
Return on Average Equity, Annualized			17.33	%			21.09	%			19.03	%			18.27	%			13.93	%
Average Equity to Assets			3.69	%			2.83	%			3.27	%			3.13	%			2.97	%
Average Net Loans		$	213,412			$	209,332			$	204,241			$	208,732			$	198,323
Average Net Securities			74,922				72,569				77,644				74,069				79,535
Average Other Interest-Earning Assets			38,225				34,124				18,528				27,297				23,230
Total Average Interest-Earning Assets			326,560				316,024				300,413				310,098				301,088
Average Total Assets			344,011				333,492				316,650				327,186				317,006
Average Noninterest-Bearing Deposits		$	44,809			$	41,330			$	41,328			$	41,716			$	41,107
Average Interest-Bearing Deposits			225,140				213,636				202,162				211,263				204,530
Average Total Deposits			269,949				254,966				243,490				252,979				245,637
Average Wholesale Funding			50,446				58,000				51,734				53,132				42,786
Average Interest-Bearing Liabilities			275,586				271,636				253,896				264,395				247,316
Avg. Interest-Earnings Assets to Avg. Interest-Bearings Liabilities			118.50	%			116.34	%			118.32	%			117.29	%			121.74	%
Average equity		$	12,684			$	9,442			$	10,343			$	10,239			$	9,419
Non-Performing Loans to Gross Loans Held-for-Investment			0.17	%			0.00	%			0.88	%			0.18	%			0.88	%
Allowance for Credit Losses to Total Loans Outstanding			1.43	%			1.40	%			1.42	%			1.43	%			1.42	%
Allowance for Credit Losses to Non-Performing Loans			858.01	%			0.00	%			161.85	%			858.01	%			161.85	%
Net Loan Chargeoff/(Recovery) to Avg. Total Loans Outstanding			-0.01	%			-0.01	%			0.00	%			-0.01	%			0.00	%
Effective Income Tax Rate			9.48	%			5.85	%			11.17	%			9.56	%			1.80	%
Tangible Book Value Per Share		$	11.27			$	10.02			$	8.14			$	11.27			$	8.14
Market Closing Price at the End of Quarter		$	9.35			$	9.45			$	9.03			$	9.35			$	9.03
Price-to-Tangible Book Value			82.94	%			94.31	%			110.91	%			82.94	%			110.91	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260205719351/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