Third Century Bancorp Releases Earnings for the Quarter Ended September 30, 2026

Quarterly net interest margin improved year over year but declined from the preceding quarter.

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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 $735,000 for the quarter ended September 30, 2026, or $0.63 per basic and diluted share, compared to net income of $498,000 for the quarter ended September 30, 2025, or $0.43 per basic and $0.42 per diluted share.

“We are pleased with our third-quarter performance. Loan growth remained solid, deposit growth was exceptionally strong, and those additional deposits allowed us to further reduce wholesale borrowings while maintaining a strong liquidity position. Earnings continued to improve as revenue growth outpaced expense growth. While higher market interest rates continue to create unrealized losses in our investment portfolio that impact reported equity, the Bank's core operating performance remains strong, and our overall financial condition is sound. Regardless of the economic environment or changes in interest rates, our employees continue to demonstrate their commitment to serving our customers and communities. Their efforts are reflected in our financial results, and we remain optimistic about the future,” stated David A. Coffey, President and CEO.

For the quarter ended September 30, 2026, net income increased $237,000, or 47.69%, to $735,000 as compared to $498,000 for the same period in the prior year. The increase in net income for the three-month period ended September 30, 2026, was driven primarily as a result of a $414,000 increase in net interest income as compared to the same period in the prior year. Net interest income increased to $2.68 million for the three months ended September 30, 2026, due to an increase in total interest income of $430,000, or 10.02%, to $4.72 million for the three-month period ended September 30, 2026, as compared to $4.29 million for the same period for the prior year. The increase in total interest income was due to increases in average loan balances and average cash balances. Partially offsetting the increase in total interest income was a slight increase in total interest expense of $16,000, or 0.78%, to $2.04 million for the three-month period ended September 30, 2026, as compared to $2.03 million for the same period for the prior year. The increase in total interest expense was the result of higher average retail deposit balances.

There was no provision for credit losses during the current quarter compared to a provision expense of $27,000 for the same quarter last year due to the continued strength of our credit quality and nominal net charge-offs for the current period.

Non-interest income for the quarter ended September 30, 2026, increased by $91,000, or 24.57%, to $459,000, as compared to $368,000 for the same period in the prior year. The increase in non-interest income occurred due to increased Trust revenue, loan fees, and service charge income as compared to the same period in the prior year. Non-interest expense increased by $202,000, or 9.75%, to $2,276,000 as compared to $2,074,000 for the same period in the prior year, due primarily to increased data processing, personnel expenses, and outside consultant fees.

For the nine-months ended September 30, 2026, net income increased $739,000, or 55.92%, to $2,060,000, or $1.77 per basic and diluted share, as compared to $1,321,000, or $1.13 per basic and $1.12 per diluted share, for the same period in the prior year. Net interest income increased to $7.71 million for the nine-months ended September 30, 2026, due to an increase in total interest income of $1.26 million, or 10.30%, to $13.52 million for the nine-month period ended September 30, 2026, as compared to $12.26 million for the same period for the prior year. The increase in total interest income was the result of higher average loan yields and higher average loan balances. Offsetting the increase in total interest income was an increase in total interest expense of $96,000, or 1.69%, to $5.81 million for the nine-month period ended September 30, 2026, as compared to $5.72 million for the same period for the prior year. The increase in total interest expense was due to higher average retail deposit balances. The provision reversal for credit losses during the first nine months of 2026 was $50,000 compared to a provision expense of $14,000 for the same period last year due to the ongoing strength of our credit quality and nominal charge-offs for the current period. Non-interest income increased by $178,000, or 16.30%, to $1.27 million for the nine-months ended September 30, 2026, as compared to $1.10 million for the same period in the prior year. The increase in non-interest income occurred due to increased service fee income and income on other assets as compared to the same period for the prior year. Non-interest expense increased by $511,000, or 8.30%, to $6.67 million for the nine-months ended September 30, 2026, as compared to $6.16 million for the same period in the prior year due to increased data processing expenses, personnel expenses and outside consultant fees.

Total assets increased $16.81 million, or 4.81%, to $365.99 million at September 30, 2026, compared to $349.19 million at December 31, 2025. This increase was due primarily to higher loan and securities balances which increased by $9.31 million or 4.20% and $3.94 million or 5.25%, respectively, since December 31, 2025. Gross loans held for investment rose by $9.31 million to $230.80 million at September 30, 2026, compared to $221.48 million at December 31, 2025. Total deposits were $321.46 million at September 30, 2026, up from $280.09 million at December 31, 2025. FHLB advances decreased by $23.0 million or 51.11% to $22.0 million at September 30, 2026, from $45.0 million at December 31, 2025.

Stockholders’ equity was $11.16 million at September 30, 2026, compared to $13.17 million at December 31, 2025. Stockholders’ equity decreased due to an increase in net unrealized loss of $3.87 million during the nine months ended September 30, 2026, partially offset by retained net income for the year to date. The increase in net unrealized loss was a result of the decrease in the fair value of our available-for-sale securities due to changes 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 4.04% at September 30, 2026, compared to 2.83% at September 30, 2025.

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										Nine Months Ended
		September 30,			June 30,				September 30,			Sept 30,				Sept 30,
		2026			2026				2025			2026				2025
Selected Consolidated Earnings Data:
Total Interest Income		$	4,718		$	4,471			$	4,289		$	13,522			$	12,259
Total Interest Expense			2,043			1,876				2,027			5,812				5,716
Net Interest Income			2,676			2,595				2,262			7,710				6,543
Provision/(Credit) for Losses			-			(27	)			27			(50	)			14
Net Interest Income after Provision for Losses			2,676			2,622				2,235			7,760				6,529
Non-Interest Income			459			441				368			1,274				1,095
Non-Interest Expense			2,276			2,240				2,074			6,674				6,163
Income Tax Expense			123			103				31			299				140
Net Income		$	735		$	719			$	498		$	2,060			$	1,321
Earnings Per Share - basic		$	0.63		$	0.62			$	0.43		$	1.77			$	1.13
Earnings Per Share - diluted		$	0.63		$	0.62			$	0.42		$	1.77			$	1.12

Condensed Consolidated Balance Sheet
(Unaudited)
In thousands, except per share data
		September 30,				December 31,				September 30,
		2026				2025				2025
Selected Consolidated Balance Sheet Data:
Assets
Cash and Due from Banks		$	34,729			$	33,865			$	41,283
Investment Securities, Available-for-Sale, at Fair Value			74,209				72,118				71,461
Investment Securities, Held-to-Maturity			4,800				2,950				2,950
Loans Held-for-Sale			830				-				2,102
Loans Held-for-Investment			230,796				221,485				212,353
Allowance for Credit Losses			3,104				3,157				2,968
Net Loans Held-for-Investment			227,692				218,327				209,385
Accrued Interest Receivable			1,551				1,641				1,507
Other Assets			22,184				20,287				20,274
Total Assets		$	365,995			$	349,188			$	348,963
Liabilities
Noninterest-Bearing Deposits		$	52,462			$	46,543			$	45,449
Interest-Bearing Deposits			268,994				233,543				222,819
Total Deposits			321,457				280,086				268,268
FHLB Advances and Other Borrowings			22,000				45,000				58,000
Subordinated Notes, Net of Issuances Costs			9,832				9,812				9,805
Accrued Interest Payable			327				472				404
Accrued Expenses and Other Liabilities			1,218				645				778
Total Liabilities			354,833				336,016				337,256
Stockholders' Equity
Common Stock			11,473				11,475				11,475
Retained Earnings			14,919				13,056				12,565
Accumulated Other Comprehensive Gain/(Loss)			(15,231	)			(11,358	)			(12,332	)
Total Stockholders' Equity			11,162				13,173				11,708
Total Liabilities and Stockholders' Equity		$	365,995			$	349,188			$	348,963

		Three Months Ended												Nine Months Ended
		dollar figures are in thousands, except per share data
		September 30,				June 30,				September 30,				September 30,				September 30,
		2026				2026				2025				2026				2025
Selected Financial Ratios and Other Data (Unaudited):
Interest Rate Spread During Period			2.61	%			2.67	%			2.44	%			2.59	%			2.44	%
Net Yield on Interest-Earning Assets			5.40	%			5.37	%			5.43	%			5.33	%			5.37	%
Net Interest Margin During Period, Annualized			3.06	%			3.12	%			2.86	%			3.04	%			2.86	%
Net Realized Gain/(Loss) on AFS Securities		$	-			$	-			$	(10	)		$	0			$	(10	)
Non-Interest Expense, Annualized, to Average Assets			2.49	%			2.56	%			2.49	%			2.46	%			2.56	%
Return on Average Assets, Annualized			0.80	%			0.82	%			0.60	%			0.76	%			0.55	%
Return on Average Equity, Annualized			19.88	%			20.01	%			21.09	%			19.06	%			18.71	%
Average Equity to Assets			4.04	%			4.11	%			2.83	%			3.99	%			2.93	%
Average Net Loans		$	222,798			$	220,090			$	209,332			$	220,100			$	207,155
Average Net Securities			77,930				76,376				72,569				76,882				73,782
Average Other Interest-Earning Assets			48,570				36,513				34,124				41,401				23,614
Total Average Interest-Earning Assets			349,298				332,978				316,024				338,382				304,551
Average Total Assets			366,100				349,782				333,492				361,667				321,350
Average Noninterest-Bearing Deposits		$	47,238			$	46,831			$	41,330			$	46,502			$	40,673
Average Interest-Bearing Deposits			261,317				235,417				213,636				243,624				206,587
Average Total Deposits			308,556				282,248				254,966				290,126				247,260
Average Wholesale Funding			31,240				42,000				58,000				39,341				54,037
Average Interest-Bearing Liabilities			292,558				277,417				271,636				282,965				260,624
Avg. Interest-Earnings Assets to Avg. Interest-Bearings Liabilities			119.39	%			120.03	%			116.34	%			119.58	%			116.85	%
Average equity		$	14,796			$	14,380			$	9,442			$	14,414			$	9,415
Non-Performing Loans to Gross Loans Held-for-Investment			0.00	%			0.28	%			0.00	%			0.00	%			0.00	%
Total Non-Performing Assets		$	-			$	634			$	-			$	-			$	-
Allowance for Credit Losses to Total Loans Outstanding			1.34	%			1.39	%			1.40	%			1.34	%			1.40	%
Allowance for Credit Losses to Non-Performing Loans			N/A				489.90	%			0.00	%			0.00	%			0.00	%
Net Charge-offs/(Recoveries)		$	2			$	-			$	(8	)		$	4			$	(12	)
NCOs to Avg. Total Loans Outstanding			0.00	%			0.00	%			-0.01	%			0.00	%			-0.01	%
Effective Income Tax Rate			14.30	%			12.52	%			5.85	%			12.69	%			9.60	%
Tangible Book Value Per Share		$	9.61			$	13.45			$	10.02			$	9.61			$	10.02
Market Closing Price at the End of Quarter		$	16.75			$	15.52			$	9.45			$	16.75			$	9.45
Price-to-Tangible Book Value			174.23	%			115.38	%			94.31	%			174.23	%			94.31	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261015739761/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