Tri-County Financial Group, Inc. Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Tri-County Financial Group (OTCQX: TYFG) reported its Q2 2024 financial results. Net income was $2.3 million ($0.95 per share), down from $2.7 million in Q2 2023. For the first half of 2024, net income reached $5.0 million ($2.06 per share). Net interest income decreased 4% to $10.6 million, while non-interest income increased 3% to $4.1 million. Total loans grew 6% year-over-year to $1.29 billion. Deposits increased 4% to $49.9 million. The company maintained a solid Tier 1 leverage ratio of 9.45%. A regular dividend of $0.20 per share was declared, payable on July 11, 2024.

Positive

• Total loans increased by 6% year-over-year to $1.29 billion
• Non-interest income grew by 3% to $4.1 million
• Total deposits increased by 4% year-over-year
• Solid Tier 1 leverage ratio of 9.45%
• Regular dividend of $0.20 per share declared

Negative

• Net income decreased from $2.7 million in Q2 2023 to $2.3 million in Q2 2024
• Net interest income declined by 4% compared to Q2 2023
• Non-interest expense increased by $0.2 million year-over-year
• Nonperforming loans as a percent of total loans increased from 0.24% to 0.76% year-over-year
• Investment portfolio decreased by 25% year-over-year

News Market Reaction

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On the day this news was published, TYFG declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

MENDOTA, Ill., July 26, 2024 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the second quarter of 2024.

Net income for the second quarter of 2024 was $2.3 million ($0.95 per share), compared to $2.7 million ($1.09 per share) during the second quarter of 2023.  Net income was $5.0 million ($2.06 per share) for the six-month period ending June 30, 2024.

Net interest income was $10.6 million during the quarter ended June 30, 2024, compared to $11.0 million in the same period of 2023, a decrease of 4%. 

Non-interest income was $4.1 million for the second quarter of 2024, an increase of $0.1 million, or 3%, compared to $4.0 million during the quarter ended June 30, 2023.  

Non-interest expense was $11.6 million during the quarter ended June 30, 2024, compared to $11.4 million for the second quarter of 2023, an increase of $0.2 million. 

Our investment portfolio consists entirely of debt securities classified as available-for-sale; therefore, unrealized gains and losses are fully reported on our balance sheet.  None of our securities are classified as held-to-maturity.  The investment portfolio decreased $47.8 million or 25% year over year and totaled $144.1 million at June 30, 2024.  The reduction of the securities portfolio in 2024 helped finance our loan growth and reduce borrowings.   

Total loans increased $65.2 million, or 6%, to $1.29 billion at June 30, 2024, from $1.22 billion at June 30, 2023.  Nonperforming loans as a percent of total loans were 0.76% as of June 30, 2024, compared to 0.24% at June 30, 2023.

The provision for credit loss had a provision of $0.1 million for the quarter ended June 30, 2024.  The allowance for credit loss ended at $15.0 million at June 30, 2024 and represented 1.16% of gross loans.  Asset quality continues to remain solid and charge offs remain low. 

Total deposits increased $49.9 million, or 4%, year-over-year.  However, approximately $87.5 million and $50.0 million consisted of brokered deposits at June 30, 2024 and 2023, respectively,   Federal Home Loan Bank (FHLB) advances were $68.7 million and $101 million at June 30, 2024 and 2023, respectively. 

The Company's capital levels remain solid as of June 30, 2024, with a Tier 1 leverage ratio of 9.45%.

On June 11, 2024, the Board of Directors declared a regular dividend of $0.20 per share, payable July 11, 2024, to shareholders of record on June 28, 2024.

In announcing the results, Tri-County Financial Group, Inc. President and CEO Tim McConville, stated, "Our second quarter numbers reflected solid earnings given continual compressed margins.  Despite the market and economic stresses, solid earnings performance existed as we remain attentive to our loan and deposit strategies.  With high interest rates impacting banks and balance sheets, we remain diligent in monitoring our local competition to offer competitive rates while continuing to provide exceptional community banking services.  Because of the uncertainty in the economy over the last two years, community bank stocks continue to trade at traditionally low levels.  We expect share pricing and profitability to improve as the economy and the yield curve return to a normal state.    We continue to strive for ways to improve margins given such higher costs of funds.  We believe that our diversified balance sheet and lines of business are well-positioned."

Tri-County Financial Group, Inc. is the parent holding company for First State Bank, with offices in Mendota, Batavia, Bloomington, Champaign, Geneva, LaMoille, McNabb, North Aurora, Ottawa, Peru, Princeton, Rochelle, Shabbona, St. Charles, Streator, Sycamore, Waterman and West Brooklyn. First State Bank is the parent company of First State Mortgage Services, LLC and First State Insurance. Tri-County Financial Group, Inc. shares are quoted under the symbol TYFG and traded on OTCQX.

Note:  This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  Actual results and trends could differ materially from those set forth in such statements due to various factors, including operating; legal and regulatory risks; changing economic and competitive conditions; and other risks and uncertainties.

TRI COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
QUARTER ENDED JUNE 30TH
(Unaudited, 000s omitted, except share data)
			2024		2023
Interest Income			$    19,390		$    17,076
Interest Expense			8,774		6,065
Net Interest Income			10,616		11,011
Provision for Credit Losses			98		(35)
Net Interest Income After Provision for Credit Losses			10,518		11,046
Non-Interest Income			4,118		3,961
FDIC Assessments			180		93
Non-Interest Expenses			11,372		11,335
Income Before Income Taxes			3,084		3,579
Applicable Income Taxes			779		887
Security Gains (Losses)			-		-
Net Income (Loss)			$      2,305		$      2,692
Basic Net Income Per Share			$        0.95		$        1.09
Weighted Average Shares Outstanding			2,421,125		2,463,208

** Certain reclassifications have been made to preserve consistency between the periods presented.

TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, 000s omitted, except share data)
ASSETS		6/30/2024		6/30/2023
Cash and Due from Banks		$             34,127		$             25,097
Federal Funds Sold		1,369		2,058
Debt Securities Available-for-Sale		144,056		191,887
Loans and Leases		1,286,687		1,221,456
Less:  Allowance for Credit Losses		(14,937)		(16,698)
Loans, Net		1,271,750		1,204,758
Premises & Equipment		25,140		26,926
Intangibles		8,711		8,735
Other Real Estate Owned		101		132
Accrued Interest Receivable		8,436		6,162
Other Assets		38,493		36,781
TOTAL ASSETS		$        1,532,183		$        1,502,536
LIABILITIES
Demand Deposits		164,708		178,274
Interest-bearing Demand Deposits		386,818		400,186
Savings Deposits		193,141		229,555
Time Deposits		523,419		410,215
Total Deposits		1,268,086		1,218,230
Repurchase Agreements		24,089		26,737
FHLB and Other Borrowings		68,667		101,000
Interest Payable		73		73
Subordinated Debt		9,822		9,797
Total Repos & Borrowings		102,651		137,607
Other Liabilities		21,718		14,668
Dividends Payable		494		504
TOTAL LIABILITIES		$        1,392,949		$        1,371,009
STOCKHOLDERS' EQUITY
Common Stock		2,416		2,463
Additional Paid-in-Capital		22,117		24,118
Retained Earnings		125,424		116,628
Accumulated Other Comprehensive Loss		(10,723)		(11,682)
TOTAL STOCKHOLDERS' EQUITY		139,234		131,527
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$        1,532,183		$        1,502,536
Book Value Per Share		$              57.64		$              53.41
Tangible Book Value Per Share		$              54.03		$              49.86
Bid Price		$              40.00		$              44.75
Period End Outstanding Shares		2,415,678		2,462,688

 

View original content:https://www.prnewswire.com/news-releases/tri-county-financial-group-inc-reports-second-quarter-2024-financial-results-302207860.html

SOURCE Tri-County Financial Group, Inc.

FAQ

What was Tri-County Financial Group's (TYFG) net income for Q2 2024?

Tri-County Financial Group (TYFG) reported a net income of $2.3 million ($0.95 per share) for Q2 2024.

How did TYFG's loan portfolio perform in Q2 2024?

TYFG's total loans increased by $65.2 million, or 6%, to $1.29 billion as of June 30, 2024, compared to $1.22 billion on June 30, 2023.

What was the dividend declared by TYFG for Q2 2024?

TYFG declared a regular dividend of $0.20 per share, payable on July 11, 2024, to shareholders of record on June 28, 2024.

How did TYFG's deposit base change in Q2 2024?

TYFG's total deposits increased by $49.9 million, or 4%, year-over-year as of June 30, 2024.

What was TYFG's Tier 1 leverage ratio as of June 30, 2024?

TYFG reported a solid Tier 1 leverage ratio of 9.45% as of June 30, 2024.