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Tri-County Financial Group, Inc. Reports Second Quarter 2026 Financial Results

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Tri-County Financial Group (OTCQX: TYFG) reported second quarter 2026 net income of $4.1 million, or $1.73 per share, up from $3.5 million, or $1.47 per share, in Q2 2025, a roughly 17% increase. For the first six months of 2026, net income was $8.6 million ($3.61 per share) versus $6.1 million ($2.54 per share) a year earlier.

Net interest income rose 16% to $14.2 million, while non-interest income fell 5% to $4.4 million and non-interest expense declined 3% to $11.8 million. Total loans decreased 1% year-over-year to $1.29 billion; nonperforming loans increased to 0.46% of loans from 0.29%. Credit loss expense was $1.1 million versus a $0.1 million recovery in Q2 2025, mainly from a $1.2 million reserve build on higher unfunded commitments. Deposits grew to $1.297 billion, with brokered deposits reduced to about $10.0 million from $32.5 million. Book value per share rose to $69.08 and tangible book value to $65.45. The board declared a $0.28 regular dividend payable July 9, 2026.

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Positive

  • Net income Q2 2026 $4.1M, EPS $1.73, up ~17% YoY
  • Six-month 2026 net income $8.6M vs. $6.1M in 2025
  • Net interest income $14.2M in Q2 2026, up 16% YoY
  • Non-interest expense down 3% YoY to $11.8M in Q2 2026
  • Total deposits up $28M YoY; core deposits +~$50.5M excluding brokered
  • FHLB and other borrowings reduced to $45.9M from $86.9M YoY
  • Book value per share increased to $69.08 from $62.37 YoY
  • Quarterly dividend of $0.28 per share declared for July 9, 2026

Negative

  • Total loans decreased 1% YoY to $1.29B at June 30, 2026
  • Non-interest income declined 5% YoY to $4.4M in Q2 2026
  • Nonperforming loans ratio rose to 0.46% from 0.29% YoY
  • Credit loss expense $1.1M in Q2 2026 vs. $0.1M recovery in Q2 2025
  • Reserve on unfunded commitments increased by $1.2M this quarter

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MENDOTA, Ill., July 29, 2026 /PRNewswire/ -- Tri-County Financial Group, Inc. (the "Company") (OTCQX: TYFG) today announced financial results for the second quarter of 2026.

Tri-County Financial Group, Inc. logo

Net income for the second quarter of 2026 was $4.1 million ($1.73 per share), compared to $3.5 million ($1.47 per share) during the second quarter of 2025, which is approximately a 17% increase.  Net income was $8.6 million ($3.61 per share) for the six-month period ended June 30, 2026, compared to $6.1 million ($2.54 per share) for the six-month period ended June 30, 2025.

Net interest income was $14.2 million during the quarter ended June 30, 2026, compared to $12.2 million in the same period of 2025, an increase of 16%

Non-interest income was $4.4 million for the second quarter of 2026, a decrease of $0.3 million, or 5%, compared to $4.7 million during the quarter ended June 30, 2025.  

Non-interest expense was $11.8 million during the quarter ended June 30, 2026, compared to $12.2 million for the second quarter of 2025, a decrease of $0.4 million, or 3%

Our investment portfolio consists entirely of debt securities classified as available-for-sale; therefore, unrealized gains and losses are reflected in accumulated other comprehensive income within stockholders' equity.  None of our securities are classified as held-to-maturity.  The investment portfolio decreased $0.5 million year-over- year and totaled $147.6 million at June 30, 2026, as compared to $148.2 million at June 30, 2025. 

Total loans decreased $13.7 million, or 1%, to $1.29 billion at June 30, 2026, from $1.30 billion at June 30, 2025.  Nonperforming loans as a percentage of total loans were 0.46% as of June 30, 2026, compared to 0.29% at June 30, 2025.

The total credit loss expense was $1.1 million for the quarter ended June 30, 2026, compared to a credit loss recovery of $0.1 million for the quarter ended June 30, 2025.  The increase this quarter is predominantly attributed to credit loss expense on unfunded commitments, which had an increase of $51 million from the prior quarter, and resulted in a reserve adjustment of $1.2 million this quarter.  The allowance for credit loss was $14.8 million at June 30, 2026 and represented 1.15% of gross loans, compared to $14.7 million at June 30, 2025 and 1.13% of gross loans.  Asset quality remains strong overall, despite a slight increase in nonperforming loans year-over-year.   

Total deposits increased by $28.0 million, year-over-year.  Total deposits were $1.297 billion at June 30, 2026, which consisted of approximately $10.0 million of brokered deposits.  Total deposits were $1.269 billion at June 30, 2025, which consisted of approximately $32.5 million of brokered deposits.  Without factoring in brokered deposits, total deposits increased approximately $50.5 million year-over-year.  Federal Home Loan Bank (FHLB) advances were $45.9 million and $86.9 million at June 30, 2026 and 2025, respectively. 

On June 9, 2026, the Board of Directors declared a regular dividend of $0.28 per share, payable July 9, 2026, to shareholders of record on June 30, 2026.

In announcing the results, Tri-County Financial Group, Inc. President and CEO Kirk Ross, stated, "Our second quarter highlights another solid quarter with strong growth in net interest income and continued improvement in our net interest margin.  Our earnings continue to improve with increased yields on our earning assets and lower funding costs.  Our focus remains on building long-term relationships, supporting our local communities, and managing risk.  While competition for deposits remains elevated, we are confident in our strategy and our ability to deliver consistent, relationship-driven service. "

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.  Such statements often include words such as "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would," and "could," as well as the negative of such words.  Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements due to various factors, including operating; legal and regulatory risks (including changes in the interest rate environment, which could adversely affect our revenues and expenses); changing economic and competitive conditions; local, national and international political conditions (including international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains and increase the volatility of financial markets); and other risks and uncertainties beyond our control.  Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise. 

Contact:

Lana Eddy, Secretary
leddy@firststatebank.biz 
815.538.2265

TRI COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

QUARTER ENDED JUNE 30TH

(Unaudited, 000s omitted, except share data)










2026


2025

Interest Income



$    21,231


$    20,108

Interest Expense



7,067


7,864

Net Interest Income



14,164


12,244

Provision (Recovery) for Credit Losses



1,083


(113)

Net Interest Income After Provision (Recovery) for Credit Losses


13,081


12,357







Non-Interest Income



4,403


4,658

FDIC Assessments



178


172

Non-Interest Expenses



11,664


12,050

Income Before Income Taxes



5,642


4,793







Applicable Income Taxes



1,525


1,286

Security Gains (Losses)



-


-

Net Income (Loss)



$      4,117


$      3,507







Basic Net Income Per Share



$        1.73


$        1.47

Weighted Average Shares Outstanding


2,382,098


2,388,743

   

TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited, 000s omitted, except share data)






ASSETS


6/30/2026


6/30/2025

Cash and Due from Banks


$             58,355


$             45,436

Federal Funds Sold


2,548


2,000

Debt Securities Available-for-Sale


147,611


148,152

Loans and Leases


1,288,073


1,301,782

  Less:  Allowance for Credit Losses


(14,789)


(14,665)

Loans, Net


1,273,284


1,287,117

Premises & Equipment


24,051


24,880

Intangibles


8,667


8,689

Other Real Estate Owned


101


101

Accrued Interest Receivable


8,781


8,031

Other Assets


38,675


38,537






        TOTAL ASSETS


$        1,562,073


$        1,562,943






LIABILITIES





Demand Deposits


$           182,756


$           164,880

Interest-bearing Demand Deposits


423,533


404,627

Savings Deposits


209,306


200,172

Time Deposits


481,211


499,097

        Total Deposits


1,296,806


1,268,776

Repurchase Agreements


21,404


26,199

FHLB and Other Borrowings


45,917


86,917

Interest Payable


73


73

Subordinated Debt


9,871


9,846

         Total Repos & Borrowings


77,265


123,035

Other Liabilities


22,331


21,504

Dividends Payable


667


610

           TOTAL LIABILITIES


$        1,397,069


$        1,413,925






STOCKHOLDERS' EQUITY





Common Stock


2,389


2,389

Additional Paid-in-Capital


20,967


20,980

Retained Earnings


148,328


134,660

Accumulated Other Comprehensive Loss


(6,680)


(9,011)

           TOTAL STOCKHOLDERS' EQUITY


165,004


149,018






TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$        1,562,073


$        1,562,943






Book Value Per Share


$              69.08


$              62.37

Tangible Book Value Per Share


$              65.45


$              58.73

Bid Price


$              64.59


$              43.25

Period End Outstanding Shares


2,388,748


2,389,343

 

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SOURCE Tri-County Financial Group, Inc

FAQ

How did Tri-County Financial Group (TYFG) perform in Q2 2026?

Tri-County Financial Group reported Q2 2026 net income of $4.1 million, or $1.73 per share, up from $3.5 million, or $1.47 per share, in Q2 2025. According to the company, this represents approximately a 17% year-over-year increase in quarterly earnings.

What were the key earnings drivers for TYFG in the second quarter of 2026?

The main earnings driver was higher net interest income, which rose 16% to $14.2 million. According to Tri-County Financial Group, this reflected increased yields on earning assets and lower funding costs, while non-interest expenses declined 3% and non-interest income decreased 5% year-over-year.

How did Tri-County Financial Group’s loans and asset quality change by June 30, 2026?

Total loans decreased 1% year-over-year to $1.29 billion, while nonperforming loans increased to 0.46% of total loans from 0.29%. According to the company, the allowance for credit losses was $14.8 million, or 1.15% of gross loans, and asset quality remains strong overall.

What happened to TYFG’s deposits and funding mix in Q2 2026?

Total deposits reached $1.297 billion at June 30, 2026, up $28 million year-over-year. According to Tri-County Financial Group, brokered deposits declined to about $10.0 million from $32.5 million, while Federal Home Loan Bank and other borrowings fell to $45.9 million from $86.9 million.

What were Tri-County Financial Group’s book value and share metrics as of June 30, 2026?

Book value per share was $69.08 and tangible book value per share was $65.45 at June 30, 2026. According to the company, total stockholders’ equity increased to $165.0 million, and the period-end outstanding shares were 2,388,748.

Did Tri-County Financial Group (TYFG) declare a dividend based on Q2 2026 results?

Yes. The board declared a regular dividend of $0.28 per share on June 9, 2026, payable July 9, 2026, to shareholders of record on June 30, 2026. According to Tri-County Financial Group, this continues its pattern of shareholder distributions.

How did credit loss provisions impact TYFG’s Q2 2026 results?

Credit loss expense was $1.1 million in Q2 2026, versus a $0.1 million recovery a year earlier. According to Tri-County Financial Group, the increase was mainly due to a $1.2 million reserve adjustment related to a $51 million rise in unfunded commitments.