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

Stockholders' equity increased to $166.900 million from $153.984 million a year earlier, while accumulated other comprehensive losses widened.

Rhea-AI Summary

Tri-County Financial Group (OTCQX: TYFG) reported third-quarter 2026 net income of $3.353 million, down from the same quarter last year. Earnings per share fell to $1.39 from $1.56, while net interest income rose to $14.517 million from $12.969 million. Non-interest income fell to $3.471 million from $4.448 million.

The company terminated First State Mortgage during the quarter, incurring wind-down costs; its nine-month loss widened to $1.7 million from $0.7 million. Additional costs accompanied the definitive agreement signed with HBT Financial in August 2026; the transaction remains proposed. Nine-month net income rose to $11.9 million from $9.8 million. At September 30, loans totaled $1.30 billion, up 0.3% year over year, and deposits increased $34.3 million to $1.287 billion. Nonperforming loans were 0.53% of loans, versus 0.54% a year earlier. Book value per share rose to $68.47 from $64.82.

12 points · 1 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 11 points

How the balance works

Positive

• Major pointThe HBT Financial transaction reached a definitive agreement in August 2026.
• Moderate pointNine-month net income rose to $11.9 million, or $5.00 per share, from $9.8 million, or $4.09.
• Moderate pointThird-quarter net interest income increased to $14.517 million from $12.969 million a year earlier.
• Moderate pointDeposits increased $34.3 million year over year to $1.287 billion at September 30, 2026.
• Moderate pointFHLB and other borrowings fell to $72.917 million from $121.917 million at September 30, 2025.
• Moderate pointCash and due from banks increased to $66.500 million from $50.834 million a year earlier.
• Moderate pointStockholders' equity rose to $166.900 million from $153.984 million at September 30, 2025.

5 minor points

• Minor pointThird-quarter interest expense declined to $7.187 million from $8.125 million a year earlier.
• Minor pointLoans increased $3.6 million, or 0.3%, year over year to $1.30 billion at September 30, 2026.
• Minor pointDeposits excluding brokered deposits increased approximately $52.9 million year over year.
• Minor pointNonperforming loans eased to 0.53% of total loans from 0.54% at September 30, 2025.
• Minor pointBook value per share rose to $68.47 from $64.82; tangible book value reached $64.92 versus $61.17.

Negative

• Moderate pointThird-quarter net income fell to $3.353 million, or $1.39 per share, from $3.712 million, or $1.56.
• Moderate pointFirst State Mortgage's nine-month net loss widened to $1.7 million from $0.7 million.
• Moderate pointThird-quarter non-interest income declined to $3.471 million from $4.448 million a year earlier.
• Moderate pointThird-quarter non-interest expenses increased to $12.721 million from $11.951 million a year earlier.
• Minor pointFirst State Mortgage's termination generated wind-down costs affecting third-quarter net income.

6 minor points

• Minor pointThe HBT Financial transaction generated additional merger costs.
• Minor pointThe HBT Financial transaction remains proposed, rather than completed.
• Minor pointThird-quarter credit loss expense increased to $365,000 from $253,000 a year earlier.
• Minor pointAccumulated other comprehensive loss widened to $9.290 million from $6.521 million at September 30, 2025.
• Minor pointOther real estate owned increased to $402,000 from $101,000 at September 30, 2025.
• Minor pointTotal assets declined to $1.584713 billion from $1.587144 billion at September 30, 2025.

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MENDOTA, Ill., Oct. 28, 2026 /PRNewswire/ -- Tri-County Financial Group, Inc. (the "Company") (OTCQX: TYFG) today announced financial results for the third quarter of 2026.

Net income for the third quarter of 2026 was $3.4 million ($1.39 per share), compared to $3.7 million ($1.56 per share) during the third quarter of 2025, which is approximately an 8% decrease.  During the third quarter, we terminated our mortgage company, First State Mortgage, which had an impact on net income for the quarter with closing costs to wind down the operations.  The net loss for First State Mortgage was $1.7 million year-to-date at September 30, 2026, compared to a net loss of $0.7 million for the same period in 2025.  Overall, net income was $11.9 million ($5.00 per share) for the nine-month period ended September 30, 2026, compared to $9.8 million ($4.09 per share) for the nine-month period ended September 30, 2025. 

Net interest income was $14.5 million during the quarter ended September 30, 2026, compared to $13.0 million in the same period of 2025, an increase of 12%. 

Non-interest income was $3.5 million for the third quarter of 2026, a decrease of $0.9 million, or 20%, compared to $4.4 million during the quarter ended September 30, 2025.  

Non-interest expense was $12.9 million during the quarter ended September 30, 2026, compared to $12.1 million for the third quarter of 2025, an increase of $0.8 million, or 7%. 

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 $13.0 million year-over- year and totaled $141.1 million at September 30, 2026, as compared to $154.1 million at September 30, 2025. 

Total loans increased $3.6 million, or 0.3%, to $1.30 billion at September 30, 2026, from the same period last year.  Nonperforming loans as a percentage of total loans were 0.53% as of September 30, 2026, compared to 0.54% at September 30, 2025.

The total credit loss expense was $0.4 million for the quarter ended September 30, 2026, compared to a credit loss expense of $0.3 million for the quarter ended September 30, 2025.  The allowance for credit loss was $15.3 million at September 30, 2026 and represented 1.17% of gross loans, compared to $14.8 million at September 30, 2025 and 1.13% of gross loans.  Asset quality remains strong overall, with a slight decrease in nonperforming loans year-over-year.   

Total deposits increased by $34.3 million, year-over-year.  Total deposits were $1.287 billion at September 30, 2026, which consisted of approximately $10.0 million of brokered deposits.  Total deposits were $1.253 billion at September 30, 2025, which consisted of approximately $28.9 million of brokered deposits.  Without factoring in brokered deposits, total deposits increased approximately $52.9 million year-over-year.  Federal Home Loan Bank (FHLB) advances were $72.9 million and $121.9 million at September 30, 2026 and 2025, respectively. 

On September 8, 2026, the Board of Directors declared a regular dividend of $0.28 per share, payable October 8, 2026, to shareholders of record on September 30, 2026.

In announcing the results, Tri-County Financial Group, Inc. President and CEO Kirk Ross, stated, "Our third quarter highlights a solid quarter with strong growth in net interest income and core earnings.  In August 2026, the Company entered into a definitive agreement with HBT Financial, Inc. ("HBT"), and we have had additional merger costs related to such a transaction as well as additional costs as we continue to close our mortgage subsidiary.  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 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

Important Information and Where to Find It

In connection with the proposed transaction HBT has filed materials with the SEC, including a Registration Statement on Form S-4 of HBT that included a proxy statement of Tri-County Financial Group, Inc. and a prospectus of HBT. The Registration Statement has been declared effective by the SEC, and on or about September 16, 2026, HBT and Tri-County Financial Group, Inc. mailed a definitive proxy statement/prospectus to the stockholders of Tri-County Financial Group, Inc. in connection with its special meeting of stockholders to be held on October 29, 2026. This news release is not a substitute for the proxy statement/prospectus or the Registration Statement or for any other document that HBT or Tri-County Financial Group, Inc. may file with the SEC and send to Tri-County Financial Group, Inc.'s stockholders in connection with the proposed transaction. TRI-COUNTY FINANCIAL GROUP, INC. STOCKHOLDERS ARE URGED TO CAREFULLY AND THOROUGHLY READ THE PROXY STATEMENT/PROSPECTUS AND THE REGISTRATION STATEMENT, AS MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY HBT WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT HBT, TRI-COUNTY FINANCIAL GROUP, INC., THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED MATTERS.

Investors may obtain free copies of the Registration Statement and proxy statement/prospectus, as each may be amended from time to time, and other relevant documents filed with the SEC by Tri-County Financial Group, Inc. or HBT (when they become available) through the website maintained by the SEC at www.sec.gov.

Participants in the Proxy Solicitation

Tri-County Financial Group, Inc., HBT, and their respective directors and certain of their executive officers and other members of management and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from Tri-County Financial Group, Inc.'s stockholders in connection with the proposed transaction. Information regarding the executive officers and directors of HBT is included in its definitive proxy statement for its 2026 annual meeting filed with the SEC on April 16, 2026. Information regarding the executive officers and directors of Tri-County Financial Group, Inc is included in the proxy statement/prospectus and the Registration Statement on Form S-4. Free copies of these documents may be obtained as described in the paragraphs above.

No Offer or Solicitation

Communications in this news release do not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
QUARTER ENDED SEPTEMBER 30TH
(Unaudited, 000s omitted, except share data)
			2026		2025
Interest Income			$    21,704		$    21,094
Interest Expense			7,187		8,125
Net Interest Income			14,517		12,969
Credit Loss Expense			365		253
Net Interest Income After Provision for Credit Losses			14,152		12,716
Non-Interest Income			3,471		4,448
FDIC Assessments			175		170
Non-Interest Expenses			12,721		11,951
Income Before Income Taxes			4,727		5,043
Applicable Income Taxes			1,374		1,331
Security Gains (Losses)			-		-
Net Income (Loss)			$      3,353		$      3,712
Basic Net Income Per Share			$        1.39		$        1.56
Weighted Average Shares Outstanding			2,415,061		2,381,501

 

TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, 000s omitted, except share data)
ASSETS		9/30/2026		9/30/2025
Cash and Due from Banks		$               66,500		$               50,834
Federal Funds Sold		2,142		1,954
Debt Securities Available-for-Sale		141,065		154,071
Mortgage Loans Held for Sale		5,798		14,034
Loans and Leases		1,302,607		1,298,993
Less:  Allowance for Credit Losses		(15,279)		(14,815)
Loans, Net		1,287,328		1,284,178
Premises & Equipment		23,675		24,592
Intangibles		8,662		8,683
Other Real Estate Owned		402		101
Accrued Interest Receivable		10,672		9,759
Other Assets		38,469		38,938
TOTAL ASSETS		$          1,584,713		$          1,587,144
LIABILITIES
Demand Deposits		$             164,069		$             165,049
Interest-bearing Demand Deposits		439,175		397,176
Savings Deposits		202,817		196,742
Time Deposits		481,202		494,039
Total Deposits		1,287,263		1,253,006
Repurchase Agreements		25,530		25,597
FHLB and Other Borrowings		72,917		121,917
Interest Payable		160		160
Subordinated Debt		9,877		9,853
Total Repos & Borrowings		108,484		157,527
Other Liabilities		21,376		22,020
Dividends Payable		690		607
TOTAL LIABILITIES		1,417,813		1,433,160
STOCKHOLDERS' EQUITY
Common Stock		2,437		2,376
Additional Paid-in-Capital		22,749		20,352
Retained Earnings		151,004		137,777
Accumulated Other Comprehensive Loss		(9,290)		(6,521)
TOTAL STOCKHOLDERS' EQUITY		166,900		153,984
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$          1,584,713		$          1,587,144
Book Value Per Share		$                 68.47		$                 64.82
Tangible Book Value Per Share		$                 64.92		$                 61.17
Bid Price		$                 79.25		$                 48.71
Period End Outstanding Shares		2,437,393		2,375,518

 

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SOURCE Tri-County Financial Group, Inc

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Tri-County Financial Group's third-quarter 2026 earnings?

Tri-County Financial Group earned $3.353 million, or $1.39 per share, in the third quarter of 2026, compared with $3.712 million, or $1.56 per share, a year earlier. For the nine months ended September 30, 2026, net income was $11.9 million, compared with $9.8 million in the corresponding 2025 period.

What happened to Tri-County Financial Group's First State Mortgage business?

Tri-County Financial Group terminated First State Mortgage during the third quarter of 2026 and incurred costs to wind down operations. The mortgage company's net loss for the nine months ended September 30, 2026, was $1.7 million, compared with $0.7 million for the same period in 2025.

How much loan-loss allowance did Tri-County Financial Group report at September 30, 2026?

The allowance for credit losses was $15.3 million, or 1.17% of gross loans, at September 30, 2026. That compares with $14.8 million, or 1.13% of gross loans, at September 30, 2025.

How does Tri-County Financial Group classify its investment securities?

Tri-County Financial Group classifies its entire debt securities portfolio as available-for-sale, with no securities classified as held-to-maturity. Unrealized gains and losses are reflected in accumulated other comprehensive income within stockholders' equity. The portfolio totaled $141.1 million at September 30, 2026, compared with $154.1 million a year earlier.