OTCPINK “TDCB”
Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”) announced it had net income of $203,000 for the quarter ended March 31, 2019, or $0.17 per basic and diluted share, compared to net income of $216,000 for the quarter ended March 31, 2018, or $0.18 per basic and diluted share. The decrease in net income was primarily driven by an increase of $119,000 in Noninterest expense and a decrease of $48,000 in Noninterest Income. These were partially offset by a $148,000 increase in Net Interest Income. The change in Net Interest Income was comprised of increases of $244,000 in Interest Income and $98,000 in Interest Expense. The Company also recorded a $6,000 decrease in income tax expense.
Net interest income was $1,417,000 for the first quarter of 2019 compared to $1,271,000 for the first quarter of 2018. The increase in net interest income was primarily due to an increase of $244,000, or 16.71%, in interest income, primarily driven by an increase in interest income on loans of $212,000. This increase was offset by an increase in interest expense, which was $287,000 for the first quarter of 2019 compared to $189,000 for the first quarter of 2018. The increase in interest expense was driven by an increase in deposit interest expense of $101,000 and a slight decrease in wholesale funding interest expense of $5,000, or 7.00%.
The increase in net interest income for the quarter ended March 31, 2019 was aided by a $2,000 decrease in the provision for loan losses compared to 2018. The decrease in provision for loan losses was primarily driven by decreased net loan charge-offs. Credit quality factors, including growth in net loan balances, also factor into the provision for loan losses. The Company saw net loan recoveries of $2,000 during the quarter ended March 31, 2019 as compared to net loan charge-offs of $15,000 for the quarter ended March 31, 2018.
Noninterest income decreased by $48,000 to $216,000 for the three months ended March 31, 2019 as compared to the same period in 2018. This decrease in noninterest income was driven by decreases in loans sales of $27,000, as well as decreases in income from servicing sold loans.
Noninterest expense increased by $119,000 to $1,314,000 for the three months ended March 31, 2019 as compared to the same period in 2018. The increase in expenses were largely driven by increases of $79,000 and $15,000 in legal and professional expenses, respectively.
Total assets increased $4.6 million to $163.7 million at March 31, 2019 from $159.1 million at December 31, 2018, an increase of 2.89%. The increase in assets was due to an increase in net loans receivable, an increase of $1.6 million.
Commenting on the financial results, Third Century Bancorp President and CEO David A. Coffey stated, “Our results from the first quarter were steady and in line with our expectations. We continued our efforts to achieve quality growth in deposits and loans. Additionally, we continue to prepare for the opening of our new Greenwood, Indiana location and the opportunities that will come with this expansion.”
The increase in total assets was funded by an increase in deposits of $4.6 million to $129.3 million at March 31, 2019 from $124.7 million at December 31, 2018. The increase in total deposits was driven by an increase of $2.7 million, or 9.31%, in money market deposits to $32.4 million, as well as an increase in term deposits of $1.6 million, or 5.16% at March 31, 2019. The increase in total deposits was also attributable to an increase of $912,000, or 1.85% in transaction deposits. These increases were offset by a decrease in savings deposits of $442,000, or 3.05% March 31, 2019.
Stockholders’ equity increased $241,000 to $16.7 million at March 31, 2019 from $16.5 million at December 31, 2018. Stockholders’ equity increased due to the Company’s net income, partially offset by the increase in net unrealized loss of $121,000 of our available-for-sale securities due to the increase in market interest rates and cash dividends paid of $83,000. Average equity as a percentage of average assets decreased to 10.25% for the three months ended March 31, 2019 compared to 10.47% for the period ended December 31, 2018.
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 and the Otterbein Franklin Senior Life Community, as well as in Nineveh and Trafalgar, Indiana.
| Selected Consolidated Financial Data | ||||||||
| (unaudited) | ||||||||
| At March 31, | At December 31, | |||||||
| 2019 | 2018 | |||||||
| Selected Consolidated Financial Condition Data: | (Dollars in thousands, except per share data) | |||||||
| Total Assets | $ | 163,696 | $ | 159,077 | ||||
Loans receivable-net of allowance for loan losses of $1,401 and $1,338 | 130,237 | 128,311 | ||||||
| Loans held for sale | 483 | 838 | ||||||
| Cash and cash equivalents | 6,358 | 3,055 | ||||||
Interest-earning time deposits in other banks | 0 | 496 | ||||||
| Investment securities | 18,231 | 18,084 | ||||||
| Deposits | 129,329 | 124,740 | ||||||
| FHLB advances and other borrowings | 17,000 | 17,500 | ||||||
| Interest payable and other liabilities | 646 | 356 | ||||||
| Stockholders’ equity-net | 16,721 | 16,480 | ||||||
| Equity to assets ratio at quarter end | 10.21 | % | 10.36 | % | ||||
| Non-performing loans to total loans | 0.09 | 0.00 | ||||||
Allowance for loan losses to total loans outstanding | 1.06 | 1.03 | ||||||
Allowance for loan losses to non-performing loans | 1,129.84 | N/A | ||||||
| Number of full service offices | 5 | 5 | ||||||
| Tangible book value per share | $ | 14.17 | $ | 13.96 | ||||
| Market closing price at end of quarter | $ | 11.60 | $ | 10.75 | ||||
| Price-to-tangible book value | 81.86 | % | 77.01 | % | ||||
| For the Three Months Ended March 31, | ||||||||
| 2019 | 2018 | |||||||
| (Dollars In Thousands, Except Share Data) | ||||||||
| Selected Consolidated Earnings Data: | ||||||||
| Total interest income | $ | 1,704 | $ | 1,460 | ||||
| Total interest expense | 287 | 189 | ||||||
| Net interest income | 1,417 | 1,271 | ||||||
| Provision for losses on loans | 60 | 62 | ||||||
Net interest income after provision for losses on loans | 1,357 | 1,209 | ||||||
| Noninterest income | 216 | 264 | ||||||
| Noninterest expense | 1,314 | 1,195 | ||||||
| Income tax expense | 56 | 62 | ||||||
| Net income | $ | 203 | $ | 216 | ||||
| Earnings per basic and diluted share | $ | 0.17 | $ | 0.18 | ||||
| Selected Financial Ratios and Other Data: | ||||||||
| Interest rate spread during period | 3.64 | % | 3.59 | % | ||||
| Net yield on interest-earning assets | 4.25 | 4.15 | ||||||
Noninterest expense, annualized, to average assets | 3.25 | 3.12 | ||||||
| Return on average assets (annualized) | 0.50 | 0.56 | ||||||
| Return on average equity (annualized) | 4.90 | 5.39 | ||||||
| Average equity to assets | 10.25 | 10.47 | ||||||
Average interest-earning assets to average interest-bearing liabilities | 108.93 | 109.31 | ||||||
Net loan chargeoffs/(recoveries) to average total loans outstanding | (0.01 | ) | 0.01 | |||||
| Effective income tax rate | 21.62 | 22.30 | ||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190513005552/en/
Contacts:
David A. Coffey, President and CEO
Ryan
Cook, Senior Vice President and CFO
Tel. 317-736-7151
Fax
317-736-1726
