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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Third Century Bancorp Releases Earnings for the Quarter Ended March 31, 2021

April 12, 2021 GMT

FRANKLIN, Ind.--(BUSINESS WIRE)--Apr 12, 2021--

(OTCPINK: TDCB) - Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”), announced it recorded net income of $414,000 for the quarter ended March 31, 2021, or $0.35 per basic and diluted share, compared to net income of $453,000 for the quarter ended March 31, 2020, or $0.38 per basic and diluted share.

“Our earnings reflect consistent net income and solid quality asset growth which are the positive result we have achieved from the terrific effort given by our talented staff. I am proud to walk beside this group of bankers who continue to tell our story and how we can help people,” commented David A. Coffey, President and CEO. He also indicated, “We look forward to continuing this momentum during the rest of 2021.”

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For the quarter ended March 31, 2021, net income decreased $39,000, or 8.61%, to $414,000 as compared to $453,000 for the same period in the prior year. The decrease in net income for the three-month period ended March 31, 2021 was driven primarily as result of the $228,000, or 14.87%, increase in non-interest expense. The increase in non-interest expense was due to an increase in overhead expenses. This increase was largely offset by an increase of $152,000 or 28.25% in non-interest income as compared to the same period in the prior year. The increase in non-interest income was driven primarily by a $82,000 or 27.42%, increase in gains on the sale of one-to-four family residential mortgage loans sold to Freddie Mac. Net interest income increased by $30,000, or 1.94% for the quarter ended March 31, 2021, to $1,576,000 as compared to $1,546,000 for the same period in the prior year.

The increase in net interest income for the quarter ended March 31, 2021 was partially offset by a $40,000 increase in the provision for loan losses compared to the same period in 2020 due to the economic conditions resulting from the current COVID-19 crisis. The Company had net loan recoveries of $1,000 during the quarter ended March 31, 2021 compared to net loan charge-offs of $26,000 for the same period in 2020. The Company expects that the current COVID-19 crisis may impact the future provision for loan losses and that credit quality factors may deteriorate in future periods.

Total assets increased $14.3 million to $223.8 million at March 31, 2021 from $209.6 million at December 31, 2020, an increase of 6.82%. The increase was primarily due to a $7.6 million, or 12.89%, increase in investment securities, available-for-sale, primarily funded by a $21.2 million, or 11.98%, increase in total deposits. Total deposits were $198.3 million at March 31, 2021, up from $177.1 million as of December 31, 2020. Federal Home Loan Bank advances were $5.0 million at March 31, 2021 as compared to $11.7 million at December 31, 2020. At March 31, 2021, the weighted average rate of all Federal Home Loan Bank advances was 1.45% compared to 1.21% at December 31, 2020, and the weighted average maturity was 5.0 years at March 31, 2021 compared to 3.5 years at December 31, 2020. Total loans held-for-investment grew to $141.7 million at March 31, 2021 from $138.8 million at December 31, 2020, an increase of 2.09%.

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The increase in total loan balances was partially the result of loans originated through the Small Business Administration’s Paycheck Protection Program (“PPP”) in which the Company participated. The Company originated $8.6 million of PPP loans in the program in 2020, of which $2.1 million remained on the Company’s balance sheet as of March 31, 2021. The Company originated $3.9 million of PPP loans in the program in 2021, all of which remained on the Company’s balance sheet as of March 31, 2021. As of March 31 2021, a total of $6.0 million of PPP loans remained on the Company’s balance sheet with the remaining forgiven by the Small Business Administration.

The allowance for loan losses increased by $47,000, or 2.62%, to $1.8 million at March 31, 2021 from $1.8 million at December 31, 2020. The increase was primarily due to the increase in the provision for loan losses of $40,000 due to the economic conditions resulting from the current COVID-19 crisis. The allowance for loan losses totaled 1.29% of total loans as of March 31, 2021 and December 31, 2020. Nonperforming loans totaled $108,000 or 0.08% of total loans as of March 31, 2021 as compared to $111,000 or 0.08% as of December 31, 2020.

Stockholders’ equity was $19.9 million at March 31, 2021, down from $20.4 million at December 31, 2020. Stockholders’ equity decreased by $502,000 during the quarter ended March 31, 2021 as a result of net income of $414,000, and a decrease in net unrealized gain of $911,000 of available-for-sale securities due to the increase in market interest rates. These changes in stockholders’ equity were also offset by repurchased stock of $21,000 and stock awards of $16,000. Equity as a percentage of assets decreased to 8.92% at March 31, 2021 compared to 9.76% at December 31, 2020.

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 the COVID-19 pandemic, changes in the interest rate environment, changes in general economic conditions, 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, except for periods in the twelve months ended December 31, 2020)
In thousands, except per share data
 

Three Months Ended

March 31,

 

December 31,

 

March 31,

2021

 

2020

 

2020

Selected Consolidated Earnings Data:
Total Interest Income

$

1,795

$

1,807

$

1,864

Total Interest Expense

 

219

 

224

 

318

Net Interest Income

 

1,576

 

1,583

 

1,546

Provision for Losses on Loans

 

45

 

60

 

5

Net Interest Income after Provision for Losses on Loans

 

1,531

 

1,523

 

1,541

Non-interest Income

 

690

 

784

 

538

Non-interest Expense

 

1,761

 

1,954

 

1,533

Income Tax Expense

 

46

 

42

 

94

Net Income

$

414

$

311

$

453

 
Earnings per basic and diluted share

$

0.35

$

0.26

$

0.38

 
 
Condensed Consolidated Balance Sheet
(unaudited, except for periods ended on or before December 31, 2020)
In thousands, except per share data
 

March 31,

 

December 31,

 

March 31,

2021

 

2020

 

2020

Selected Consolidated Balance Sheet Data:
Assets
Cash and Due from Banks

$

8,402

$

4,888

$

5,798

Investment Securities, Available-for-sale, at fair value

 

66,938

 

59,292

 

40,320

Loans Held-for-Sale

 

302

 

434

 

447

Loans Held-for-Investment

 

141,715

 

138,834

 

130,071

Allowance for Loan Losses

 

1,838

 

1,791

 

1,454

Net Loans

 

140,179

 

137,477

 

129,064

Accrued Interest Receivable

 

720

 

686

 

620

Other Assets

 

7,644

 

7,283

 

7,964

Total Assets

$

223,883

$

209,626

$

183,766

 
Liabilities
Noninterest-bearing Deposits

$

37,960

$

32,049

$

27,598

Interest-bearing Deposits

 

160,385

 

145,069

 

120,609

Total Deposits

 

198,345

 

177,118

 

148,207

FHLB Advances

 

5,000

 

11,705

 

17,500

Accrued Interest Payable

 

46

 

54

 

84

Accrued Expenses and Other Liabilities

 

519

 

274

 

552

Total Liabilities

 

203,910

 

189,151

 

166,343

Stockholders' Equity - Net

 

19,973

 

20,475

 

17,423

Total Liabilities and Stockholders' Equity

$

223,883

$

209,626

$

183,766

 
 
Three Months Ended

March 31,

 

December 31,

 

March 31,

2021

 

2020

 

2020

Selected Financial Ratios and Other Data:
Interest rate spread during period

 

2.81%

 

2.91%

 

3.45%

Net yield on interest-earning assets

 

3.36%

 

3.49%

 

4.40%

Non-interest expense, annualized, to average assets

 

3.30%

 

3.74%

 

3.45%

Return on average assets, annualized

 

0.78%

 

0.59%

 

1.02%

Return on average equity, annualized

 

7.98%

 

6.25%

 

10.23%

Average equity to assets

 

9.72%

 

9.51%

 

9.98%

 
Average Loans

$

141,716

$

141,115

$

129,481

Average Securities

 

60,750

 

54,060

 

36,804

Average Other Interest-Earning Assets

 

10,941

 

11,950

 

3,182

Total Average Interest-Earning Assets

 

213,407

 

207,125

 

169,467

Average Total Assets

 

213,453

 

209,232

 

177,702

 
Average Noninterest-bearing Deposits

$

36,637

$

34,178

$

24,975

Average Interest-bearing Deposits

 

149,954

 

144,754

 

123,142

Average Total Deposits

 

186,591

 

178,932

 

148,117

Average Wholesale Funding

 

7,916

 

8,934

 

10,940

Average Interest-Bearing Liabilities

 

157,870

 

153,688

 

134,082

 
Average Interest-Earnings Assets to Average Interest-Bearings Liabilities

 

135.18%

 

134.77%

 

126.39%

Non-performaning loans to total loans

 

0.08%

 

0.08%

 

0.08%

Allowance for loan losses to total loans outstanding

 

1.29%

 

1.29%

 

1.12%

Allowance for loan losses to non-performing loans

 

1701.85%

 

1613.51%

 

1358.88%

Net loan chargeoffs/(recoveries) to average total loans outstanding

 

0.00%

 

0.00%

 

0.08%

Effective income tax rate

 

10.00%

 

11.90%

 

17.10%

Tangible book value per share

$

16.80

$

17.13

$

14.76

Market closing price at the end of quarter

$

14.20

$

15.00

$

11.40

Price-to-tangible book value

 

84.54%

 

87.54%

 

77.23%

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20210412005687/en/

CONTACT: David A. Coffey, President and CEO

Ryan W. Cook, Senior Vice President and CFO

Tel. 317-736-7151 Fax 317-736-1726

KEYWORD: UNITED STATES NORTH AMERICA INDIANA

INDUSTRY KEYWORD: BANKING OTHER PROFESSIONAL SERVICES PROFESSIONAL SERVICES FINANCE

SOURCE: Third Century Bancorp

Copyright Business Wire 2021.

PUB: 04/12/2021 11:15 AM/DISC: 04/12/2021 11:15 AM

http://www.businesswire.com/news/home/20210412005687/en