Third Century Bancorp Releases Earnings for the Quarter Ended March 31, 2025

FRANKLIN, Ind.--(BUSINESS WIRE)-- (OTCPINK: TDCB) - Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”), announced it recorded unaudited net income of $449,000 for the quarter ended March 31, 2025, or $0.38 per basic and diluted share, compared to net income of $330,000 for the quarter ended March 31, 2024, or $0.28 per basic and diluted share.

“Overall, I am pleased with how we have started the year,” noted David A. Coffey, President and CEO of Third Century Bancorp. “We benefited by our continued focus on the basic fundamentals of pursuing low-cost deposits as we look to fund quality loan relationships at fair prices. Our team continues to feel optimistic about a positive 2025, even in a very challenging economic environment,” Coffey concluded.

For the quarter ended March 31, 2025, net income increased $119,000, or 36.15%, to $449,000 as compared to $330,000 for the same period in the prior year. The increase in net income for the three-month period ended March 31, 2025 was driven primarily from a $152,000 increase in net interest income as compared to the same period in the prior year. Net interest income increased to $2.12 million for the three months ended March 31, 2025, due to an increase in total interest income of $114,000, or 2.97%, to $3.95 million for the three-month period ended March 31, 2025, as compared to $3.83 million for the same period for the prior year. The increase in total interest income was due to an increase in average loan balances as well as higher average yields on interest earning assets. Further contributing to net interest margin expansion, there was a decrease in total interest expense of $38,000, or 2.04%, to $1.83 million for the three-month period ended March 31, 2025, compared to $1.87 million for the same period for the prior year. The decrease in total interest expense was the result of less reliance on wholesale funding during the quarter as well as lower retail deposit costs.

The provision reversal for credit losses during the current quarter was ($43,000) compared to a provision expense of $2,000 for the same quarter last year due to the impact of early loan payoffs and lower gross loan balances at quarter end.

Non-interest income increased by $36,000, or 10.97%, to $367,000 for the quarter ended March 31, 2025, as compared to $331,000 for the same period in the prior year. The increase in non-interest income occurred due to a higher volume of residential loan sales compared to the same period for the prior year as well as increased fee and service charge income. Non-interest expense increased by $49,000, or 2.51%, to $2.01 million for the quarter ended March 31, 2025, as compared to $1.97 million for the same period in the prior year, due primarily to increases in data processing costs and other contractual vendor expenses.

Total assets increased $1.73 million to $314.11 million at March 31, 2025 compared to $312.38 million at December 31, 2024. This increase was due primarily to higher levels of cash which increased by $5.03 million or 54.66% since December 31, 2024. The increase in cash was due to growth in retail deposits, primarily time accounts, as well as several early loan payoffs. Gross loans held for investment fell by $2.48 million to $205.96 million at March 31, 2025 compared to $208.44 million at December 31, 2024. Total deposits were $245.38 million at March 31, 2025, up from $240.99 million at December 31, 2024. FHLB advances decreased by $3.0 million or 5.88% to $48.0 million at March 31, 2025. At March 31, 2025, the weighted average rate of all FHLB advances was 3.78% compared to 3.81% at December 31, 2024, and the weighted average maturity was 4.19 years at March 31, 2025 compared to 4.20 years at December 31, 2024.

Stockholders’ equity was $10.02 million at March 31, 2025, compared to $9.46 million at December 31, 2024 and $9.12 million at March 31, 2024. Stockholders’ equity increased due to net income for the quarter of $449,000 as well as a decrease in net unrealized loss of $116,000 during the quarter ended March 31, 2025 as a result of the increase in the fair value of our available- for-sale-securities due to the improvement in the forward rate curve compared to our portfolio at year end. The available-for-sale securities are investments in government sponsored mortgage-backed securities as well as investments in municipal bonds, which provide cash flow for business purposes. Quarterly average equity as a percentage of average assets decreased to 3.00% at March 31, 2025 compared to 3.27% at December 31, 2024.

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 inflation, tariffs, changes in the interest rate environment, changes in general economic conditions, geopolitical conflicts, public health issues, 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)
In thousands, except per share data
		Three Months Ended
		March 31,				December 31,			March 31,
			2025			2024				2024
Selected Consolidated Earnings Data:
Total Interest Income		$	3,945			$	3,989		$	3,831
Total Interest Expense			1,830				1,966			1,868
Net Interest Income			2,115				2,023			1,963
Provision/(Credit) for Losses on Loans			(43	)			35			2
Net Interest Income after Provision for Losses on Loans			2,158				1,988			1,961
Non-Interest Income			367				385			331
Non-Interest Expense			2,014				1,819			1,965
Income Tax Expense			62				62			(3	)
Net Income		$	449			$	492		$	330
Earnings Per Share - basic		$	0.38			$	0.42		$	0.28
Earnings Per Share - diluted		$	0.38			$	0.42		$	0.28

Condensed Consolidated Balance Sheet
(Unaudited)
In thousands, except per share data
		March 31,				December 31,				March 31,
			2025				2024				2024
Selected Consolidated Balance Sheet Data:
Assets
Cash and Due from Banks		$	14,229			$	9,200			$	17,157
Investment Securities, Available-for-Sale, at Fair Value			71,829				72,739				77,377
Investment Securities, Held-to-Maturity			2,950				2,950				2,950
Loans Held-for-Sale			613				67				155
Loans Held-for-Investment			205,961				208,438				196,832
Allowance for Credit Losses			2,914				2,962				2,975
Net Loans Held-for-Investment			203,047				205,477				193,857
Accrued Interest Receivable			1,346				1,524				1,408
Other Assets			20,094				20,419				20,015
Total Assets		$	314,109			$	312,376			$	312,919
Liabilities
Noninterest-Bearing Deposits		$	40,897			$	40,362			$	41,904
Interest-Bearing Deposits			204,487				200,626				207,482
Total Deposits			245,384				240,988				249,386
FHLB Advances and Other Borrowings			48,000				51,000				43,500
Subordinated Notes, Net of Issuances Costs			9,792				9,785				9,764
Accrued Interest Payable			433				527				497
Accrued Expenses and Other Liabilities			482				618				651
Total Liabilities			304,091				302,918				303,798
Stockholders' Equity
Common Stock			11,475				11,480				11,493
Retained Earnings			11,867				11,418				10,668
Accumulated Other Comprehensive Gain/(Loss)			(13,323	)			(13,440	)			(13,040	)
Total Stockholders' Equity			10,018				9,457				9,121
Total Liabilities and Stockholders' Equity		$	314,109			$	312,376			$	312,919
	Three Months Ended
		dollar figures are in thousands, except per share data
		March 31,				December 31,				March 31,
			2025				2024				2024
Selected Financial Ratios and Other Data (Unaudited):
Interest Rate Spread During Period			2.42	%			2.21	%			2.14	%
Net Yield on Interest-Earning Assets			5.30	%			5.31	%			5.04	%
Non-Interest Expense, Annualized, to Average Assets			2.57	%			2.27	%			2.49	%
Return on Average Assets, Annualized			0.57	%			0.62	%			0.42	%
Return on Average Equity, Annualized			19.06	%			19.03	%			16.01	%
Average Equity to Assets			3.00	%			3.27	%			2.61	%
Average Net Loans		$	205,319			$	204,241			$	194,173
Average Net Securities			75,214				77,644				82,413
Average Other Interest-Earning Assets			17,111				18,528				27,430
Total Average Interest-Earning Assets			297,644				300,413				304,015
Average Total Assets			314,008				316,650				316,113
Average Noninterest-Bearing Deposits		$	40,085			$	41,328			$	42,188
Average Interest-Bearing Deposits			203,273				202,162				206,220
Average Total Deposits			243,357				243,490				248,408
Average Wholesale Funding			50,533				51,734				51,104
Average Interest-Bearing Liabilities			253,806				253,896				257,325
Avg. Interest-Earnings Assets to Avg. Interest-Bearings Liabilities			117.27	%			118.32	%			118.14	%
Average equity		$	9,431			$	10,343			$	8,245
Non-Performing Loans to Gross Loans Held-for-Investment			0.86	%			0.88	%			0.00	%
Allowance for Credit Losses to Total Loans Outstanding			1.41	%			1.42	%			1.51	%
Allowance for Credit Losses to Non-Performing Loans			165.29	%			161.85	%			0.00	%
Net Loan Chargeoff/(Recovery) to Avg. Total Loans Outstanding			0.00	%			0.00	%			0.00	%
Effective Income Tax Rate			12.07	%			11.17	%			-0.92	%
Tangible Book Value Per Share		$	8.57			$	8.14			$	7.75
Market Closing Price at the End of Quarter		$	9.15			$	9.03			$	6.98
Price-to-Tangible Book Value			106.72	%			110.91	%			90.02	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250421810669/en/

David A. Coffey, President and CEO

S. Paul Arab, SVP and CFO

80 East Jefferson Street Franklin, IN 46131

Tel. 317-736-7151

Fax 317-736-1726

Source: Third Century Bancorp