Tri-County Financial Group, Inc. Reports First Quarter 2021 Financial Results

Rhea-AI Summary

Tri-County Financial Group reported a net income of $3.6 million ($1.47 per share) for Q1 2021, marking a 13% increase from the previous year's $3.2 million. Net interest income rose 17% to $10.2 million, driven by growth in mortgage banking fees. Noninterest income also grew by 11% to $6.0 million. Total deposits surged 18% year-over-year, reaching $1.2 billion. However, nonperforming loans rose slightly to 0.55% of total loans, and noninterest expenses increased 13% to $10.7 million.

Positive

• Net income increased to $3.6 million, up 13% year-over-year.
• Net interest income rose 17% to $10.2 million.
• Noninterest income increased 11% to $6.0 million, aided by mortgage banking fees.
• Deposits grew 18% year-over-year, totaling $1.2 billion.

Negative

• Total loans decreased by $13.5 million, or 1% year-over-year.
• Nonperforming loans increased slightly to 0.55% of total loans.
• Noninterest expense rose 13% to $10.7 million.

MENDOTA, Ill., April 28, 2021 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the first quarter of 2021.

Net income for the first quarter of 2021 was $3.6 million ($1.47 per share), compared to $3.2 million ($1.30 per share) during the first quarter of 2020.

Net interest income was $10.2 million during the three months ended March 31, 2021, compared to $8.7 million for the three months ended March 31, 2020, an increase of 17%. The net interest margin was 3.65% in 2021, and 3.30% in 2020.

Noninterest income was $6.0 million for the three months ended March 31, 2021, an increase of $0.6 million, or 11%, compared to $5.4 million during the three months ended March 31, 2020. The increase can be primarily attributed to growth in mortgage banking fees from the prior year. First State Mortgage net income increased by $0.7 million compared to the first quarter of 2021.

Noninterest expense was $10.7 million during the three months ended March 31, 2021, compared to $9.5 million for the three months ended March 31, 2020, an increase of $1.2 million, or 13%. The increase is related to increased mortgage banking activity, expenses related to the Bank's core processing conversion to Fiserv Premier and the acquisition of HF Gehant Bank in mid-March 2020.

Total loans decreased $13.5 million, or 1%, to $1.01 billion from $1.02 billion at March 31, 2020. There were $44 million in Paycheck Protection Plan (PPP) loans included in loan balances at March 31, 2021 compared to none the prior year quarter end. Non-agricultural business loan demand decreased sharply due to the pandemic impact, while portfolio mortgage and home equity loans declined as many were refinanced and sold into the secondary market due to historically low rates. Offsetting some of the decline was a strong increase in agricultural lending activity at March 31, 2021 compared to the prior year. Nonperforming loans as a percent of total loans were 0.55% as of March 31, 2021, up slightly from .53% at March 31, 2020.

The provision for loan loss was decreased slightly as asset quality has remained stable, despite the COVID-19 pandemic. The Company has taken $450,000 during the first quarter of 2021, a decrease of $100,000 over the prior year period. The allowance for loan loss ended at $15.4 million at March 31, 2021 and represented 1.53% of gross loans compared to 1.30% at March 31, 2020.

Deposits increased $182.1 million, or 18%, year-over-year, with much of the growth due to CARES Act economic relief programs and PPP funding.  As a result, total borrowed money decreased significantly at March 31, 2021, ending at $41.8 million, compared to $79.4 million at March 31, 2020. The investment portfolio increased $20.5 million or 20% year over year and totaled $122 million at March 31, 2021 due to the significant increase in deposits and excess liquidity.

The Company's capital levels remain solid as of March 31, 2021, with a Tier 1 leverage ratio of 8.81%, unchanged from last year at March 31, 2020, and a total risk-based ratio of 14.89%, compared to 13.07% at March 31, 2020. PPP lending did not impact risk-based capital ratios at quarter end 2021 due to the SBA guarantee which assigns a 0% risk-weighting to these loans.

On March 17, 2021, the Board of Directors declared a regular dividend of $0.15 per share payable April 15, 2021, to shareholders of record as of March 31, 2021.

In announcing the results, President and Chief Executive Officer, Tim McConville, stated "Our first quarter numbers showed continued improvement with net income up 13% from last year. Mortgage activity continues to favorably impact performance. Total mortgage production this year through March 31 totaled $236 million, up from $103 million in the prior year first quarter.  Asset quality as measured by nonperforming loans to total loans is stable as we continue to monitor the impact of COVID-19. As the economy opens back up, we expect to see business and consumer loan demand return to more normal levels later this year which will allow us to put some excess liquidity back to work."

Tri-County Financial Group, Inc. is the parent holding company for First State Bank, with offices in Mendota, Batavia, Bloomington, 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, LLC and First State Insurance. Tri-County Financial Group, Inc. shares are quoted under the symbol TYFG and traded on OTCQX.

TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(000s omitted, except share data)
ASSETS		3/31/2021		3/31/2020
Cash and Due from Banks		$    165,663		$      36,108
Federal Funds Sold		30,071		962
Investment Securities		122,322		101,830
Loans and Leases		1,007,730		1,021,240
Less:  Reserve for Loan Losses		(15,434)		(13,292)
Loans, Net		992,296		1,007,948
Bank Premises & Equipment		27,582		26,257
Intangibles		8,409		8,408
Other Real Estate Owned		2,850		2,612
Accrued Interest Receivable		3,786		5,965
Other Assets		33,823		32,032
TOTAL ASSETS		$ 1,386,802		$ 1,222,122
LIABILITIES
Demand Deposits		170,231		139,361
Interest-bearing Demand Deposits		390,800		277,003
Savings Deposits		266,022		180,269
Time Deposits		370,454		418,747
Total Deposits		1,197,507		1,015,380
Repurchase Agreements		21,621		14,508
Fed Funds Purchased		0		27,720
FHLB and Other Borrowings		4,000		21,005
Interest Payable		519		519
Subordinated Debt		15,709		15,657
Total Repos & Borrowings		41,849		79,409
Other Liabilities		17,888		18,528
Dividends Payable		380		379
TOTAL LIABILITIES		$ 1,257,624		$ 1,113,696
CAPITAL
Common Stock		2,477		2,466
Surplus		25,702		25,618
Preferred Stock		0		0
Retained Earnings		98,571		79,711
FASB 115 Adjustment		2,428		631
TOTAL CAPITAL		129,178		108,426
TOTAL LIABILITIES AND CAPITAL		$ 1,386,802		$ 1,222,122
Book Value Per Share		$         52.15		$         43.95
Tangible Book Value Per Share		$         48.75		$         40.54
Bid Price		$         37.75		$         33.00
Period End Outstanding Shares		2,477,253		2,467,024

 

TRI COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
THREE MONTHS ENDED MARCH 31st
(000s omitted, except share data)
			2021		2020
Interest Income			$    12,182		$    12,079
Interest Expense			2,024		3,373
Net Interest Income			10,158		8,706
Provision for Loan Losses			450		550
Net Interest Income After Provision for Loan Losses			9,708		8,156
Other Income			6,004		5,391
FDIC Assessments			95		102
Other Expenses			10,624		9,391
Income Before Income Taxes			4,993		4,054
Applicable Income Taxes			1,350		1,141
Security Gains (Losses)			-		297
Net Income (Loss)			$      3,643		$      3,210
Basic Net Income Per Share			$        1.47		$        1.30
Weighted Average Shares Outstanding			2,476,868		2,465,039

 

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SOURCE Tri-County Financial Group, Inc.

FAQ

What was Tri-County Financial Group's net income for Q1 2021?

Tri-County Financial Group reported a net income of $3.6 million for Q1 2021.

How much did the net interest income increase in Q1 2021?

Net interest income increased by 17% to $10.2 million in Q1 2021.

What is the status of nonperforming loans for Tri-County Financial Group?

Nonperforming loans increased slightly to 0.55% of total loans as of March 31, 2021.

What growth did Tri-County Financial Group see in deposits?

Deposits grew by 18% year-over-year, reaching $1.2 billion.

What was the earnings per share for Tri-County Financial Group in Q1 2021?

The earnings per share for Q1 2021 was $1.47.