Tri-County Financial Group, Inc. Reports First Quarter 2024 Financial Results

Rhea-AI Summary

Tri-County Financial Group, Inc. reported strong financial results for the first quarter of 2024. Net income increased to $2.7 million compared to $1.5 million in the same period last year. The net interest income and total loans also saw positive growth, while non-interest income experienced a slight decrease. The company maintained a healthy asset quality, with low nonperforming loans and a solid Tier 1 leverage ratio. Despite challenges in the mortgage market, Tri-County Financial Group, Inc. remains focused on improving margins and offering competitive rates to its customers.

Positive

• Net income for the first quarter of 2024 increased to $2.7 million, up from $1.5 million in the same period of 2023.

• The net interest income grew to $10.5 million in the first quarter of 2024, compared to $10.2 million in 2023, showcasing a 3% increase.

• Total loans rose to $1.29 billion at March 31, 2024, marking a 7% increase from the previous year.

• Asset quality remained strong with nonperforming loans at 0.63% of total loans as of March 31, 2024.

• The company's Tier 1 leverage ratio stood at 9.33% as of March 31, 2024, indicating solid capital levels.

Negative

• Non-interest income decreased by 6% to $3.0 million for the first quarter of 2024 compared to the same period in 2023.

• The investment portfolio decreased by 22% year over year, amounting to $169.1 million at March 31, 2024.

• Despite a positive trend, brokered deposits increased to $87.5 million at March 31, 2024, which may pose funding challenges.

MENDOTA, Ill., May 7, 2024 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the first quarter of 2024.

Net income for the first quarter of 2024 was $2.7 million ($1.10 per share), compared to $1.5 million ($0.62 per share) during the first quarter of 2023. 

Net interest income was $10.5 million during the quarter ended March 31, 2024, compared to $10.2 million in the same period of 2023, an increase of 3%.  The net interest margin was 2.93% for the first quarter of 2024, compared to 2.94% for the first quarter of 2023.  The interest margin decreased due to higher funding costs.

Non-interest income was $3.0 million for the first quarter of 2024, a decrease of $0.2 million, or 6%, compared to $3.2 million during the quarter ended March 31, 2023.  

Non-interest expense was $11.2 million during the quarter ended March 31, 2024, compared to $11.3 million for the first quarter of 2023, a decrease of $0.1 million. 

Our investment portfolio consists entirely of debt securities classified as available-for-sale; therefore, unrealized gains and losses are fully reported on our balance sheet.  None of our securities are classified as held-to-maturity.  The investment portfolio decreased $48.1 million or 22% year over year and totaled $169.1 million at March 31, 2024.  The reduction of the securities portfolio in 2024 helped finance our loan growth and reduce borrowings.   

Total loans increased $87.1 million, or 7%, to $1.29 billion at March 31, 2024, from $1.20 billion at March 31, 2023.  Nonperforming loans as a percent of total loans were 0.63% as of March 31, 2024, compared to 0.23% at March 31, 2023.

The provision for credit loss had a negative provision of $1.3 million for the quarter ended March 31, 2024.  The allowance for credit loss ended at $15.0 million at March 31, 2024 and represented 1.17% of gross loans.  Asset quality continues to remain strong and charge offs remain low. 

Total deposits increased $63.1 million, or 5%, year-over-year.  However, approximately $87.5 million and $50.0 million consisted of brokered deposits at March 31, 2024 and 2023, respectively,   Federal Home Loan Bank (FHLB) advances were $74.5 million and $125 million at March 31, 2024 and 2023, respectively. 

The Company's capital levels remain solid as of March 31, 2024, with a Tier 1 leverage ratio of 9.33%.

On March 12, 2024, the Board of Directors declared a regular dividend of $0.20 per share, payable April 11, 2024, to shareholders of record on March 29, 2024.

In announcing the results, Tri-County Financial Group, Inc. President and CEO Tim McConville, stated, "Our first quarter numbers reflected the continued slowdown in mortgage activity.  We recorded a negative provision for credit losses during the quarter, which can be attributed to adjustments in qualitative risk factors from the previous period based on improved economic outlook and other qualitative factors.  Despite the market and economic stresses, solid earnings performance existed as we remain attentive to our loan and deposit strategies.  With high interest rates impacting banks and balance sheets, we remain diligent in monitoring our local competition to offer competitive rates while continuing to provide exceptional community banking services.  We continue to look for ways to improve margins given such higher costs of funds.  We continue to believe that our diversified balance sheet and lines of business are well-positioned."

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 Mortgage Services, LLC and 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.  Actual results and trends could differ materially from those set forth in such statements due to various factors, including operating; legal and regulatory risks; changing economic and competitive conditions; and other risks and uncertainties.

 

TRI COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
QUARTER ENDED MARCH 31ST
(Unaudited, 000s omitted, except share data)
			2024		2023
Interest Income			$    18,989		$    15,475
Interest Expense			8,509		5,276
Net Interest Income			10,480		10,199
Provision for Credit Losses			(1,286)		172
Net Interest Income After Provision for Credit Losses			11,766		10,027
Non-Interest Income			3,012		3,244
FDIC Assessments			180		102
Non-Interest Expenses			11,008		11,183
Income Before Income Taxes			3,590		1,986
Applicable Income Taxes			915		459
Security Gains (Losses)			-		-
Net Income (Loss)			$      2,675		$      1,527
Basic Net Income Per Share			$        1.10		$        0.62
Weighted Average Shares Outstanding			2,423,418		2,470,935

** Certain reclassifications have been made to preserve consistency between the periods presented. 

TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, 000s omitted, except share data)
ASSETS		3/31/2024		3/31/2023
Cash and Due from Banks		$             21,372		$             37,074
Federal Funds Sold		1,353		3,250
Debt Securities Available-for-Sale		169,149		217,273
Loans and Leases		1,290,647		1,203,563
Less:  Allowance for Credit Losses		(15,005)		(16,646)
Loans, Net		1,275,642		1,186,917
Premises & Equipment		25,481		27,091
Intangibles		8,717		8,746
Other Real Estate Owned		167		133
Accrued Interest Receivable		8,230		5,641
Other Assets		39,859		37,798
TOTAL ASSETS		$        1,549,970		$        1,523,923
LIABILITIES
Demand Deposits		175,133		189,250
Interest-bearing Demand Deposits		406,154		408,206
Savings Deposits		198,660		242,467
Time Deposits		504,837		381,806
Total Deposits		1,284,784		1,221,729
Repurchase Agreements		21,107		22,697
FHLB and Other Borrowings		74,500		125,000
Interest Payable		161		160
Subordinated Debt		9,816		9,792
Total Repos & Borrowings		105,584		157,649
Other Liabilities		21,654		13,700
Dividends Payable		496		506
TOTAL LIABILITIES		$        1,412,518		$        1,393,584
STOCKHOLDERS' EQUITY
Common Stock		2,424		2,463
Additional Paid-in-Capital		22,429		24,155
Retained Earnings		123,603		114,603
Accumulated Other Comprehensive Loss		(11,004)		(10,882)
TOTAL STOCKHOLDERS' EQUITY		137,452		130,339
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$        1,549,970		$        1,523,923
Book Value Per Share		$              56.72		$              52.92
Tangible Book Value Per Share		$              53.12		$              49.36
Bid Price		$              41.52		$              42.30
Period End Outstanding Shares		2,423,518		2,463,168

 

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SOURCE Tri-County Financial Group, Inc.

FAQ

What was Tri-County Financial Group, Inc.'s net income for the first quarter of 2024?

Tri-County Financial Group, Inc. reported a net income of $2.7 million for the first quarter of 2024.

How did the company's total loans change from March 31, 2023, to March 31, 2024?

Total loans increased by 7% to $1.29 billion at March 31, 2024, from $1.20 billion at March 31, 2023.

What was the Tier 1 leverage ratio of Tri-County Financial Group, Inc. as of March 31, 2024?

The company's Tier 1 leverage ratio was 9.33% as of March 31, 2024, indicating solid capital levels.