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

Rhea-AI Summary

Tri-County Financial Group, Inc. (OTCQX: TYFG) reported a net income of $1.9 million ($0.79 per share) for Q4 2021, down from $4.7 million ($1.91 per share) in Q4 2020. Net interest income rose to $10.8 million, an increase of $329,000 year-over-year, while noninterest income fell by 57% to $5.9 million. Total loans declined by $29 million to $1.024 billion, with mortgage production dropping by 57%. Deposits increased by 6% year-over-year, totaling $1.207 billion.

Positive

• Net interest income increased by $329,000 year-over-year.
• Deposits grew by $70 million or 6% year-over-year.
• Improved asset quality with nonperforming loans decreasing to 0.31%.

Negative

• Net income decreased by $2.8 million from the same quarter last year.
• Noninterest income declined by $7.7 million or 57% year-over-year.
• Total loans fell by $29 million or 3% compared to last year.

MENDOTA, Ill., Feb. 1, 2022 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the fourth quarter of 2021.

Net income for the fourth quarter of 2021 was $1.9 million ($0.79 per share), compared to $4.7 million ($1.91 per share) during the fourth quarter of 2020.

Net interest income was $10.8 million during the quarter ended December 31, 2021, compared to $10.5 million in the same period of 2020, an increase of $329,000. The net interest margin was 3.32% for the fourth quarter of 2021 compared to 3.43% in the same quarter a year ago.

Noninterest income was $5.9 million for the fourth quarter of 2021, a decrease of $7.7 million, or 57%, compared to $13.6 million during the same period a year ago. Mortgage production declined $163 million or 57% from the prior year's strong origination activity. For the full year 2021, total secondary mortgage loans closed declined $241 million or 25% reflecting a slowdown from the peak levels seen in 2020. First State Mortgage standalone earnings decreased by $2.4 million compared to the fourth quarter of 2020.

Noninterest expense was $13.7 million during the quarter ended December 31, 2021, compared to $16.2 million in the same quarter of 2020, a decrease of $2.5 million, or 15%. The decrease is primarily related to lower levels of mortgage production costs in 2021.

Total loans declined $29.0 million, or 3%, to $1.024 billion at December 31, 2021, down from $1.053 billion the prior year end. There were $2.7 million in Paycheck Protection Program (PPP) loans remaining in loan balances at December 31, 2021 compared to $30.1 million the prior year end, a decrease of $27.4 million. Loan demand which is normally slower in the fourth quarter rose modestly from the third quarter as business loan demand improved despite the forgiveness of PPP loans. Outstanding balances of mortgage balances and other consumer credit have faced growth challenges with secondary market refinancing due to attractive long-term rates for borrowers. Nonperforming loans as a percent of total loans were 0.31% as of December 31, 2021, down from 0.73% at December 31, 2020.

The provision for loan loss declined $1.1 million as asset quality continues to improve to historically low levels. The Company provided $450,000 during the fourth quarter of 2021 compared to $1.5 million in the prior year period. The allowance for loan loss ended at $16.1 million at December 31, 2021 and represented 1.57% of gross loans compared to 1.47% at December 31, 2020 reflecting quarterly net loan growth of $18.8 million.

Deposits increased $70.0 million, or 6%, year-over-year, with the majority of the growth due to CARES Act economic relief programs and PPP proceeds. Part of this excess liquidity was used to increase the investment portfolio which rose $37.3 million or 38% year over year and totaled $137 million at December 31, 2021.

The Company's capital levels remain solid as of December 31, 2021, with a Tier 1 leverage ratio of 9.26%, up from 9.00% last year.

On December 14, 2021, the Board of Directors declared a regular dividend of $0.20 per share and a special dividend of $0.10 per share payable January 13, 2022, to shareholders of record on December 31, 2021.

In announcing the results, President and CEO, Tim McConville, stated "Our fourth quarter numbers reflected the slowdown in mortgage activity that had supplemented our results the last year and a half. Mortgage activity remains an important part of our business and we expect continued earnings contributions from this line of business.  Asset quality as measured by nonperforming loans to total loans is at record low levels as agricultural performance has been improving and household finances have strengthened during the pandemic. We believe that our diversified balance sheet and lines of business are well positioned in the event the Federal Reserve increases short term rates. In addition, as the various economies emerge from the lockdown and supply chain impacts, we expect loan demand returning to more normal levels in 2022."

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 STATEMENTS OF INCOME
THREE MONTHS ENDED DEC 31ST
(000s omitted, except share data)
			2021		2020
Interest Income			$    12,036		$    12,633
Interest Expense			1,203		2,129
Net Interest Income			10,833		10,504
Provision for Loan Losses			450		1,500
Net Interest Income After Provision for Loan Losses			10,383		9,004
Other Income			5,890		13,635
FDIC Assessments			73		150
Other Expenses			13,649		16,019
Income Before Income Taxes			2,551		6,470
Applicable Income Taxes			608		1,741
Security Gains (Losses)			-		-
Net Income (Loss)			$      1,943		$      4,729
Basic Net Income Per Share			$        0.79		$        1.91
Weighted Average Shares Outstanding			2,474,226		2,470,298

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

 

TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(000s omitted, except share data)
ASSETS		12/31/2021		12/31/2020
Cash and Due from Banks		$           172,804		$             84,047
Federal Funds Sold		13,097		25,934
Investment Securities		136,719		99,437
Loans and Leases		1,023,940		1,052,701
Less:  Reserve for Loan Losses		(16,121)		(15,508)
Loans, Net		1,007,819		1,037,193
Bank Premises & Equipment		27,014		27,926
Intangibles		8,817		8,426
Other Real Estate Owned		2,117		2,648
Accrued Interest Receivable		4,674		5,147
Other Assets		31,514		39,591
TOTAL ASSETS		$        1,404,575		$        1,330,349
LIABILITIES
Demand Deposits		177,943		180,247
Interest-bearing Demand Deposits		413,694		344,670
Savings Deposits		276,528		230,164
Time Deposits		339,541		382,967
Total Deposits		1,207,706		1,138,048
Repurchase Agreements		26,401		21,059
Fed Funds Purchased		0		0
FHLB and Other Borrowings		5,000		4,000
Interest Payable		76		240
Subordinated Debt		9,761		15,696
Total Repos & Borrowings		41,238		40,995
Other Liabilities		18,238		23,560
Dividends Payable		752		751
TOTAL LIABILITIES		$        1,267,934		$        1,203,354
CAPITAL
Common Stock		2,476		2,476
Surplus		25,518		25,675
Preferred Stock		0		0
Retained Earnings		106,664		95,300
FASB 115 Adjustment		1,983		3,544
TOTAL CAPITAL		136,641		126,995
TOTAL LIABILITIES AND CAPITAL		$        1,404,575		$        1,330,349
Book Value Per Share		$              55.17		$              51.29
Tangible Book Value Per Share		$              51.61		$              47.89
Bid Price		$              48.59		$              35.25
Period End Outstanding Shares		2,476,553		2,476,083

 

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SOURCE Tri-County Financial Group, Inc.

FAQ

What were the financial results for Tri-County Financial Group (TYFG) in Q4 2021?

Tri-County Financial Group reported a net income of $1.9 million for Q4 2021.

How much did net interest income increase for TYFG in Q4 2021?

Net interest income increased by $329,000, reaching $10.8 million.

What was the year-over-year change in noninterest income for TYFG?

Noninterest income decreased by $7.7 million, or 57%, year-over-year.

How much did total loans decline for Tri-County Financial Group (TYFG)?

Total loans declined by $29 million, or 3%, to $1.024 billion.

What was the increase in deposits for TYFG year-over-year?

Deposits increased by $70 million, or 6%, year-over-year.