Tri-County Financial Group, Inc. Reports Fourth Quarter 2022 Financial Results

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Tri-County Financial Group, Inc. (OTCQX: TYFG) reported fourth quarter 2022 financial results, showing net income of $2.3 million ($0.92 per share), up from $1.9 million ($0.79 per share) a year earlier. Net interest income slightly decreased to $10.7 million, reflecting a net interest margin of 3.27%. Noninterest income fell by 36% to $2.5 million due to decreased mortgage volume. Total loans rose by 19% to $1.211 billion, with nonperforming loans at 0.25%. The company declared a regular dividend of $0.20 and a special dividend of $0.10 per share.

Positive

• Net income increased by $0.4 million year-over-year to $2.3 million.
• Total loans grew by 19% year-over-year, reaching $1.211 billion.
• Nonperforming loans decreased to 0.25% of total loans.

Negative

• Net interest income decreased by 1% to $10.7 million.
• Noninterest income declined by 36% to $2.5 million due to lower mortgage volume.
• Deposits decreased by $68.9 million, or 6%, year-over-year.

MENDOTA, Ill., Feb. 13, 2023 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the fourth quarter of 2022.

Net income for the fourth quarter of 2022 was $2.3 million ($0.92 per share), compared to $1.9 million ($0.79 per share) during the fourth quarter of 2021.

Net interest income was $10.7 million during the quarter ended December 31, 2022, compared to $10.8 million in the same period of 2021, a decrease of 1%. The net interest margin was 3.27% for the fourth quarter of 2022, compared to 3.32% for the fourth quarter of 2021. 

Noninterest income was $2.5 million for the quarter ended December 31, 2022, a decrease of $1.4 million, or 36%, compared to $3.9 million during the quarter ended December 31, 2021. The decrease can be primarily attributed to lower mortgage volume from the prior year.  First State Mortgage standalone had a net loss of $2.3 million as of December 31, 2022, compared to net income of $3.1 million at December 31, 2021. 

Noninterest expense was $10.2 million during the quarter ended December 31, 2022, compared to $11.8 million for the fourth quarter of 2021, a decrease of $1.6 million, or 14%.  The decrease is primarily related to lower levels of mortgage production costs in 2022. 

Total loans increased $187.3 million, or 19%, to $1.211 billion at December 31, 2022, from $1.024 billion at December 31, 2021.  Commercial real estate and agricultural lending activity increased compared to the prior year.  Nonperforming loans as a percent of total loans were 0.25% as of December 31, 2022, down from 0.31% at December 31, 2021.

There was no provision for loan loss during the quarter ended December 31, 2022.  The allowance for loan loss ended at $13.1 million at December 31, 2022 and represented 1.09% of gross loans compared to 1.60% at December 31, 2021.  During the beginning of COVID, the provision was increased to account for potential losses and an increase in default payments.  However, asset quality continues to remain strong over two years later and a $4 million negative provision was made during the year to account for the excess in our reserve and as we prepare for the Current Expected Credit Losses (CECL) new accounting standards that was adopted on January 1, 2023.

Deposits decreased $68.9 million, or 6%, year-over-year.  The investment portfolio rose $84.9 million or 62% year over year and totaled $221.6 million at December 31, 2022.

The Company's capital levels remain solid as of December 31, 2022, with a Tier 1 leverage ratio of 9.20%, down from 9.26% last year.

On December 13, 2022, the Board of Directors declared a regular dividend of $0.20 per share and a special dividend of $0.10 per share, payable January 12, 2023, to shareholders of record on December 31, 2022.

In announcing the results, President and CEO, Tim McConville, stated "Our fourth quarter numbers again represented solid earnings performance for 2022 despite a slowdown in the mortgage banking industry.  Asset quality as measured by nonperforming loans to total loans is stable as we continue to see strong performance with our borrowers. We continue to monitor our local competition to offer competitive rates as our main focus is to provide exceptional community banking services.  Our main goal is to focus on increasing shareholder value in the years to come.  We continue to believe that our diversified balance sheet and lines of business are well positioned with increases in short term rates.  Overall, we anticipate loan demand to remain strong, and we look forward to supporting the credit needs of our businesses and communities."

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, 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
QUARTER ENDED DECEMBER 31ST
(000s omitted, except share data)
			2022		2021
Interest Income			$    14,629		$    12,036
Interest Expense			3,891		1,203
Net Interest Income			10,738		10,833
Provision for Loan Losses			0		450
Net Interest Income After Provision for Loan Losses			10,738		10,383
Other Income			2,462		3,938
FDIC Assessments			102		73
Other Expenses			10,133		11,697
Income Before Income Taxes			2,965		2,551
Applicable Income Taxes			684		608
Security Gains (Losses)			-		-
Net Income (Loss)			$      2,281		$      1,943
Basic Net Income Per Share			$        0.92		$        0.79
Weighted Average Shares Outstanding			2,489,871		2,474,226

** 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		12/31/2022		12/31/2021
Cash and Due from Banks		$             35,008		$           172,804
Federal Funds Sold		1,803		13,097
Investment Securities		221,578		136,719
Loans and Leases		1,211,203		1,023,940
Less:  Reserve for Loan Losses		(13,089)		(16,121)
Loans, Net		1,198,114		1,007,819
Bank Premises & Equipment		27,443		27,014
Intangibles		8,759		8,817
Other Real Estate Owned		132		2,117
Accrued Interest Receivable		5,951		4,674
Other Assets		39,450		31,514
TOTAL ASSETS		$        1,538,238		$        1,404,575
LIABILITIES
Demand Deposits		184,826		177,943
Interest-bearing Demand Deposits		421,584		413,694
Savings Deposits		254,765		276,528
Time Deposits		277,606		339,541
Total Deposits		1,138,781		1,207,706
Repurchase Agreements		23,374		26,401
Fed Funds Purchased		0		0
FHLB and Other Borrowings		220,000		5,000
Interest Payable		73		76
Subordinated Debt		9,785		9,761
Total Repos & Borrowings		253,232		41,238
Other Liabilities		12,384		18,238
Dividends Payable		757		752
TOTAL LIABILITIES		$        1,405,154		$        1,267,934
CAPITAL
Common Stock		2,491		2,476
Surplus		25,437		25,518
Preferred Stock		0		0
Retained Earnings		116,664		106,664
FASB 115 Adjustment		(11,508)		1,983
TOTAL CAPITAL		133,084		136,641
TOTAL LIABILITIES AND CAPITAL		$        1,538,238		$        1,404,575
Book Value Per Share		$              53.43		$              55.17
Tangible Book Value Per Share		$              49.92		$              51.61
Bid Price		$              48.70		$              48.59
Period End Outstanding Shares		2,490,623		2,476,553

 

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SOURCE Tri-County Financial Group, Inc.

FAQ

What were Tri-County Financial Group's fourth quarter 2022 earnings results?

Tri-County Financial Group reported a net income of $2.3 million ($0.92 per share) for the fourth quarter of 2022.

What is the current status of TYFG's total loans?

As of December 31, 2022, total loans increased by 19% year-over-year to $1.211 billion.

How did noninterest income for TYFG change in the fourth quarter of 2022?

Noninterest income for the fourth quarter of 2022 was $2.5 million, a decline of 36% compared to $3.9 million in the same quarter the previous year.

What dividends were declared by Tri-County Financial Group in January 2023?

The Board declared a regular dividend of $0.20 per share and a special dividend of $0.10 per share.

What is the current nonperforming loans percentage for TYFG?

Nonperforming loans as a percent of total loans stood at 0.25% as of December 31, 2022.