Tri-County Financial Group, Inc. Reports Third Quarter 2023 Financial Results

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TYFG - Tri-County Financial Group, Inc. Announces Q3 2023 Financial Results: Net income of $3.6 million ($1.45 per share) in Q3 2023, down from $5.6 million ($2.27 per share) in Q3 2022. Net interest income decreased by 7%, while non-interest income increased by 57%. Total loans grew by 10%, but nonperforming loans also increased. The company's capital levels remain solid, with a Tier 1 leverage ratio of 9.20%.

Positive

• Solid earnings performance despite market and economic stresses.
• Stable asset quality with solid performance from agricultural customers.
• Total loans increased by 10%, and total deposits increased by 4%.
• Non-interest income increased by 57%.

Negative

• Net income decreased by 36% in Q3 2023 compared to Q3 2022.
• Nonperforming loans as a percent of total loans increased from 0.24% to 0.53%.
• Net interest income decreased by 7%.

MENDOTA, Ill., Nov. 9, 2023 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the third quarter of 2023.

Net income for the third quarter of 2023 was $3.6 million ($1.45 per share), compared to $5.6 million ($2.27 per share) during the third quarter of 2022.  Net income was $7.8 million ($3.16 per share) for the nine-month period ending September 30, 2023 compared to $10.0 million ($4.02 per share) during the same nine-month period a year ago.

Net interest income was $10.9 million during the quarter ended September 30, 2023, compared to $11.8 million in the same period of 2022, a decrease of 7%.  The net interest margin was 3.04% for the third quarter of 2023, compared to 3.34% for the third quarter of 2022.  The interest margin decreased due to higher funding costs.

Non-interest income was $4.6 million for the third quarter of 2023, an increase of $1.7 million, or 57%, compared to $2.9 million during the quarter ended September 30, 2022.  

Non-interest expense was $11.5 million during the quarter ended September 30, 2023, compared to $10.8 million for the third quarter of 2022, an increase of $0.7 million, or 6%. 

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 $72.4 million or 30% year over year and totaled $172.0 million at September 30, 2023.  The reduction of the securities portfolio in 2023 helped finance our loan growth.   

Total loans increased $116 million, or 10%, to $1.25 billion at September 30, 2023, from $1.14 billion at September 30, 2022.  Nonperforming loans as a percent of total loans were 0.53% as of September 30, 2023, up from 0.24% at September 30, 2022.

The provision for loan loss had a negative provision of $0.9 million for the quarter ended September 30, 2023, which is largely attributed to a favorable loan recovery at the end of September.  The allowance for credit loss ended at $16.1 million at September 30, 2023 and represented 1.28% of gross loans compared to 1.15% at September 30, 2022.  Asset quality continues to remain strong and charge offs remain low and below industry peers. 

Total deposits increased $47.5 million, or 4%, year-over-year.  However, approximately $105 million at September 30, 2023 consisted of brokered deposits and State of Illinois deposits.  We use advances from the Federal Home Loan Bank (FHLB) as another funding source.  FHLB advances were $137 million and $149 million at September 30, 2023 and 2022, respectively. 

The Company's capital levels remain solid as of September 30, 2023, with a Tier 1 leverage ratio of 9.20%, down from 9.25% last year.

On September 12, 2023, the Board of Directors declared a regular dividend of $0.20 per share, payable October 13, 2023, to shareholders of record on September 30, 2023.

In announcing the results, President and CEO Tim McConville, stated, "Our third quarter numbers reflected the continued slowdown in mortgage activity and uptrend of the cost of deposits in an effort to hold onto core funding.  Despite the market and economic stresses, solid earnings performance existed as we remain attentive to our loan and deposit strategies.  Asset quality as measured by nonperforming loans to total loans is stable as we continue to see solid performance with our borrowers.  Our agricultural customers are showing solid yields throughout the harvest season.  We remain diligent in monitoring our local competition to offer competitive rates while continuing to provide exceptional community banking services.  We continue to believe that our diversified balance sheet and lines of business are well-positioned.  Overall, we look forward to continue to look for ways to grow and expand our footprint in north and central Illinois, as we have done all these years."

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 SEPTEMBER 30TH
(Unaudited, 000s omitted, except share data)
			2023		2022
Interest Income			$    18,064		$    13,716
Interest Expense			7,181		1,964
Net Interest Income			10,883		11,752
Provision for Loan Losses			(911)		(3,850)
Net Interest Income After Provision for Loan Losses			11,794		15,602
Non-Interest Income			4,560		2,904
FDIC Assessments			319		123
Non-Interest Expenses			11,160		10,686
Income Before Income Taxes			4,875		7,697
Applicable Income Taxes			1,321		2,071
Security Gains (Losses)			-		-
Net Income (Loss)			$      3,554		$      5,626
Basic Net Income Per Share			$        1.45		$        2.27
Weighted Average Shares Outstanding			2,447,556		2,474,140

** 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		9/30/2023		9/30/2022
Cash and Due from Banks		$             24,267		$             28,286
Federal Funds Sold		2,010		1,513
Debt Securities Available-for-Sale		171,985		244,338
Loans and Leases		1,253,601		1,137,763
Less:  Allowance for Credit Losses		(16,083)		(13,132)
Loans, Net		1,237,518		1,124,631
Premises & Equipment		26,235		27,210
Intangibles		8,728		8,773
Other Real Estate Owned		101		145
Accrued Interest Receivable		8,142		6,403
Other Assets		37,319		37,605
TOTAL ASSETS		$        1,516,305		$        1,478,904
LIABILITIES
Demand Deposits		165,499		177,797
Interest-bearing Demand Deposits		406,822		413,281
Savings Deposits		214,383		269,428
Time Deposits		412,001		290,691
Total Deposits		1,198,705		1,151,197
Repurchase Agreements		24,355		27,899
FHLB and Other Borrowings		137,000		149,000
Interest Payable		160		160
Subordinated Debt		9,804		9,779
Total Repos & Borrowings		171,319		186,838
Other Liabilities		14,375		11,056
Dividends Payable		500		505
TOTAL LIABILITIES		$        1,384,899		$        1,349,596
STOCKHOLDERS' EQUITY
Common Stock		2,445		2,474
Additional Paid-in-Capital		23,327		25,082
Retained Earnings		119,867		115,130
Accumulated Other Comprehensive Loss		(14,233)		(13,378)
TOTAL STOCKHOLDERS' EQUITY		131,406		129,308
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$        1,516,305		$        1,478,904
Book Value Per Share		$              53.74		$              52.27
Tangible Book Value Per Share		$              50.17		$              48.72
Bid Price		$              47.00		$              48.75
Period End Outstanding Shares		2,445,323		2,473,978

 

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SOURCE Tri-County Financial Group, Inc.

FAQ

What is Tri-County Financial Group, Inc.'s stock symbol?

Tri-County Financial Group, Inc.'s shares are quoted under the symbol TYFG and traded on OTCQX.

What was Tri-County Financial Group, Inc.'s net income in Q3 2023?

Tri-County Financial Group, Inc. reported a net income of $3.6 million ($1.45 per share) in Q3 2023, down from $5.6 million ($2.27 per share) in Q3 2022.

How did Tri-County Financial Group, Inc.'s total loans and nonperforming loans change in Q3 2023?

Total loans grew by 10%, but nonperforming loans as a percent of total loans increased from 0.24% to 0.53%.

What is Tri-County Financial Group, Inc.'s Tier 1 leverage ratio?

Tri-County Financial Group, Inc.'s capital levels remain solid, with a Tier 1 leverage ratio of 9.20%.