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 | ||
SOURCE Tri-County Financial Group, Inc.
