MENDOTA, Ill., July 29, 2026 /PRNewswire/ -- Tri-County Financial Group, Inc. (the "Company") (OTCQX: TYFG) today announced financial results for the second quarter of 2026.
Net income for the second quarter of 2026 was $4.1 million ($1.73 per share), compared to $3.5 million ($1.47 per share) during the second quarter of 2025, which is approximately a 17% increase. Net income was $8.6 million ($3.61 per share) for the six-month period ended June 30, 2026, compared to $6.1 million ($2.54 per share) for the six-month period ended June 30, 2025.
Net interest income was $14.2 million during the quarter ended June 30, 2026, compared to $12.2 million in the same period of 2025, an increase of 16%.
Non-interest income was $4.4 million for the second quarter of 2026, a decrease of $0.3 million, or 5%, compared to $4.7 million during the quarter ended June 30, 2025.
Non-interest expense was $11.8 million during the quarter ended June 30, 2026, compared to $12.2 million for the second quarter of 2025, a decrease of $0.4 million, or 3%.
Our investment portfolio consists entirely of debt securities classified as available-for-sale; therefore, unrealized gains and losses are reflected in accumulated other comprehensive income within stockholders' equity. None of our securities are classified as held-to-maturity. The investment portfolio decreased $0.5 million year-over- year and totaled $147.6 million at June 30, 2026, as compared to $148.2 million at June 30, 2025.
Total loans decreased $13.7 million, or 1%, to $1.29 billion at June 30, 2026, from $1.30 billion at June 30, 2025. Nonperforming loans as a percentage of total loans were 0.46% as of June 30, 2026, compared to 0.29% at June 30, 2025.
The total credit loss expense was $1.1 million for the quarter ended June 30, 2026, compared to a credit loss recovery of $0.1 million for the quarter ended June 30, 2025. The increase this quarter is predominantly attributed to credit loss expense on unfunded commitments, which had an increase of $51 million from the prior quarter, and resulted in a reserve adjustment of $1.2 million this quarter. The allowance for credit loss was $14.8 million at June 30, 2026 and represented 1.15% of gross loans, compared to $14.7 million at June 30, 2025 and 1.13% of gross loans. Asset quality remains strong overall, despite a slight increase in nonperforming loans year-over-year.
Total deposits increased by $28.0 million, year-over-year. Total deposits were $1.297 billion at June 30, 2026, which consisted of approximately $10.0 million of brokered deposits. Total deposits were $1.269 billion at June 30, 2025, which consisted of approximately $32.5 million of brokered deposits. Without factoring in brokered deposits, total deposits increased approximately $50.5 million year-over-year. Federal Home Loan Bank (FHLB) advances were $45.9 million and $86.9 million at June 30, 2026 and 2025, respectively.
On June 9, 2026, the Board of Directors declared a regular dividend of $0.28 per share, payable July 9, 2026, to shareholders of record on June 30, 2026.
In announcing the results, Tri-County Financial Group, Inc. President and CEO Kirk Ross, stated, "Our second quarter highlights another solid quarter with strong growth in net interest income and continued improvement in our net interest margin. Our earnings continue to improve with increased yields on our earning assets and lower funding costs. Our focus remains on building long-term relationships, supporting our local communities, and managing risk. While competition for deposits remains elevated, we are confident in our strategy and our ability to deliver consistent, relationship-driven service. "
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. Such statements often include words such as "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would," and "could," as well as the negative of such words. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements due to various factors, including operating; legal and regulatory risks (including changes in the interest rate environment, which could adversely affect our revenues and expenses); changing economic and competitive conditions; local, national and international political conditions (including international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains and increase the volatility of financial markets); and other risks and uncertainties beyond our control. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
Contact:
Lana Eddy, Secretary
[email protected]
815.538.2265
TRI COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES | |||||
CONSOLIDATED STATEMENTS OF INCOME | |||||
QUARTER ENDED JUNE 30TH | |||||
(Unaudited, 000s omitted, except share data) | |||||
2026 | 2025 | ||||
Interest Income | $ 21,231 | $ 20,108 | |||
Interest Expense | 7,067 | 7,864 | |||
Net Interest Income | 14,164 | 12,244 | |||
Provision (Recovery) for Credit Losses | 1,083 | (113) | |||
Net Interest Income After Provision (Recovery) for Credit Losses | 13,081 | 12,357 | |||
Non-Interest Income | 4,403 | 4,658 | |||
FDIC Assessments | 178 | 172 | |||
Non-Interest Expenses | 11,664 | 12,050 | |||
Income Before Income Taxes | 5,642 | 4,793 | |||
Applicable Income Taxes | 1,525 | 1,286 | |||
Security Gains (Losses) | - | - | |||
Net Income (Loss) | $ 4,117 | $ 3,507 | |||
Basic Net Income Per Share | $ 1.73 | $ 1.47 | |||
Weighted Average Shares Outstanding | 2,382,098 | 2,388,743 | |||
TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(Unaudited, 000s omitted, except share data) | ||||
ASSETS | 6/30/2026 | 6/30/2025 | ||
Cash and Due from Banks | $ 58,355 | $ 45,436 | ||
Federal Funds Sold | 2,548 | 2,000 | ||
Debt Securities Available-for-Sale | 147,611 | 148,152 | ||
Loans and Leases | 1,288,073 | 1,301,782 | ||
Less: Allowance for Credit Losses | (14,789) | (14,665) | ||
Loans, Net | 1,273,284 | 1,287,117 | ||
Premises & Equipment | 24,051 | 24,880 | ||
Intangibles | 8,667 | 8,689 | ||
Other Real Estate Owned | 101 | 101 | ||
Accrued Interest Receivable | 8,781 | 8,031 | ||
Other Assets | 38,675 | 38,537 | ||
TOTAL ASSETS | $ 1,562,073 | $ 1,562,943 | ||
LIABILITIES | ||||
Demand Deposits | $ 182,756 | $ 164,880 | ||
Interest-bearing Demand Deposits | 423,533 | 404,627 | ||
Savings Deposits | 209,306 | 200,172 | ||
Time Deposits | 481,211 | 499,097 | ||
Total Deposits | 1,296,806 | 1,268,776 | ||
Repurchase Agreements | 21,404 | 26,199 | ||
FHLB and Other Borrowings | 45,917 | 86,917 | ||
Interest Payable | 73 | 73 | ||
Subordinated Debt | 9,871 | 9,846 | ||
Total Repos & Borrowings | 77,265 | 123,035 | ||
Other Liabilities | 22,331 | 21,504 | ||
Dividends Payable | 667 | 610 | ||
TOTAL LIABILITIES | $ 1,397,069 | $ 1,413,925 | ||
STOCKHOLDERS' EQUITY | ||||
Common Stock | 2,389 | 2,389 | ||
Additional Paid-in-Capital | 20,967 | 20,980 | ||
Retained Earnings | 148,328 | 134,660 | ||
Accumulated Other Comprehensive Loss | (6,680) | (9,011) | ||
TOTAL STOCKHOLDERS' EQUITY | 165,004 | 149,018 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,562,073 | $ 1,562,943 | ||
Book Value Per Share | $ 69.08 | $ 62.37 | ||
Tangible Book Value Per Share | $ 65.45 | $ 58.73 | ||
Bid Price | $ 64.59 | $ 43.25 | ||
Period End Outstanding Shares | 2,388,748 | 2,389,343 | ||
SOURCE Tri-County Financial Group, Inc
