Third Century Bancorp (“Company”) (OTCPINK:TDCB), the holding company for Mutual Savings Bank (“Bank”) announced it recorded net income of $167,000 for the quarter ended March 31, 2017, or $0.14 per basic and diluted share, compared to net income of $161,000 for the quarter ended March 31, 2016, or $0.13 per basic and diluted share.
For the quarter ended March 31, 2017, net income increased $6,000, or 3.73%, to $167,000 as compared to $161,000 for the same period in the prior year. The increase in net income for the three month period ended March 31, 2017 as compared to the prior period was a result of a $101,000 increase in net interest income, which was achieved through an increase in interest income of $115,000 partially offset by a $14,000 increase in interest expense. The increase in interest income was due to higher average loan balances. The increase in interest expense was due to higher average balances of interest bearing liabilities.
The increase in net income for the three month period ended March 31, 2017 as compared to the same period in the prior year was limited by an $8,000 decrease in noninterest income, a $29,000 increase in provision for loan losses, a $54,000 increase in noninterest expense and a $4,000 increase in income tax expense. During the three month period ended March 31, 2017, the Company recorded $30,000 in provision for loan losses compared to $1,000 for the same period in the prior year due to changes in the loan portfolio, including higher commercial real estate loan balances. The increase in noninterest expense for the quarter ended March 31, 2017 compared to the same period in the prior year was primarily due to increases in wages and benefits, advertising expenses, and data processing expenses.
Total assets increased $4.1 million to $140.0 million at March 31, 2017 from $135.9 million at December 31, 2016, an increase of 2.98%. The increase was primarily due to a $4.1 million increase in cash and cash equivalents and a $1.2 million increase in net loans, primarily funded by a $4.4 million increase in total deposits.
Deposits increased $4.4 million, or 4.45%, to $102.7 million at March 31, 2017 from $98.3 million at December 31, 2016. Federal Home Loan Bank advances and other borrowings decreased $500,000, or 2.33%, to $21.0 million at March 31, 2017 from $21.5 million at December 31, 2016. At March 31, 2017, the weighted average rate of all Federal Home Loan Bank advances was 1.30% compared to 1.35% at December 31, 2016, and the weighted average maturity was 3.6 years at March 31, 2017 compared to 3.5 years at December 31, 2016.
Stockholders’ equity was $15.9 million at March 31, 2017 compared to $15.8 million at December 31, 2016. Stockholders’ equity increased due to net income of $167,000 during the three months ended March 31, 2017, partially offset by cash dividends paid of $60,000. Equity as a percentage of assets decreased to 11.35% at March 31, 2017 compared to 11.61% at December 31, 2016 due to the growth in total assets.
Founded in 1890, Mutual Savings Bank is a full-service financial institution based in Johnson County, Indiana. In addition to its main office at 80 East Jefferson Street, Franklin, Indiana, the bank operates branches in Franklin at 1124 North Main Street and the Franklin United Methodist Community, as well as in Nineveh and Trafalgar, Indiana.
This press release contains certain forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of the Company and the Bank, and changes in the securities markets. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements to reflect changes in belief, expectations or events.
| Selected Consolidated Financial Data | ||||||||
| (unaudited) | ||||||||
| At March 31, | At December 31, | |||||||
| 2017 | 2016 | |||||||
| Selected Consolidated Financial Condition Data: | (Dollars in thousands, except per share data) | |||||||
| Total Assets | $ | 139,976 | $ | 135,932 | ||||
Loans receivable-net of allowance for loan losses of | ||||||||
$1,029 and $1,246 | 110,947 | 109,731 | ||||||
| Loans held for sale | - | 143 | ||||||
| Cash and cash equivalents | 10,510 | 6,421 | ||||||
| Interest-earning time deposits in other banks | 2,232 | 2,728 | ||||||
| Investment securities | 8,410 | 8,945 | ||||||
| Deposits | 102,675 | 98,303 | ||||||
| FHLB advances and other borrowings | 21,000 | 21,500 | ||||||
| Stockholders’ equity-net | 15,894 | 15,786 | ||||||
| Equity to assets ratio at period end | 11.35 | % | 11.61 | % | ||||
| Non-performing loans to total loans | 0.04 | 0.41 | ||||||
Allowance for loan losses to total loans outstanding | 0.92 | 1.14 | ||||||
| Allowance for loan losses to non-performing loans | 2275.84 | 273.72 | ||||||
| Number of full service offices | 5 | 5 | ||||||
| Tangible book value per share | $ | 13.10 | $ | 13.02 | ||||
| Market closing price at end of quarter | $ | 11.55 | $ | 11.09 | ||||
| Price-to-tangible book value | 88.16 | % | 85.20 | % | ||||
| For the Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| (Dollars In Thousands, Except Share Data) | ||||||||
| Selected Consolidated Earnings Data: | ||||||||
| Total interest income | $ | 1,295 | $ | 1,180 | ||||
| Total interest expense | 121 | 107 | ||||||
| Net interest income | 1,174 | 1,073 | ||||||
| Provision of losses on loans | 30 | 1 | ||||||
| Net interest income after provision for losses on loans | 1,144 | 1,172 | ||||||
| Noninterest income | 211 | 219 | ||||||
| Noninterest expenses | 1,113 | 1,059 | ||||||
| Income tax expense | 75 | 71 | ||||||
| Net income | $ | 167 | $ | 161 | ||||
| Earnings per share basic and diluted | $ | 0.14 | $ | 0.13 | ||||
| Selected Financial Ratios and Other Data: | ||||||||
| Interest rate spread during period | 3.63 | % | 3.39 | % | ||||
| Net yield on interest-earning assets | 3.67 | 3.52 | ||||||
| Return on average assets | 0.49 | 0.50 | ||||||
| Return on average equity | 4.23 | 4.01 | ||||||
Average interest-earning assets to average interest-bearing liabilities | 129.77 | 138.13 | ||||||
| Noninterest expense, annualized, to average assets | 3.30 | 3.32 | ||||||
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Contacts:
Robert D. Heuchan, President and CEO
David
A. Coffey, Executive Vice President, CFO and COO
Tel. 317-736-7151
Fax
317-736-1726
