TRI-COUNTY FINANCIAL GROUP, INC. 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.
