TRI-COUNTY FINANCIAL GROUP, INC. MENDOTA, Ill., Nov. 14, 2022 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the third quarter of 2022.
Net income for the third quarter of 2022 was $5.6 million ($2.27 per share), compared to $4.1 million ($1.64 per share) during the third quarter of 2021.
Net interest income was $11.8 million during the quarter ended September 30, 2022, compared to $11.2 million in the same period of 2021, an increase of 5%. The net interest margin was 3.34% for the third quarter of 2022, compared to 3.42% for the third quarter of 2021.
Noninterest income was $2.9 million for the quarter ended September 30, 2022, a decrease of $2.1 million, or 42%, compared to $5.0 million during the quarter ended September 30, 2021. The decrease can be primarily attributed to lower mortgage volume from the prior year. First State Mortgage had a net loss of $1.2 million as of the third quarter of 2022, compared to net income of $3.2 million at September 30, 2021.
Noninterest expense was $10.8 million during the quarter ended September 30, 2022, compared to $10.3 million for the third quarter of 2021, an increase of $0.5 million, or 5%.
Total loans increased $132.6 million, or 13%, to $1.14 billion at September 30, 2022, from $1.01 billion at September 30, 2021. Commercial real estate and agricultural lending activity increased compared to the prior year. Nonperforming loans as a percent of total loans were 0.24% as of September 30, 2022, down from 0.45% at September 30, 2021.
The provision for loan loss had a negative provision of $3.85 million during the quarter ended September 30, 2022. The allowance for loan loss ended at $13.13 million at September 30, 2022 and represented 1.17% of gross loans compared to 1.62% at September 30, 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 in the third quarter to account for the excess in our reserve and as we prepare for the Current Expected Credit Losses (CECL) new accounting standards that will be effective January 1, 2023.
Deposits decreased $26.7 million, or 2%, year-over-year. The investment portfolio rose $107.7 million or 79% year over year and totaled $244.3 million at September 30, 2022.
The Company's capital levels remain solid as of September 30, 2022, with a Tier 1 leverage ratio of 9.76%, down from 10.13% last year.
On September 13, 2022, the Board of Directors declared a regular dividend of $0.20 per share payable October 13, 2022, to shareholders of record on September 30, 2022.
In announcing the results, President and CEO, Tim McConville, stated "Our third quarter numbers again represented strong earnings performance that we are experiencing in 2022. Asset quality as measured by nonperforming loans to total loans is stable as we continue to see strong performance and good liquidity with our borrowers. Our commercial and agricultural loan demands have continued to be strong. We continue to monitor the impact of inflationary pressures, supply chain issues, and staffing shortages on our businesses and consumers. 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 SEPTEMBER 30TH | |||||
(000s omitted, except share data) | |||||
2022 | 2021 | ||||
Interest Income | $ 13,716 | $ 12,739 | |||
Interest Expense | 1,964 | 1,499 | |||
Net Interest Income | 11,752 | 11,240 | |||
Provision for Loan Losses | (3,850) | 450 | |||
Net Interest Income After Provision for Loan Losses | 15,602 | 10,790 | |||
Other Income | 2,904 | 5,018 | |||
FDIC Assessments | 123 | 90 | |||
Other Expenses | 10,686 | 10,177 | |||
Income Before Income Taxes | 7,697 | 5,541 | |||
Applicable Income Taxes | 2,071 | 1,476 | |||
Security Gains (Losses) | - | - | |||
Net Income (Loss) | $ 5,626 | $ 4,065 | |||
Basic Net Income Per Share | $ 2.27 | $ 1.64 | |||
Weighted Average Shares Outstanding | 2,474,140 | 2,474,043 | |||
** 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 | 9/30/2022 | 9/30/2021 | ||
Cash and Due from Banks | $ 28,286 | $ 159,009 | ||
Federal Funds Sold | 1,513 | 17,441 | ||
Investment Securities | 244,338 | 136,591 | ||
Loans and Leases | 1,137,763 | 1,005,156 | ||
Less: Reserve for Loan Losses | (13,133) | (16,265) | ||
Loans, Net | 1,124,630 | 988,891 | ||
Bank Premises & Equipment | 27,210 | 27,247 | ||
Intangibles | 8,773 | 8,375 | ||
Other Real Estate Owned | 145 | 2,623 | ||
Accrued Interest Receivable | 6,404 | 5,893 | ||
Other Assets | 37,605 | 33,265 | ||
TOTAL ASSETS | $ 1,478,904 | $ 1,379,335 | ||
LIABILITIES | ||||
Demand Deposits | 177,797 | 166,487 | ||
Interest-bearing Demand Deposits | 413,281 | 386,930 | ||
Savings Deposits | 269,428 | 277,082 | ||
Time Deposits | 290,691 | 347,375 | ||
Total Deposits | 1,151,197 | 1,177,874 | ||
Repurchase Agreements | 27,899 | 24,272 | ||
Fed Funds Purchased | 0 | 0 | ||
FHLB and Other Borrowings | 149,000 | 5,000 | ||
Interest Payable | 160 | 520 | ||
Subordinated Debt | 9,779 | 15,736 | ||
Total Repos & Borrowings | 186,838 | 45,528 | ||
Other Liabilities | 11,056 | 19,475 | ||
Dividends Payable | 505 | 380 | ||
TOTAL LIABILITIES | $ 1,349,596 | $ 1,243,257 | ||
CAPITAL | ||||
Common Stock | 2,474 | 2,470 | ||
Surplus | 25,082 | 25,133 | ||
Preferred Stock | 0 | 0 | ||
Retained Earnings | 115,130 | 105,464 | ||
FASB 115 Adjustment | (13,378) | 3,011 | ||
TOTAL CAPITAL | 129,308 | 136,078 | ||
TOTAL LIABILITIES AND CAPITAL | $ 1,478,904 | $ 1,379,335 | ||
Book Value Per Share | $ 52.27 | $ 55.10 | ||
Tangible Book Value Per Share | $ 48.72 | $ 51.71 | ||
Bid Price | $ 48.75 | $ 46.85 | ||
Period End Outstanding Shares | 2,473,798 | 2,469,798 | ||
View original content:https://www.prnewswire.com/news-releases/tri-county-financial-group-inc-reports-third-quarter-2022-financial-results-301677545.html
SOURCE Tri-County Financial Group, Inc.
