Tri-County Financial Group, Inc. Reports Second Quarter 2024 Financial Results

Tri-County Financial Group, Inc. Reports Second Quarter 2024 Financial Results

MENDOTA, Ill., July 26, 2024 /PRNewswire/ — Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the second quarter of 2024.

Net income for the second quarter of 2024 was $2.3 million ($0.95 per share), compared to $2.7 million ($1.09 per share) during the second quarter of 2023.  Net income was $5.0 million ($2.06 per share) for the six-month period ending June 30, 2024.

Net interest income was $10.6 million during the quarter ended June 30, 2024, compared to $11.0 million in the same period of 2023, a decrease of 4%. 

Non-interest income was $4.1 million for the second quarter of 2024, an increase of $0.1 million, or 3%, compared to $4.0 million during the quarter ended June 30, 2023.  

Non-interest expense was $11.6 million during the quarter ended June 30, 2024, compared to $11.4 million for the second quarter of 2023, an increase of $0.2 million

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 $47.8 million or 25% year over year and totaled $144.1 million at June 30, 2024.  The reduction of the securities portfolio in 2024 helped finance our loan growth and reduce borrowings.   

Total loans increased $65.2 million, or 6%, to $1.29 billion at June 30, 2024, from $1.22 billion at June 30, 2023.  Nonperforming loans as a percent of total loans were 0.76% as of June 30, 2024, compared to 0.24% at June 30, 2023.

The provision for credit loss had a provision of $0.1 million for the quarter ended June 30, 2024.  The allowance for credit loss ended at $15.0 million at June 30, 2024 and represented 1.16% of gross loans.  Asset quality continues to remain solid and charge offs remain low. 

Total deposits increased $49.9 million, or 4%, year-over-year.  However, approximately $87.5 million and $50.0 million consisted of brokered deposits at June 30, 2024 and 2023, respectively,   Federal Home Loan Bank (FHLB) advances were $68.7 million and $101 million at June 30, 2024 and 2023, respectively. 

The Company’s capital levels remain solid as of June 30, 2024, with a Tier 1 leverage ratio of 9.45%.

On June 11, 2024, the Board of Directors declared a regular dividend of $0.20 per share, payable July 11, 2024, to shareholders of record on June 28, 2024.

In announcing the results, Tri-County Financial Group, Inc. President and CEO Tim McConville, stated, “Our second quarter numbers reflected solid earnings given continual compressed margins.  Despite the market and economic stresses, solid earnings performance existed as we remain attentive to our loan and deposit strategies.  With high interest rates impacting banks and balance sheets, we remain diligent in monitoring our local competition to offer competitive rates while continuing to provide exceptional community banking services.  Because of the uncertainty in the economy over the last two years, community bank stocks continue to trade at traditionally low levels.  We expect share pricing and profitability to improve as the economy and the yield curve return to a normal state.    We continue to strive for ways to improve margins given such higher costs of funds.  We believe that our diversified balance sheet and lines of business are well-positioned.”

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 JUNE 30TH

(Unaudited, 000s omitted, except share data)

2024

2023

Interest Income

$    19,390

$    17,076

Interest Expense

8,774

6,065

Net Interest Income

10,616

11,011

Provision for Credit Losses

98

(35)

Net Interest Income After Provision for Credit
Losses

10,518

11,046

Non-Interest Income

4,118

3,961

FDIC Assessments

180

93

Non-Interest Expenses

11,372

11,335

Income Before Income Taxes

3,084

3,579

Applicable Income Taxes

779

887

Security Gains (Losses)

Net Income (Loss)

$      2,305

$      2,692

Basic Net Income Per Share

$        0.95

$        1.09

Weighted Average Shares Outstanding

2,421,125

2,463,208

** 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

6/30/2024

6/30/2023

Cash and Due from Banks

$             34,127

$             25,097

Federal Funds Sold

1,369

2,058

Debt Securities Available-for-Sale

144,056

191,887

Loans and Leases

1,286,687

1,221,456

  Less:  Allowance for Credit Losses

(14,937)

(16,698)

Loans, Net

1,271,750

1,204,758

Premises & Equipment

25,140

26,926

Intangibles

8,711

8,735

Other Real Estate Owned

101

132

Accrued Interest Receivable

8,436

6,162

Other Assets

38,493

36,781

        TOTAL ASSETS

$        1,532,183

$        1,502,536

LIABILITIES

Demand Deposits

164,708

178,274

Interest-bearing Demand Deposits

386,818

400,186

Savings Deposits

193,141

229,555

Time Deposits

523,419

410,215

        Total Deposits

1,268,086

1,218,230

Repurchase Agreements

24,089

26,737

FHLB and Other Borrowings

68,667

101,000

Interest Payable

73

73

Subordinated Debt

9,822

9,797

         Total Repos & Borrowings

102,651

137,607

Other Liabilities

21,718

14,668

Dividends Payable

494

504

           TOTAL LIABILITIES

$        1,392,949

$        1,371,009

STOCKHOLDERS’ EQUITY

Common Stock

2,416

2,463

Additional Paid-in-Capital

22,117

24,118

Retained Earnings

125,424

116,628

Accumulated Other Comprehensive Loss

(10,723)

(11,682)

           TOTAL STOCKHOLDERS’ EQUITY

139,234

131,527

TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY

$        1,532,183

$        1,502,536

Book Value Per Share

$              57.64

$              53.41

Tangible Book Value Per Share

$              54.03

$              49.86

Bid Price

$              40.00

$              44.75

Period End Outstanding Shares

2,415,678

2,462,688

 

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SOURCE Tri-County Financial Group, Inc.