TRI-COUNTY FINANCIAL GROUP, INC. MENDOTA, Ill., May 3, 2023 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the first quarter of 2023.
Net income for the first quarter of 2023 was $1.5 million ($0.62 per share), compared to $1.9 million ($0.75 per share) during the first quarter of 2022.
Net interest income was $10.2 million during the quarter ended March 31, 2023, compared to $10.5 million in the same period of 2022, a decrease of 3%. The net interest margin was 2.94% for the first quarter of 2023, compared to 3.21% for the first quarter of 2022.
Noninterest income was $3.2 million for the first quarter of 2023, an increase of $0.4 million, or 14%, compared to $2.8 million during the quarter ended March 31, 2022. First State Mortgage standalone had a net loss of $0.64 million as of March 31, 2023, compared to net loss of $0.11 million at March 31, 2022.
Noninterest expense was $11.3 million during the quarter ended March 31, 2023, compared to $10.4 million for the first quarter of 2022, an increase of $0.9 million, or 9%.
Total loans increased $161.0 million, or 15%, to $1.204 billion at March 31, 2023, from $1.043 billion at March 31, 2022. Nonperforming loans as a percent of total loans were 0.23% as of March 31, 2023, down from 0.27% at March 31, 2022.
Effective January 1, 2023, the Company adopted the Current Expected Credit Losses (CECL) new accounting standard. The provision for loan loss during the quarter ended March 31, 2023 was $0.17 million. The allowance for loan loss ended at $16.6 million at March 31, 2023 and represented 1.39% of gross loans compared to 1.60% at March 31, 2022. Asset quality continues to remain strong and charge offs remain low and below industry peers.
Deposits decreased $31.4 million, or 3%, year-over-year. The investment portfolio decreased $46.6 million or 18% year over year and totaled $217.3 million at March 31, 2023.
The Company's capital levels remain solid as of March 31, 2023, with a Tier 1 leverage ratio of 9.93%, up from 9.51% last year.
On March 7, 2023, the Board of Directors declared a regular dividend of $0.20 per share, payable April 13, 2023, to shareholders of record on March 31, 2023.
In announcing the results, President and CEO Tim McConville, stated, "Our first quarter numbers reflected the continued slowdown in mortgage activity; however, solid earnings performance existed. Asset quality as measured by nonperforming loans to total loans is stable as we continue to see strong performance with our borrowers. We remain diligent in monitoring our local competition to offer competitive rates while continuing to provide exceptional community banking services. Our main goal is to focus on increasing shareholder value in the years to come, while maintaining our core foundation of being a strong community bank. We continue to believe that our diversified balance sheet and lines of business are well-positioned. Overall, we anticipate loan demand to remain steady, 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 MARCH 31ST | |||||
(000s omitted, except share data) | |||||
2023 | 2022 | ||||
Interest Income | $ 15,475 | $ 11,622 | |||
Interest Expense | 5,276 | 1,115 | |||
Net Interest Income | 10,199 | 10,507 | |||
Provision for Loan Losses | 172 | 450 | |||
Net Interest Income After Provision for Loan Losses | 10,027 | 10,057 | |||
Other Income | 3,244 | 2,789 | |||
FDIC Assessments | 102 | 90 | |||
Other Expenses | 11,183 | 10,271 | |||
Income Before Income Taxes | 1,986 | 2,485 | |||
Applicable Income Taxes | 459 | 621 | |||
Security Gains (Losses) | - | - | |||
Net Income (Loss) | $ 1,527 | $ 1,864 | |||
Basic Net Income Per Share | $ 0.62 | $ 0.75 | |||
Weighted Average Shares Outstanding | 2,470,935 | 2,480,181 | |||
** 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 | 3/31/2023 | 3/31/2022 | ||
Cash and Due from Banks | $ 37,074 | $ 63,897 | ||
Federal Funds Sold | 3,250 | 10,615 | ||
Investment Securities | 217,273 | 263,855 | ||
Loans and Leases | 1,203,563 | 1,042,592 | ||
Less: Reserve for Loan Losses | (16,646) | (16,575) | ||
Loans, Net | 1,186,917 | 1,026,017 | ||
Bank Premises & Equipment | 27,091 | 26,676 | ||
Intangibles | 8,746 | 8,803 | ||
Other Real Estate Owned | 133 | 2,222 | ||
Accrued Interest Receivable | 5,641 | 5,073 | ||
Other Assets | 37,798 | 32,437 | ||
TOTAL ASSETS | $ 1,523,923 | $ 1,439,595 | ||
LIABILITIES | ||||
Demand Deposits | 189,250 | 192,916 | ||
Interest-bearing Demand Deposits | 408,206 | 442,522 | ||
Savings Deposits | 242,467 | 291,114 | ||
Time Deposits | 381,806 | 326,570 | ||
Total Deposits | 1,221,729 | 1,253,122 | ||
Repurchase Agreements | 22,697 | 23,045 | ||
Fed Funds Purchased | 0 | 0 | ||
FHLB and Other Borrowings | 125,000 | 5,000 | ||
Interest Payable | 160 | 164 | ||
Subordinated Debt | 9,792 | 9,767 | ||
Total Repos & Borrowings | 157,649 | 37,976 | ||
Other Liabilities | 13,700 | 15,554 | ||
Dividends Payable | 506 | 506 | ||
TOTAL LIABILITIES | $ 1,393,584 | $ 1,307,158 | ||
CAPITAL | ||||
Common Stock | 2,463 | 2,481 | ||
Surplus | 24,155 | 25,642 | ||
Preferred Stock | 0 | 0 | ||
Retained Earnings | 114,603 | 108,031 | ||
FASB 115 Adjustment | (10,882) | (3,717) | ||
TOTAL CAPITAL | 130,339 | 132,437 | ||
TOTAL LIABILITIES AND CAPITAL | $ 1,523,923 | $ 1,439,595 | ||
Book Value Per Share | $ 52.92 | $ 53.39 | ||
Tangible Book Value Per Share | $ 49.36 | $ 49.84 | ||
Bid Price | $ 42.30 | $ 47.25 | ||
Period End Outstanding Shares | 2,463,168 | 2,480,598 | ||
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SOURCE Tri-County Financial Group, Inc.