FRANKLIN, Ind.--(BUSINESS WIRE)--Third Century Bancorp (the “Company”) (OTCBB: TDCB), the holding company of Mutual Savings Bank (the “Bank”), announced net income of $132,000 for the quarter ended March 31, 2015, or $0.10 per share, compared to net income of $55,000, or $0.04 per share, for the quarter ended March 31, 2014. The improvement in net income was primarily due to a $41,000 decrease in noninterest expense, a $36,000 increase in noninterest income and a $19,000 increase in net interest income.
Net interest income was $1,013,000 for the first quarter of 2015 compared to $994,000 for the first quarter of 2014. The increase in net interest income was primarily due to a decrease of $24,000, or 31.11%, in interest expense on FHLB advances. The average balance of FHLB advances was $13,500,000 for the three months ended March 31, 2015 compared to $17,033,000 for the same period in 2014. The weighted average rate on FHLB advances was 1.57% during the three months ended March 31, 2015 compared to 1.81% during the same period in 2014.
Noninterest income increased $36,000 to $208,000 for the three months ended March 31, 2015 as compared to the same period in 2014. The improvement was primarily due to a $45,000 increase in trust department income for the three months ended March 31, 2015 as compared to the same period in 2014.
Noninterest expense decreased $41,000 to $1,032,000 for the three months ended March 31, 2015 as compared to the same period in 2014. The improvement was primarily due to the closure of one branch office in November 2014 and the related reduction in full time equivalent employees.
Total assets increased $2.5 million to $125.6 million at March 31, 2015 from $123.1 million at December 31, 2014, an increase of 2.04%. The increase in assets was evenly spread across different asset types, including an increase of $519,000 in net loans receivable, an increase of $915,000 in investment securities held to maturity, an increase of $992,000 in time deposits in other banks and an increase of $865,000 in cash and cash equivalents.
The increase in total assets was funded by an increase in deposits of $2.1 million to $95.9 million at March 31, 2015 from $93.7 million at December 31, 2014. The increase in total deposits was driven by an increase of $3.6 million, or 22.18%, in demand deposits to $19.8 million at March 31, 2015.
Stockholders’ equity increased $84,000 to $15.8 million at March 31, 2015 from $15.7 million at December 31, 2014. Stockholders’ equity increased due to the Company’s net income, offset in part by dividends paid of $38,000 for the three months ended March 31, 2015. Average equity as a percentage of average assets increased slightly to 12.64% for the three months ended March 31, 2015 compared to 12.63% for the same period in 2014. Tangible book value per share increased to $12.29 at March 31, 2015 from $12.22 at December 31, 2014.
Founded in 1890, Mutual Savings Bank is a full-service financial institution based in Johnson County, Indiana. In addition to its main office at 80 East Jefferson Street, Franklin, Indiana, the bank operates branches in Franklin at 1124 North Main Street and the Franklin United Methodist Community, as well as in Nineveh and Trafalgar, Indiana.
This press release contains certain forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of the Company and the Bank, and changes in the securities markets. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements to reflect changes in belief, expectations or events.
|Selected Consolidated Financial Data|
|At March 31,||At December 31,|
|Selected Consolidated Financial Condition Data:||(Dollars in Thousands, except share data)|
|Cash and cash equivalents||10,382||9,517|
|Interest-earning time deposits||5,704||4,712|
|FHLB advances and other borrowings||13,500||13,500|
|Non-performing assets to total assets||0.55||%||0.56||%|
Allowance for loan losses to total loans
|Allowance for loan losses to non-performing loans||234.94||222.18|
|Number of full service offices||5||6|
|Book value per share||$||12.39||$||12.32|
|Tangible book value per share||$||12.29||$||12.22|
|Market closing price at end of quarter||$||8.90||$||8.00|
|Price-to-tangible book value||72.43||%||65.45||%|
|For the Three Months Ended March 31,|
|(Dollars In Thousands, Except Share Data)|
|Selected Consolidated Earnings Data:|
|Total interest income||$||1,123||$||1,137|
|Total interest expense||110||143|
|Net interest income||1,013||994|
|Provision for losses on loans||0||3|
Net interest income after provision for losses
|Income tax expense||57||35|
|Earnings per share basic||$||0.10||$||0.04|
|Earnings per share diluted||$||0.10||$||0.04|
|Selected Financial Ratios and Other Data:|
|Interest rate spread during period||3.22||%||3.18||%|
|Net yield on interest-earning assets||3.36||3.33|
|Noninterest expense, annualized, to average assets||3.32||3.46|
|Return on average assets||0.42||0.18|
|Return on average equity||3.35||1.41|
|Average equity to assets||12.64||12.63|
Average interest-earning assets to average
Net charge-offs/(recoveries) to average total
|Effective income tax rate||30.39||38.89|