FRANKLIN, Ind.--(BUSINESS WIRE)--Third Century Bancorp (“Company”) (OTCBB:TDCB), the holding company for Mutual Savings Bank (“Bank”) announced it had net income of $108,000 for the quarter ended June 30, 2015, or $0.08 per basic and diluted share, compared to net income of $65,000 for the quarter ended June 30, 2014, or $0.05 per basic and diluted share. For the six months ended June 30, 2015, the Company recorded net income of $239,000, or $0.19 per basic and diluted share, compared to net income of $120,000 for the six months ended June 30, 2014, or $0.09 per basic and diluted share.
For the three months ended June 30, 2015, net income increased $43,000, or 66.29%, to $108,000 as compared to the prior year period. For the six months ended June 30, 2015, net income increased $119,000, or 99.24%, to $239,000 as compared to the prior year period. Both increases were primarily due to increased net interest income and decreased noninterest expense during both the three and six months ended June 30, 2015 compared to the same periods in 2014.
Net interest income was $1,015,000 for the second quarter of 2015 compared to $995,000 for the second quarter of 2014 and $2,028,000 for the six months ended June 30, 2015 compared to $1,987,000 for the six months ended June 30, 2014. The improvements were primarily due to decreases in interest expense in the three month and six month periods ended June 30, 2015 compared to the same periods in 2014 due to lower average balances of Federal Home Loan Bank advances outstanding in each June 30, 2015 period.
Total noninterest income decreased $37,000 to $172,000 for the three months ended June 30, 2015 from $209,000 for the three months ended June 30, 2014 and decreased $4,000 to $379,000 for the six months ended June 30, 2015 from $383,000 for the six months ended June 30, 2014. The decline in the three month period ended June 30, 2015 was primarily due to a $40,000 decline in trust related income from $53,000 for the three month period ended June 30, 2014 to $13,000 for the same period in 2015. For the six month period ended June 30, 2015, the decrease in noninterest income was primarily due to lower deposit fee and service charge income.
Total noninterest expenses for the second quarter of 2015 was $1,026,000 compared to $1,097,000 for the second quarter of 2014 and $2,057,000 for the six months ended June 30, 2015 compared to $2,170,000 for the six months ended June 30, 2014. The decreases in noninterest expense for the three and six month periods ended June 30, 2015 compared to the same periods in 2014 were primarily due to the closure of one branch facility in the fall of 2014 and the related reduction of salaries and employee benefits expense and occupancy expenses.
Total assets decreased $204,000 to $122.9 million at June 30, 2015 from $123.1 million at December 31, 2014, a decrease of 0.17%. The decrease was primarily due to the repayment of $1.5 million of Federal Home Loan Bank borrowings and related reduction of cash and cash equivalents. Loans receivable, net increased $1.1 million, or 1.18%, to $94.7 million at June 30, 2015 from $93.6 million at December 31, 2014.
Deposits increased $691,000, or 0.74%, to $94.4 million at June 30, 2015 from $93.7 million at December 31, 2014. Federal Home Loan Bank advances and other borrowings decreased $1.5 million, or 11.11%, to $12.0 million at June 30, 2015 from $13.5 million at December 31, 2014 due to the repayment of $1.5 million in Federal Home Loan Bank advances which matured during the first six months of 2015. At June 30, 2015, the weighted average rate of all Federal Home Loan Bank advances was 1.55% compared to 1.57% at December 31, 2014 and the weighted average maturity was 2.7 years at June 30, 2015 compared with 2.9 years at December 31, 2014.
Stockholders’ equity was $15.8 million at June 30, 2015 compared with $15.7 million at December 31, 2014. Stockholders’ equity increased due to net income of $239,000 for the six months ended June 30, 2015, partially offset by cash dividends paid of $76,000. Equity as a percentage of assets increased to 12.88% at June 30, 2015 compared to 12.73% 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.
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Selected Consolidated Financial Data |
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| At June 30, | At December 31, | |||||||
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2015 |
2014 |
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| Selected Consolidated Financial Condition Data: | (Dollars in thousands, except per share data) | |||||||
| Assets | $ | 122,928 | $ | 123,132 | ||||
| Loans receivable-net | 94,717 | 93,616 | ||||||
| Cash and cash equivalents | 7,543 | 9,517 | ||||||
| Interest-earning time deposits in other banks | 5,208 | 4,712 | ||||||
| Investment securities | 11,062 | 9,867 | ||||||
| Deposits | 94,406 | 93,715 | ||||||
| FHLB advances and other borrowings | 12,000 | 13,500 | ||||||
| Stockholders’ equity-net | 15,833 | 15,679 | ||||||
| Non-performing assets to total assets | 0.57 | 0.56 | ||||||
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Allowance for loan losses to total loans outstanding |
1.69 | 1.62 | ||||||
| Allowance for loan losses to non-performing loans | 232.65 | 222.18 | ||||||
| Number of full service offices | 5 | 5 | ||||||
| Tangible book value per share | $ | 12.32 | $ | 12.22 | ||||
| Market closing price at end of quarter | $ | 9.30 | $ | 8.00 | ||||
| Price-to-tangible book value | 75.49 | % | 65.45 | % | ||||
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For the Three Months Ended June 30, |
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2015 |
2014 |
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| (Dollars in thousands, except per share data) | ||||||||
| Selected Consolidated Earnings Data: | ||||||||
| Total interest income | $ | 1,123 | $ | 1,114 | ||||
| Total interest expense | 108 | 119 | ||||||
| Net interest income | 1,015 | 995 | ||||||
| Provision (credit) for losses on loans | 2 | (1 | ) | |||||
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Net interest income after provision for losses on loans |
1,013 | 996 | ||||||
| Noninterest income | 172 | 209 | ||||||
| Noninterest expense | 1,026 | 1,097 | ||||||
| Income tax expense | 51 | 43 | ||||||
| Net income | 108 | 65 | ||||||
| Earnings per share basic | $ | 0.08 | $ | 0.05 | ||||
| Earnings per share diluted | $ | 0.08 | $ | 0.05 | ||||
| Selected Financial Ratios and Other Data: | ||||||||
| Interest rate spread during period | 3.21 | % | 3.17 | % | ||||
| Net yield on interest-earning assets | 3.34 | 3.34 | ||||||
| Noninterest expense to average assets | 3.28 | 3.59 | ||||||
| Return on average assets | 0.34 | 0.21 | ||||||
| Return on average equity | 2.73 | 1.68 | ||||||
| Average equity to average assets | 12.60 | 12.70 | ||||||
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Average interest-earning assets to average interest-bearing liabilities |
138.75 | 136.62 | ||||||
| Effective income tax rate | 32.27 | 39.57 | ||||||
| For the Six Months Ended June 30, | ||||||||
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2015 |
2014 |
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| (Dollars in thousands, except per share data) | ||||||||
| Selected Consolidated Earnings Data: | ||||||||
| Total interest income | $ | 2,246 | $ | 2,250 | ||||
| Total interest expense | 218 | 263 | ||||||
| Net interest income | 2,028 | 1,987 | ||||||
| Provision for losses on loans | 2 | 2 | ||||||
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Net interest income after provision for losses on loans |
2,026 | 1,985 | ||||||
| Noninterest income | 379 | 383 | ||||||
| Noninterest expense | 2,057 | 2,170 | ||||||
| Income tax expense | 109 | 78 | ||||||
| Net income | $ | 239 | $ | 120 | ||||
| Earnings per share basic | $ | 0.19 | $ | 0.09 | ||||
| Earnings per share diluted | $ | 0.19 | $ | 0.09 | ||||
| Selected Financial Ratios and Other Data: | ||||||||
| Interest rate spread during period | 3.21 | % | 3.31 | % | ||||
| Net yield on interest-earning assets | 3.35 | 3.50 | ||||||
| Noninterest expense to average assets | 3.30 | 3.52 | ||||||
| Return on average assets | 0.38 | 0.19 | ||||||
| Return on average equity | 3.04 | 1.57 | ||||||
| Average equity to average assets | 12.62 | 12.70 | ||||||
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Average interest-earning assets to average interest-bearing liabilities |
138.70 | 131.23 | ||||||
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Net charge-offs/(recoveries) to average total loans outstanding |
(0.09 | ) | 0.12 | |||||
| Effective income tax rate | 31.25 | 39.39 | ||||||
