Third Century Bancorp Releases Fourth Quarter and Year End 2014 Earnings

FRANKLIN, Ind.--()--Third Century Bancorp (“Company”) (OTCBB: TDCB), the holding company for Mutual Savings Bank (“Bank”) announced it had net income of $178,000 for the quarter ended December 31, 2014, or $0.14 per share, compared to net income of $19,000 for the quarter ended December 31, 2013, or $0.01 per share. For the year ended December 31, 2014, the Company recorded net income of $399,000, or $0.31 per share, compared to net income of $311,000 for the year ended December 31, 2013, or $0.24 per share.

For the three months ended December 31, 2014, net income increased $159,000 to $178,000 as compared to the same period in the prior year. The increase in net income for the fourth quarter of 2014 was primarily the result of a decrease of $118,000 in the provision for loan losses and a $149,000 decrease in noninterest expenses.

For the year ended December 31, 2014, net income increased $88,000, or 28.3%, to $399,000 compared to 2013. The increase in net income for 2014 was primarily a result of a $127,000 decrease in the provision for loan losses and a $149,000 decrease in noninterest expenses. The improvement in the provision for loan losses for both the quarter and year ended December 31, 2014 was caused by a credit to the provision for loan losses of $118,000 and $115,000, respectively, which was a result of improved credit quality within the loan portfolio. The improvement in noninterest expenses for both the quarter and year ended December 31, 2014 were driven by cost reductions, including the closing of one branch facility during 2014.

Total assets decreased $542,000 to $123.1 million at December 31, 2014 from $123.7 million at December 31, 2013, a decrease of 0.43%. The decrease was primarily due to a $2.4 million decrease in total loans outstanding.

Deposits increased $3.3 million, or 3.6%, to $93.7 million at December 31, 2014 from $90.4 million at December 31, 2013. Federal Home Loan Bank advances and other borrowings decreased $4.0 million, or 22.9%, to $13.5 million at December 31, 2014 from $17.5 million at December 31, 2013. At December 31, 2014 the weighted average rate of all Federal Home Loan Bank advances was 1.57% compared to 1.85% at December 31, 2013 and the weighted average maturity was 2.9 years at December 31, 2014 compared with 3.2 years at December 31, 2013.

Stockholders’ equity increased $210,000 to $15.7 million at December 31, 2014, compared to $15.5 million at December 31, 2013. Equity as a percentage of assets increased to 12.73% at December 31, 2014 compared to 12.51% at December 31, 2013. Book value per share increased to $12.32 at December 31, 2014 from $12.15 at December 31, 2013. The closing price per share at December 31, 2014 was $7.66, which was 62.17% of book value per share.

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 December 31, At December 31,

2014

2013

Selected Consolidated Financial Condition Data: (Dollars In Thousands, Except Per Share Data)
Assets $ 123,132 $ 123,674
Loans receivable-net 93,616 96,045
Cash and cash equivalents 9,517 6,561
Interest-earning time deposits 4,712 7,169
Investment securities 9,867 7,154
Deposits 93,715 90,431
FHLB advances and other borrowings 13,500 17,500
Stockholders’ equity-net 15,679 15,469
Book value per share 12.32 12.15
 
For the Three Months Ended December 31,

2014

2013

(Dollars In Thousands, Except Share Data)
Selected Consolidated Earnings Data:
Total interest income $ 1,120 $ 1,169
Total interest expense   115     170  
Net interest income 1,005 999
Provision (credit) for losses on loans   (118 )   0  
Net interest income after provision for losses on loans 1,123 999
Noninterest income 176 186
Noninterest expenses 1,004 1,153
Income tax expense   117     13  
Net income $ 178   $ 19  
Earnings per share basic and diluted $ 0.14 $ 0.01
 
For the Year Ended December 31,

2014

2013

(Dollars In Thousands, Except Share Data)
Selected Consolidated Earnings Data:
Total interest income $ 4,497 $ 4,795
Total interest expense   495     701  
Net interest income 4,002 4,094
Provision (credit) for losses on loans   (115 )   12  
Net interest income after provision for losses on loans 4,117 4,082
Noninterest income 777 816
Noninterest expenses 4,231 4,380
Income tax expense   264     207  
Net income $ 399   $ 311  
Earnings per share – basic and diluted $ 0.31 $ 0.24
 
Selected Financial Ratios and Other Data:
Interest rate spread during period 3.09 % 3.16 %
Net yield on interest-earning assets 3.36 3.35
Return on average assets 0.32 0.25
Return on average equity 2.57 2.02
Average Equity to assets 12.61 12.51
Average interest-earning assets to average interest-bearing liabilities 136.14 133.77

Contacts

Third Century Bancorp
Robert D. Heuchan, President and CEO, 317-736-7151
or
David A. Coffey, Executive Vice President, CFO and COO, 317-736-7151
Fax 317-736-1726

Contacts

Third Century Bancorp
Robert D. Heuchan, President and CEO, 317-736-7151
or
David A. Coffey, Executive Vice President, CFO and COO, 317-736-7151
Fax 317-736-1726