Third Century Bancorp Releases Earnings for the Quarter Ended June 30, 2026

FRANKLIN, Ind.--(BUSINESS WIRE)--(OTCID: TDCB) — Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”), announced it recorded unaudited net income of $719,000 for the quarter ended June 30, 2026, or $0.62 per basic and diluted share, compared to net income of $374,000 for the quarter ended June 30, 2025, or $0.32 per basic and diluted share.

“We delivered a strong second quarter with solid growth and improved performance across the board,” stated David A. Coffey, President and CEO. Coffey added, “Our core business continued to strengthen, with higher net interest income and an improved margin of 3.12%, reflecting better pricing and continued balance sheet growth. Credit quality also improved, with fewer problem loans and a modest reserve release, while we continued to grow loans and deposits and reduce reliance on higher-cost borrowings.” Coffey concluded, “Importantly, we increased our dividend by one cent per share, a 25% increase, reinforcing our commitment to returning capital to shareholders. Overall, returns improved significantly from a year ago and reflect continued momentum following a strong first quarter.”

For the quarter ended June 30, 2026, net income increased $345,000, or 92.33%, to $719,000 as compared to $374,000 for the same period in the prior year. The increase in net income for the three-month period ended June 30, 2026, was driven primarily as a result of a $429,000 increase in net interest income as compared to the same period in the prior year. Net interest income increased to $2.60 million for the three months ended June 30, 2026, due to an increase in total interest income of $446,000, or 9.82%, to $4.47 million for the three-month period ended June 30, 2026, as compared to $4.03 million for the same period for the prior year. The increase in total interest income was due to increases in average loan balances and average cash balances. Partially offsetting the increase in total interest income was a slight increase in total interest expense of $17,000, or 0.93%, to $1.88 million for the three-month period ended June 30, 2026, as compared to the same period for the prior year. The increase in total interest expense was the result of higher average retail deposit balances.

The provision reversal for credit losses during the current quarter was $27,000 compared to a provision expense of $30,000 for the same quarter last year due to the continued strength of our credit quality and no net charge-offs for the current period.

Non-interest income for the quarter ended June 30, 2026, increased by $81,000, or 22.49%, to $441,000, as compared to $360,000 for the same period in the prior year. The increase in non-interest income occurred due to increased Trust revenue, loan fees, and service charge income as compared to the same period in the prior year. Non-interest expense increased by $166,000, or 8.00%, to $2,240,000 as compared to $2,074,000 for the same period in the prior year, due primarily to increased advertising and personnel expenses.

For the six-months ended June 30, 2026, net income increased $501,000, or 60.89%, to $1,325,000 as compared to $823,000 for the same period in the prior year. Net interest income increased to $5.03 million for the six-months ended June 30, 2026, due to an increase in total interest income of $834,000, or 10.46%, to $8.80 million for the six-month period ended June 30, 2026, as compared to $7.97 million for the same period for the prior year. The increase in total interest income was the result of higher average yields on interest earning assets and higher average loan balances. Offsetting the increase in total interest income was an increase in total interest expense of $81,000, or 2.19%, to $3.77 million for the six-month period ended June 30, 2026, as compared to $3.69 million for the same period for the prior year. The increase in total interest expense was due to higher average retail deposit balances. The provision reversal for credit losses during the first half of 2026 was ($50,000) compared to a provision reversal of ($13,000) for the same period last year due to the ongoing strength of our credit quality and nominal charge-offs for the current period. Non-interest income increased by $88,000, or 12.10%, to $815,000 for the six-months ended June 30, 2026, as compared to $727,000 for the same period in the prior year. The increase in non-interest income occurred due to increased service fee income and income on other assets as compared to the same period for the prior year. Non-interest expense increased by $309,000, or 7.56%, to $4.40 million for the six-months ended June 30, 2026, as compared to $4.09 million for the same period in the prior year due to increased occupancy costs, outside consultant fees, and advertising expenses.

Total assets increased $4.02 million to $353.21 million at June 30, 2026, compared to $349.19 million at December 31, 2025. This increase was due primarily to higher loan and securities balances which increased by $2.30 million or 1.04% and $2.79 million or 3.72% respectively since December 31, 2025. Gross loans held for investment rose by $2.30 million to $223.78 million at June 30, 2026, compared to $221.49 million at December 31, 2025. Total deposits were $284.37 million at June 30, 2026, up from $280.09 million at December 31, 2025. FHLB advances decreased by $3.0 million or 6.67% to $42.0 million at June 30, 2026, from $45.0 million at December 31, 2025. As of June 30, 2026, the weighted average rate of all FHLB advances was 3.71% compared to 3.75% at December 31, 2025, and the weighted average maturity was 3.47 years at June 30, 2026, compared to 3.97 years at December 31, 2025.

Stockholders’ equity was $15.62 million at June 30, 2026, compared to $13.17 million at December 31, 2025. Stockholders’ equity increased due to retained net income for the year to date as well as a decrease in net unrealized loss of $1.25 million during the six months ended June 30, 2026, as a result of the increase in the fair value of our available- for-sale-securities due to the improvement in the forward rate curve compared to our portfolio at prior year end. The available-for-sale securities are investments in government sponsored mortgage-backed securities as well as investments in municipal bonds, which provide cash flow for business purposes. Quarterly average equity as a percentage of average assets increased to 4.11% at June 30, 2026, compared to 3.69% at December 31, 2025.

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, Trafalgar and Greenwood, 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 inflation, tariffs, changes in the interest rate environment, changes in general economic conditions, geopolitical conflicts, public health issues, 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.

Condensed Consolidated Statements of Income
(Unaudited)
In thousands, except per share data
	Three Months Ended								Six Months Ended
	June 30,			March 31,			June 30,		June 30,			June 30,
		2026			2026		2025			2026			2025
Selected Consolidated Earnings Data:
Total Interest Income	$	4,471		$	4,332		$	4,025	$	8,804		$	7,970
Total Interest Expense		1,876			1,893			1,859		3,769			3,689
Net Interest Income		2,595			2,439			2,166		5,034			4,281
Provision/(Credit) for Losses		(27	)		(23	)		30		(50	)		(13	)
Net Interest Income after Provision for Losses		2,622			2,462			2,136		5,084			4,294
Non-Interest Income		441			374			360		815			727
Non-Interest Expense		2,240			2,157			2,074		4,398			4,089
Income Tax Expense		103			74			48		177			109
Net Income	$	719		$	605		$	374	$	1,325		$	823
Earnings Per Share - basic	$	0.62		$	0.52		$	0.32	$	1.14		$	0.70
Earnings Per Share - diluted	$	0.62		$	0.52		$	0.32	$	1.14		$	0.70

Condensed Consolidated Balance Sheet
(Unaudited)(Unaudited)
In thousands, except per share data
	June 30,			December 31,			June 30,
		2026			2025			2025
Selected Consolidated Balance Sheet Data:
Assets
Cash and Due from Banks	$	33,064		$	33,865		$	17,751
Investment Securities, Available-for-Sale, at Fair Value		73,059			72,118			70,053
Investment Securities, Held-to-Maturity		4,800			2,950			2,950
Loans Held-for-Sale		-			-			451
Loans Held-for-Investment		223,780			221,485			211,983
Allowance for Credit Losses		3,106			3,157			2,953
Net Loans Held-for-Investment		220,674			218,327			209,029
Accrued Interest Receivable		1,488			1,641			1,483
Other Assets		20,127			20,287			20,709
Total Assets	$	353,212		$	349,188		$	322,427
Liabilities
Noninterest-Bearing Deposits	$	43,863		$	46,543		$	39,697
Interest-Bearing Deposits		240,509			233,543			204,706
Total Deposits		284,372			280,086			244,403
FHLB Advances and Other Borrowings		42,000			45,000			58,000
Subordinated Notes, Net of Issuances Costs		9,825			9,812			9,798
Accrued Interest Payable		455			472			509
Accrued Expenses and Other Liabilities		943			645			492
Total Liabilities		337,595			336,016			313,202
Stockholders' Equity
Common Stock		11,473			11,475			11,475
Retained Earnings		14,253			13,056			12,125
Accumulated Other Comprehensive Gain/(Loss)		(10,110	)		(11,358	)		(14,375	)
Total Stockholders' Equity		15,617			13,173			9,225
Total Liabilities and Stockholders' Equity	$	353,212		$	349,188		$	322,427

	Three Months Ended									Six Months Ended
	dollar figures are in thousands, except per share data
	June 30,			March 31,			June 30,			June 30,			June 30,
		2026			2026			2025			2026			2025
Selected Financial Ratios and Other Data (Unaudited):
Interest Rate Spread During Period		2.67	%		2.49	%		2.47	%		2.58	%		2.44	%
Net Yield on Interest-Earning Assets		5.37	%		5.21	%		5.37	%		5.29	%		5.34	%
Net Interest Margin During Period, Annualized		3.12	%		2.93	%		2.89	%		3.03	%		2.87	%
Net Realized Gain/(Loss) on AFS Securities	$	-		$	-		$	-		$	-		$	-
Non-Interest Expense, Annualized, to Average Assets		2.56	%		2.47	%		2.62	%		2.52	%		2.59	%
Return on Average Assets, Annualized		0.82	%		0.69	%		0.47	%		0.76	%		0.52	%
Return on Average Equity, Annualized		20.01	%		17.23	%		15.93	%		18.63	%		17.50	%
Average Equity to Assets		4.11	%		4.02	%		2.97	%		4.07	%		2.99	%
Average Net Loans	$	220,090		$	217,353		$	206,742		$	218,729		$	206,049
Average Net Securities		76,376			76,321			73,591			76,349			74,398
Average Other Interest-Earning Assets		36,513			39,014			19,421			37,756			18,272
Total Average Interest-Earning Assets		332,978			332,689			299,754			332,834			298,719
Average Total Assets		349,782			349,371			316,307			349,604			315,178
Average Noninterest-Bearing Deposits	$	46,831		$	45,533		$	40,591		$	46,271		$	40,339
Average Interest-Bearing Deposits		235,417			233,823			202,739			234,596			203,004
Average Total Deposits		282,248			279,356			243,330			280,868			243,344
Average Wholesale Funding		42,000			44,933			53,495			43,459			52,022
Average Interest-Bearing Liabilities		277,417			278,757			256,234			278,055			255,027
Avg. Interest-Earnings Assets to Avg. Interest-Bearings Liabilities		120.03	%		119.35	%		116.98	%		119.70	%		117.13	%
Average equity	$	14,380		$	14,057		$	9,392		$	14,219		$	9,411
Non-Performing Loans to Gross Loans Held-for-Investment		0.28	%		0.17	%		0.83	%		0.28	%		0.83	%
Total Non-Performing Assets	$	634		$	368		$	1,763		$	634		$	1,763
Allowance for Credit Losses to Total Loans Outstanding		1.39	%		1.42	%		1.39	%		1.39	%		1.39	%
Allowance for Credit Losses to Non-Performing Loans		489.90	%		851.47	%		168.75	%		489.90	%		168.75	%
Net Charge-offs/(Recoveries)	$	-		$	1		$	(9	)	$	1		$	(4	)
NCOs to Avg. Total Loans Outstanding		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Effective Income Tax Rate		12.52	%		10.84	%		11.29	%		11.76	%		11.72	%
Tangible Book Value Per Share	$	13.45		$	12.27		$	7.89		$	13.45		$	7.89
Market Closing Price at the End of Quarter	$	15.52		$	13.85		$	8.52		$	15.52		$	8.52
Price-to-Tangible Book Value		115.38	%		112.92	%		107.92	%		115.38	%		107.92	%