Third Century Bancorp Releases Earnings for the Quarter Ended September 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 $735,000 for the quarter ended September 30, 2026, or $0.63 per basic and diluted share, compared to net income of $498,000 for the quarter ended September 30, 2025, or $0.43 per basic and $0.42 per diluted share.

“We are pleased with our third-quarter performance. Loan growth remained solid, deposit growth was exceptionally strong, and those additional deposits allowed us to further reduce wholesale borrowings while maintaining a strong liquidity position. Earnings continued to improve as revenue growth outpaced expense growth. While higher market interest rates continue to create unrealized losses in our investment portfolio that impact reported equity, the Bank's core operating performance remains strong, and our overall financial condition is sound. Regardless of the economic environment or changes in interest rates, our employees continue to demonstrate their commitment to serving our customers and communities. Their efforts are reflected in our financial results, and we remain optimistic about the future,” stated David A. Coffey, President and CEO.

For the quarter ended September 30, 2026, net income increased $237,000, or 47.69%, to $735,000 as compared to $498,000 for the same period in the prior year. The increase in net income for the three-month period ended September 30, 2026, was driven primarily as a result of a $414,000 increase in net interest income as compared to the same period in the prior year. Net interest income increased to $2.68 million for the three months ended September 30, 2026, due to an increase in total interest income of $430,000, or 10.02%, to $4.72 million for the three-month period ended September 30, 2026, as compared to $4.29 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 $16,000, or 0.78%, to $2.04 million for the three-month period ended September 30, 2026, as compared to $2.03 million for the same period for the prior year. The increase in total interest expense was the result of higher average retail deposit balances.

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

Non-interest income for the quarter ended September 30, 2026, increased by $91,000, or 24.57%, to $459,000, as compared to $368,000 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 $202,000, or 9.75%, to $2,276,000 as compared to $2,074,000 for the same period in the prior year, due primarily to increased data processing, personnel expenses, and outside consultant fees.

For the nine-months ended September 30, 2026, net income increased $739,000, or 55.92%, to $2,060,000, or $1.77 per basic and diluted share, as compared to $1,321,000, or $1.13 per basic and $1.12 per diluted share, for the same period in the prior year. Net interest income increased to $7.71 million for the nine-months ended September 30, 2026, due to an increase in total interest income of $1.26 million, or 10.30%, to $13.52 million for the nine-month period ended September 30, 2026, as compared to $12.26 million for the same period for the prior year. The increase in total interest income was the result of higher average loan yields and higher average loan balances. Offsetting the increase in total interest income was an increase in total interest expense of $96,000, or 1.69%, to $5.81 million for the nine-month period ended September 30, 2026, as compared to $5.72 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 nine months of 2026 was $50,000 compared to a provision expense of $14,000 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 $178,000, or 16.30%, to $1.27 million for the nine-months ended September 30, 2026, as compared to $1.10 million 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 $511,000, or 8.30%, to $6.67 million for the nine-months ended September 30, 2026, as compared to $6.16 million for the same period in the prior year due to increased data processing expenses, personnel expenses and outside consultant fees.

Total assets increased $16.81 million, or 4.81%, to $365.99 million at September 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 $9.31 million or 4.20% and $3.94 million or 5.25%, respectively, since December 31, 2025. Gross loans held for investment rose by $9.31 million to $230.80 million at September 30, 2026, compared to $221.48 million at December 31, 2025. Total deposits were $321.46 million at September 30, 2026, up from $280.09 million at December 31, 2025. FHLB advances decreased by $23.0 million or 51.11% to $22.0 million at September 30, 2026, from $45.0 million at December 31, 2025.

Stockholders’ equity was $11.16 million at September 30, 2026, compared to $13.17 million at December 31, 2025. Stockholders’ equity decreased due to an increase in net unrealized loss of $3.87 million during the nine months ended September 30, 2026, partially offset by retained net income for the year to date. The increase in net unrealized loss was a result of the decrease in the fair value of our available-for-sale securities due to changes 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 4.04% at September 30, 2026, compared to 2.83% at September 30, 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							Nine Months Ended
	September 30,		June 30,			September 30,		Sept 30,			Sept 30,
	2026		2026			2025		2026			2025
Selected Consolidated Earnings Data:
Total Interest Income	$	4,718	$	4,471		$	4,289	$	13,522		$	12,259
Total Interest Expense		2,043		1,876			2,027		5,812			5,716
Net Interest Income		2,676		2,595			2,262		7,710			6,543
Provision/(Credit) for Losses		-		(27	)		27		(50	)		14
Net Interest Income after Provision for Losses		2,676		2,622			2,235		7,760			6,529
Non-Interest Income		459		441			368		1,274			1,095
Non-Interest Expense		2,276		2,240			2,074		6,674			6,163
Income Tax Expense		123		103			31		299			140
Net Income	$	735	$	719		$	498	$	2,060		$	1,321
Earnings Per Share - basic	$	0.63	$	0.62		$	0.43	$	1.77		$	1.13
Earnings Per Share - diluted	$	0.63	$	0.62		$	0.42	$	1.77		$	1.12

Condensed Consolidated Balance Sheet
(Unaudited)
In thousands, except per share data
	September 30,			December 31,			September 30,
	2026			2025			2025
Selected Consolidated Balance Sheet Data:
Assets
Cash and Due from Banks	$	34,729		$	33,865		$	41,283
Investment Securities, Available-for-Sale, at Fair Value		74,209			72,118			71,461
Investment Securities, Held-to-Maturity		4,800			2,950			2,950
Loans Held-for-Sale		830			-			2,102
Loans Held-for-Investment		230,796			221,485			212,353
Allowance for Credit Losses		3,104			3,157			2,968
Net Loans Held-for-Investment		227,692			218,327			209,385
Accrued Interest Receivable		1,551			1,641			1,507
Other Assets		22,184			20,287			20,274
Total Assets	$	365,995		$	349,188		$	348,963
Liabilities
Noninterest-Bearing Deposits	$	52,462		$	46,543		$	45,449
Interest-Bearing Deposits		268,994			233,543			222,819
Total Deposits		321,457			280,086			268,268
FHLB Advances and Other Borrowings		22,000			45,000			58,000
Subordinated Notes, Net of Issuances Costs		9,832			9,812			9,805
Accrued Interest Payable		327			472			404
Accrued Expenses and Other Liabilities		1,218			645			778
Total Liabilities		354,833			336,016			337,256
Stockholders' Equity
Common Stock		11,473			11,475			11,475
Retained Earnings		14,919			13,056			12,565
Accumulated Other Comprehensive Gain/(Loss)		(15,231	)		(11,358	)		(12,332	)
Total Stockholders' Equity		11,162			13,173			11,708
Total Liabilities and Stockholders' Equity	$	365,995		$	349,188		$	348,963

	Three Months Ended									Nine Months Ended
	dollar figures are in thousands, except per share data
	September 30,			June 30,			September 30,			September 30,			September 30,
	2026			2026			2025			2026			2025
Selected Financial Ratios and Other Data (Unaudited):
Interest Rate Spread During Period		2.61	%		2.67	%		2.44	%		2.59	%		2.44	%
Net Yield on Interest-Earning Assets		5.40	%		5.37	%		5.43	%		5.33	%		5.37	%
Net Interest Margin During Period, Annualized		3.06	%		3.12	%		2.86	%		3.04	%		2.86	%
Net Realized Gain/(Loss) on AFS Securities	$	-		$	-		$	(10	)	$	0		$	(10	)
Non-Interest Expense, Annualized, to Average Assets		2.49	%		2.56	%		2.49	%		2.46	%		2.56	%
Return on Average Assets, Annualized		0.80	%		0.82	%		0.60	%		0.76	%		0.55	%
Return on Average Equity, Annualized		19.88	%		20.01	%		21.09	%		19.06	%		18.71	%
Average Equity to Assets		4.04	%		4.11	%		2.83	%		3.99	%		2.93	%
Average Net Loans	$	222,798		$	220,090		$	209,332		$	220,100		$	207,155
Average Net Securities		77,930			76,376			72,569			76,882			73,782
Average Other Interest-Earning Assets		48,570			36,513			34,124			41,401			23,614
Total Average Interest-Earning Assets		349,298			332,978			316,024			338,382			304,551
Average Total Assets		366,100			349,782			333,492			361,667			321,350
Average Noninterest-Bearing Deposits	$	47,238		$	46,831		$	41,330		$	46,502		$	40,673
Average Interest-Bearing Deposits		261,317			235,417			213,636			243,624			206,587
Average Total Deposits		308,556			282,248			254,966			290,126			247,260
Average Wholesale Funding		31,240			42,000			58,000			39,341			54,037
Average Interest-Bearing Liabilities		292,558			277,417			271,636			282,965			260,624
Avg. Interest-Earnings Assets to Avg. Interest-Bearings Liabilities		119.39	%		120.03	%		116.34	%		119.58	%		116.85	%
Average equity	$	14,796		$	14,380		$	9,442		$	14,414		$	9,415
Non-Performing Loans to Gross Loans Held-for-Investment		0.00	%		0.28	%		0.00	%		0.00	%		0.00	%
Total Non-Performing Assets	$	-		$	634		$	-		$	-		$	-
Allowance for Credit Losses to Total Loans Outstanding		1.34	%		1.39	%		1.40	%		1.34	%		1.40	%
Allowance for Credit Losses to Non-Performing Loans		N/A			489.90	%		0.00	%		0.00	%		0.00	%
Net Charge-offs/(Recoveries)	$	2		$	-		$	(8	)	$	4		$	(12	)
NCOs to Avg. Total Loans Outstanding		0.00	%		0.00	%		-0.01	%		0.00	%		-0.01	%
Effective Income Tax Rate		14.30	%		12.52	%		5.85	%		12.69	%		9.60	%
Tangible Book Value Per Share	$	9.61		$	13.45		$	10.02		$	9.61		$	10.02
Market Closing Price at the End of Quarter	$	16.75		$	15.52		$	9.45		$	16.75		$	9.45
Price-to-Tangible Book Value		174.23	%		115.38	%		94.31	%		174.23	%		94.31	%