TDCB - Third Century Bancorp Releases Earnings for the Quarter Ended March 31 2021

(OTCPINK: TDCB) - Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”), announced it recorded net income of $414,000 for the quarter ended March 31, 2021, or $0.35 per basic and diluted share, compared to net income of $453,000 for the quarter ended March 31, 2020, or $0.38 per basic and diluted share.

“Our earnings reflect consistent net income and solid quality asset growth which are the positive result we have achieved from the terrific effort given by our talented staff. I am proud to walk beside this group of bankers who continue to tell our story and how we can help people,” commented David A. Coffey, President and CEO. He also indicated, “We look forward to continuing this momentum during the rest of 2021.”

For the quarter ended March 31, 2021, net income decreased $39,000, or 8.61%, to $414,000 as compared to $453,000 for the same period in the prior year. The decrease in net income for the three-month period ended March 31, 2021 was driven primarily as result of the $228,000, or 14.87%, increase in non-interest expense. The increase in non-interest expense was due to an increase in overhead expenses. This increase was largely offset by an increase of $152,000 or 28.25% in non-interest income as compared to the same period in the prior year. The increase in non-interest income was driven primarily by a $82,000 or 27.42%, increase in gains on the sale of one-to-four family residential mortgage loans sold to Freddie Mac. Net interest income increased by $30,000, or 1.94% for the quarter ended March 31, 2021, to $1,576,000 as compared to $1,546,000 for the same period in the prior year.

The increase in net interest income for the quarter ended March 31, 2021 was partially offset by a $40,000 increase in the provision for loan losses compared to the same period in 2020 due to the economic conditions resulting from the current COVID-19 crisis. The Company had net loan recoveries of $1,000 during the quarter ended March 31, 2021 compared to net loan charge-offs of $26,000 for the same period in 2020. The Company expects that the current COVID-19 crisis may impact the future provision for loan losses and that credit quality factors may deteriorate in future periods.

Total assets increased $14.3 million to $223.8 million at March 31, 2021 from $209.6 million at December 31, 2020, an increase of 6.82%. The increase was primarily due to a $7.6 million, or 12.89%, increase in investment securities, available-for-sale, primarily funded by a $21.2 million, or 11.98%, increase in total deposits. Total deposits were $198.3 million at March 31, 2021, up from $177.1 million as of December 31, 2020. Federal Home Loan Bank advances were $5.0 million at March 31, 2021 as compared to $11.7 million at December 31, 2020. At March 31, 2021, the weighted average rate of all Federal Home Loan Bank advances was 1.45% compared to 1.21% at December 31, 2020, and the weighted average maturity was 5.0 years at March 31, 2021 compared to 3.5 years at December 31, 2020. Total loans held-for-investment grew to $141.7 million at March 31, 2021 from $138.8 million at December 31, 2020, an increase of 2.09%.

The increase in total loan balances was partially the result of loans originated through the Small Business Administration’s Paycheck Protection Program (“PPP”) in which the Company participated. The Company originated $8.6 million of PPP loans in the program in 2020, of which $2.1 million remained on the Company’s balance sheet as of March 31, 2021. The Company originated $3.9 million of PPP loans in the program in 2021, all of which remained on the Company’s balance sheet as of March 31, 2021. As of March 31 2021, a total of $6.0 million of PPP loans remained on the Company’s balance sheet with the remaining forgiven by the Small Business Administration.

The allowance for loan losses increased by $47,000, or 2.62%, to $1.8 million at March 31, 2021 from $1.8 million at December 31, 2020. The increase was primarily due to the increase in the provision for loan losses of $40,000 due to the economic conditions resulting from the current COVID-19 crisis. The allowance for loan losses totaled 1.29% of total loans as of March 31, 2021 and December 31, 2020. Nonperforming loans totaled $108,000 or 0.08% of total loans as of March 31, 2021 as compared to $111,000 or 0.08% as of December 31, 2020.

Stockholders’ equity was $19.9 million at March 31, 2021, down from $20.4 million at December 31, 2020. Stockholders’ equity decreased by $502,000 during the quarter ended March 31, 2021 as a result of net income of $414,000, and a decrease in net unrealized gain of $911,000 of available-for-sale securities due to the increase in market interest rates. These changes in stockholders’ equity were also offset by repurchased stock of $21,000 and stock awards of $16,000. Equity as a percentage of assets decreased to 8.92% at March 31, 2021 compared to 9.76% at December 31, 2020.

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 the COVID-19 pandemic, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210412005687/en/

David A. Coffey, President and CEO
Ryan W. Cook, Senior Vice President and CFO
Tel. 317-736-7151 Fax 317-736-1726