Third Century Bancorp Releases Earnings for the Quarter Ended September 30, 2025

(OTCID: TDCB) - Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”), announced it recorded unaudited net income of $498,000 for the quarter ended September 30, 2025, or $0.43 per basic share and $0.42 per diluted share, compared to net income of $262,000 for the quarter ended September 30, 2024, or $0.22 per basic and diluted share.

“The improved financial performance of the Bank was the direct result of the efforts of our team,” noted President and CEO David A. Coffey. Coffey continued, “While pursuing our plan for 2025, I am pleased with the overall progress in earnings of the Bank through nine months. These results put us in a good position to have a very solid year of earnings. A few areas that are critical for small bank profitability are net interest margin and non-interest income. Both of these items showed improvement and contributed to the increase in our third quarter earnings.” Coffey concluded, “The positive trend of our ROAA, ROAE and EPS all reflect our efforts to improve shareholder value. We look forward to continuing this positive momentum into the final quarter of the year.”

For the quarter ended September 30, 2025, net income increased $236,000, or 90.14%, to $498,000 as compared to $262,000 for the same period in the prior year. The increase in net income for the three-month period ended September 30, 2025 was driven primarily as a result of a $281,000 increase in net interest income as compared to the same period in the prior year. Net interest income increased to $2.26 million for the three months ended September 30, 2025, due to an increase in total interest income of $268,000, or 6.67%, to $4.29 million for the three-month period ended September 30, 2025, as compared to $4.02 million for the same period for the prior year. The increase in total interest income was due to an increase in average loan balances as well as higher average yields on interest earning assets. Further contributing to net interest margin expansion, there was a decrease in total interest expense of $13,000, or 0.65%, to $2.03 million for the three-month period ended September 30, 2025, compared to $2.04 million for the same period for the prior year. The decrease in total interest expense was the result of reduced expense in brokered deposits and other borrowings.

The provision for credit losses during the current quarter was $27,000 compared to a provision reversal of ($52,000) for the same quarter last year due primarily to higher gross loan balances at quarter end.

Non-interest income increased by $13,000, or 3.63%, to $368,000 for the quarter ended September 30, 2025, as compared to $355,000 for the same period in the prior year. The increase in non-interest income occurred due to increased fee and service charge income. Non-interest expense decreased by $41,000, or 1.96%, to $2.07 million for the quarter ended September 30, 2025, as compared to $2.12 million for the same period in the prior year, due primarily to reduced service bureau expenses and pass through fee reimbursements.

For the nine-months ended September 30, 2025, net income increased $502,000, or 61.23%, to $1,321,000 as compared to $819,000 for the same period in the prior year. Net interest income increased to $6.54 million for the nine-months ended September 30, 2025, due to a decrease in total interest expense of $160,000, or 2.73%, to $5.72 million for the nine-month period ended September 30, 2025, as compared to $5.88 million for the same period for the prior year. The decrease in total interest expense was due to lower wholesale funding costs. Complementing the decrease in total interest expense was an increase in total interest income of $559,000, or 4.78%, to $12.26 million for the nine-month period ended September 30, 2025, compared to $11.70 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. The provision expense for credit losses during the first nine months of 2025 was $14,000 compared to a provision reversal of ($50,000) for the same period last year due primarily to growth in gross loan balances. Non-interest income increased by $103,000, or 10.40%, to $1,095,000 for the nine-months ended September 30, 2025, as compared to $992,000 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 $78,000, or 1.29%, to $6.16 million for the nine-months ended September 30, 2025, as compared to $6.09 million for the same period in the prior year due to increased occupancy and service vendor costs, partially offset by lower personnel costs.

Total assets increased $36.59 million to $348.96 million at September 30, 2025, compared to $312.38 million at December 31, 2024. This increase was due primarily to higher levels of cash which increased by $32.08 million or 348.71% since December 31, 2024 and higher total loans. The increase in cash was due to growth in retail deposits and additional borrowings. Gross loans held for investment rose by $3.91 million to $212.35 million at September 30, 2025 compared to $208.44 million at December 31, 2024. Total deposits were $268.27 million at September 30, 2025, up from $240.99 million at December 31, 2024. FHLB advances increased by $7.0 million or 13.73% to $58.0 million at September 30, 2025 from $51.0 million at December 31, 2024. As of September 30, 2025, the weighted average rate of all FHLB advances was 3.66% compared to 3.81% at December 31, 2024, and the weighted average maturity was 3.88 years at September 30, 2025 compared to 4.20 years at December 31, 2024.

Stockholders’ equity was $11.71 million at September 30, 2025, compared to $9.46 million at December 31, 2024 and $11.42 million at September 30, 2024. Stockholders’ equity increased due to a decrease in net unrealized loss of $1,108,000 during the nine months ended September 30, 2025, 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 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 decreased to 2.83% at September 30, 2025 compared to 3.27% at December 31, 2024.

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.

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David A. Coffey, President and CEO
S. Paul Arab, SUP and CFC
80 East Jefferson Street Franklin, IN 46131
Tel. 317-736-7151
Fax 317-736-1726