Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the second quarter of 2022.
Net income for the second quarter of 2022 was $2.5 million ($0.99 per share), compared to $3.6 million ($1.44 per share) during the second quarter of 2021.
Net interest income was $11.2 million during the quarter ended June 30, 2022, compared to $10.6 million in the same period of 2021, an increase of 6%. The net interest margin was 3.31% for the second quarter of 2022.
Noninterest income was $2.9 million for the quarter ended June 30, 2022, a decrease of $3.0 million, or 50%, compared to $5.9 million during the quarter ended June 30, 2021. The decrease can be primarily attributed to lower mortgage volume from the prior year. First State Mortgage net income decreased by $1.6 million compared to the second quarter of 2021.
Noninterest expense was $10.3 million during the quarter ended June 30, 2022, compared to $11.2 million for the second quarter of 2021, a decrease of $0.9 million, or 8%. The decrease is related primarily to variable expenses resulting from lower mortgage activity.
Total loans increased $88 million, or 9%, to $1.11 billion from $1.02 billion at June 30, 2021. Commercial real estate and agricultural lending activity increased compared to the prior year. Nonperforming loans as a percent of total loans were 0.19% as of June 30, 2022, down from 0.43% at June 30, 2021.
The provision for loan loss remained at $0.9 million as asset quality continues to remain strong. The Company provided $450,000 during the second quarter of 2022 compared to the same amount in the prior year period. The allowance for loan loss ended at $16.97 million at June 30, 2022 and represented 1.54% of gross loans compared to 1.56% at June 30, 2021.
Deposits increased $7.6 million, or 1%, year-over-year. The investment portfolio rose $134.3 million or 106% year over year and totaled $261.4 million at June 30, 2022 due to the significant increase in liquidity from net loan runoff and direct deposit of government relief funds.
The Company’s capital levels remain solid as of June 30, 2022, with a Tier 1 leverage ratio of 9.17%, up from 8.96% last year.
On June 14, 2022, the Board of Directors declared a regular dividend of $0.20 per share payable July 7, 2022, to shareholders of record on June 30, 2022.
In announcing the results, President and CEO, Tim McConville, stated “Our second quarter numbers, although down from one of our record quarters a year ago, represented strong earnings performance from a peak refinance period last year. Asset quality as measured by nonperforming loans to total loans is stable as we continue to see strong agricultural performance and good liquidity with our borrowers. We continue to monitor the impact of supply chain issues and staffing shortages on our businesses and consumers. Overall, we anticipate loan demand to remain strong, and we look forward to supporting the credit needs of our businesses and communities.”
Tri-County Financial Group, Inc. is the parent holding company for First State Bank, with offices in Mendota, Batavia, Bloomington, Champaign, Geneva, LaMoille, McNabb, North Aurora, Ottawa, Peru, Princeton, Rochelle, Shabbona, St. Charles, Streator, Sycamore, Waterman and West Brooklyn. First State Bank is the parent company of First State Mortgage, LLC and First State Insurance. Tri-County Financial Group, Inc. shares are quoted under the symbol TYFG and traded on OTCQX.
| TRI COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES | |||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||
| QUARTER ENDED JUNE 30TH | |||||
| (000s omitted, except share data) | |||||
| 2022 | 2021 | ||||
| Interest Income | $ 12,470 | $ 12,367 | |||
| Interest Expense | 1,232 | 1,733 | |||
| Net Interest Income | 11,238 | 10,634 | |||
| Provision for Loan Losses | 450 | 450 | |||
| Net Interest Income After Provision for Loan Losses | 10,788 | 10,184 | |||
| Other Income | 2,941 | 5,887 | |||
| FDIC Assessments | 90 | 60 | |||
| Other Expenses | 10,337 | 11,175 | |||
| Income Before Income Taxes | 3,302 | 4,836 | |||
| Applicable Income Taxes | 837 | 1,264 | |||
| Security Gains (Losses) | – | – | |||
| Net Income (Loss) | $ 2,465 | $ 3,572 | |||
| Basic Net Income Per Share | $ 0.99 | $ 1.44 | |||
| Weighted Average Shares Outstanding | 2,482,821 | 2,482,675 |
| ** Certain reclassifications have been made to preserve consistency between the periods presented. |
| TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES | ||||
| CONSOLIDATED BALANCE SHEETS | ||||
| (000s omitted, except share data) | ||||
| ASSETS | 6/30/2022 | 6/30/2021 | ||
| Cash and Due from Banks | $ 19,175 | $ 140,677 | ||
| Federal Funds Sold | 1,027 | 26,179 | ||
| Investment Securities | 261,440 | 127,108 | ||
| Loans and Leases | 1,105,015 | 1,016,719 | ||
| Less: Reserve for Loan Losses | (16,970) | (15,837) | ||
| Loans, Net | 1,088,045 | 1,000,882 | ||
| Bank Premises & Equipment | 26,759 | 27,323 | ||
| Intangibles | 8,788 | 8,392 | ||
| Other Real Estate Owned | 2,376 | 2,968 | ||
| Accrued Interest Receivable | 5,421 | 4,821 | ||
| Other Assets | 30,567 | 34,254 | ||
| TOTAL ASSETS | $ 1,443,598 | $ 1,372,604 | ||
| LIABILITIES | ||||
| Demand Deposits | 180,075 | 170,055 | ||
| Interest-bearing Demand Deposits | 406,883 | 388,595 | ||
| Savings Deposits | 293,440 | 270,274 | ||
| Time Deposits | 307,788 | 351,637 | ||
| Total Deposits | 1,188,186 | 1,180,561 | ||
| Repurchase Agreements | 27,865 | 17,816 | ||
| Fed Funds Purchased | 43,038 | 0 | ||
| FHLB and Other Borrowings | 35,505 | 5,000 | ||
| Interest Payable | 73 | 240 | ||
| Subordinated Debt | 9,773 | 15,723 | ||
| Total Repos & Borrowings | 116,254 | 38,779 | ||
| Other Liabilities | 11,544 | 20,011 | ||
| Dividends Payable | 507 | 382 | ||
| TOTAL LIABILITIES | $ 1,316,491 | $ 1,239,733 | ||
| CAPITAL | ||||
| Common Stock | 2,484 | 2,485 | ||
| Surplus | 25,742 | 25,871 | ||
| Preferred Stock | 0 | 0 | ||
| Retained Earnings | 109,999 | 101,770 | ||
| FASB 115 Adjustment | (11,118) | 2,745 | ||
| TOTAL CAPITAL | 127,107 | 132,871 | ||
| TOTAL LIABILITIES AND CAPITAL | $ 1,443,598 | $ 1,372,604 | ||
| Book Value Per Share | $ 51.19 | $ 53.52 | ||
| Tangible Book Value Per Share | $ 47.66 | $ 50.14 | ||
| Bid Price | $ 46.00 | $ 45.60 | ||
| Period End Outstanding Shares | 2,482,821 | 2,482,675 |
SOURCE Tri-County Financial Group, Inc.