Tri-County Financial Group, Inc. Reports Second Quarter 2022 Financial Results

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.

(000s omitted, except share data)
Interest Income$    12,470$    12,367
Interest Expense1,2321,733
Net Interest Income11,23810,634
Provision for Loan Losses450450
Net Interest Income After Provision for Loan Losses10,78810,184
Other Income2,9415,887
FDIC Assessments9060
Other Expenses10,33711,175
Income Before Income Taxes3,3024,836
Applicable Income Taxes8371,264
Security Gains (Losses)
Net Income (Loss)$      2,465$      3,572
Basic Net Income Per Share$        0.99$        1.44
Weighted Average Shares Outstanding2,482,8212,482,675
** Certain reclassifications have been made to preserve consistency between the periods presented.
(000s omitted, except share data)
Cash and Due from Banks$             19,175$           140,677
Federal Funds Sold1,02726,179
Investment Securities261,440127,108
Loans and Leases1,105,0151,016,719
  Less:  Reserve for Loan Losses(16,970)(15,837)
Loans, Net1,088,0451,000,882
Bank Premises & Equipment26,75927,323
Other Real Estate Owned2,3762,968
Accrued Interest Receivable5,4214,821
Other Assets30,56734,254
        TOTAL ASSETS$        1,443,598$        1,372,604
Demand Deposits180,075170,055
Interest-bearing Demand Deposits406,883388,595
Savings Deposits293,440270,274
Time Deposits307,788351,637
        Total Deposits1,188,1861,180,561
Repurchase Agreements27,86517,816
Fed Funds Purchased43,0380
FHLB and Other Borrowings35,5055,000
Interest Payable73240
Subordinated Debt9,77315,723
         Total Repos & Borrowings116,25438,779
Other Liabilities11,54420,011
Dividends Payable507382
           TOTAL LIABILITIES$        1,316,491$        1,239,733
Common Stock2,4842,485
Preferred Stock00
Retained Earnings109,999101,770
FASB 115 Adjustment(11,118)2,745
            TOTAL CAPITAL127,107132,871
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 Shares2,482,8212,482,675

SOURCE Tri-County Financial Group, Inc.

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