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

Jul 29th, 2022 17:35 EST

MENDOTA, Ill., July 29, 2022 /PRNewswire/ — 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.

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