Tri-County Financial Group, Inc. Reports Fourth Quarter 2023 Financial Results

(MENAFN- PR Newswire) MENDOTA, Ill., Feb. 13, 2024 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG ) today announced financial results for the fourth quarter of 2023.

Net income for the fourth quarter of 2023 was $2.3 million ($0.94 per share), compared to $2.3 million ($0.92 per share) during the fourth quarter of 2022.

Net interest income was $10.7 million during the quarter ended December 31, 2023, compared to $10.7 million in the same period of 2022, or unchanged.
The net interest margin was 3.02% for the fourth quarter of 2023, compared to 3.27% for the fourth quarter of 2022.
The interest margin decreased due to higher funding costs.

Non-interest income was $3.8 million for the fourth quarter of 2023, an increase of $1.3 million, or 52%, compared to $2.5 million during the quarter ended December 31, 2022.

Non-interest expense was $11.6 million during the quarter ended December 31, 2023, compared to $10.2 million for the fourth quarter of 2022, an increase of $1.4 million, or 14%.

Our investment portfolio consists entirely of debt securities classified as available-for-sale; therefore, unrealized gains and losses are fully reported on our balance sheet.
None of our securities are classified as held-to-maturity.
The investment portfolio decreased $46.7 million or 21% year over year and totaled $174.8 million at December 31, 2023.
The reduction of the securities portfolio in 2023 helped finance our loan growth and reduce borrowings.

Total loans increased $72.6 million, or 6%, to $1.28 billion at December 31, 2023, from $1.21 billion at December 31, 2022.
Nonperforming loans as a percent of total loans were 0.55% as of December 31, 2023, up from 0.25% at December 31, 2022.

The provision for credit loss had a negative provision of $0.1 million for the quarter ended December 31, 2023.
The allowance for credit loss ended at $16.0 million at December 31, 2023 and represented 1.25% of gross loans.
Asset quality continues to remain strong and charge offs remain low and below industry peers.

Total deposits increased $107.9 million, or 9%, year-over-year.
However, approximately $71 million at December 31, 2023 consisted of brokered deposits.
Federal Home Loan Bank (FHLB) advances were $116 million and $220 million at December 31, 2023 and 2022, respectively.

The Company's capital levels remain solid as of December 31, 2023, with a Tier 1 leverage ratio of 9.28%, up from 9.20% last year.

On December 12, 2023, the Board of Directors declared a regular dividend of $0.20 per share and a special dividend of $0.10 per share, payable January 11, 2024, to shareholders of record on December 31, 2023.

In announcing the results, Tri-County Financial Group, Inc. President and CEO Tim McConville, stated, "Our fourth quarter numbers reflected the continued slowdown in mortgage activity and uptrend of the cost of deposits in an effort to hold onto core funding.
Despite the market and economic stresses, solid earnings performance existed as we remain attentive to our loan and deposit strategies.
Asset quality as measured by nonperforming loans to total loans is stable as we continue to see solid performance with our borrowers.
In 2023, we saw our stock price remain fairly flat as it ended the year at $44.00.
With high interest rates impacting banks and balance sheets, we remain diligent in monitoring our local competition to offer competitive rates while continuing to provide exceptional community banking services.
We continue to believe that our diversified balance sheet and lines of business are well-positioned."

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 Services, LLC and First State Insurance. Tri-County Financial Group, Inc. shares are quoted under the symbol TYFG and traded on OTCQX.

Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.
Actual results and trends could differ materially from those set forth in such statements due to various factors, including operating; legal and regulatory risks; changing economic and competitive conditions; and other risks and uncertainties.

TRI COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
QUARTER ENDED DECEMBER 31ST
(Unaudited, 000s omitted, except share data)
			2023		2022
Interest Income			$ 18,704		$ 14,629
Interest Expense			8,048		3,891
Net Interest Income			10,656		10,738
Provision for Credit Losses			(76)		0
Net Interest Income After Provision for Credit Losses		10,732		10,738
Non-Interest Income			3,803		2,462
FDIC Assessments			173		102
Non-Interest Expenses			11,425		10,133
Income Before Income Taxes			2,937		2,965
Applicable Income Taxes			665		684
Security Gains (Losses)			-		-
Net Income (Loss)			$ 2,272		$ 2,281
Basic Net Income Per Share			$ 0.94		$ 0.92
Weighted Average Shares Outstanding		2,426,368		2,489,871
** Certain reclassifications have been made to preserve consistency between the periods presented.

TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, 000s omitted, except share data)
ASSETS		12/31/2023		12/31/2022
Cash and Due from Banks		$ 26,905		$ 35,008
Federal Funds Sold		1,113		1,803
Debt Securities Available-for-Sale		174,846		221,578
Loans and Leases		1,283,792		1,211,203
Less: Allowance for Credit Losses		(15,990)		(13,089)
Loans, Net		1,267,802		1,198,114
Premises & Equipment		25,785		27,443
Intangibles		8,723		8,759
Other Real Estate Owned		101		132
Accrued Interest Receivable		7,572		5,951
Other Assets		40,048		39,450
TOTAL ASSETS		$ 1,552,895		$ 1,538,238
LIABILITIES
Demand Deposits		172,986		184,826
Interest-bearing Demand Deposits		407,305		421,584
Savings Deposits		206,446		254,765
Time Deposits		459,994		277,606
Total Deposits		1,246,731		1,138,781
Repurchase Agreements		22,488		23,374
FHLB and Other Borrowings		116,000		220,000
Interest Payable		73		73
Subordinated Debt		9,810		9,785
Total Repos & Borrowings		148,371		253,232
Other Liabilities		20,914		12,384
Dividends Payable		736		757
TOTAL LIABILITIES		$ 1,416,752		$ 1,405,154
STOCKHOLDERS' EQUITY
Common Stock		2,422		2,491
Additional Paid-in-Capital		22,456		25,437
Retained Earnings		121,414		116,664
Accumulated Other Comprehensive Loss		(10,149)		(11,508)
TOTAL STOCKHOLDERS' EQUITY		136,143		133,084
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ 1,552,895		$ 1,538,238
Book Value Per Share		$ 56.20		$ 53.43
Tangible Book Value Per Share		$ 52.60		$ 49.92
Bid Price		$ 44.00		$ 48.70
Period End Outstanding Shares		2,422,358		2,490,623

SOURCE Tri-County Financial Group, Inc.

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