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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