Tri-County Financial Group, Inc. Reports Second Quarter 2021 Financial Results
MENDOTA, Ill., Aug. 9, 2021 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX:TYFG) today announced financial results for the second quarter of 2021.
Net income for the second quarter of 2021 was $3.6 million ($1.44 per share), compared to $5.1 million ($2.08 per share) during the second quarter of 2020.
Net interest income was $10.6 million during the quarter ended June 30, 2021, compared to $9.0 million in the same period of 2020, an increase of 18%. The net interest margin was 3.31% for the second quarter of 2021, and 3.14% in the second quarter of 2020.
Noninterest income was $9.7 million for the quarter ended June 30, 2021, a decrease of $7.3 million, or 43%, compared to $17.1 million during the quarter ended June 30, 2020. The decrease can be primarily attributed to lower mortgage volume from the prior year record level. First State Mortgage net income decreased by $1.4 million compared to the second quarter of 2020.
Noninterest expense was $15.1 million during the quarter ended June 30, 2021, compared to $17.9 million for the second quarter of 2020, a decrease of $2.8 million, or 16%. The decrease is related primarily to variable expenses resulting from lower mortgage activity.
Total loans declined $34.0 million, or 3%, to $1.02 billion from $1.05 billion at June 30, 2020. There were $30.8 million in Paycheck Protection Program (PPP) loans included in loan balances at June 30, 2021 compared to $51.6 million the prior year quarter end, a decrease of $20.7 million. Non-agricultural business loan demand continues to be weak due to the pandemic and supply chain impacts, while portfolio mortgage and home equity loan balances were refinanced into the secondary market due to historically low rates. Offsetting some of the decline was an increase in agricultural lending activity at June 30, 2021 compared to the prior year. Nonperforming loans as a percent of total loans were 0.43% as of June 30, 2021, down from 0.81% at June 30, 2020.
The provision for loan loss decreased $1.1 million as asset quality continues to improve. The Company provided $450,000 during the second quarter of 2021 compared to $1,500,000 in the prior year period. The allowance for loan loss ended at $15.8 million at June 30, 2021 and represented 1.56% of gross loans compared to 1.39% at June 30, 2020.
Deposits increased $94.9 million, or 9%, year-over-year, with the majority of the growth due to CARES Act economic relief programs and PPP proceeds. The investment portfolio rose $28.5 million or 29% year over year and totaled $127 million at June 30, 2021 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, 2021, with a Tier 1 leverage ratio of 8.96%, up from 8.51% last year.
On June 8, 2021, the Board of Directors declared a regular dividend of $0.15 per share payable July 15, 2021, to shareholders of record on June 30, 2021.
In announcing the results, President and CEO, Tim McConville, stated "Our second quarter numbers, although down from a record quarter a year ago, represented strong earnings performance from a peak refinance period last year. Mortgage activity continues to positively contribute to earnings. Total mortgage production this year totaled $436 million, up from $390 million in 2020, but $83 million less in the second quarter only. Asset quality as measured by nonperforming loans to total loans is stable as we continue to monitor the pandemic impact. As staffing shortages improve and supply chains normalize, we expect overall loan demand to return to more normal levels allowing us to put excess liquidity back to work."
Tri-County Financial Group, Inc. is the parent holding company for First State Bank, with offices in
Mendota, Batavia, Bloomington, 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 STATEMENT OF INCOME | |||||
QUARTER ENDED JUNE 30th | |||||
(000s omitted, except share data) | |||||
2021 | 2020 | ||||
Interest Income | $ 12,367 | $ 11,967 | |||
Interest Expense | 1,733 | 2,934 | |||
Net Interest Income | 10,634 | 9,033 | |||
Provision for Loan Losses | 450 | 1,500 | |||
Net Interest Income After Provision for Loan Losses | 10,184 | 7,533 | |||
Other Income | 9,739 | 17,069 | |||
FDIC Assessments | 60 | 99 | |||
Other Expenses | 15,027 | 17,788 | |||
Income Before Income Taxes | 4,836 | 6,715 | |||
Applicable Income Taxes | 1,264 | 1,934 | |||
Security Gains (Losses) | - | 355 | |||
Net Income (Loss) | $ 3,572 | $ 5,136 | |||
Basic Net Income Per Share | $ 1.44 | $ 2.08 | |||
Weighted Average Shares Outstanding | 2,482,675 | 2,467,374 | |||
TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEET | ||||
(000s omitted, except share data) | ||||
ASSETS | 6/30/2021 | 6/30/2020 | ||
Cash and Due from Banks | $ 140,677 | $ 38,742 | ||
Federal Funds Sold | 26,179 | 9,721 | ||
Investment Securities | 127,108 | 98,609 | ||
Loans and Leases | 1,016,719 | 1,050,726 | ||
Less: Reserve for Loan Losses | (15,837) | (14,649) | ||
Loans, Net | 1,000,882 | 1,036,077 | ||
Bank Premises & Equipment | 27,323 | 26,861 | ||
Intangibles | 8,392 | 8,390 | ||
Other Real Estate Owned | 2,968 | 2,621 | ||
Accrued Interest Receivable | 4,821 | 6,567 | ||
Other Assets | 34,254 | 31,437 | ||
TOTAL ASSETS | $ 1,372,604 | $ 1,259,025 | ||
LIABILITIES | ||||
Demand Deposits | 170,055 | 158,375 | ||
Interest-bearing Demand Deposits | 388,595 | 313,309 | ||
Savings Deposits | 270,274 | 202,459 | ||
Time Deposits | 351,637 | 411,520 | ||
Total Deposits | 1,180,561 | 1,085,663 | ||
Repurchase Agreements | 17,816 | 15,094 | ||
Fed Funds Purchased | 0 | 0 | ||
FHLB and Other Borrowings | 5,000 | 4,001 | ||
Interest Payable | 240 | 240 | ||
Subordinated Debt | 15,723 | 15,670 | ||
Total Repos & Borrowings | 38,779 | 35,005 | ||
Other Liabilities | 20,011 | 21,749 | ||
Dividends Payable | 382 | 379 | ||
TOTAL LIABILITIES | $ 1,239,733 | $ 1,142,796 | ||
CAPITAL | ||||
Common Stock | 2,485 | 2,467 | ||
Surplus | 25,871 | 25,232 | ||
Preferred Stock | 0 | 0 | ||
Retained Earnings | 101,770 | 84,944 | ||
FASB 115 Adjustment | 2,745 | 3,586 | ||
TOTAL CAPITAL | 132,871 | 116,229 | ||
TOTAL LIABILITIES AND CAPITAL | $ 1,372,604 | $ 1,259,025 | ||
Book Value Per Share | $ 53.52 | $ 47.11 | ||
Tangible Book Value Per Share | $ 50.14 | $ 43.71 | ||
Bid Price | $ 45.60 | $ 33.75 | ||
Period End Outstanding Shares | 2,482,675 | 2,467,374 | ||
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SOURCE Tri-County Financial Group, Inc.