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Third Century Bancorp Releases Earnings for Quarter Ended March 31, 2018OTCPINK "TDCB" - Third Century Bancorp ("Company"), the holding company for Mutual Savings Bank ("Bank") announced it had net income of $216,000 for the quarter ended March 31, 2018, or $0.18 per basic and diluted share, compared to net income of $167,000 for the quarter ended March 31, 2017, or $0.15 per basic and diluted share. The improvement in net income was primarily driven by an increase of $143,000 in interest income, which was partially offset by a $70,000 increase in interest expense. The Company also recorded a $76,000 increase in noninterest income, as well as an $80,000 increase in noninterest expense. The Company also recorded a $13,000 decrease in income tax expense as a result of the decrease in the corporate tax rate which took effect on January 1, 2018. Net interest income was $1,246,000 for the first quarter of 2018 compared to $1,174,000 for the first quarter of 2017. The increase in net interest income was primarily due to an increase of $143,000, or 11.04%, in interest income, primarily driven by an increase in interest income on loans of $169,000. This increase was offset by an increase in interest expense, which was $191,000 for the first quarter of 2018 compared to $121,000 for the first quarter of 2017. The increase in interest expense was driven by increases in deposit interest expense of $59,000, or 105.36% and wholesale funding interest expense of $11,000, or 16.67%. The increase in net interest income for the quarter ended March 31, 2018 was partially offset by a $32,000 increase in the provision for loan losses compared to 2017. The increase in provision for loan losses was primarily driven by increased loan volume. Credit quality factors, including net loan charge-offs also factor into the provision for loan losses. The Company saw a decrease in net loan charge-offs to $15,000 during the quarter ended March 31, 2018 compared to net loan charge-offs of $248,000 for the quarter ended March 31, 2017. Noninterest income increased $76,000 to $287,000 for the three months ended March 31, 2018 as compared to the same period in 2017. This increase in noninterest income was driven by increases in loans sales of $23,000, as well as increases in FHLB Stock Dividends and other loan fees. Noninterest expense increased by $80,000 to $1,193,000 for the three months ended March 31, 2018 as compared to the same period in 2017. The increase in expenses were largely driven by increases of $51,000 and $19,000 in personnel expenses and marketing expenses, respectively. Total assets increased $2.0 million to $152.9 million at March 31, 2018 from $150.9 million at December 31, 2017, an increase of 1.32%. The increase in assets was due to an increase in net loans receivable, an increase of $1.6 million. The increase in total assets was funded by an increase in deposits of $2.5 million to $115.9 million at March 31, 2018 from $113.3 million at December 31, 2017. The increase in total deposits was driven by an increase of $6.4 million, or 30.04%, in money market deposits to $27.7 million at March 31, 2018. This increase was offset by a decrease in term deposits of $4.8 million, or 16.71% to a balance of $24.2 million at March 31, 2018. Stockholders' equity increased $128,000 to $16.0 million at March 31, 2018 from $15.9 million at December 31, 2017. Stockholders' equity increased due to the Company's net income, offset in part by dividends of $71,000 for the three months ended March 31, 2018. Average equity as a percentage of average assets increased to 10.47% for the three months ended March 31, 2018 compared to 10.52% for the period ended December 31, 2017. Founded in 1890, Mutual Savings Bank is a full-service financial institution based in Johnson County, Indiana. In addition to its main office at 80 East Jefferson Street, Franklin, Indiana, the bank operates branches in Franklin at 1124 North Main Street and the Franklin United Methodist Community, as well as in Nineveh and Trafalgar, Indiana.
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