Tri-County Financial Group, Inc. Reports Third Quarter 2024 Financial Results

MENDOTA, Ill., Nov. 4, 2024 /PRNewswire/ — Tri-County Financial Group, Inc. (The Company) TYFG today announced financial results for the third quarter of 2024.

Net income for the third quarter of 2024 was $3.1 million ($1.27 per share), compared to $3.6 million ($1.45 per share) during the third quarter of 2023. Net income was $8.0 million ($3.33 per share) for the nine-month period ending September 30, 2024, compared to $7.8 million ($3.16 per share) during the same nine-month period a year ago.

Net interest income was $10.9 million during the quarter ended September 30, 2024, compared to $10.9 million in the same period of 2023, or unchanged.

Non-interest income was $4.5 million for the third quarter of 2024, a decrease of $0.1 million, or 2%, compared to $4.6 million during the quarter ended September 30, 2023.

Non-interest expense was $11.2 million during the quarter ended September 30, 2024, compared to $11.2 million in the same period of 2023, or unchanged.

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 $25.4 million or 15% year over year and totaled $146.6 million at September 30, 2024. The reduction of the securities portfolio in 2024 helped finance our loan growth and reduce borrowings.

Total loans increased $22.8 million, or 2%, to $1.26 billion at September 30, 2024, from $1.24 billion at September 30, 2023. Nonperforming loans as a percent of total loans were 0.41% as of September 30, 2024, compared to 0.53% at September 30, 2023.

The provision for credit loss had a negative provision of $0.2 million for the quarter ended September 30, 2024. The allowance for credit loss ended at $14.2 million at September 30, 2024 and represented 1.11% of gross loans. Asset quality continues to remain solid and charge offs remain low.

Total deposits increased $58.6 million, or 5%, year-over-year. However, approximately $71.3 million and $40.0 million consisted of brokered deposits at September 30, 2024 and 2023, respectively, Federal Home Loan Bank (FHLB) advances were $74.9 million and $137 million at September 30, 2024 and 2023, respectively.

The Company’s capital levels remain solid as of September 30, 2024, with a Tier 1 leverage ratio of 9.56%.

On September 10, 2024, the Board of Directors declared a regular dividend of $0.20 per share, payable October 10, 2024, to shareholders of record on September 30, 2024.

In announcing the results, Tri-County Financial Group, Inc. President and CEO Tim McConville, stated, “Our third quarter numbers reflected solid earnings with slight improvement in margins. This last quarter saw the yield curve finally turn positive after being inverted since July 2022. Despite the market and economic stresses, solid earnings performance existed as we remain attentive to our loan and deposit strategies. 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 expect share pricing and profitability to improve as the economy and the yield curve return to a normal state. Our loan portfolio remains strong with minimal charge offs and we believe that our diversified balance sheet and lines of business continue to be 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 SEPTEMBER 30TH
(Unaudited, 000s omitted, except share data)

	2024	2023

Interest Income	$ 19,986	$ 18,064
Interest Expense	9,120	7,181
Net Interest Income	10,866	10,883
Provision for Credit Losses	(170)	(911)
Net Interest Income After Provision for Credit Losses	11,036	11,794

Non-Interest Income	4,511	4,560
FDIC Assessments	180	319
Non-Interest Expenses	11,227	11,160
Income Before Income Taxes	4,140	4,875

Applicable Income Taxes	1,082	1,321
Security Gains (Losses)	–	–
Net Income (Loss)	$ 3,058	$ 3,554

Basic Net Income Per Share	$ 1.27	$ 1.45
Weighted Average Shares Outstanding	2,402,591	2,447,556

TRI-COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, 000s omitted, except share data)

ASSETS	9/30/2024	9/30/2023
Cash and Due from Banks	$ 46,153	$ 24,267
Federal Funds Sold	1,465	2,010
Debt Securities Available-for-Sale	146,550	171,985
Loans and Leases	1,274,499	1,253,601
Less: Allowance for Credit Losses	(14,205)	(16,083)
Loans, Net	1,260,294	1,237,518
Premises & Equipment	25,407	26,235
Intangibles	8,706	8,728
Other Real Estate Owned	241	101
Accrued Interest Receivable	9,482	8,142
Other Assets	38,269	37,319

TOTAL ASSETS	$ 1,536,567	$ 1,516,305

LIABILITIES
Demand Deposits	154,354	165,499
Interest-bearing Demand Deposits	397,249	406,822
Savings Deposits	187,034	214,383
Time Deposits	518,631	412,001
Total Deposits	1,257,268	1,198,705
Repurchase Agreements	27,785	24,355
FHLB and Other Borrowings	74,917	137,000
Interest Payable	160	160
Subordinated Debt	9,828	9,804
Total Repos & Borrowings	112,690	171,319
Other Liabilities	21,949	14,375
Dividends Payable	491	500
TOTAL LIABILITIES	$ 1,392,398	$ 1,384,899

STOCKHOLDERS’ EQUITY
Common Stock	2,400	2,445
Additional Paid-in-Capital	21,367	23,327
Retained Earnings	128,002	119,867
Accumulated Other Comprehensive Loss	(7,600)	(14,233)
TOTAL STOCKHOLDERS’ EQUITY	144,169	131,406

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,536,567	$ 1,516,305

Book Value Per Share	$ 60.08	$ 53.74
Tangible Book Value Per Share	$ 56.45	$ 50.17
Bid Price	$ 41.80	$ 47.00
Period End Outstanding Shares	2,399,758	2,445,323