1. TYFG's Q1 2025 net income decreases slightly to $2.6 million. 2. Net interest income rises by 10% to $11.6 million, enhancing profitability. 3. Non-interest income improves by 20% due to better mortgage earnings. 4. Total loans decrease by 1%, but asset quality remains solid with low nonperforming loans. 5. The Board declared a $0.25 per share dividend, signaling financial health.
Despite a slight decrease in net income, improvements in net interest income and non-interest income, combined with low nonperforming loan ratios, indicate strong operational performance. Historically, banks with a solid net interest margin and growing non-interest income have seen positive stock price appreciation.
The earnings report contains key financial metrics and future outlooks that can directly influence investor perceptions and stock price. The declared dividend reflects confidence in financial stability and commitment to shareholders.
The immediate market reaction to quarterly results and dividends typically influences stock price in the short-term. As investors respond to solid earnings indicators, a positive sentiment is expected to drive prices upward soon.
MENDOTA, Ill., April 24, 2025 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the first quarter of 2025.
Net income for the first quarter of 2025 was $2.6 million ($1.07 per share), compared to $2.7 million ($1.10 per share) during the first quarter of 2024. The net interest margin was 3.31% for the first quarter of 2025, compared to 2.93% for the first quarter of 2024.
Net interest income was $11.6 million during the quarter ended March 31, 2025, compared to $10.5 million in the same period of 2024, or a 10% increase.
Non-interest income was $3.6 million for the first quarter of 2025, an increase of $0.6 million, or 20%, compared to $3.0 million during the quarter ended March 31, 2024. The increase is attributed mostly to improved earnings in First State Mortgage, which is performing approximately $0.5 million better through three months than March 31, 2024.
Non-interest expense was $11.3 million during the quarter ended March 31, 2025, compared to $11.2 million in the same period of 2024, an increase of $0.1 million, or 0.9%.
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 $21.8 million or 13% year over year and totaled $147.4 million at March 31, 2025, compared to $169.1 million at March 31, 2024. The reduction of the securities portfolio in 2025 helped to reduce borrowings.
Total loans decreased $12.3 million, or 1%, to $1.278 billion at March 31, 2025, from $1.291 billion at March 31, 2024. Nonperforming loans as a percent of total loans were 0.40% as of March 31, 2025, compared to 0.63% at March 31, 2024.
The provision for credit loss had a provision of $0.5 million for the quarter ended March 31, 2025, attributed to economic conditions moderating and the unfunded commitments increasing approximately $20 million from the prior quarter. The allowance for credit loss ended at $14.5 million at March 31, 2025 and represented 1.14% of gross loans. Asset quality continues to remain solid and charge-offs remain low.
Total deposits increased $18.2 million, or 1%, year-over-year. Approximately $38 million and $87.5 million consisted of brokered deposits at March 31, 2025 and 2024, respectively. Federal Home Loan Bank (FHLB) advances were $32.9 million and $74.5 million at March 31, 2025 and 2024, respectively.
The Company's capital levels remain solid as of March 31, 2025, with a Tier 1 leverage ratio of 9.79%.
On March 18, 2025, the Board of Directors declared a regular dividend of $0.25 per share, payable April 10, 2025, to shareholders of record on March 31, 2025.
In announcing the results, Tri-County Financial Group, Inc. President and CEO Tim McConville, stated, "Our first quarter numbers reflected solid earnings and improvement of net interest margin and in-market deposit growth. Despite the challenging economic and political environment for financial institutions, solid earnings performance existed as we remain attentive to our loan and deposit strategies. We remain diligent in monitoring our local competition to offer competitive rates while continuing to provide exceptional community banking services. Our loan portfolio continues to remain strong with minimal charge-offs and we believe that our diversified balance sheet and lines of business continue to be well-positioned. Asset quality as measured by nonperforming loans to total loans is stable as we continue to see solid performance with our borrowers. In our 85th year of business with First State Bank, we remain steadfast in our commitment to the communities and our customers in which we serve."
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.
| 2025 | 2024 | |
|---|---|---|
| Interest Income | $ 19,530 | $ 18,989 |
| Interest Expense | $ 7,892 | $ 8,509 |
| Net Interest Income | $ 11,638 | $ 10,480 |
| Provision for Credit Losses | $ 501 | $ (1,286) |
| Net Interest Income After Provision for Credit Losses | $ 11,137 | $ 11,766 |
| Non-Interest Income | $ 3,596 | $ 3,012 |
| FDIC Assessments | $ 166 | $ 180 |
| Non-Interest Expenses | $ 11,134 | $ 11,008 |
| Income Before Income Taxes | $ 3,433 | $ 3,590 |
| Applicable Income Taxes | $ 879 | $ 915 |
| Security Gains (Losses) | $ - | |
| Net Income (Loss) | $ 2,554 | $ 2,675 |
| Basic Net Income Per Share | $ 1.07 | $ 1.10 |
| Weighted Average Shares Outstanding | 2,388,443 | 2,423,418 |
| ASSETS | 3/31/2025 | 3/31/2024 |
|---|---|---|
| Cash and Due from Banks | $ 43,692 | $ 21,372 |
| Federal Funds Sold | $ 1,842 | $ 1,353 |
| Debt Securities Available-for-Sale | $ 147,398 | $ 169,149 |
| Loans and Leases | $ 1,278,334 | $ 1,290,647 |
| Less: Allowance for Credit Losses | $ (14,504) | $ (15,005) |
| Loans, Net | $ 1,263,830 | $ 1,275,642 |
| Premises & Equipment | $ 25,147 | $ 25,481 |
| Intangibles | $ 8,694 | $ 8,717 |
| Other Real Estate Owned | $ 241 | $ 167 |
| Accrued Interest Receivable | $ 8,198 | $ 8,230 |
| Other Assets | $ 37,450 | $ 39,859 |
| TOTAL ASSETS | $ 1,536,492 | $ 1,549,970 |
| Liability | Amount |
|---|---|
| Demand Deposits | $ 178,860 |
| Interest-bearing Demand Deposits | $ 417,340 |
| Savings Deposits | $ 203,928 |
| Time Deposits | $ 502,816 |
| Total Deposits | $ 1,302,944 |
| Repurchase Agreements | $ 22,266 |
| FHLB and Other Borrowings | $ 32,917 |
| Interest Payable | $ 160 |
| Subordinated Debt | $ 9,840 |
| Total Repos & Borrowings | $ 65,183 |
| Other Liabilities | $ 21,702 |
| Dividends Payable | $ 609 |
| TOTAL LIABILITIES | $ 1,390,438 |
| Equity Item | Amount |
|---|---|
| Common Stock | $ 2,388 |
| Additional Paid-in-Capital | $ 20,956 |
| Retained Earnings | $ 131,750 |
| Accumulated Other Comprehensive Loss | $ (9,040) |
| TOTAL STOCKHOLDERS' EQUITY | $ 146,054 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,536,492 |
| Item | 2025 | 2024 |
|---|---|---|
| Book Value Per Share | $ 61.15 | $ 56.72 |
| Tangible Book Value Per Share | $ 57.51 | $ 53.12 |
| Bid Price | $ 44.50 | $ 41.52 |
| Period End Outstanding Shares | 2,388,443 | 2,423,518 |
SOURCE Tri-County Financial Group, Inc.