FRANKLIN, Ind.--(BUSINESS WIRE)--Robert D. Heuchan, President and CEO of Third Century Bancorp (OTCBB: TDCB), the holding company of Mutual Savings Bank, announced net income of $311,000 for the year ended December 31, 2013, or $0.24 per share, as compared to net income of $242,000, or $0.18 per share for the year ended December 31, 2012.
The increase in net income for the year ended 2013 as compared to the year ended 2012 was primarily due to a decrease of $287,000 in the provision for loan losses to $12,000 for the year ended December 31, 2013 from $299,000 for the year ended December 31, 2012. In evaluating the adequacy of the allowance for loan losses, Management considers factors such as delinquency trends, portfolio composition, past loss experience and other factors such as general economic conditions. For the year ended December 31, 2013, Mutual Savings charged-off loans, net of recoveries, of $268,000 which represents a decrease in the level of charge offs of $330,000, or 55.24%, from the year ended December 31, 2012. At December 31, 2013, non-performing assets totaled $4.7 million, or 3.76% of total assets, and included $4.0 million of non-performing loans. At December 31, 2012, non-performing assets totaled $6.9 million, or 5.40% of total assets, and included $6.2 million of non-performing loans. The decrease in non-performing loans was a result of increased collection efforts with delinquent borrowers prior to loans becoming non-performing. Loans are considered non-performing when one or more of the following occur: borrowers fail to make scheduled payments causing loans to become delinquent by 90 days or more; borrowers default on original loan terms and the Bank restructures such loans; or Management classifies loans as “substandard” in regards to full repayment according to loan agreements.
Non-interest income decreased $90,000, or 9.93%, to $816,000 in 2013 from $906,000 in 2012. The primary reason for the decrease in non-interest income was the decrease of $92,000, or 95.83%, in net gains on sale of other real estate owned to $4,000 for the year ended December 31, 2013.
Non-interest expense decreased $164,000 or 3.61% to $4.4 million during 2013 from $4.5 million during 2012. The decrease in non-interest expense was primarily due to a decrease of $63,000 in salaries and employee benefits to $2.3 million for the years ended December 31, 2013 and 2012. During 2013, the Bank continued to absorb duties of positions vacated due to retirement or turnover into existing positions.
Total assets decreased $4.1 million to $123.7 million at December 31, 2013 from $127.8 million at December 31, 2012, a decrease of 3.22%. The decrease in assets was primarily the result of a decrease in cash and cash equivalents of $6.8 million, or 50.90%, to $6.6 million at December 31, 2013 from $13.3 million at December 31, 2012. The decrease was primarily due to the repayment of $5.0 million of Federal Home Loan Bank borrowings.
Deposits totaled $90.4 million at December 31, 2013, which represented a decrease of $390,000 or 0.43% from $90.8 million at December 31, 2012. Time deposits decreased $592,000, or 2.12%, to $27.2 million at December 31, 2013 from $27.9 million at December 31, 2012 and savings, NOW, and money market accounts decreased $474,000, or 1.00%, to $46.9 million at December 31, 2013 from $47.4 million at December 31, 2012. Demand deposits increased $677,000, or 4.35%, to $16.3 million at December 31, 2013 from $15.6 million at December 31, 2012.
Borrowed funds decreased $4.0 million, or 18.6%, to $17.5 million at December 31, 2013 from $21.5 million at December 31, 2012. During 2013, the Bank borrowed $1.0 million from the Federal Home Loan Bank and repaid $5.0 million in borrowings to the Federal Home Loan Bank. At December 31, 2013 the weighted average rate of all Federal Home Loan Bank advances was 1.85% and the weighted average maturity was 3.2 years compared to the weighted average rate of 2.22% and the weighted average maturity 3.1 years at December 31, 2012.
Stockholders’ equity increased $237,000 to $15.4 million at December 31, 2013 from $15.2 million at December 31, 2012. The Bank recorded net income of $311,000 and paid cash dividends of $76,000 for the year ended December 31, 2013. Stockholders’ equity as a percentage of assets increased 0.59% to 12.51% at December 31, 2013 compared to 11.92% at December 31, 2012.
On February 27, 2014, the Board of Directors declared a quarterly cash dividend of $0.03 per share, payable to share holders of record March 15, 2014. The dividend will be paid on April 1, 2014.
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 Edinburgh, Nineveh and Trafalgar, Indiana.
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Selected Consolidated Financial Data |
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| At December 31, | At December 31, | ||||||||||
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2013 |
2012 |
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Selected Consolidated Financial Condition Data: |
(In Thousands) |
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| Assets | $ | 123,674 | $ | 127,786 | |||||||
| Loans receivable-net | 96,045 | 96,964 | |||||||||
| Cash and cash equivalents | 6,561 | 13,363 | |||||||||
| Interest-earning time deposits | 7,169 | 4,465 | |||||||||
| Investment securities | 7,154 | 5,863 | |||||||||
| Deposits | 90,431 | 90,821 | |||||||||
| FHLB advances and other borrowings | 17,500 | 21,500 | |||||||||
| Stockholders’ equity-net | 15,469 | 15,232 | |||||||||
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For the Year Ended December 31, |
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2013 |
2012 |
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(Dollars In Thousands, Except Share Data) |
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Selected Consolidated Earnings Data: |
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| Total interest income | $ | 4,795 | $ | 5,200 | |||||||
| Total interest expense | 701 | 844 | |||||||||
| Net interest income | 4,094 | 4,356 | |||||||||
| Provision of losses on loans | 12 | 299 | |||||||||
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Net interest income after provision for losses on loans |
4,082 | 4,057 | |||||||||
| Total other income | 816 | 906 | |||||||||
| General, administrative and other expenses | 4,380 | 4,544 | |||||||||
| Income tax expense | 207 | 177 | |||||||||
| Net income | 311 | 242 | |||||||||
| Earnings per share basic | $ | 0.24 | $ | 0.18 | |||||||
| Earnings per share diluted | $ | 0.24 | $ | 0.18 | |||||||
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Selected Financial Ratios and Other Data: |
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| Interest rate spread during period | 3.16 | % | 3.49 | % | |||||||
| Net yield on interest-earning assets | 3.35 | 3.70 | |||||||||
| Return on average assets | 0.25 | 0.20 | |||||||||
| Return on average equity | 2.02 | 1.58 | |||||||||
| Equity to assets | 12.51 | 11.92 | |||||||||
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Average interest-earning assets to average interest-bearing liabilities |
133.77 | 129.82 | |||||||||
| Non-performing assets to total assets | 3.76 | 5.40 | |||||||||
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Allowance for loan losses to total loans outstanding |
2.03 | 2.27 | |||||||||
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Allowance for loan losses to non-performing loans |
49.55 | 36.24 | |||||||||
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Net charge-offs to average total loans outstanding |
0.27 | 0.60 | |||||||||
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General, administrative and other expense to average assets |
3.45 | 3.71 | |||||||||
| Effective income tax rate | 39.96 | 42.24 | |||||||||
| Number of full service offices | 6 | 6 | |||||||||
| Tangible book value per share | $ | 12.05 | $ | 11.95 | |||||||
| Market closing price at end of quarter | $ | 6.40 | $ | 3.50 | |||||||
| Price-to-tangible book value | 53.10 | 29.30 | |||||||||
