http://www.businesswire.com/news/home/20091030005490/en
FRANKLIN, Ind.--(Business Wire)--
Third Century Bancorp ("Company") (OTCBB:TDCB), the holding company for Mutual
Savings Bank ("Bank") announced net income of $64,000 for the quarter ended
September 30, 2009, compared to net income of $82,000 for the quarter ended
September 30, 2008. For the nine months ended September 30, 2009, the Bank
recorded net income of $270,000 compared to a loss of $319,000 for the nine
months ended September 30, 2008.
For the three months ended September 30, 2009, the provision for loan losses
increased $122,000 to $142,000 from $20,000 for the three months ended September
30, 2008. For the nine months ended September 30, 2009, the provision for loan
losses decreased $309,000 to $206,000 from $515,000 for the nine months ended
September 30, 2008. During the second quarter of 2008, the Bank recorded
additional provision expense due to deterioration in the quality of the
residential construction loan portfolio. In 2009, the Bank recorded less
provision expense for the first nine months due to the allowance for loan losses
represented 1.43% of total loans outstanding as of September 30, 2009 compared
to 0.69% as of September 30, 2008. In evaluating the adequacy of loan loss
allowances, management considers factors such as delinquency trends, portfolio
composition, past loss experience and other factors such as general economic
conditions. Mutual Savings Bank`s level of nonperforming assets increased to
$1.1 million at September 30, 2009 from $828,000 at September 30, 2008, and the
percentage of nonperforming assets to total assets increased to 0.87% from 0.61%
for the same respective time periods. For the three months ended September 30,
2009, the Bank charged-off loans, net of recoveries, of $10,000 which represents
a decrease in charged-off loans, net of recoveries, of $188,000, or 95.17%, from
the three months ended September 30, 2008. For the nine months ended September
30, 2009, the charged-off loans, net of recoveries, decreased $388,000 or 84.92%
to $69,000 from $457,000 for the nine months ended September 30, 2008. The
provision expense recorded in 2009 has decreased from the provision expense
recorded in 2008 primarily due to the decrease of $7.6 million in net loans
outstanding since December 31, 2008.
For the three months ended September 30, 2009, other income increased $56,000 or
19.44% to $344,000 from $288,000 for the three months ended September 30, 2008.
For the nine months ended September 30, 2009, other income increased $201,000 or
25.57% to $987,000 from $786,000 for the nine months ended September 30, 2008.
These increases were due to increases in net gains on loan sales of $28,000 to
$35,000 for the three month period ended September 30, 2009 and $165,000 to
$194,000 for the nine month period ended September 30, 2009 as compared to the
respective periods ended September 30, 2008. In the third quarter of 2009,
Mutual Savings Bank sold $1.8 million of loans to the secondary market as
compared to $580,000 in the third quarter of 2008. For the nine months ended
September 30, 2009 and 2008, the Bank sold $12.1 million and $3.2 million in
loans, respectively.
Total assets decreased $5.4 million at September 30, 2009 to $130.5 million from
$135.9 million at December 31, 2008. Cash and cash equivalents increased $2.5
million, or 34.85%, to $9.7 million and loans receivable-net decreased $7.6
million, or 6.37%, to $111.3 million at September 30, 2009. The decrease in the
loans receivable-net was primarily due to the sale in the secondary market of
$12.1 million in 1-4 family fixed rate mortgages. The proceeds from the sale of
these loans contributed to the increase in cash and cash equivalents, but were
offset by repayments of advances from Federal Home Loan Bank of Indianapolis and
decreases in deposits.
Deposits decreased to $94.1 million at September 30, 2009 from $98.3 million at
December 31, 2008, a decrease of $4.2 million or 4.29%. Time deposits decreased
$3.6 million or 9.14% to $35.9 million. This decrease was primarily due to a
$7.7 million decrease in time deposits with maturities of seven, eleven and
seventeen months, which was partially offset by a $3.0 million increase in time
deposits with maturities of twelve months.
Federal Home Loan Bank advances and other borrowings decreased $1.6 million, or
7.96%, to $18.5 million at September 30, 2009 from $20.1 million at December 31,
2008. During the nine months of 2009, the Bank repaid $6.6 million in Federal
Home Loan Bank borrowings and borrowed $5.0 million from Federal Home Loan Bank.
Stockholders` equity increased by $432,000 or 2.54% to $17.4 million at
September 30, 2009 from $17.0 million at December 31, 2008. The Company
previously announced that the board of directors has suspended quarterly
dividend payments until the Company achieves an acceptable level of earnings
performance.
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, in
Indianapolis at 5630 South Franklin Road, as well as in Edinburgh, Nineveh and
Trafalgar, Indiana.
Selected Consolidated Financial Data
At September 30, At December 31,
2009 2008
Selected Consolidated Financial Condition Data: (In Thousands)
Assets $ 130,500 $ 135,918
Loans receivable-net 111,383 118,959
Cash and cash equivalents 9,654 7,159
Investment securities 825 1,319
Deposits 94,107 98,327
FHLB advances and other borrowings 18,500 20,100
Stockholders` equity-net 17,429 16,997
For the Three Months Ended September 30,
2009 2008
(Dollars In Thousands, Except Share Data)
Selected Consolidated Earnings Data:
Total interest income $ 1,744 $ 1,948
Total interest expense 504 758
Net interest income 1,240 1,190
Provision of losses on loans 142 20
Net interest income after provision for losses on loans 1,098 1,170
Total other income 344 288
General, administrative and other expenses 1,338 1,320
Income tax expense 40 56
Net income $ 64 $ 82
Selected Financial Ratios and Other Data:
Interest rate spread during period 3.44 % 3.14 %
Net yield on interest-earning assets 3.85 3.63
Return on average assets 0.19 0.24
Return on average equity 1.47 1.83
Equity to assets 13.36 13.19
Average interest-earning assets to average interest-bearing liabilities 126.73 121.37
Non-performing assets to total assets 0.87 0.61
Allowance for loan losses to total loans outstanding 1.43 0.69
Net charge-offs to average total loans outstanding 0.06 0.40
General, administrative and other expense to average assets 0.99 0.96
Effective income tax rate 38.46 40.58
Number of full service offices 7 7
Book value per share $ 12.14 $ 11.91
Market closing price at end of quarter $ 5.00 $ 7.25
Price-to-book value 41 % 61 %
For the Nine Months Ended September 30,
2009 2008
(Dollars In Thousands, Except Share Data)
Selected Consolidated Earnings Data:
Total interest income $ 5,301 $ 5,831
Total interest expense 1,588 2,410
Net interest income 3,713 3,421
Provision of losses on loans 206 515
Net interest income after provision for losses 3,507 2,906
on loans
Total other income 987 786
General, administrative and other expenses 4,048 4,207
Income tax expense (benefit) 176 (196 )
Net income (loss) $ 270 $ (319 )
Selected Financial Ratios and Other Data:
Interest rate spread during period 3.43 % 2.97 %
Net yield on interest-earning assets 3.87 3.48
Return on average assets 0.27 (0.31 )
Return on average equity 2.09 (2.33 )
Equity to assets 13.36 13.19
Average interest-earning assets to average interest-bearing liabilities 126.25 120.86
Non-performing assets to total assets 0.87 0.61
Allowance for loan losses to total loans outstanding 1.43 0.69
Net charge-offs to average total loans outstanding 0.06 0.40
General, administrative and other expense to average assets 3.01 3.07
Effective income tax rate 39.46 38.06
Number of full service offices 7 7
Book value per share $ 12.14 $ 11.91
Market closing price at end of quarter $ 5.00 $ 7.25
Price-to-book value 41 % 61 %
Third Century Bancorp
Robert D. Heuchan, President and CEO
Debra K. Harlow, Chief Financial Officer
Tel. 317-736-7151 Fax 317-736-4225
Copyright Business Wire 2009
