TDCB Third Century Bancorp (PK)

OTCBB “TDCB” - Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”) announced it had net income of $101,000 for the quarter ended September 30, 2014, or $0.08 per share, compared to net income of $76,000 for the quarter ended September 30, 2013, or $0.06 per share. For the nine months ended September 30, 2014, the Company recorded net income of $221,000, or $0.17 per share, compared to net income of $292,000 for the nine months ended September 30, 2013, or $0.23 per share.

For the three months ended September 30, 2014, net income increased $25,000, or 32.78%, to $101,000 as compared to $76,000 for the same period in the prior year. The increase in net income for the three month period ended September 30, 2014 was primarily a result of a $9,000 improvement in noninterest income and a $50,000 decrease in noninterest expenses, partially offset by a decrease of $18,000 in net interest income and an increase of $17,000 in income tax expense. The increase in noninterest income was due to an increase of $68,000 in trust income for the three month period ended September 30, 2014, partially offset by reduction in other noninterest income. Net interest income decreased due to a $76,000 reduction in interest income, partially offset by a $58,000 decrease in interest expense. Interest income declined due to a reduction of $85,000 in interest income on loans, partially offset by an increase of $9,000 in interest income on investment securities and other interest earning assets. The reduction of interest expense for the three month period ended September 30, 2014 was comprised of a $16,000 decline in interest expense on deposits and a $42,000 reduction in interest expense on FHLB advances.

For the nine month period ended September 30, 2014, net income decreased $71,000, or 24.22% to $221,000 as compared to $292,000 for the same period in the prior year. The decline in net income for the nine month period was primarily a result of a decrease of $98,000 in net interest income, which was primarily driven by a $249,000 decrease in interest income, partially offset by a $151,000 decrease in interest expense. In addition, noninterest income decreased by $29,000 compared to the prior year period.

Total assets increased $264,000 to $123.9 million at September 30, 2014 from $123.7 million at December 31, 2013, an increase of 0.21%. Total assets increased due to a $2.4 million increase in cash and cash equivalents and interest-earning time deposits and a $2.7 million increase in investment securities, partially offset by a $2.8 million decrease in loans receivable. Total deposits increased $3.0 million to $93.4 million at September 30, 2014 from $90.4 million at December 31, 2013, an increase of 3.28%.

Federal Home Loan Bank advances and other borrowings decreased $3.0 million or 17.14% to $14.5 million at September 30, 2014 from $17.5 million at December 31, 2013. At September 30, 2014 the weighted average rate of all Federal Home Loan Bank advances was 1.52% compared to 1.85% at December 31, 2013 and the weighted average maturity was 3.0 years at September 30, 2014 compared with 3.2 years at December 31, 2013.

Stockholders’ equity increased $70,000 to $15.5 million at September 30, 2014 compared to $15,469 at December 31, 2013. Equity as a percentage of assets increased to 12.54% at September 30, 2014 compared to 12.51% at December 31, 2013.

On November 6, 2014, the Board of Directors declared a quarterly cash dividend of $0.03 per share payable to shareholders of record on December 15, 2014. The dividend will be paid on January 2, 2015.

The Board of Directors also announced the decision to close the branch banking facility commonly known as the Edinburgh Branch, located at 206 South Main Street, Edinburgh, Indiana as of the close of business on November 29, 2014. The Edinburgh Branch was acquired from Somerville National Bank in the first quarter of 2008. The board determined that due to economic, competitive and other factors, the branch has not been successful in obtaining the desired levels of growth and profitability. This closure, along with the elimination and consolidation of various staffing positions has resulted in an overall reduction-in-force at the Bank, from 42 full-time equivalent employees as of June 30, 2014 to an estimated 34 full-time equivalent employees projected by the end of the 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.

       

Selected Consolidated Financial Data

  At September 30, At December 31, 2014

2013

Selected Consolidated Financial Condition Data:

(In Thousands)

Assets $ 123,938 $ 123,674 Loans receivable-net 93,287 96,045 Cash and cash equivalents 10,571 6,651 Interest-earning time deposits 5,680 7,169 Investment securities 9,871 7,154 Deposits 93,395 90,431 FHLB advances and other borrowings 14,500 17,500 Stockholders’ equity-net 15,539 15,469     For the Three Months Ended September 30, 2014 2013 (Dollars In Thousands, Except Share Data)

Selected Consolidated Earnings Data:

Total interest income $ 1,123 $ 1,199 Total interest expense   117     175   Net interest income 1,006 1,024 Provision of losses on loans   1     2   Net interest income after provision for losses on loans 1,005 1,022 Noninterest income 222 213 Noninterest expenses 1,058 1,108 Income tax expense   68     51   Net income $ 101   $ 76   Earnings per share basic $ 0.08 $ 0.06 Earnings per share diluted $ 0.08 $ 0.06  

Selected Financial Ratios and Other Data:

Interest rate spread during period 3.25 % 3.11 % Net yield on interest-earning assets 3.39 3.31 Return on average assets 0.33 0.24 Return on average equity 2.61 1.97 Average interest-earning assets to average

interest-bearing liabilities

136.78 134.99 Allowance for loan losses to total loans outstanding 2.02 2.21 Equity to assets ratio at period end 12.54 12.51       For the Nine Months Ended September 30, 2014     2013

(Dollars In Thousands, Except Share Data)

Selected Consolidated Earnings Data:

Total interest income $ 3,377 $ 3,626 Total interest expense   380     531   Net interest income 2,997 3,095 Provision for losses on loans   3     12   Net interest income after provision for losses on loans 2,994 3,083 Noninterest income 601 630 Noninterest expenses 3,227 3,227 Income tax expense   147     194   Net income $ 221   $ 292   Earnings per share – basic $ 0.17 $ 0.23 Earnings per share - diluted $ 0.17 $ 0.23  

Selected Financial Ratios and Other Data:

Interest rate spread during period 3.22 % 3.20 % Net yield on interest-earning assets 3.37 3.38 Return on average assets 0.24 0.31 Return on average equity 1.90 2.54 Average interest-earning assets to average interest-bearing liabilities 136.52 129.50

Equity to assets ratio at period end

12.54 12.51

Third Century BancorpRobert D. Heuchan, President and CEOorDavid A. Coffey, Executive Vice President, CFO and COOTel. 317-736-7151Fax 317-736-1726