Tri-County Financial Group, Inc. Reports Second Quarter 2023 Financial Results

MENDOTA, Ill., July 31, 2023 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX: TYFG) today announced financial results for the second quarter of 2023.

Net income for the second quarter of 2023 was $2.7 million ($1.09 per share), compared to $2.5 million ($0.99 per share) during the second quarter of 2022. Net income was $4.2 million ($1.71 per share) for the six-month period ending June 30, 2023 compared to $4.3 million ($1.74 per share) during the same six-month period a year ago.

Net interest income was $11.0 million during the quarter ended June 30, 2023, compared to $11.2 million in the same period of 2022, a decrease of 2%.

Noninterest income was $4.0 million for the second quarter of 2023, an increase of $1.0 million, or 35%, compared to $2.9 million during the quarter ended June 30, 2022.

Noninterest expense was $11.4 million during the quarter ended June 30, 2023, compared to $10.3 million for the second quarter of 2022, an increase of $1.1 million, or 10%.

Total loans increased $116 million, or 11%, to $1.22 billion at June 30, 2023, from $1.11 billion at June 30, 2022. Nonperforming loans as a percent of total loans were 0.24% as of June 30, 2023, up from 0.19% at June 30, 2022.

The allowance for loan loss ended at $16.7 million at June 30, 2023 and represented 1.36% of gross loans compared to 1.57% at June 30, 2022. Asset quality continues to remain strong and charge offs remain low and below industry peers.

Deposits increased $30.0 million, or 3%, year-over-year. The investment portfolio decreased $70.0 million or 27% year over year and totaled $191.9 million at June 30, 2023.

The Company's capital levels remain solid as of June 30, 2023, with a Tier 1 leverage ratio of 9.12%, down from 9.17% last year.

On June 13, 2023, the Board of Directors declared a regular dividend of $0.20 per share, payable July 13, 2023, to shareholders of record on June 30, 2023.

In announcing the results, President and CEO Tim McConville, stated "Our second quarter numbers reflected the continued slowdown in mortgage activity; however, solid earnings performance existed as we remain attentive to our loan and deposit strategies. Asset quality as measured by nonperforming loans to total loans is stable as we continue to see strong performance with our borrowers. We remain diligent in monitoring our local competition to offer competitive rates while continuing to provide exceptional community banking services. We continue to believe that our diversified balance sheet and lines of business are well-positioned. Overall, we anticipate loan demand to remain steady, and we look forward to supporting the credit needs throughout our communities."

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.

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SOURCE Tri-County Financial Group, Inc.