Third Century Bancorp Releases Earnings for the Quarter and Year Ended December 31, 2025
MWN-AI** Summary
Third Century Bancorp (OTCID: TDCB) recently announced its financial results for the fourth quarter and full-year 2025. The bank reported an unaudited net income of $550,000, or $0.47 per share, for Q4 2025, marking an increase from $492,000, or $0.42 per share, in the previous year. For the entire year, net income rose to $1,871,000, up from $1,312,000 in 2024, translating to earnings of $1.61 per share.
David A. Coffey, President and CEO, attributed the successful performance to continued loan and deposit growth, emphasizing the strategic focus on non-interest income. Q4 marked a noteworthy improvement in net interest income, which increased by $364,000 to $2.39 million, driven by a 9.09% rise in total interest income that reached $4.35 million. This uptick resulted from heightened loan balances and improved yields on interest-earning assets, alongside a slight decrease in interest expenses.
The provision for credit losses also saw an uptick, growing to $190,000 compared to $35,000 in Q4 2024, reflecting higher loan volumes and a rise in non-performing loans. Non-interest income surged by 65.90% to $597,000, underpinned by elevated loan sales and trust revenue.
Throughout 2025, total assets climbed to $349.19 million, a $36.81 million increase, primarily fueled by significant cash and loan growth. Notably, cash levels surged 268.08% year-over-year. The bank's strong positioning is evident as stockholders' equity ballooned to $13.17 million, compared to $9.46 million in the previous year. This performance highlights Third Century Bancorp's robust operational trajectory heading into 2026.
MWN-AI** Analysis
Third Century Bancorp (OTCID: TDCB) has posted a strong performance for the quarter and year ended December 31, 2025, reporting increased net income driven by robust loan and deposit growth. The unaudited net income rose to $550,000 for Q4 2025, up from $492,000 in Q4 2024, and for the full year, it jumped 42.5% to $1.871 million compared to $1.312 million in 2024. This impressive growth is a reflection of the company's strategic focus on both net interest income and non-interest income, showcasing its ability to optimize funding costs and increase revenue streams.
The increase in net interest income, up by $1.083 million year-over-year, is particularly noteworthy. This was attributed to higher average loan balances and improved yields on interest-earning assets. Furthermore, the decrease in total interest expenses—despite the growth in loans—highlights a successful cost management strategy which effectively increased the net interest margin.
However, the 65.9% jump in non-interest income suggests that the bank is successfully diversifying its revenue sources, an essential factor in enhancing financial resilience. Areas like Trust revenue and the volume of residential loan sales are key growth drivers.
While Third Century Bancorp is showcasing solid financial health, the increase in the provision for credit losses to $190,000 from $35,000 indicates some caution in credit quality as loan volumes expand. Investors should monitor this aspect closely, especially given the aforementioned increase in non-performing loans.
With a closing stock price of $9.35, representing a price-to-tangible book value of 82.94%, there appears to be room for growth relative to underlying asset values. Overall, investors may find Third Century Bancorp an attractive addition to their portfolios, particularly if they are looking for potential upside supported by strong fundamentals. However, consideration of credit risk management remains crucial in evaluating the overall investment risk.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
(OTCID: TDCB) - Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”), announced it recorded unaudited net income of $550,000 for the quarter ended December 31, 2025, or $0.47 per basic and diluted share, compared to net income of $492,000 for the quarter ended December 31, 2024, or $0.42 per basic and diluted share. In addition, the Company recorded net income of $1,871,000 for the year ended December 31, 2025, or $1.61 per basic and diluted share, compared to net income of $1,312,000 for the year ended December 31, 2024, or $1.13 per basic and diluted share.
“We had a strong Q4 for 2025, following a solid prior nine-months,” stated David A. Coffey, President and CEO. Coffey continued, “We continued to see loan growth due to the efforts of our outstanding loan team. We also saw deposit growth due to our focus on core deposits in our market area. Our earnings were driven by our ability to capitalize on two important areas. First, non-interest income continues to be a strategic emphasis for the Bank. From general service charges to Trust Department fees, these were an important part of our fourth quarter performance. Second, our ability to be proactive in managing our cost of funding to positively impact our net interest margin was equally as important.” Coffey concluded, “As a result of a strong year, I am pleased to see key shareholder metrics improved.”
For the quarter ended December 31, 2025, net income increased $58,000, or 11.68%, to $550,000 as compared to $492,000 for the same period in the prior year. The increase in net income for the three-month period ended December 31, 2025, was driven primarily as a result of a $364,000 increase in net interest income as compared to the same period in the prior year. Net interest income increased to $2.39 million for the three months ended December 31, 2025, due to an increase in total interest income of $363,000, or 9.09%, to $4.35 million for the three-month period ended December 31, 2025, as compared to $3.99 million for the same period for the prior year. The increase in total interest income was due to an increase in average loan balances and average cash balances, as well as higher average yields on interest earning assets. Further contributing to net interest margin expansion, there was a decrease in total interest expense of $1,000, or 0.06%, to $1.97 million for the three-month period ended December 31, 2025, as compared to the same period for the prior year. The decrease in total interest expense was the result of reduced expense in retail deposits and lower average borrowing balances.
The provision for credit losses increased during the current quarter to $190,000 compared to a provision of $35,000 for the same quarter last year due to higher gross loan balances at quarter end and a slight increase in non-performing loans during the quarter.
Non-interest income for the quarter ended December 31, 2025, increased by $237,000, or 65.90%, to $597,000, as compared to $368,000 for the same period in the prior year. The increase in non-interest income occurred due to a higher volume of residential loan sales, increased Trust revenue, and service charge income as compared to the same period in the prior year. Non-interest expense increased by $392,000, or 21.90%, to $2,186,000 as compared to $1,794,000 for the same period in the prior year, due primarily to increased personnel expenses.
For the year ended December 31, 2025, net income increased $559,000, or 42.59%, to $1,871,000 as compared to $1,312,000 for the year ended December 31, 2024. The increase in net income for the year ended December 31, 2025, was due to several factors including an increase in total interest income, increased non-interest income, and a decrease in total interest expense. Net interest income increased by $1,083,000, or 13.80%, to $8,930,000 for the year ended December 31, 2025, as compared to $7,847,000 for the prior year. Net interest income increased due to an increase in total interest income of $922,000, or 5.87%, to $16,610,000 for the year ended December 31, 2025, as compared to $15,689,000 for the prior year. The increase in total interest income was due to higher average loan balances and higher interest-earning cash balances. Complementing the increase in total interest income was a decrease in total interest expense of $161,000, or 2.05%, to $7,681,000 for the year ended December 31, 2025, as compared to $7,842,000 for the prior year. The decrease in total interest expense was largely due to lower average wholesale borrowing balances. The provision for credit losses during 2025 was $204,000 compared to a provision credit of $15,000 for 2024, as a result of loan growth and a specific reserve for one borrower relationship. The loans comprising that relationship were subsequently paid off in January. Non-interest income increased by $368,000, or 27.82%, to $1,692,000 for the year ended December 31, 2025, as compared to $1,324,000 for the prior year. The increase was due largely to increased Trust revenue and a higher volume of loan sales on the secondary market. Non-interest expense increased by $500,000, or 6.37%, to $8,349,000 for the year ended December 31, 2025, as compared to $7,850,000 for the prior year. The increase in non-interest expense was primarily due to increased personnel expenses.
Total assets increased $36.81 million to $349.19 million at December 31, 2025, compared to $312.38 million at December 31, 2024. This increase was due primarily to higher levels of cash which increased by $24.66 million or 268.08% since December 31, 2024, and higher total loans. The increase in cash was due to growth in retail deposits. Gross loans held for investment rose by $13.05 million to $221.49 million at December 31, 2025, compared to $208.44 million at December 31, 2024. Total deposits were $280.09 million at December 31, 2025, up from $240.99 million at December 31, 2024. FHLB advances decreased by $6.0 million or 11.76% to $45.0 million at December 31, 2025, from $51.0 million at December 31, 2024. As of December 31, 2025, the weighted average rate of all FHLB advances was 3.75% compared to 3.81% at December 31, 2024, and the weighted average maturity was 3.97 years at December 31, 2025, compared to 4.20 years at December 31, 2024.
Stockholders’ equity was $13.17 million at December 31, 2025, compared to $9.46 million at December 31, 2024. Stockholders’ equity increased due to retained net income for the year as well as a decrease in net unrealized loss of $2,082,000 during the twelve months ended December 31, 2025, as a result of the increase in the fair value of our available- for-sale-securities due to the improvement in the forward rate curve compared to our portfolio at prior year end. The available-for-sale securities are investments in government sponsored mortgage-backed securities as well as investments in municipal bonds, which provide cash ?ow for business purposes. Quarterly average equity as a percentage of average assets increased to 3.69% at December 31, 2025, compared to 3.27% at December 31, 2024.
Founded in 1890, Mutual Savings Bank is a full-service ?nancial institution based in Johnson County, Indiana. In addition to its main o?ce at 80 East Je?erson Street, Franklin, Indiana, the Bank operates branches in Franklin at 1124 North Main Street, Trafalgar and Greenwood, Indiana.
This press release contains certain forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to di?er materially from expected results include in?ation, tariffs, changes in the interest rate environment, changes in general economic conditions, geopolitical conflicts, public health issues, legislative and regulatory changes that adversely a?ect the business of the Company and the Bank, and changes in the securities markets. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements to re?ect changes in belief, expectations, or events.
Condensed Consolidated Statements of Income | ||||||||||||||||
(Unaudited) | ||||||||||||||||
In thousands, except per share data | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Selected Consolidated Earnings Data: | ||||||||||||||||
| Total Interest Income | $ | 4,352 | $ | 4,289 | $ | 3,989 | $ | 16,610 | $ | 15,689 | ||||||
| Total Interest Expense | 1,965 | 2,027 | 1,966 | 7,681 | 7,842 | |||||||||||
| Net Interest Income | 2,387 | 2,262 | 2,023 | 8,930 | 7,847 | |||||||||||
| Provision/(Credit) for Losses | 190 | 27 | 35 | 204 | (15 | ) | ||||||||||
| Net Interest Income after Provision for Losses | 2,197 | 2,235 | 1,988 | 8,726 | 7,862 | |||||||||||
| Non-Interest Income | 597 | 368 | 360 | 1,692 | 1,324 | |||||||||||
| Non-Interest Expense | 2,186 | 2,074 | 1,794 | 8,349 | 7,850 | |||||||||||
| Income Tax Expense | 58 | 31 | 62 | 198 | 24 | |||||||||||
| Net Income | $ | 550 | $ | 498 | $ | 492 | $ | 1,871 | $ | 1,312 | ||||||
| Earnings Per Share - basic | $ | 0.47 | $ | 0.43 | $ | 0.42 | $ | 1.61 | $ | 1.13 | ||||||
| Earnings Per Share - diluted | $ | 0.47 | $ | 0.42 | $ | 0.42 | $ | 1.61 | $ | 1.13 |
Condensed Consolidated Balance Sheet | ||||||||||||
(Unaudited) | ||||||||||||
In thousands, except per share data | ||||||||||||
| December 31, | September 30, | December 31, | ||||||||||
2025 | 2025 | 2024 | ||||||||||
| Selected Consolidated Balance Sheet Data: | ||||||||||||
| Assets | ||||||||||||
| Cash and Due from Banks | $ | 33,865 | $ | 41,283 | $ | 9,200 | ||||||
| Investment Securities, Available-for-Sale, at Fair Value | 72,118 | 71,461 | 72,739 | |||||||||
| Investment Securities, Held-to-Maturity | 2,950 | 2,950 | 2,950 | |||||||||
| Loans Held-for-Sale | - | 2,102 | 67 | |||||||||
| Loans Held-for-Investment | 221,485 | 212,353 | 208,438 | |||||||||
| Allowance for Credit Losses | 3,157 | 2,968 | 2,962 | |||||||||
| Net Loans Held-for-Investment | 218,327 | 209,385 | 205,477 | |||||||||
| Accrued Interest Receivable | 1,641 | 1,507 | 1,524 | |||||||||
| Other Assets | 20,287 | 20,274 | 20,419 | |||||||||
| Total Assets | $ | 349,188 | $ | 348,963 | $ | 312,376 | ||||||
| Liabilities | ||||||||||||
| Noninterest-Bearing Deposits | $ | 46,543 | $ | 45,449 | $ | 40,362 | ||||||
| Interest-Bearing Deposits | 233,543 | 222,819 | 200,626 | |||||||||
| Total Deposits | 280,086 | 268,268 | 240,988 | |||||||||
| FHLB Advances and Other Borrowings | 45,000 | 58,000 | 51,000 | |||||||||
| Subordinated Notes, Net of Issuances Costs | 9,812 | 9,805 | 9,785 | |||||||||
| Accrued Interest Payable | 472 | 404 | 527 | |||||||||
| Accrued Expenses and Other Liabilities | 645 | 778 | 618 | |||||||||
| Total Liabilities | 336,016 | 337,256 | 302,918 | |||||||||
| Stockholders' Equity | ||||||||||||
| Common Stock | 11,475 | 11,475 | 11,480 | |||||||||
| Retained Earnings | 13,056 | 12,565 | 11,418 | |||||||||
| Accumulated Other Comprehensive Gain/(Loss) | (11,358 | ) | (12,332 | ) | (13,440 | ) | ||||||
| Total Stockholders' Equity | 13,173 | 11,708 | 9,457 | |||||||||
| Total Liabilities and Stockholders' Equity | $ | 349,188 | $ | 348,963 | $ | 312,376 |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| dollar figures are in thousands, except per share data | ||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Selected Financial Ratios and Other Data (Unaudited): | ||||||||||||||||||||
| Interest Rate Spread During Period | 2.48 | % | 2.44 | % | 2.21 | % | 2.45 | % | 2.04 | % | ||||||||||
| Net Yield on Interest-Earning Assets | 5.33 | % | 5.43 | % | 5.31 | % | 5.36 | % | 5.21 | % | ||||||||||
| Non-Interest Expense, Annualized, to Average Assets | 2.54 | % | 2.49 | % | 2.27 | % | 2.55 | % | 2.48 | % | ||||||||||
| Return on Average Assets, Annualized | 0.64 | % | 0.60 | % | 0.62 | % | 0.57 | % | 0.41 | % | ||||||||||
| Return on Average Equity, Annualized | 17.33 | % | 21.09 | % | 19.03 | % | 18.27 | % | 13.93 | % | ||||||||||
| Average Equity to Assets | 3.69 | % | 2.83 | % | 3.27 | % | 3.13 | % | 2.97 | % | ||||||||||
| Average Net Loans | $ | 213,412 | $ | 209,332 | $ | 204,241 | $ | 208,732 | $ | 198,323 | ||||||||||
| Average Net Securities | 74,922 | 72,569 | 77,644 | 74,069 | 79,535 | |||||||||||||||
| Average Other Interest-Earning Assets | 38,225 | 34,124 | 18,528 | 27,297 | 23,230 | |||||||||||||||
| Total Average Interest-Earning Assets | 326,560 | 316,024 | 300,413 | 310,098 | 301,088 | |||||||||||||||
| Average Total Assets | 344,011 | 333,492 | 316,650 | 327,186 | 317,006 | |||||||||||||||
| Average Noninterest-Bearing Deposits | $ | 44,809 | $ | 41,330 | $ | 41,328 | $ | 41,716 | $ | 41,107 | ||||||||||
| Average Interest-Bearing Deposits | 225,140 | 213,636 | 202,162 | 211,263 | 204,530 | |||||||||||||||
| Average Total Deposits | 269,949 | 254,966 | 243,490 | 252,979 | 245,637 | |||||||||||||||
| Average Wholesale Funding | 50,446 | 58,000 | 51,734 | 53,132 | 42,786 | |||||||||||||||
| Average Interest-Bearing Liabilities | 275,586 | 271,636 | 253,896 | 264,395 | 247,316 | |||||||||||||||
| Avg. Interest-Earnings Assets to Avg. Interest-Bearings Liabilities | 118.50 | % | 116.34 | % | 118.32 | % | 117.29 | % | 121.74 | % | ||||||||||
| Average equity | $ | 12,684 | $ | 9,442 | $ | 10,343 | $ | 10,239 | $ | 9,419 | ||||||||||
| Non-Performing Loans to Gross Loans Held-for-Investment | 0.17 | % | 0.00 | % | 0.88 | % | 0.18 | % | 0.88 | % | ||||||||||
| Allowance for Credit Losses to Total Loans Outstanding | 1.43 | % | 1.40 | % | 1.42 | % | 1.43 | % | 1.42 | % | ||||||||||
| Allowance for Credit Losses to Non-Performing Loans | 858.01 | % | 0.00 | % | 161.85 | % | 858.01 | % | 161.85 | % | ||||||||||
| Net Loan Chargeoff/(Recovery) to Avg. Total Loans Outstanding | -0.01 | % | -0.01 | % | 0.00 | % | -0.01 | % | 0.00 | % | ||||||||||
| Effective Income Tax Rate | 9.48 | % | 5.85 | % | 11.17 | % | 9.56 | % | 1.80 | % | ||||||||||
| Tangible Book Value Per Share | $ | 11.27 | $ | 10.02 | $ | 8.14 | $ | 11.27 | $ | 8.14 | ||||||||||
| Market Closing Price at the End of Quarter | $ | 9.35 | $ | 9.45 | $ | 9.03 | $ | 9.35 | $ | 9.03 | ||||||||||
| Price-to-Tangible Book Value | 82.94 | % | 94.31 | % | 110.91 | % | 82.94 | % | 110.91 | % |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260205719351/en/
David A. Co?ey, President and CEO
S. Paul Arab, SVP and CFO
80 East Jefferson Street Franklin, IN 46131
Tel. 317-736-7151
Fax 317-736-1726
FAQ**
How did the growth in non-interest income impact the overall performance of Third Century Bancorp TDCB during Q4 and the full year of 2025, particularly in relation to its strategic emphasis on this revenue stream?
What factors contributed to the significant increase in net income for Third Century Bancorp TDCB in 20compared to 2024, and how sustainable are these factors for future performance?
With a notable rise in the provision for credit losses in Q4 2025, how is Third Century Bancorp TDCB addressing potential risks related to non-performing loans in its lending portfolio?
Given the increase in cash and deposits for Third Century Bancorp TDCB, what strategies does the management plan to implement to ensure effective utilization of these liquidity resources moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Third Century Bancorp (OTC: TDCB).
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