Third Century Bancorp Releases Earnings for the Quarter Ended March 31, 2025

(OTCPINK: TDCB) - Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”), announced it recorded unaudited net income of $449,000 for the quarter ended March 31, 2025, or $0.38 per basic and diluted share, compared to net income of $330,000 for the quarter ended March 31, 2024, or $0.28 per basic and diluted share.

“Overall, I am pleased with how we have started the year,” noted David A. Coffey, President and CEO of Third Century Bancorp. “We benefited by our continued focus on the basic fundamentals of pursuing low-cost deposits as we look to fund quality loan relationships at fair prices. Our team continues to feel optimistic about a positive 2025, even in a very challenging economic environment,” Coffey concluded.

For the quarter ended March 31, 2025, net income increased $119,000, or 36.15%, to $449,000 as compared to $330,000 for the same period in the prior year. The increase in net income for the three-month period ended March 31, 2025 was driven primarily from a $152,000 increase in net interest income as compared to the same period in the prior year. Net interest income increased to $2.12 million for the three months ended March 31, 2025, due to an increase in total interest income of $114,000, or 2.97%, to $3.95 million for the three-month period ended March 31, 2025, as compared to $3.83 million for the same period for the prior year. The increase in total interest income was due to an increase in average loan 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 $38,000, or 2.04%, to $1.83 million for the three-month period ended March 31, 2025, compared to $1.87 million for the same period for the prior year. The decrease in total interest expense was the result of less reliance on wholesale funding during the quarter as well as lower retail deposit costs.

The provision reversal for credit losses during the current quarter was ($43,000) compared to a provision expense of $2,000 for the same quarter last year due to the impact of early loan payoffs and lower gross loan balances at quarter end.

Non-interest income increased by $36,000, or 10.97%, to $367,000 for the quarter ended March 31, 2025, as compared to $331,000 for the same period in the prior year. The increase in non-interest income occurred due to a higher volume of residential loan sales compared to the same period for the prior year as well as increased fee and service charge income. Non-interest expense increased by $49,000, or 2.51%, to $2.01 million for the quarter ended March 31, 2025, as compared to $1.97 million for the same period in the prior year, due primarily to increases in data processing costs and other contractual vendor expenses.

Total assets increased $1.73 million to $314.11 million at March 31, 2025 compared to $312.38 million at December 31, 2024. This increase was due primarily to higher levels of cash which increased by $5.03 million or 54.66% since December 31, 2024. The increase in cash was due to growth in retail deposits, primarily time accounts, as well as several early loan payoffs. Gross loans held for investment fell by $2.48 million to $205.96 million at March 31, 2025 compared to $208.44 million at December 31, 2024. Total deposits were $245.38 million at March 31, 2025, up from $240.99 million at December 31, 2024. FHLB advances decreased by $3.0 million or 5.88% to $48.0 million at March 31, 2025. At March 31, 2025, the weighted average rate of all FHLB advances was 3.78% compared to 3.81% at December 31, 2024, and the weighted average maturity was 4.19 years at March 31, 2025 compared to 4.20 years at December 31, 2024.

Stockholders’ equity was $10.02 million at March 31, 2025, compared to $9.46 million at December 31, 2024 and $9.12 million at March 31, 2024. Stockholders’ equity increased due to net income for the quarter of $449,000 as well as a decrease in net unrealized loss of $116,000 during the quarter ended March 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 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 flow for business purposes. Quarterly average equity as a percentage of average assets decreased to 3.00% at March 31, 2025 compared to 3.27% at December 31, 2024.

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, 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 differ materially from expected results include inflation, tariffs, changes in the interest rate environment, changes in general economic conditions, geopolitical conflicts, public health issues, legislative and regulatory changes that adversely affect 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 reflect changes in belief, expectations, or events.

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