Message #5 From:
NewsBot Date: August 11, 2006 09:15:00 AM
TDCB News Third Century Bancorp Releases Second Quarter Earnings
FRANKLIN, Ind.--(BUSINESS WIRE)--Aug. 11, 2006--Robert D. Heuchan, President and CEO of Third Century Bancorp (OTCBB:TDCB), the holding company of Mutual Savings Bank, announced that for the quarter ended June 30, 2006, net income amounted to $138,000, or $0.09 per share, an increase of 14.05% from the $121,000 in earnings, or $0.08 per share, for the quarter ended June 30, 2005. For the six months ended June 30, 2006, net income amounted to $281,000, or $0.19 per share, an increase of 39.80% from $201,000, or $0.13 per share, for the six months ended June 30, 2005.
The increase in net income for the quarter and six months ended June 30, 2006 as compared to June 30, 2005 is primarily due to an increase in non-interest income for both reporting periods. Non-interest income increased $89,000 or 54.27% to $253,000 for the quarter ended June 30, 2006 from $164,000 for the quarter ended June 30, 2005. For the six months ended June 30, 2006, non-interest income increased to $474,000 from $332,000 for the six months ended June 30, 2005, which represented an increase of $142,000 or 42.77%.
During the second quarter of 2006, Mutual recorded a $20,000 gain to other income for the sale of REO properties as compared to recording a $20,000 loss to other income during the same quarter in 2005. In addition, for the six months ended June 30, 2006, service charges on deposit accounts increased $47,000 or 47.96% as a result of a change in Mutual's deposit fee structure effective November 1, 2005.
Total assets increased $2.0 million at June 30, 2006 to $130.1 million from $128.1 million at December 31, 2005. Net loans receivable grew by $5.8 million or 5.48% since December 31, 2005. Cash and cash equivalents decreased $1.9 million or 24.53% and held to maturity securities decreased $2.6 million or 28.35% in order to fund increased loan originations.
Deposits decreased to $86.1 million at June 30, 2006 from $88.6 million at December 31, 2005, a decrease of $2.5 million or 2.87%. FHLB advances and other borrowings increased $7.6 million or 46.06% to $24.1 million at June 30, 2006 from $16.5 million at December 31, 2005. Mutual repaid $2.0 million in advances during the first quarter of 2006 and borrowed an additional $9.6 million during the first six months of 2006 to support its daily cash operations. During the quarter ended June 30, 2006, Third Century Bancorp paid the $3.3 million return of capital to shareholders.
Stockholders' equity decreased by $3.1 million or 13.74% to $19.3 million at June 30, 2006 from $22.4 million at December 31, 2005. On March 16, 2006, the board of directors declared a $2.00 per share return of capital to all shareholders of record as of April 20, 2006 payable May 8, 2006, which totaled $3.3 million and was recorded as a reduction of stockholders' equity.
Mutual opened a new branch in Indianapolis on June 1, 2006. The new branch is located at 5630 South Franklin Road in the Franklin Township area of Marion County.
Forward-looking statements made herein reflect management's expectation as of the date such statements are made. Such information is provided to assist shareholders and potential investors in understanding current and anticipated financial operations of the company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1955. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.
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, in the Franklin United Methodist Community, in Indianapolis at 5630 South Franklin Road, as well as in Nineveh and Trafalgar, Indiana.
Selected Consolidated Financial Data
At June 30, At December 31,
2006 2005
-------------- ---------------
Selected Consolidated Financial
Condition Data: (In Thousands)
Assets $130,180 $128,147
Loans receivable-net 111,337 105,557
Cash and cash equivalents 5,927 7,853
Interest-earning time deposits -- 200
Investment securities 6,599 9,210
Deposits 86,069 88,608
FHLB advances and other borrowings 24,100 16,500
Stockholders' equity-net 19,279 22,350
For the Three Months Ended June 30,
-----------------------------------
2006 2005
----------------- -----------------
(Dollars In Thousands,
Except Share Data)
Selected Consolidated Earnings Data:
Total interest income $1,939 $1,711
Total interest expense 743 525
----------------- -----------------
Net interest income 1,196 1,186
Provision of losses on loans 15 (20)
----------------- -----------------
Net interest income after provision
for losses on loans 1,181 1,206
Total other income 253 164
General, administrative and other
expenses 1,203 1,169
Income tax expense 93 80
----------------- -----------------
Net income 138 121
================= =================
Earnings per share - basic $0.09 $0.08
Earnings per share - diluted $0.09 $0.08
Selected Financial Ratios and Other
Data:
Interest rate spread during period 3.16% 3.35%
Net yield on interest-earning
assets 3.84 3.86
Return on average assets 0.43 0.39
Return on average equity 2.69 2.10
Equity to assets 14.81 18.06
Average interest-earning assets to
average interest-bearing
liabilities 128.57 130.01
Non-performing assets to total
assets 0.07 0.08
Allowance for loan losses to total
loans outstanding 0.83 0.93
Net charge-offs to average total
loans outstanding 0.02 0.00
General, administrative and other
expense to average assets 0.93 0.95
Effective income tax rate 40.26 39.80
Dividend payout ratio (1) 2,266.67 n/a
Dividend payout ratio (2) 44.44 50.00
Number of full service offices 6 5
(1) The calculation of this ratio includes a $2.00 per share return
of capital to shareholders of record as of April 20, 2006, payable
May 8, 2006.
(2) The calculation of this ratio does not include the return of
capital to shareholders.
For the Six Months Ended June 30,
---------------------------------
2006 2005
---------------- ----------------
(Dollars In Thousands,
Except Share Data)
Selected Consolidated Earnings Data:
Total interest income $3,774 $3,352
Total interest expense 1,383 998
---------------- ----------------
Net interest income 2,391 2,354
Provision of losses on loans 30 (20)
---------------- ----------------
Net interest income after provision
for losses on loans 2,361 2,374
Total other income 474 332
General, administrative and other
expenses 2,370 2,373
Income tax expense 184 132
---------------- ----------------
Net income 281 201
================ ================
Earnings per share - basic $0.19 $0.13
Earnings per share - diluted $0.19 $0.13
Selected Financial Ratios and Other
Data:
Interest rate spread during period 3.21% 3.35%
Net yield on interest-earning assets 3.86 3.84
Return on average assets 0.44 0.32
Return on average equity 2.61 1.75
Equity to assets 14.81 18.06
Average interest-earning assets to
average interest-bearing liabilities 130.74 129.70
Non-performing assets to total assets 0.07 0.08
Allowance for loan losses to total
loans outstanding 0.83 0.93
Net charge-offs to average total
loans outstanding 0.02 0.01
General, administrative and other
expense to average assets 1.85 1.91
Effective income tax rate 39.57 39.64
Dividend payout ratio (3) 1,094.74 n/a
Dividend payout ratio (4) 42.11 61.54
Number of full service offices 6 5
(3) The calculation of this ratio includes a $2.00 per share return
of capital to shareholders of record as of April 20, 2006, payable
May 8, 2006.
(4) The calculation of this ratio does not include the return of
capital to shareholders.
