Message #7 From:
NewsBot Date: November 17, 2006 07:16:00 AM
TDCB News Third Century Bancorp Announces a Share Repurchase Program for 5% of Its Outstanding Shares; Announces Quarterly Cash Dividend; Releases Third Quarter Earnings
FRANKLIN, Ind.--(BUSINESS WIRE)--Third Century Bancorp (OTCBB:TDCB), the holding company of Mutual
Savings Bank, today announced that its Board of Directors has authorized
the repurchase of up to 5% of its outstanding shares of common stock, or
82,656 shares, commencing November 17, 2006. The Company completed its
initial public offering on June 29, 2004.
“We are pleased to announce the first stock
repurchase program in the Company’s history
and we are committed to capital management strategies that will enhance
stockholder value,” said Robert Heuchan, Third
Century Bancorp’s President and CEO.
Third Century Bancorp will repurchase the shares from time to time for
cash in open market transactions or in privately negotiated transactions
in accordance with applicable federal securities laws.
The Company also announced today that on November 16, 2006, the Board of
Directors declared a quarterly cash dividend of $0.04 payable to
shareholders of record on December 22, 2006. The dividend will be paid
on January 2, 2007.
As previously indicated in the Company’s Form
10-QSB filed with the SEC on November 13, 2006, the Company announced
for the quarter ended September 30, 2006, net income amounted to
$81,000, or $0.05 per share, a decrease of 44.14% from the $145,000 in
earnings, or $0.10 per share, for the quarter ended September 30, 2005.
For the nine months ended September 30, 2006, net income amounted to
$362,000, or $0.24 per share, an increase of 4.62% from $346,000, or
$0.23 per share, for the nine months ended September 30, 2005.
The decrease in net income for the quarter ended September 30, 2006 as
compared to the quarter ended September 30, 2005 is due to an increase
of $34,000 or 29.31% in net occupancy and equipment expense, a decrease
of $27,000 in net interest income and a provision for loan losses of
$15,000 during quarter ended September 30, 2006.
Occupancy costs increased due to the opening of the Franklin Central
Branch on June 1, 2006, as well as a real estate tax rate increase
combined with increased taxable property, and to grounds maintenance
required at Main Street and Trafalgar.
The increase in the net income for the nine months ended September 30,
2006 as compared to September 30, 2005 is primarily due to an increase
in non-interest income partially offset by a $65,000 change in the
provision for loan losses during the comparable period. Non-interest
income increased $141,000 or 25.78% to $688,000 for the nine months
ended September 30, 2006 from $547,000 for the nine months ended
September 30, 2005. The majority of this increase is due to an increase
of $62,000 or 40.00% in service charges on deposit accounts as a result
of a change in Mutual’s deposit fee structure
effective November 1, 2005.
Total assets increased $3.4 million at September 30, 2006 to $131.5
million from $128.1 million at December 31, 2005. Net loans receivable
grew by $7.1 million or 6.70% since December 31, 2005. Cash and cash
equivalents decreased $1.4 million or 17.83% and held to maturity
securities decreased $3.6 million or 39.53% in order to fund increased
loan originations.
Deposits decreased to $87.2 million at September 30, 2006 from $88.6
million at December 31, 2005, a decrease of $1.4 million or 1.54%. FHLB
advances and other borrowings increased $7.6 million or 46.06% to $24.1
million at September 30, 2006 from $16.5 million at December 31, 2005.
Mutual repaid $10.6 million in advances and borrowed an additional $18.2
million during the nine months ended September 30, 2006 to support its
daily cash operations.
Stockholders’ equity decreased by $3.1 million
or 13.85% to $19.3 million at September 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.
On August 30, 2006, Mutual purchased land in the South Grove Landing
development located at the corner of State Road 135 and Whiteland Road,
Johnson County, Indiana. No immediate plans exist for the development of
this site.
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 September 30,
At December 31,
2006
2005
Selected Consolidated Financial Condition Data:
(In Thousands)
Assets
$ 131,532
$ 128,147
Loans receivable-net
112,634
105,557
Cash and cash equivalents
6,453
7,853
Interest-earning time deposits
--
200
Investment securities
5,569
9,210
Deposits
87,241
88,608
FHLB advances and other borrowings
24,100
16,500
Stockholders’ equity-net
19,255
22,350
For the Three Months Ended September 30,
2006
2005
(Dollars In Thousands, Except Share Data)
Selected Consolidated Earnings Data:
Total interest income
$ 2,012
$ 1,761
Total interest expense
841
563
Net interest income
1,171
1,198
Provision of losses on loans
15
---
Net interest income after provision for losses on loans
1,156
1,198
Total other income
215
215
General, administrative and other expenses
1,238
1,166
Income tax expense
52
102
Net income
81
145
Earnings per share – basic
$ 0.05
$ 0.10
Earnings per share - diluted
$ 0.05
$ 0.10
Selected Financial Ratios and Other Data:
Interest rate spread during period
3.02%
3.32%
Net yield on interest-earning assets
3.73
3.87
Return on average assets
0.25
0.46
Return on average equity
1.66
2.51
Equity to assets
14.64
18.10
Average interest-earning assets to average interest-bearing
liabilities
126.50
130.04
Non-performing assets to total assets
0.05
0.07
Allowance for loan losses to total loans outstanding
0.82
0.90
Net charge-offs to average total loans outstanding
0.01
0.04
General, administrative and other expense to average assets
0.95
0.92
Effective income tax rate
39.10
41.30
Dividend payout ratio
80.00
40.00
Number of full service offices
6
5
For the Nine Months Ended September 30,
2006
2005
(Dollars In Thousands, Except Share Data)
Selected Consolidated Earnings Data:
Total interest income
$ 5,785
$ 5,113
Total interest expense
2,223
1,561
Net interest income
3,562
3,552
Provision (adjustments) of losses on loans
45
(20)
Net interest income after provision (recovery for losses on loans)
3,517
3,572
Total other income
688
547
General, administrative and other expenses
3,608
3,539
Income tax expense
235
234
Net income
362
346
Earnings per share – basic
$ 0.24
$ 0.23
Earnings per share - diluted
$ 0.24
$ 0.23
Selected Financial Ratios and Other Data:
Interest rate spread during period
3.11%
3.38%
Net yield on interest-earning assets
3.82
3.87
Return on average assets
0.37
0.37
Return on average equity
2.31
2.00
Equity to assets
14.64
18.10
Average interest-earning assets to average interest-bearing
liabilities
129.76
129.48
Non-performing assets to total assets
0.05
0.07
Allowance for loan losses to total loans outstanding
0.82
0.90
Net charge-offs to average total loans outstanding
0.03
0.05
General, administrative and other expense to average assets
2.80
2.81
Effective income tax rate
39.36
40.34
Dividend payout ratio 1
883.33
n/a
Dividend payout ratio 2
50.00
52.17
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.
