Third Century Bancorp Reports Earnings for Quarter Ended June 30, 2025

07/17/2025 – 02:09 PM

FRANKLIN, Ind. – Third Century Bancorp (OTCPINK: TDCB), the parent company of Mutual Savings Bank, reported a surge in profitability for the quarter ended June 30, 2025. The bank holding company announced unaudited net income of $374,000, or $0.32 per basic and diluted share. This represents a significant jump compared to the $228,000, or $0.19 per share, reported for the same quarter in 2024.

“We continue to see the benefits of the work our staff is performing every day. Calls, connections, and customer service levels that exceed expectations have helped us to continue to see the improvements we were forecasting for 2025,” stated David A. Coffey, President and CEO of Third Century Bancorp. The CEO highlighted the positive impact of their team’s performance on the bank’s financial health. “Our year-to-date earnings have seen a nice lift over the 2024 financials and key metrics.” Coffey added that the bank remains “focused on delivering results for our stakeholders,” while navigating the uncertainties of interest rate fluctuations. Regardless, our team will continue to take the steps needed to achieve our financial goals.

Drilling down into the quarterly performance, the numbers reveal a compelling narrative. The $146,000 increase in net income, a robust 64.34% jump year-over-year, was fueled primarily by a $286,000 increase in net interest income. This metric climbed to $2.17 million for the quarter, driven by a $177,000 increase in total interest income. The bank attributed this rise to both higher average loan balances and improved yields on interest-earning assets – a canny move in today’s rate environment.

Another contributing factor to net interest margin expansion was a reduction in total interest expense, down $109,000 to $1.86 million. Smart cost control on retail deposits provided the boost here. This is particularly remarkable, since many similar financial institutions have seen deposit prices increase during this period.

The bank’s credit quality also remains solid. Provision for credit losses for the quarter was $30,000, contrasting with $0 for the same period last year, indicative of increased loan activity.

Beyond interest income, Third Century Bancorp also saw a lift in its other revenue streams. Non-interest income increased by $27,000, or 7.99%, to $360,000, driven by higher fee and service charge income. Non-interest expense also rose, up $43,000, or 2.13%, to $2.07 million, due primarily to higher utility, professional services, and contractual vendor fees.

Looking at the first six months of 2025, the positive trends continue. Net income rose $266,000, or 47.66%, to $823,000. This increase was bolstered by net interest income jumping to $4.28 million, a result of effective cost controls (interest expense down $147,000) and higher average yields on interest-earning assets (total interest income up $291,000).

The picture is further enhanced by a ($13,000) provision reversal in credit losses from the first half of 2025. Meanwhile, non-interest income similarly increased $63,000, or 9.48%, to $727,000. Strategic increases in cost-cutting measures and service fee income fueled this movement. Finally, non-interest expense rose $93,000, or 2.32%, to $4.09 million.

On the balance sheet, total assets reached $322.43 million at June 30, 2025, up $10.05 million from year-end 2024. This growth was primarily driven by higher cash reserves (up $8.55 million) and increased loan activity as gross loans held for investment rose by $3.54 million to $211.98 million. Total deposits came in at $244.40 million, up from $240.99 million at the end of 2024. Third Century Bancorp also shored up its liquidity via Federal Home Loan Bank (FHLB) advances, increasing by $7.0 million to $58.0 million.

While overall assets paint a pretty picture, the bank’s total equity dipped slightly from $9.46 million at December 31, 2024 to $9.23 million at the end of the second quarter this year, driven by net unrealized losses on available-for-sale securities caused by a worsening of the forward rate curve. The bank is actively managing its investment portfolio which primarily consists of government-sponsored mortgage backed securities and municipal bonds.

Mutual Savings Bank, the anchor of Third Century Bancorp, has deep roots in Johnson County, Indiana, having been founded in 1890. The bank operates multiple locations, serving communities throughout Central Indiana.

It’s worth noting that Third Century Bancorp’s released statement includes forward-looking statements, subject to various economic, geopolitical, and regulatory uncertainties that could impact future performance – a warning that shareholders are keen to review.

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