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Third Century Bancorp Releases First Quarter Earnings
May 4, 2009 2:16:00 PM
Copyright Business Wire 2009


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View Additional ProfilesFRANKLIN, Ind.--(BUSINESS WIRE)-- 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 March 31, 2009, net income amounted to $87,000, an increase of 569.23% from $13,000, for the quarter ended March 31, 2008.

The increase in net income for the three months ended March 31, 2009 as compared to the three months ended March 31, 2008 was primarily due to an increase of $160,000 or 14.71% in net interest income and an increase of $40,000 or 17.09% in other income, which were offset by an increase of $75,000 or 5.85% in general, administrative and other expenses. The increase in net interest income was due to decreases in interest expense on deposits of $222,000 or 37.82% and interest expense on borrowings from Federal Home Loan Bank of $100,000 or 34.72%. The decrease in interest expense on deposits primarily resulted from a decrease in the average rate paid on interest-bearing time deposits to 3.09% at March 31, 2009 from 4.30% at March 31, 2008, which more than offset the increase in the average interest-bearing time deposit balances of $2.2 million to $38.5 million for the three month period ended March 31, 2009 from $36.3 million for the three month period ended March 31, 2008. The decrease in interest expense on borrowings resulted from a decrease in the average interest-bearing Federal Home Loan Bank borrowings to $19.2 million for the three months ended March 31, 2009 from $24.8 million for the three month period ended March 31, 2009 and a decrease in the average yield to 3.91% from 4.65% for the same respective reporting periods.

Other income was $274,000 for the three months ended March 31, 2009 as compared to $234,000 for the three months ended March 31, 2008, which represented an increase of $40,000 or 17.09%. During the first three months of 2009, the bank recorded net gains on loan sales of $47,000, which represented an increase of $34,000 from $13,000 for the first three months of 2008. In the first quarter of 2009, Mutual Savings Bank sold $5.4 million of loans to the secondary market as compared to $1.4 million in the first quarter of 2008.

General, administrative, and other expenses increased $75,000 to $1.4 million for the three months ended March 31, 2009 as compared to $1.3 million for the three months ended March 31, 2008. The increase is primarily due to an increase of $56,000 or 1,372.68% in Federal Deposit Insurance Corporation premiums to $60,000 from $4,000 for the quarters ended March 31, 2009 and 2008, respectively.

Total assets decreased $2.0 million at March 31, 2009 to $133.9 million from $135.9 million at December 31, 2008. Cash and cash equivalents increased $1.7 million, or 24.07%, to $8.9 million and loans receivable-net decreased $3.4 million, or 2.84%, to $115.6 million at March 31, 2009. The decrease in the loans receivable-net was primarily due to the net decrease in residential 1-4 family construction loans of $858,000, in commercial construction loans of $690,000 and adjustable rate mortgage loans of $1.3 million, with varying fixed-rate periods for the first one, three, five and seven years. The proceeds from these activities contributed to the increase in cash and cash equivalents, but were offset by decreases in deposits and borrowings.

Deposits decreased to $97.1 million at March 31, 2009 from $98.3 million at December 31, 2008, a decrease of $1.2 million or 1.27%. Savings, money market, and NOW deposits increased $3.3 million to $48.5 million while time deposits decreased $3.2 million to $36.3 million and demand deposits decreased $1.4 million to $12.3 million for the three months ended March 31, 2009.

Federal Home Loan Bank advances and other borrowings decreased $1.0 million, or 4.98%, to $19.1 million at March 31, 2009 from $20.1 million at December 31, 2008. During the first quarter of 2009, Mutual Savings Bank repaid $4.0 million to and borrowed $3.0 million from Federal Home Loan Bank.

Stockholders' equity increased by $142,000 or 0.84% to $17.1 million at March 31, 2009 from $17.0 million at December 31, 2008. The Company announced last quarter that the board of directors has determined to suspend quarterly dividend payments until the Company achieves an acceptable level of earnings performance.

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 and the Franklin United Methodist Community, in Indianapolis at 5630 South Franklin Road, as well as in Edinburgh, Nineveh and Trafalgar, Indiana.


Selected Consolidated Financial Data

At March 31, At December 31,

2009 2008

Selected Consolidated Financial (In Thousands)
Condition Data:

Assets $ 133,863 $ 135,918

Loans receivable-net 115,580 118,959

Cash and cash equivalents 8,882 7,159

Investment securities 1,111 1,319

Deposits 97,076 98,327

FHLB advances and other borrowings 19,100 20,100

Stockholders' equity-net 17,139 16,997

For the Three Months Ended March 31,

2009 2008

(Dollars In Thousands, Except Share Data)

Selected Consolidated Earnings Data:

Total interest income $ 1,801 $ 1,963

Total interest expense 553 875

Net interest income 1,248 1,088

Provision of losses on loans 21 18

Net interest income after provision 1,227 1,070
for losses on loans

Total other income 274 234

General, administrative and other 1,356 1,281
expenses

Income tax expense 58 10

Net income $ 87 $ 13

Selected Financial Ratios and Other
Data:

Interest rate spread during period 3.46 % 2.75 %

Net yield on interest-earning assets 3.92 3.43

Return on average assets 0.26 0.04

Return on average equity 2.04 0.27

Equity to assets 12.80 13.03

Average interest-earning assets to 126.36 124.48
average interest-bearing liabilities

Non-performing assets to total assets 1.07 0.47

Allowance for loan losses to total 1.29 0.66
loans outstanding

Net charge-offs (recoveries) to (0.01 ) 0.01
average total loans outstanding

General, administrative and other 1.01 0.95
expense to average assets

Effective income tax rate 40.00 43.48

Number of full service offices 7 7

Book value per share $ 11.94 $ 12.28

Market closing price at end of quarter $ 4.00 $ 9.20

Price-to-book value 33 % 75 %






Source: Third Century Bancorp


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Third Century Bancorp
Robert D. Heuchan
President and CEO
Debra K. Harlow
Chief Financial Officer
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