TDCB Third Century Bancorp (PK)

(OTCBB: TDCB) Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”) announced it had net income of $76,000 for the quarter ended September 30, 2013, or $0.06 per share, compared to net income of $22,000 for the quarter ended September 30, 2012, or $0.02 per share. For the nine months ended September 30, 2013, the Company recorded net income of $292,000, or $0.23 per share, compared to net income of $206,000 for the nine months ended September 30, 2012, or $0.16 per share.

For the three months ended September 30, 2013, net income increased $54,000, or 245.45%, to $76,000 and for the nine months period ended September 30, 2013, net income increased $86,000, or 41.75% to $292,000. The provision for loan losses decreased $168,000 to $2,000 for the three months ended September 30, 2013 from $170,000 for the three months ended September 30, 2012 and decreased $258,000 to $12,000 for the nine months ended September 30, 2013 from $268,000 for the nine months ended September 30, 2012. Management considers factors such as delinquency trends, portfolio composition, past loss experience and other factors such as general economic conditions. For the nine months ended September 30, 2013, Mutual Savings Bank charged-off loans, net of recoveries, of $46,000 compared to $485,000 for the nine months ended September 30, 2012. At September 30, 2013, non-performing assets totaled $6.3 million, or 4.98% of total assets, and included $5.6 million of non-performing loans. At December 31, 2012, non-performing assets totaled $6.9 million, or 5.40% of total assets, and included $6.2 million of non-performing loans. The decrease in non-performing loans was a result of increased collection and loan monitoring efforts. Loans are considered non-performing when one or more of the following occur: borrowers fail to make scheduled payments causing loans to become delinquent by 90 days or more; borrowers default on original loan terms and the Bank restructures such loans; or, Management classifies loans as “substandard” in regards to full repayment according to loan agreements.

Total assets decreased $821,000 to $127.0 million at September 30, 2013 from $127.8 million at December 31, 2012, a decrease of 0.64%. The decrease was primarily due to the repayment of $2.0 million of Federal Home Loan Bank borrowings.

Deposits increased $706,000 to $91.5 million at September 30, 2013 from $90.8 million at December 31, 2012. Demand deposits increased $2.3 million, or 15.10%, to $17.9 million at September 30, 2013 from $15.6 million at December 31, 2012.

Federal Home Loan Bank advances and other borrowings decreased $2.0 million or 9.30% to $19.5 million at September 30, 2013 from $21.5 million at December 31, 2012. At September 30, 2013 the weighted average rate of all Federal Home Loan Bank advances was 2.00% compared to 2.22% at December 31, 2012 and the weighted average maturity was 3.1 years at September 30, 2013 and December 31, 2012.

Stockholders’ equity increased $255,000 to $15.5 million at September 30, 2013 from $15.2 million at December 31, 2012. Equity as a percentage of assets decreased 0.30% to 12.20% at September 30, 2013 compared to 11.92% at December 31, 2012.

On November 14, 2013, the Board of Directors declared a quarterly cash dividend of $0.03 payable to shareholders of record on December 15, 2013. The dividend will be paid on January 2, 2014.

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, as well as in Edinburgh, Nineveh and Trafalgar, Indiana.

     

Selected Consolidated Financial Data

  At September 30, At December 31, 2013 2012 Selected Consolidated Financial Condition Data: (In Thousands) Assets $ 126,965 $ 127,786 Loans receivable-net 98,075 96,964 Cash and cash equivalents 7,906 13,363 Interest-earning time deposits 8,161 4,465 Investment securities 5,976 5,863 Deposits 91,527 90,821 FHLB advances and other borrowings 19,500 21,500 Stockholders’ equity-net 15,487 15,232   Number of full service offices 6 6 Tangible book value per share $ 12.16 $ 11.92 Market closing price at end of quarter $ 7.25 $ 3.00 Price as a percentage of tangible book value 59.65 % 25.18 %     For the Three Months Ended September 30, 2013 2012 (Dollars In Thousands, Except Share Data) Selected Consolidated Earnings Data: Total interest income $ 1,199 $ 1,301 Total interest expense   175     206   Net interest income 1,024 1,095 Provision of losses on loans   2     170   Net interest income after provision for losses on loans 1,022 925 Total other income 213 245 General, administrative and other expenses 1,108 1,135 Income tax expense   51     13   Net income   76     22   Earnings per share basic $ 0.06 $ 0.02 Earnings per share diluted $ 0.06 $ 0.02   Selected Financial Ratios and Other Data: Interest rate spread during period 3.11 % 3.50 % Net yield on interest-earning assets 3.31 3.72 Return on average assets 0.24 0.07 Return on average equity 1.97 0.57 Equity to assets 12.20 12.50

Average interest-earning assets to average interest-bearing liabilities

134.99 130.74 Non-performing assets to total assets 4.98 5.16 Allowance for loan losses to total loans outstanding 2.21 2.32 Allowance for loan losses to non-performing loans 39.36 42.16 Net charge-offs (recoveries) to average total loans outstanding 0.05 0.40 General, administrative and other expense to average assets 0.86 0.93 Effective income tax rate 40.16 37.14     For the Nine Months Ended September 30, 2013     2012 (Dollars In Thousands, Except Share Data) Selected Consolidated Earnings Data: Total interest income $ 3,626 $ 3,943 Total interest expense   531     636   Net interest income 3,095 3,307 Provision for losses on loans   12     268   Net interest income after provision for losses on loans 3,083 3,039 Total other income 630 682 General, administrative and other expenses 3,227 3,382 Income tax expense   194     133   Net income $ 292   $ 206   Earnings per share – basic $ 0.23 $ 0.16 Earnings per share - diluted $ 0.23 $ 0.16   Selected Financial Ratios and Other Data: Interest rate spread during period 3.20 % 3.56 % Net yield on interest-earning assets 3.38 3.78 Return on average assets 0.31 0.23 Return on average equity 2.54 1.79 Equity to assets 12.20 12.50 Average interest-earning assets to average interest-bearing liabilities 129.50 129.51 Non-performing assets to total assets 4.98 5.16 Allowance for loan losses to total loans outstanding 2.21 2.32 Allowance for loan losses to non-performing loans 39.36 42.16 Net charge-offs to average total loans outstanding (0.01 ) 0.49 General, administrative and other expense to average assets 2.54 2.78 Effective income tax rate 39.92 39.23

Third Century BancorpRobert D. Heuchan, President and CEODavid A. Coffey, Executive Vice President, CFO and COOTel. 317-736-7151Fax 317-736-1726