(OTCPINK: TDCB) - Third Century Bancorp (“Company”), the holding company for Mutual Savings Bank (“Bank”), announced it recorded unaudited net income of $374,000 for the quarter ended June 30, 2025, or $0.32 per basic and diluted share, compared to net income of $228,000 for the quarter ended June 30, 2024, or $0.19 per basic and diluted share.

“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,” said David A. Coffey, President and CEO. “Our year-to-date earnings have seen a nice lift over the 2024 financials and key metrics. He concluded by stating, “As we enter the second half of 2025, we remain focused on delivering results for our stakeholders, even in the face of uncertainty with both short-term and long-term interest rates. Regardless, our team will continue to take the steps needed to achieve our financial goals.”

For the quarter ended June 30, 2025, net income increased $146,000, or 64.34%, to $374,000 as compared to $228,000 for the same period in the prior year. The increase in net income for the three-month period ended June 30, 2025 was driven primarily from a $286,000 increase in net interest income as compared to the same period in the prior year. Net interest income increased to $2.17 million for the three months ended June 30, 2025, due to an increase in total interest income of $177,000, or 4.60%, to $4.03 million for the three-month period ended June 30, 2025, as compared to $3.95 million for the same period for the prior year. The increase in total interest income was due to an increase in average loan balances as well as higher average yields on interest earning assets. Further contributing to net interest margin expansion, there was a decrease in total interest expense of $109,000, or 5.53%, to $1.86 million for the three-month period ended June 30, 2025, compared to $1.97 million for the same period for the prior year. The decrease in total interest expense was the result of lower retail deposit costs.

The provision for credit losses during the current quarter was $30,000 compared to a provision expense of $0 for the same quarter last year due to higher gross loan balances at quarter end.

Non-interest income increased by $27,000, or 7.99%, to $360,000 for the quarter ended June 30, 2025, as compared to $333,000 for the same period in the prior year. The increase in non-interest income occurred due to increased fee and service charge income. Non-interest expense increased by $43,000, or 2.13%, to $2.07 million for the quarter ended June 30, 2025, as compared to $2.01 million for the same period in the prior year, due primarily to increases in utilities, including network and internet costs, professional services, and other contractual vendor expenses.

For the six-months ended June 30, 2025, net income increased $266,000, or 47.66%, to $823,000 as compared to $558,000 for the same period in the prior year. Net interest income increased to $4.28 million for the six-months ended June 30, 2025, due to a decrease in total interest expense of $147,000, or 3.83%, to $3.67 million for the six-month period ended June 30, 2025, as compared to $3.84 million for the same period for the prior year. The decrease in total interest expense was due to lower funding costs of both retail deposits and wholesale funding. Complementing the decrease in total interest expense was an increase in total interest income of $291,000, or 3.79%, to $7.97 million for the six-month period ended June 30, 2025, compared to $7.68 million for the same period for the prior year. The increase in total interest income was the result of higher average yields on interest earning assets and higher average loan balances. The provision reversal for credit losses during the first half of 2025 was ($13,000) compared to provision expense of $2,000 for the same period last year due to the ongoing strength of our credit quality and net recoveries for the period. Non-interest income increased by $63,000, or 9.48%, to $727,000 for the six-months ended June 30, 2025, as compared to $664,000 for the same period in the prior year. The increase in non-interest income occurred due to increased service fee income and income on other assets as compared to the same period for the prior year. Non-interest expense increased by $93,000, or 2.32%, to $4.09 million for the six-months ended June 30, 2025, as compared to $4.00 million for the same period in the prior year due to increased occupancy costs, outside consultant fees, and advertising expenses.

Total assets increased $10.05 million to $322.43 million at June 30, 2025, compared to $312.38 million at December 31, 2024. This increase was due primarily to higher levels of cash which increased by $8.55 million or 92.94% since December 31, 2024 and higher total loans. The increase in cash was due to growth in retail deposits and additional borrowings. Gross loans held for investment rose by $3.54 million to $211.98 million at June 30, 2025 compared to $208.44 million at December 31, 2024. Total deposits were $244.40 million at June 30, 2025, up from $240.99 million at December 31, 2024. FHLB advances increased by $7.0 million or 13.73% to $58.0 million at June 30, 2025. At June 30, 2025, the weighted average rate of all FHLB advances was 3.66% compared to 3.81% at December 31, 2024, and the weighted average maturity was 4.10 years at June 30, 2025 compared to 4.20 years at December 31, 2024.

Stockholders’ equity was $9.23 million at June 30, 2025, compared to $9.46 million at December 31, 2024 and $9.43 million at June 30, 2024. Stockholders’ equity decreased due to increases in net unrealized loss of $935,000 during the six months ended June 30, 2025, as a result of the decrease in the fair value of our available- for-sale-securities due to the worsening in the forward rate curve compared to our portfolio at year end. The available-for-sale securities are investments in government sponsored mortgage-backed securities as well as investments in municipal bonds, which provide cash flow for business purposes. Quarterly average equity as a percentage of average assets decreased to 2.97% at June 30, 2025 compared to 3.27% at December 31, 2024.

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, Trafalgar and Greenwood, Indiana.

This press release contains certain forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include inflation, tariffs, changes in the interest rate environment, changes in general economic conditions, geopolitical conflicts, public health issues, legislative and regulatory changes that adversely affect the business of the Company and the Bank, and changes in the securities markets. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements to reflect changes in belief, expectations, or events.

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