Tri-County Financial Group, Inc. Reports First Quarter 2022 Financial Results

MENDOTA, Ill., May 11, 2022 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) TYFG today announced financial results for the first quarter of 2022.

Net income for the first quarter of 2022 was $1.9 million ($0.75 per share), compared to $3.6 million ($1.47 per share) during the first quarter of 2021.

Net interest income was $10.5 million during the three months ended March 31, 2022, compared to $10.2 million in the same period of 2021, an increase of $349,000. The net interest margin was 3.21% for the first quarter of 2022 compared to 3.65% in the same quarter a year ago.

Noninterest income was $2.8 million for the first quarter of 2022, a decrease of $3.2 million, or 53%, compared to $6.0 million during the same period a year ago. First State Mortgage net income decreased by $1.6 million compared to the first quarter of 2021. 

Noninterest expense was $10.3 million during the quarter ended March 31, 2022, compared to $10.6 million in the same quarter of 2021, a decrease of $353,000, or 3%. The decrease is primarily related to lower levels of mortgage production costs in 2022.

Total loans increased $33.7 million, or 3%, to $1.026 billion at March 31, 2022, up from $992 million at March 31, 2021. There were $0 in Paycheck Protection Program (PPP) loans remaining in loan balances at March 31, 2022.  Loan demand in the first quarter rose modestly from the previous quarter as agricultural lending activity was strong. Nonperforming loans as a percent of total loans were 0.27% as of March 31, 2022, down from 0.55% at March 31, 2021.

The provision for loan loss remains unchanged at $450,000 for the first quarter as asset quality remains stable.  The allowance for loan loss ended at $16.6 million at March 31, 2022 and represented 1.59% of gross loans, compared to 1.53% at March 31, 2021.

Deposits increased $55.6 million, or 5%, year-over-year, with the majority of the growth due to CARES Act economic relief programs and PPP proceeds. Part of this excess liquidity was used to increase the investment portfolio which rose $141.5 million or 116% year over year and totaled $263.9 million at March 31, 2022.

The Company's capital levels remain solid as of March 31, 2022, with a Tier 1 leverage ratio of 9.03%, up from 8.81% last year.

On March 8, 2022, the Board of Directors declared a regular dividend of $0.20 per share payable April 14, 2022, to shareholders of record on March 31, 2022.

In announcing the results, President and CEO, Tim McConville, stated "Our first quarter numbers reflected the slowdown in mortgage activity that had supplemented our results the last two years. Mortgage activity remains an important part of our business and we expect continued earnings contributions from this line of business.  Asset quality as measured by nonperforming loans to total loans is stable. We believe that our diversified balance sheet and lines of business are well-positioned given increases in short term rates by the Federal Reserve."

Tri-County Financial Group, Inc. is the parent holding company for First State Bank, with offices in Mendota, Batavia, Bloomington, Geneva, LaMoille, McNabb, North Aurora, Ottawa, Peru, Princeton, Rochelle, Shabbona, St. Charles, Streator, Sycamore, Waterman and West Brooklyn. First State Bank is the parent company of First State Mortgage, LLC and First State Insurance. Tri-County Financial Group, Inc. shares are quoted under the symbol TYFG and traded on OTCQX.

SOURCE Tri-County Financial Group, Inc.