#United States #financial results #Tri-County #TYFG #Mendota

Tri-County Financial Group, Inc. Reports Fourth Quarter 2024 Financial Results

On February 4, 2025, Tri-County Financial Group, Inc. (OTCQX: TYFG), based in Mendota, Illinois, announced its financial results for the fourth quarter of 2024. The report highlighted a resilient performance across several key metrics amidst challenging economic conditions for the financial sector.

Key Financial Figures

In the fourth quarter of 2024, Tri-County reported a net income of $2.4 million, translating to $1.00 per share. This marked a slight increase from the $2.3 million or $0.94 per share recorded in the identical quarter of the previous year (2023). Over the entire year, net income stood at $10.4 million (or $4.33 per share), a further rise from $10.0 million ($4.10 per share) in 2023.

Net interest income also reflected a solid performance at $10.9 million in Q4 2024, exhibiting a modest 2% growth from $10.7 million during the same quarter in 2023. Alongside this, non-interest income witnessed an increase of 5% to $4.0 million compared to $3.8 million in Q4 2023.

Non-Interest Expenses and Investment Portfolio

The company reported non-interest expenses of $11.9 million for the quarter, up from $11.6 million in the corresponding period of 2023. A notable point was the management of the investment portfolio, which consisted entirely of available-for-sale debt securities. The portfolio’s value decreased by $31.1 million (18%) year over year, totaling $143.7 million as of December 31, 2024. This strategic reduction of securities was beneficial, as it facilitated a lowering of overall borrowings.

Loan Growth and Asset Quality

Total loans showed a slight increase, up by $1.6 million, or 0.1%, reaching $1.285 billion at the end of 2024. Furthermore, nonperforming loans as a percentage of total loans stood at a healthy 0.33%, down from 0.55% a year earlier.

The provision for credit losses saw a modest allocation of $0.1 million for the quarter, leaving the allowance for credit losses at $14.4 million, which accounted for 1.12% of gross loans. This indicates that asset quality remained solid, with low charge-offs contributing to the overall stability of the bank’s assets.

Deposit Trends and Capital Sufficiency

On the deposits side, total deposits grew by $26.6 million, or 2%, year over year. The shift included brokered deposits amounting to $49 million and $71 million at the end of 2024 and 2023, respectively. The Federal Home Loan Bank (FHLB) advances dropped to $67.9 million as compared to $116 million the previous year.

Tri-County’s capital position remained sound, with a Tier 1 leverage ratio of 10.26% as of the end of Q4 2024. This strong capital foundation assists in ensuring the institution's stability during economic fluctuations.

Management's Outlook

In his remark about the quarterly results, President and CEO Tim McConville pointed out that the earnings reflect significant earned margins, attributing this to the Federal Reserve's easing of short-term interest rates. He noted the bank's attentiveness to loan and deposit strategies, enabling it to remain competitive amidst the prevailing market challenges. McConville expressed confidence in their strong loan portfolio and the diversified balance sheet that positions them well for future growth.

Dividend Declaration

On December 10, 2024, the board announced a regular dividend of $0.25 per share, which will be paid on January 9, 2025, to shareholders recorded by December 31, 2024. This reflects the organization's commitment to returning value to its shareholders, reinforcing Tri-County Financial Group's position as a community-focused institution.

Conclusion

The results from Tri-County Financial Group, Inc. for the fourth quarter of 2024 indicate steady growth and strategic management practices in navigating the challenges in the financial landscape. With solid asset quality and a responsive approach to market conditions, the company continues to be well-positioned for future success in the banking sector.