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Tri-County Financial Group, Inc. Reports Third Quarter Results for 2026

Tri-County Financial Group, Inc. recently disclosed its financial outcomes for the third quarter of 2026, revealing several key metrics that highlight the organization's evolving financial landscape. The company reported a net income of $3.4 million, translating to $1.39 per share, which marks a decline from $3.7 million ($1.56 per share) in the same quarter of the previous year, representing approximately an 8% decrease.

This dip in earnings was influenced by the conclusion of operations for First State Mortgage, the company’s mortgage subsidiary, which incurred substantial winding-down costs. For the year-to-date period ending September 30, 2026, First State Mortgage reported a loss of $1.7 million, compared to a loss of $0.7 million for the same timeframe in 2025.

Despite facing challenges, Tri-County Financial Group recorded an overall net income of $11.9 million ($5.00 per share) for the nine-month period, a notable increase from $9.8 million ($4.09 per share) in 2025.

Financial Insights

One of the standout metrics from the latest report was the net interest income, which rose to $14.5 million during the quarter, a significant improvement compared to $13.0 million from the same quarter a year prior, indicating a 12% increase. However, non-interest income experienced a downturn, standing at $3.5 million, reflecting a decrease of $0.9 million or 20% from $4.4 million in the third quarter of 2025.

The total non-interest expense rose to $12.9 million, which is a 7% increase from $12.1 million year-over-year. This shift in expenses is consistent with the company’s restructuring efforts and the closure of its mortgage division, which had become increasingly challenging to manage amidst fluctuating interest rates and market conditions.

Tri-County's investment portfolio comprises solely of debt securities that are available for sale, and this portfolio saw a year-over-year decrease of $13.0 million, now totaling $141.1 million compared to $154.1 million in 2025. Total loans grew slightly by 0.3% to $1.30 billion as of September 30, 2026, with nonperforming loans at 0.53% of total loans—a slight improvement from 0.54% recorded in 2025.

The company's provision for credit losses amounted to $0.4 million, up from $0.3 million in the prior year. As precautionary measures, the allowance for credit losses increased to $15.3 million, representing 1.17% of gross loans at quarter’s end.

Future Outlook

On the deposits front, Tri-County Financial Group enjoyed an increase of $34.3 million year-over-year, with total deposits reaching $1.287 billion as of September 30, 2026. This included about $10.0 million in brokered deposits, down from $28.9 million in 2025. Excluding brokered deposits, deposits rose by approximately $52.9 million from last year’s figures. The Board of Directors also declared a regular dividend of $0.28 per share, to be distributed in early October.

Kirk Ross, President and CEO of Tri-County Financial Group, commented on the quarter’s performance, emphasizing the company’s focus on core earnings and interest income growth despite operational changes. He also acknowledged the ongoing merger discussions with HBT Financial, Inc., noting the associated costs and their impact on current financials.

Conclusion

Tri-County Financial Group, Inc. continues to adapt to the dynamic financial environment, reinforcing its commitment to fostering strong community relationships while navigating challenges in deposit competition and operational restructuring. Though the path ahead may involve uncertainties, the organization remains poised to leverage its strategic initiatives to ensure sustained growth and stability in the years to come.

For investors and stakeholders, these insights present a mixed outlook—an encouraging rise in core earnings against the backdrop of significant restructuring and market adjustments. The forthcoming quarters will be critical as Tri-County works to stabilize its operations and enhance shareholder value in an ever-evolving marketplace.