#USA #Mendota #Tri-County Financial #First State Bank #Kirk Ross

Tri-County Financial Group Finances 2025 with Final Quarter Bump

Tri-County Financial Group, Inc. (OTCQX: TYFG), based in Mendota, Illinois, recently unveiled its financial results for the fourth quarter and the entire year of 2025. The figures reveal a remarkable upward trend, showcasing notable increases in both net income and other key financial metrics.

In the fourth quarter of 2025, the company reported a net income of $3.9 million, or $1.64 per share, which marks a significant increase from $2.4 million or $1.00 per share for the same timeframe in 2024. Likewise, the total net income for the year climbed to $13.7 million (equivalent to $5.73 per share), surging by 32% compared to $10.4 million (or $4.33 per share) that was recorded in 2024.

One of the core drivers of this financial success has been the notable rise in net interest income. The company declared net interest income of $13.2 million for the last quarter, up from $10.9 million a year earlier, which translates to a 21% increase. Additionally, non-interest income improved as well, with the report noting a rise to $4.5 million compared to $4.0 million during the same quarter last year, marking a growth of 13%.

Despite increased costs, non-interest expenses reached $12.5 million for the quarter, just an increment from $11.9 million in the prior year. The investment portfolio remains robust, with total investments in available-for-sale debt securities reaching $154.2 million, marking a 7% year-over-year increase.

In terms of lending, Tri-County recorded a solid increase in total loans, which rose by $42.6 million, or 3%, to $1.33 billion by the end of 2025. Nonperforming loans still maintained a steady percentage at 0.43%, albeit slightly higher than 0.33% from the previous year. This minimal increase signifies that the bank's asset quality continues to be stable.

The company's allowance for credit loss has also grown, registering $15.0 million, which accounts for 1.13% of overall loans. This is an increase from $14.4 million and 1.12% of gross loans the previous year, indicating prudent management in anticipation of potential credit events.

Total deposits also saw a surge, increasing by $30.6 million from the prior year to reach $1.304 billion. This total includes roughly $44.9 million in brokered deposits, while excluding these, the growth stands at approximately $35 million. The Federal Home Loan Bank (FHLB) advances reflect the strong positioning of the institution, increasing from $67.9 million to $77.9 million from 2024 to 2025.

On the capital side, Tri-County Financial Group exhibited strong capital levels, solidly anchored by a Tier 1 leverage ratio of 10.02% at year-end. The company also declared a regular dividend of $0.25 per share, further reflecting confidence in its financial health and commitment to returning value to its shareholders.

Kirk Ross, President and CEO, commented on the impressive results, stating, “Our fourth quarter accomplishment depicts solid earnings with impressive gains in net interest income and enhanced net interest margins. We look ahead optimistically with expectations of continued performance improvements driven by rising yields on our earning assets and decreased funding costs.” He emphasized the company's ongoing strategies within the competitive environment for deposits and loans calibrated for community banking services.

Tri-County Financial Group holds the position of the parent company for First State Bank and operates several branches across Illinois, indicating a well-established footprint in the state. Investors and industry watchers will keenly observe how these financial trends evolve as the organization aims to leverage the positive results of 2025 into further growth in the coming year.

This report marks a significant milestone in the operations of Tri-County Financial Group, setting a promising stage for the future despite the ongoing volatility in the broader economic landscape. Stakeholders and potential investors alike will undoubtedly find these developments noteworthy as they navigate their strategic plans.