FRANKLIN, Ind., July 17, 2026--(BUSINESS WIRE)--(OTCID: TDCB) — Third Century Bancorp ("Company"), the holding company for Mutual Savings Bank ("Bank"), announced it recorded unaudited net income of $719,000 for the quarter ended June 30, 2026, or $0.62 per basic and diluted share, compared to net income of $374,000 for the quarter ended June 30, 2025, or $0.32 per basic and diluted share.
"We delivered a strong second quarter with solid growth and improved performance across the board," stated David A. Coffey, President and CEO. Coffey added, "Our core business continued to strengthen, with higher net interest income and an improved margin of 3.12%, reflecting better pricing and continued balance sheet growth. Credit quality also improved, with fewer problem loans and a modest reserve release, while we continued to grow loans and deposits and reduce reliance on higher-cost borrowings." Coffey concluded, "Importantly, we increased our dividend by one cent per share, a 25% increase, reinforcing our commitment to returning capital to shareholders. Overall, returns improved significantly from a year ago and reflect continued momentum following a strong first quarter."
For the quarter ended June 30, 2026, net income increased $345,000, or 92.33%, to $719,000 as compared to $374,000 for the same period in the prior year. The increase in net income for the three-month period ended June 30, 2026, was driven primarily as a result of a $429,000 increase in net interest income as compared to the same period in the prior year. Net interest income increased to $2.60 million for the three months ended June 30, 2026, due to an increase in total interest income of $446,000, or 9.82%, to $4.47 million for the three-month period ended June 30, 2026, as compared to $4.03 million for the same period for the prior year. The increase in total interest income was due to increases in average loan balances and average cash balances. Partially offsetting the increase in total interest income was a slight increase in total interest expense of $17,000, or 0.93%, to $1.88 million for the three-month period ended June 30, 2026, as compared to the same period for the prior year. The increase in total interest expense was the result of higher average retail deposit balances.
The provision reversal for credit losses during the current quarter was $27,000 compared to a provision expense of $30,000 for the same quarter last year due to the continued strength of our credit quality and no net charge-offs for the current period.