(TDCB.OB) Mutual Savings Bank Reports Net Loss of 2.1 Million

Posted on 17. Mar, 2011 by PublicWire   

(PublicWire.com News Release) Robert D. Heuchan, President and CEO of Third Century Bancorp (OTCBB: TDCB), the holding company of Mutual Savings Bank, announced that for the year ended December 31, 2010, the company reported a net loss of $2.1 million compared with a net loss of $233,000 for the year ended December 31, 2009.

The net losses reported in 2010 and 2009 primarily resulted from the recorded provisions for loan losses of $3.2 million and $1.4 million, respectively. The provision in 2010 was primarily due to the write-off of $1.3 million in commercial participation loans and the effects of the on-going economic downturn, particularly as they relate to weaknesses in commercial real estate loans. In evaluating the adequacy of loan loss allowances, management considers factors such as delinquency trends, portfolio composition, past loss experience and other factors such as general economic conditions, which deteriorated dramatically during the fourth quarter of 2008 and continued to deteriorate throughout the first half of 2010. For the year ended December 31, 2010, Mutual Savings Bank charged-off loans, net of recoveries, of $1.9 million which represents an increase of $1.1 million, or 150.21%, from the year ended December 31, 2009. Of the $1.9 million charged-off for the year ended December 31, 2010, $1.7 million was the result of losses in the Bank’s commercial real estate portfolio. At December 31, 2010, management classified approximately $10.4 million in loans as impaired in the calculation of the allowance for loan losses compared to $5.0 million identified as of December 31, 2009. At December 31, 2010 and 2009, the Bank’s nonperforming assets as a percentage of total assets was 11.18% and 4.38%, respectively.

Other income decreased $335,000, or 25.95%, to $956,000 in 2010 from $1.3 million in 2009. The primary reason for the decrease in other income was the decrease of $152,000, or 52.05%, in net gains on loans sold into the secondary market to $140,000 for the year ended December 31, 2010 as compared to $292,000 for the year ended December 31, 2009. In 2010, Mutual Savings Bank sold $9.7 million of loans into the secondary market as compared to $14.2 million of such sales in 2009.

General, administrative and other expenses (non-interest expense) increased $589,000 or 11.12% to $5.9 million during 2010 from $5.3 million during 2009. The increase in non-interest expense was primarily due to two events. First, at December 31, 2010, the Bank performed an evaluation of goodwill recorded on its books and determined it to be fully impaired. As a result, the Bank recorded an impairment of $239,000 to fully write off goodwill. Second, the Bank closed its Franklin Central branch in June 2010 and listed the property for sale. The Bank obtained an appraisal on the property to determine its market value. The appraised value for the Franklin Central branch was less than value recorded on the Bank’s books. As a result, the Bank recorded a loss on assets held for sale of $471,000.

Total assets decreased $10.6 million to $118.2 million at December 31, 2010 from $128.8 million at December 31, 2009, a decrease of 8.26%. The decrease in assets was primarily the result of a decrease in net loans receivable of $12.6 million, or 11.75%, to $94.9 million at December 31, 2010 from $107.6 million at December 31, 2009. During 2010, one-to-four family residential mortgages declined $5.2 million, or 11.37%, and land development and construction loans decreased $4.9 million, or 33.47%. During 2010, many consumers refinanced their one-to-four family residential mortgages into lower fixed-rate loan products with longer maturities, which were subsequently sold by the Bank on the secondary market. In addition, the demand for land development and construction loans diminished due to the decline in housing demand and the overall economy. The allowance for loan losses increased to $3.5 million at December 31, 2010 from $2.1 million at December 31, 2009. The Bank increased the provision for loan losses based on a review of the structure of the current loan portfolio, the loans charged-off in 2010 and continued concerns about the economy.

Deposits decreased to $89.0 million at December 31, 2010 from $94.0 million at December 31, 2009, a decrease of $5.0 million or 5.37%. Time deposits decreased $5.9 million, or 16.43%, to $30.1 million at December 31, 2010 from $36.0 million at December 31, 2009. Demand deposits increased $1.1 million, or 9.18%, to $12.9 million at December 31, 2010 from $11.8 million at December 31, 2009.

Federal Home Loan Bank advances and other borrowings decreased $3.5 million, or 20.00%, to $14.0 million at December 31, 2010 from $17.5 million at December 31, 2009. The Bank repaid $3.5 million in Federal Home Loan Bank during 2010.

Stockholders’ equity decreased $2.1 million to $14.9 million at December 31, 2009 from $17.0 million at December 31, 2009. Equity as a percentage of assets decreased 0.55% to 12.63% at December 31, 2010 compared to 13.18% at December 31, 2009. The Company previously announced that the Board of Directors has suspended quarterly dividend payments until the Company achieves an acceptable level of earnings performance.

About Mutual Savings Bank

Founded in 1890, Mutual Savings Bank is a full-service financial institution based in Johnson County, Indiana. In addition to its main office at 80 East Jefferson Street, Franklin, Indiana, the bank operates branches in Franklin at 1124 North Main Street and the Franklin United Methodist Community, as well as in Edinburgh, Nineveh and Trafalgar, Indiana.

Mutual Savings Bank Trading Symbols

Mutual Savings Bank trades Over The Counter As TDCB (OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB)

About PublicWire.com

PublicWire.com is a Small Cap Financial Press Release Company that uses a variety of cutting edge methods to syndicate your Small Cap Press Release to various news and information outlets. Our press releases have consitantly placed the Small Cap Companies we work with on the first result page of major search engines such as Google, Bing, and Yahoo. We work exclusively with Pinksheet and Over The Counter (PK and OTCBB) Companies to ensure maximum exposure for their Press Releases.

To maximize your OTCBB / Pinksheet / Small Cap Company Press Release, call us directly at 407-218-7446.

OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB

The symbols “OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB” reflect the variety of methods Mutual Sacings Bank list their stock as, and were valid at the time of original publication of this press release.

(PublicWire.com News Release) Robert D. Heuchan, President and CEO of Third Century Bancorp (OTCBB: TDCB), the holding company of Mutual Savings Bank, announced that for the year ended December 31, 2010, the company reported a net loss of $2.1 million compared with a net loss of $233,000 for the year ended December 31, 2009.

The net losses reported in 2010 and 2009 primarily resulted from the recorded provisions for loan losses of $3.2 million and $1.4 million, respectively. The provision in 2010 was primarily due to the write-off of $1.3 million in commercial participation loans and the effects of the on-going economic downturn, particularly as they relate to weaknesses in commercial real estate loans. In evaluating the adequacy of loan loss allowances, management considers factors such as delinquency trends, portfolio composition, past loss experience and other factors such as general economic conditions, which deteriorated dramatically during the fourth quarter of 2008 and continued to deteriorate throughout the first half of 2010. For the year ended December 31, 2010, Mutual Savings Bank charged-off loans, net of recoveries, of $1.9 million which represents an increase of $1.1 million, or 150.21%, from the year ended December 31, 2009. Of the $1.9 million charged-off for the year ended December 31, 2010, $1.7 million was the result of losses in the Bank’s commercial real estate portfolio. At December 31, 2010, management classified approximately $10.4 million in loans as impaired in the calculation of the allowance for loan losses compared to $5.0 million identified as of December 31, 2009. At December 31, 2010 and 2009, the Bank’s nonperforming assets as a percentage of total assets was 11.18% and 4.38%, respectively.

Other income decreased $335,000, or 25.95%, to $956,000 in 2010 from $1.3 million in 2009. The primary reason for the decrease in other income was the decrease of $152,000, or 52.05%, in net gains on loans sold into the secondary market to $140,000 for the year ended December 31, 2010 as compared to $292,000 for the year ended December 31, 2009. In 2010, Mutual Savings Bank sold $9.7 million of loans into the secondary market as compared to $14.2 million of such sales in 2009.

General, administrative and other expenses (non-interest expense) increased $589,000 or 11.12% to $5.9 million during 2010 from $5.3 million during 2009. The increase in non-interest expense was primarily due to two events. First, at December 31, 2010, the Bank performed an evaluation of goodwill recorded on its books and determined it to be fully impaired. As a result, the Bank recorded an impairment of $239,000 to fully write off goodwill. Second, the Bank closed its Franklin Central branch in June 2010 and listed the property for sale. The Bank obtained an appraisal on the property to determine its market value. The appraised value for the Franklin Central branch was less than value recorded on the Bank’s books. As a result, the Bank recorded a loss on assets held for sale of $471,000.

Total assets decreased $10.6 million to $118.2 million at December 31, 2010 from $128.8 million at December 31, 2009, a decrease of 8.26%. The decrease in assets was primarily the result of a decrease in net loans receivable of $12.6 million, or 11.75%, to $94.9 million at December 31, 2010 from $107.6 million at December 31, 2009. During 2010, one-to-four family residential mortgages declined $5.2 million, or 11.37%, and land development and construction loans decreased $4.9 million, or 33.47%. During 2010, many consumers refinanced their one-to-four family residential mortgages into lower fixed-rate loan products with longer maturities, which were subsequently sold by the Bank on the secondary market. In addition, the demand for land development and construction loans diminished due to the decline in housing demand and the overall economy. The allowance for loan losses increased to $3.5 million at December 31, 2010 from $2.1 million at December 31, 2009. The Bank increased the provision for loan losses based on a review of the structure of the current loan portfolio, the loans charged-off in 2010 and continued concerns about the economy.

Deposits decreased to $89.0 million at December 31, 2010 from $94.0 million at December 31, 2009, a decrease of $5.0 million or 5.37%. Time deposits decreased $5.9 million, or 16.43%, to $30.1 million at December 31, 2010 from $36.0 million at December 31, 2009. Demand deposits increased $1.1 million, or 9.18%, to $12.9 million at December 31, 2010 from $11.8 million at December 31, 2009.

Federal Home Loan Bank advances and other borrowings decreased $3.5 million, or 20.00%, to $14.0 million at December 31, 2010 from $17.5 million at December 31, 2009. The Bank repaid $3.5 million in Federal Home Loan Bank during 2010.

Stockholders’ equity decreased $2.1 million to $14.9 million at December 31, 2009 from $17.0 million at December 31, 2009. Equity as a percentage of assets decreased 0.55% to 12.63% at December 31, 2010 compared to 13.18% at December 31, 2009. The Company previously announced that the Board of Directors has suspended quarterly dividend payments until the Company achieves an acceptable level of earnings performance.

About Mutual Savings Bank

Founded in 1890, Mutual Savings Bank is a full-service financial institution based in Johnson County, Indiana. In addition to its main office at 80 East Jefferson Street, Franklin, Indiana, the bank operates branches in Franklin at 1124 North Main Street and the Franklin United Methodist Community, as well as in Edinburgh, Nineveh and Trafalgar, Indiana.

Mutual Savings Bank Trading Symbols

Mutual Savings Bank trades Over The Counter As TDCB (OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB)

About PublicWire.com

PublicWire.com is a Small Cap Financial Press Release Company that uses a variety of cutting edge methods to syndicate your Small Cap Press Release to various news and information outlets. Our press releases have consitantly placed the Small Cap Companies we work with on the first result page of major search engines such as Google, Bing, and Yahoo. We work exclusively with Pinksheet and Over The Counter (PK and OTCBB) Companies to ensure maximum exposure for their Press Releases.

To maximize your OTCBB / Pinksheet / Small Cap Company Press Release, call us directly at 407-218-7446.

OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB

The symbols “OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB” reflect the variety of methods Mutual Sacings Bank list their stock as, and were valid at the time of original publication of this press release.

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