Third Century Bancorp Q2 net income jumps 92% led by net interest income
Third Century Bancorp reported unaudited net income of $719,000 for the quarter ended June 30, 2026, a 92.33% increase from $374,000 in the prior year. Net interest income rose to $2.60 million, driven by higher loan and deposit balances, while the company increased its dividend by 25%.
*this image is generated using AI for illustrative purposes only.
Third Century Bancorp reported unaudited net income of $719,000 for the quarter ended June 30, 2026, representing a 92.33% increase from $374,000 in the prior year. Earnings per share rose to $0.62 from $0.32. The growth was primarily driven by a $429,000 increase in net interest income, which reached $2.60 million, supported by higher average loan and cash balances and an improved net interest margin of 3.12%.
David A. Coffey, President and CEO, attributed the performance to strengthened core business, better pricing, and balance sheet growth. He noted that credit quality improved with fewer problem loans and a modest reserve release, while the company reduced reliance on higher-cost borrowings. Additionally, the board increased the dividend by one cent per share, a 25% increase, reinforcing its commitment to returning capital to shareholders.
For the six months ended June 30, 2026, net income increased 60.89% to $1,325,000 compared to $823,000 in the prior year. Net interest income for the period rose to $5.03 million. The company recorded a provision reversal for credit losses of $50,000 in the first half of 2026, compared to a reversal of $13,000 in the same period last year, due to ongoing credit strength and nominal charge-offs.
Financial Performance
Non-interest income for the quarter increased 22.49% to $441,000, driven by higher Trust revenue, loan fees, and service charge income. Non-interest expense rose 8.00% to $2,240,000, primarily due to increased advertising and personnel expenses.
Total assets increased $4.02 million to $353.21 million at June 30, 2026, compared to $349.19 million at December 31, 2025. Gross loans held for investment rose by $2.30 million to $223.78 million. Total deposits grew to $284.37 million from $280.09 million at the end of 2025.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net Income | $719,000 | $374,000 | +92.33% |
| Net Interest Income | $2.60 million | $2.17 million | +19.82% |
| Non-Interest Income | $441,000 | $360,000 | +22.49% |
| Earnings Per Share | $0.62 | $0.32 | +93.75% |
Balance Sheet Highlights
Stockholders’ equity was $15.62 million at June 30, 2026, compared to $13.17 million at December 31, 2025. The increase resulted from retained net income and a decrease in net unrealized loss of $1.25 million due to improved fair value of available-for-sale securities. Quarterly average equity as a percentage of average assets increased to 4.11% from 3.69%.
FHLB advances decreased by $3.0 million, or 6.67%, to $42.0 million at June 30, 2026. The weighted average rate of these advances was 3.71%, down from 3.75% at the end of 2025, with a weighted average maturity of 3.47 years.
Can Third Century Bancorp sustain the 3.12% net interest margin if interest rates continue to fluctuate?
Will the recent dividend increase be supported by future cash flow, or will it limit capital reinvestment opportunities?
How will the reduction in FHLB advances impact the company's liquidity strategy and future funding costs?
20
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
