Third Century Bancorp Releases Third Quarter Earnings

Business Wire,  Oct 31, 2007  

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FRANKLIN, Ind. -- Robert D. Heuchan, President and CEO of Third Century Bancorp (OTCBB:TDCB), the holding company of Mutual Savings Bank, announced that for the quarter ended September 30, 2007, net income amounted to $52,000, or $0.04 per share, a decrease of 35.80% from the $81,000 in net income, or $0.05 per share, for the quarter ended September 30, 2006. For the nine months ended September 30, 2007, net income amounted to $165,000, or $0.11 per share, a decrease of 54.42% from $362,000, or $0.24 per share, for the nine months ended September 30, 2006.

The decrease in net income for the quarter ended September 30, 2007 as compared to the quarter ended September 30, 2006 was primarily due to a decrease of $39,000 or 3.33% in net interest income, which was offset by an increase of $18,000 or 8.37% in other income. The majority of the increase in other income was due to an increase of $12,000 or 922.62% in fees collected on loans sold to and underwritten for another bank.

Total assets increased $246,000 at September 30, 2007 to $133.7 million from $133.5 million at December 31, 2006. Investment securities held to maturity increased $1.3 million or 24.71%. The increase in investments was attributable to the investment of deposits received during the nine month period. This increase was offset by decreases in interest-bearing demand deposits of $771,000 or 8.69%, which largely resulted from the repurchasing of the Company's stock.

Deposits increased to $89.6 million at September 30, 2007 from $88.6 million at December 31, 2006, an increase of $1.0 million or 1.19%. Savings, money market and NOW account balances increased to $42.9 million and demand deposits increased to $10.3 million at September 30, 2007, which represented increases of $2.8 million or 6.91% and $688,000 or 7.17%, respectively. These increases were offset by a decrease of $2.4 million or 6.17% in time deposits.

Stockholders' equity decreased by $879,000 or 4.52% to $18.5 million at September 30, 2007 from $19.4 million at December 31, 2006. For the quarter ended September 30, 2007, the Company completed its stock repurchase program approved by its Board on November 17, 2006. The Company paid $1.0 million to repurchase 89,426 shares and paid year-to-date cash dividends of $192,000.

On September 28, 2007, the Company announced it filed a Form 15 with the SEC to deregister its common stock. Commenting on the announcement, Robert D. Heuchan, President and Chief Executive Officer, said, "The decision by the board of the directors of the Company to deregister was made after careful consideration of the advantages and disadvantages of being a public company and the high costs and demands on management's time arising from compliance with the many SEC and Sarbanes-Oxley requirements. We believe deregistration will be a significant benefit to the Company by reducing expenses and permitting management to focus its energies to operating the 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, in Indianapolis at 5630 South Franklin Road, as well as in Nineveh and Trafalgar, Indiana.

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1 The calculation of this ratio includes a $2.00 per share return of capital paid May 8, 2006.

2 The calculation of this ratio does not include the return of capital to shareholders.

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