Tri-County Financial Group announced financial results for the second quarter of 2022.
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Net income for the second quarter of 2022 was $2.5 million ($0.99 per share), compared to $3.6 million ($1.44 per share) during the second quarter of 2021.
Net interest income was $11.2 million during the quarter ended June 30, 2022, compared to $10.6 million in the same period of 2021, an increase of 6%. The net interest margin was 3.31% for the second quarter of 2022.
Noninterest income was $2.9 million for the quarter ended June 30, 2022, a decrease of $3.0 million, or 50%, compared to $5.9 million during the quarter ended June 30, 2021. The decrease can be primarily attributed to lower mortgage volume from the prior year. First State Mortgage net income decreased by $1.6 million compared to the second quarter of 2021.
Noninterest expense was $10.3 million during the quarter ended June 30, 2022, compared to $11.2 million for the second quarter of 2021, a decrease of $0.9 million, or 8%. The decrease is related primarily to variable expenses resulting from lower mortgage activity.
Total loans increased $88 million, or 9%, to $1.11 billion from $1.02 billion at June 30, 2021. Commercial real estate and agricultural lending activity increased compared to the prior year. Nonperforming loans as a percent of total loans were 0.19% as of June 30, 2022, down from 0.43% at June 30, 2021.
The provision for loan loss remained at $0.9 million as asset quality continues to remain strong. The Company provided $450,000 during the second quarter of 2022 compared to the same amount in the prior year period. The allowance for loan loss ended at $16.97 million at June 30, 2022 and represented 1.54% of gross loans compared to 1.56% at June 30, 2021.
Deposits increased $7.6 million, or 1%, year-over-year. The investment portfolio rose $134.3 million or 106% year over year and totaled $261.4 million at June 30, 2022 due to the significant increase in liquidity from net loan runoff and direct deposit of government relief funds.
The Company's capital levels remain solid as of June 30, 2022, with a Tier 1 leverage ratio of 9.17%, up from 8.96% last year.
On June 14, 2022, the Board of Directors declared a regular dividend of $0.20 per share payable July 7, 2022, to shareholders of record on June 30, 2022. ■