Tri-County Financial Group, Inc. Reports Second Quarter 2026 Financial Results

MENDOTA, Ill. , July 29, 2026 /PRNewswire/ -- Tri-County Financial Group, Inc. (the "Company") (OTCQX: TYFG ) today announced financial results for the second quarter of 2026. Net income for the second quarter of 2026 was $4.1 million ($1.73 per share), compared to $3.5 million ($1.47 per share) during the second quarter of 2025, which is approximately a 17% increase. Net income was $8.6 million ($3.61 per share) for the six-month period ended June 30, 2026, compared to $6.1 million ($2.54 per share) for the six-month period ended June 30, 2025. Net interest income was $14.2 million during the quarter ended June 30, 2026, compared to $12.2 million in the same period of 2025, an increase of 16%. Non-interest income was $4.4 million for the second quarter of 2026, a decrease of $0.3 million, or 5%, compared to $4.7 million during the quarter ended June 30, 2025. Non-interest expense was $11.8 million during the quarter ended June 30, 2026, compared to $12.2 million for the second quarter of 2025, a decrease of $0.4 million, or 3%. Our investment portfolio consists entirely of debt securities classified as available-for-sale; therefore, unrealized gains and losses are reflected in accumulated other comprehensive income within stockholders' equity. None of our securities are classified as held-to-maturity. The investment portfolio decreased $0.5 million year-over- year and totaled $147.6 million at June 30, 2026, as compared to $148.2 million at June 30, 2025. Total loans decreased $13.7 million, or 1%, to $1.29 billion at June 30, 2026, from $1.30 billion at June 30, 2025. Nonperforming loans as a percentage of total loans were 0.46% as of June 30, 2026, compared to 0.29% at June 30, 2025. The total credit loss expense was $1.1 million for the quarter ended June 30, 2026, compared to a credit loss recovery of $0.1 million for the quarter ended June 30, 2025. The increase this quarter is predominantly attributed to credit loss expense on unfunded commitments, which had an increase of $51 million from the prior quarter, and resulted in a reserve adjustment of $1.2 million this quarter. The allowance for credit loss was $14.8 million at June 30, 2026 and represented 1.15% of gross loans, compared to $14.7 million at June 30, 2025 and 1.13% of gross loans. Asset quality remains strong overall, despite a slight increase in nonperforming loans year-over-year. Total deposits increased by $28.0 million, year-over-year. Total deposits were $1.297 billion at June 30, 2026, which consisted of approximately $10.0 million of brokered deposits. Total deposits were $1.269 billion at June 30, 2025, which consisted of approximately $32.5 million of brokered deposits. Without factoring in brokered deposits, total deposits increased approximately $50.5 million year-over-year. Federal Home Loan Bank (FHLB) advances were $45.9 million and $86.9 million at June 30, 2026 and 2025, respectively. On June 9, 2026, the Board of Directors declared a regular dividend of $0.28 per share, payable July 9, 2026, to shareholders of record on June 30, 2026. In announcing the results, Tri-County Financial Group, Inc. President and CEO Kirk Ross, stated, "Our second quarter highlights another solid quarter with strong growth in net interest income and continued improvement in our net interest margin. Our earnings continue to improve with increased yields on our earning assets and lower funding costs. Our focus remains on building long-term relationships, supporting our local communities, and managing risk. While competition for deposits remains elevated, we are confident in our strategy and our ability to deliver consistent, relationship-driven service. " Tri-County Financial Group, Inc. is the parent holding company for First State Bank, with offices in Mendota, Batavia, Bloomington, Champaign, Geneva, LaMoille, McNabb, North Aurora, Ottawa, Peru, Princeton, Rochelle, Shabbona, St. Charles, Streator, Sycamore, Waterman and West Brooklyn. First State Bank is the par...