Third Century Bancorp Releases Earnings For Quarter Ended And Year To Date September 30, 2016

Third Century Bancorp ("Company") (OTCBB: TDCB), the holding company for Mutual Savings Bank ("Bank") announced it had net income of $172,000 for the quarter ended September 30, 2016, or $0.14 per common and diluted share, compared to net income of $142,000 or $0.11 per common and diluted share for the quarter ended September 30, 2015. The period over period increase was $30,000, or 21.13%. For the nine months ended September 30, 2016, the Company recorded net income of $465,000, or $0.37 per common and diluted share, compared to net income of $381,000 or $0.30 per common and diluted share for the nine months ended September 30, 2015. The period over period increase was $84,000, or 22.05%.

The increase in net income for the three month period ended September 30, 2016 as compared to the same period in 2015 was primarily a result of an increase of $77,000 in net interest income, a $331,000 increase in noninterest income and a $28,000 decrease in noninterest expense, partially offset by a $402,000 increase in provision for losses and a $4,000 increase in income tax expense. Net interest income increased due to a $90,000 increase in interest income, partially offset by a $13,000 increase in interest expense. Interest income increased due to an increase of $89,000 in interest income on loans. The increase in interest income on loans was due to higher average balances compared to the same time period in the prior year. The increase in interest expense for the three month period ended September 30, 2016 compared to the same quarter in the prior year was due to a $13,000 increase in interest expense on FHLB advances. The increase in interest expense on FHLB advances was due to higher average balances of FHLB advances outstanding.

Noninterest income increased by $331,000 to $229,000 for the quarter ended September 30, 2016 compared to $(102,000) for the quarter ended September 30, 2015 primarily due to a lower amount of charges taken to write down real estate owned compared to the same period in the prior year. During the quarter ended September 30, 2016, noninterest income included $29,000 of charges taken to write down one parcel of real estate owned to the then current fair market value compared to $303,000 of charges taken to write down two parcels of real estate owned to the then current fair market values during the quarter ended September 30, 2015. Noninterest expense declined by $28,000 to $1,112,000 for the quarter ended September 30, 2016 compared to $1,140,000 for the quarter ended September 30, 2015, due to a $65,000 decline in data processing expenses for the quarter, partially offset by increases in other noninterest expenses.