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

MENDOTA, Ill., Oct. 28, 2026 /PRNewswire/ -- Tri-County Financial Group, Inc. (the "Company") (OTCQX: TYFG) today announced financial results for the third quarter of 2026.

Net income for the third quarter of 2026 was $3.4 million ($1.39 per share), compared to $3.7 million ($1.56 per share) during the third quarter of 2025, which is approximately an 8% decrease.  During the third quarter, we terminated our mortgage company, First State Mortgage, which had an impact on net income for the quarter with closing costs to wind down the operations.  The net loss for First State Mortgage was $1.7 million year-to-date at September 30, 2026, compared to a net loss of $0.7 million for the same period in 2025.  Overall, net income was $11.9 million ($5.00 per share) for the nine-month period ended September 30, 2026, compared to $9.8 million ($4.09 per share) for the nine-month period ended September 30, 2025. 

Net interest income was $14.5 million during the quarter ended September 30, 2026, compared to $13.0 million in the same period of 2025, an increase of 12%. 

Non-interest income was $3.5 million for the third quarter of 2026, a decrease of $0.9 million, or 20%, compared to $4.4 million during the quarter ended September 30, 2025.  

Non-interest expense was $12.9 million during the quarter ended September 30, 2026, compared to $12.1 million for the third quarter of 2025, an increase of $0.8 million, or 7%. 

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 $13.0 million year-over- year and totaled $141.1 million at September 30, 2026, as compared to $154.1 million at September 30, 2025. 

Total loans increased $3.6 million, or 0.3%, to $1.30 billion at September 30, 2026, from the same period last year.  Nonperforming loans as a percentage of total loans were 0.53% as of September 30, 2026, compared to 0.54% at September 30, 2025.

The total credit loss expense was $0.4 million for the quarter ended September 30, 2026, compared to a credit loss expense of $0.3 million for the quarter ended September 30, 2025.  The allowance for credit loss was $15.3 million at September 30, 2026 and represented 1.17% of gross loans, compared to $14.8 million at September 30, 2025 and 1.13% of gross loans.  Asset quality remains strong overall, with a slight decrease in nonperforming loans year-over-year.   

Total deposits increased by $34.3 million, year-over-year.  Total deposits were $1.287 billion at September 30, 2026, which consisted of approximately $10.0 million of brokered deposits.  Total deposits were $1.253 billion at September 30, 2025, which consisted of approximately $28.9 million of brokered deposits.  Without factoring in brokered deposits, total deposits increased approximately $52.9 million year-over-year.  Federal Home Loan Bank (FHLB) advances were $72.9 million and $121.9 million at September 30, 2026 and 2025, respectively. 

On September 8, 2026, the Board of Directors declared a regular dividend of $0.28 per share, payable October 8, 2026, to shareholders of record on September 30, 2026.

In announcing the results, Tri-County Financial Group, Inc. President and CEO Kirk Ross, stated, "Our third quarter highlights a solid quarter with strong growth in net interest income and core earnings.  In August 2026, the Company entered into a definitive agreement with HBT Financial, Inc. ("HBT"), and we have had additional merger costs related to such a transaction as well as additional costs as we continue to close our mortgage subsidiary.  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 parent company of First State Insurance. Tri-County Financial Group, Inc. shares are quoted under the symbol TYFG and traded on OTCQX.

Note:  This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  Such statements often include words such as "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would," and "could," as well as the negative of such words.  Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements due to various factors, including operating; legal and regulatory risks (including changes in the interest rate environment, which could adversely affect our revenues and expenses); changing economic and competitive conditions; local, national and international political conditions (including international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains and increase the volatility of financial markets); and other risks and uncertainties beyond our control.  Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise. 

Contact:

Lana Eddy, Secretary
[email protected] 
815.538.2265

Important Information and Where to Find It

In connection with the proposed transaction HBT has filed materials with the SEC, including a Registration Statement on Form S-4 of HBT that included a proxy statement of Tri-County Financial Group, Inc. and a prospectus of HBT. The Registration Statement has been declared effective by the SEC, and on or about September 16, 2026, HBT and Tri-County Financial Group, Inc. mailed a definitive proxy statement/prospectus to the stockholders of Tri-County Financial Group, Inc. in connection with its special meeting of stockholders to be held on October 29, 2026. This news release is not a substitute for the proxy statement/prospectus or the Registration Statement or for any other document that HBT or Tri-County Financial Group, Inc. may file with the SEC and send to Tri-County Financial Group, Inc.'s stockholders in connection with the proposed transaction. TRI-COUNTY FINANCIAL GROUP, INC. STOCKHOLDERS ARE URGED TO CAREFULLY AND THOROUGHLY READ THE PROXY STATEMENT/PROSPECTUS AND THE REGISTRATION STATEMENT, AS MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY HBT WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT HBT, TRI-COUNTY FINANCIAL GROUP, INC., THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED MATTERS.

Investors may obtain free copies of the Registration Statement and proxy statement/prospectus, as each may be amended from time to time, and other relevant documents filed with the SEC by Tri-County Financial Group, Inc. or HBT (when they become available) through the website maintained by the SEC at www.sec.gov.

Participants in the Proxy Solicitation

Tri-County Financial Group, Inc., HBT, and their respective directors and certain of their executive officers and other members of management and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from Tri-County Financial Group, Inc.'s stockholders in connection with the proposed transaction. Information regarding the executive officers and directors of HBT is included in its definitive proxy statement for its 2026 annual meeting filed with the SEC on April 16, 2026. Information regarding the executive officers and directors of Tri-County Financial Group, Inc is included in the proxy statement/prospectus and the Registration Statement on Form S-4. Free copies of these documents may be obtained as described in the paragraphs above.

No Offer or Solicitation

Communications in this news release do not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

SOURCE Tri-County Financial Group, Inc