MENDOTA, Ill., May 7, 2024 /PRNewswire/ -- Tri-County Financial Group, Inc. (The Company) (OTCQX:TYFG) today announced financial results for the first quarter of 2024. Net income for the first quarter of 2024 was $2.7 million ($1.10 per share), compared to $1.5 million ($0.62 per share) during the first quarter of 2023.  Net interest income was $10.5 million during the quarter ended March 31, 2024, compared to $10.2 million in the same period of 2023, an increase of 3%.  The net interest margin was 2.93% for the first quarter of 2024, compared to 2.94% for the first quarter of 2023.  The interest margin decreased due to higher funding costs. Non-interest income was $3.0 million for the first quarter of 2024, a decrease of $0.2 million, or 6%, compared to $3.2 million during the quarter ended March 31, 2023.   Non-interest expense was $11.2 million during the quarter ended March 31, 2024, compared to $11.3 million for the first quarter of 2023, a decrease of $0.1 million.  Our investment portfolio consists entirely of debt securities classified as available-for-sale; therefore, unrealized gains and losses are fully reported on our balance sheet.  None of our securities are classified as held-to-maturity.  The investment portfolio decreased $48.1 million or 22% year over year and totaled $169.1 million at March 31, 2024.  The reduction of the securities portfolio in 2024 helped finance our loan growth and reduce borrowings.    Total loans increased $87.1 million, or 7%, to $1.29 billion at March 31, 2024, from $1.20 billion at March 31, 2023.  Nonperforming loans as a percent of total loans were 0.63% as of March 31, 2024, compared to 0.23% at March 31, 2023. The provision for credit loss had a negative provision of $1.3 million for the quarter ended March 31, 2024.  The allowance for credit loss ended at $15.0 million at March 31, 2024 and represented 1.17% of gross loans.  Asset quality continues to remain strong and charge offs remain low.  Total deposits increased $63.1 million, or 5%, year-over-year.  However, approximately $87.5 million and $50.0 million consisted of brokered deposits at March 31, 2024 and 2023, respectively,   Federal Home Loan Bank (FHLB) advances were $74.5 million and $125 million at March 31, 2024 and 2023, respectively.  The Company's capital levels remain solid as of March 31, 2024, with a Tier 1 leverage ratio of 9.33%. On March 12, 2024, the Board of Directors declared a regular dividend of $0.20 per share, payable April 11, 2024, to shareholders of record on March 29, 2024. In announcing the results, Tri-County Financial Group, Inc. President and CEO Tim McConville, stated, "Our first quarter numbers reflected the continued slowdown in mortgage activity.  We recorded a negative provision for credit losses during the quarter, which can be attributed to adjustments in qualitative risk factors from the previous period based on improved economic outlook and other qualitative factors.  Despite the market and economic stresses, solid earnings performance existed as we remain attentive to our loan and deposit strategies.  With high interest rates impacting banks and balance sheets, we remain diligent in monitoring our local competition to offer competitive rates while continuing to provide exceptional community banking services.  We continue to look for ways to improve margins given such higher costs of funds.  We continue to believe that our diversified balance sheet and lines of business are well-positioned." 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 Mortgage Services, LLC and 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.  Actual results and trends could differ materially from those set forth in such statements due to various factors, including operating; legal and regulatory risks; changing economic and competitive conditions; and other risks and uncertainties.   TRI COUNTY FINANCIAL GROUP, INC. & SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME QUARTER ENDED MARCH 31ST (Unaudited, 000s omitted, except share data) 2024 2023 Interest Income $    18,989 $    15,475 Interest Expense 8,509 5,276 Net Interest Income 10,480