Tri-County Financial Group Reports 17.4% Net Income Increase in Q2 2026

Tri-County Financial Group, Inc. reported its financial results for the second quarter and first half of 2026, showing a net income of $4.1 million for the quarter, a 17.4% increase from $3.5 million in the same period last year. For the first six months, net income reached $8.6 million, up 41.7% from $6.1 million in 2025. The company’s diluted earnings per share rose to $1.67 for the second quarter and $3.53 for the first half, compared to $1.46 and $2.52, respectively, in the prior year. The increase in profitability was attributed to a rise in net interest income, which grew by 15.7% to $14.2 million in the second quarter and by 16.6% to $27.8 million in the first half, driven by higher loan yields.

Total assets decreased to $1.56 billion as of June 30, 2026, down 2.1% from $1.60 billion at the end of 2025. This decline was primarily due to a reduction in the loan portfolio, which fell by approximately $42.4 million, or 3.2%, during the first half of the year. The company’s total loans, net of the allowance for credit losses, amounted to $1.26 billion, reflecting a decrease in commercial real estate and agricultural loans. The allowance for credit losses was $14.8 million, slightly down from $15.0 million at year-end 2025.

In terms of operational metrics, Tri-County Financial Group reported a total deposit balance of $1.30 billion, a decrease of $7.1 million from the previous year-end. The company’s noninterest income for the second quarter was $4.4 million, a decline of 5.5% from the prior year, largely due to reduced mortgage banking income, which fell by 18.4% to $2.7 million. However, insurance services revenue increased by 11.3% to $355,000, contributing positively to the overall noninterest income.

Strategically, the company announced a merger agreement with HBT Financial, Inc., which is expected to close in the near future. Under the terms of the agreement, Tri-County Financial Group will merge with HBT Financial, with shareholders receiving either cash or stock in the new entity. This merger is anticipated to enhance the company’s market position and operational capabilities. The company’s management believes that the merger will provide significant benefits, including increased scale and improved financial performance.

Looking ahead, Tri-County Financial Group remains focused on maintaining its capital levels, which are classified as "well-capitalized" under regulatory standards. As of June 30, 2026, the company reported total stockholders' equity of $165.0 million, an increase of 4.6% from the previous year. The company’s management is optimistic about future growth opportunities, particularly in light of the merger, and is committed to navigating the challenges posed by the current economic environment.