Third Century Bancorp Signals Steady Return to Shareholders

Third Century Bancorp (OTC: TDCB), the holding entity behind Mutual Savings Bank in Indiana, confirmed a dividend of $0.05 per share on February 26, 2026. The declaration, issued by the Board of Directors, sets March 18, 2026 as the record‑date and April 2, 2026 as the payment date.

The announcement, released through Business Wire and subsequently reported by Seeking Alpha and Wallstreet Online, underscores the company’s commitment to delivering tangible value to its investors while maintaining a conservative payout policy. The dividend amount represents a modest, yet consistent, distribution relative to the bank’s earnings and cash flow profile.

Contextualizing the Dividend

  • Asset base: Mutual Savings Bank reported $349 million in assets at the end of 2025, a figure that reflects steady growth since its founding in 1890.
  • Operational footprint: The bank’s headquarters and principal branches—located at 80 East Jefferson Street (Franklin), 1124 North Main Street (Franklin), plus locations in Trafalgar and Greenwood—serve a broad customer base in Johnson County and surrounding regions.
  • Financial positioning: With a market capitalization of approximately $17 million and a price‑earnings ratio of 9.07, the stock sits on a valuation that suggests room for upside as the bank continues to expand its deposit and loan portfolios.

The dividend aligns with the bank’s historical payout practices, which have favored regular, modest distributions over large, sporadic payments. This approach is consistent with the institution’s emphasis on stability and prudent risk management, qualities that are highly valued by its primarily local client base.

Forward‑Looking Implications

While the declared dividend is modest, it serves as a signal that Third Century Bancorp remains financially robust enough to reward shareholders without compromising its strategic investment in growth initiatives. The company’s focus on community banking positions it to benefit from a stable, low‑interest‑rate environment, where deposit inflows can be efficiently converted into loan growth.

Investors observing the $0.05 per share payout should note that, given the current share price near $14.60, the dividend yield hovers around 0.34 %—below the broader market average for dividend‑paying banks but reflective of a conservative payout strategy. As the bank continues to strengthen its asset base and enhance service offerings, a potential increase in the dividend could be anticipated if earnings and cash flow allow.

In summary, Third Century Bancorp’s latest dividend declaration confirms its ongoing dedication to shareholder value while preserving the financial discipline necessary to sustain its community‑focused banking model.