Tri-County Financial TYFG

Tri County Financial Group, Inc. is a bank holding company incorporated under Delaware law that conducts its business primarily through its wholly owned subsidiary First State Bank. The company provides a full range of financial products and services to individuals, businesses and agricultural customers in north central Illinois. As of December 31 2025 it reported consolidated assets of approximately 1.6 billion dollars. Its headquarters are located in Mendota Illinois. First State Bank was founded in 1940 and has grown to operate nineteen branch offices across eighteen communities in the region. The bank emphasizes relationship banking and seeks to be the primary financial partner for the customers it serves.

The company generates revenue mainly from net interest income earned on its loan portfolio which includes commercial real estate residential mortgage and agricultural loans. Interest income is the largest contributor to earnings and reflects the spread between loan yields and funding costs. Additional revenue comes from fees on the sale of residential mortgage loans through its mortgage subsidiary insurance commissions from its insurance subsidiary and service charges on deposit accounts. The bank also earns income from trust services wealth management and other fee based activities. Mortgage subsidiary revenue fluctuates with changes in interest rates and loan demand while insurance revenue is relatively stable due to long term policy renewals.

The company operates through the following segments.

• Banking segment: First State Bank offers commercial loans real estate loans agricultural loans consumer loans deposit products and related banking services to retail commercial and public fund customers across its branch network. The bank also provides cash management services lockbox processing and electronic payment solutions to help businesses manage their finances.
• Mortgage segment: First State Mortgage Services LLC originates purchases and services residential mortgage loans primarily for sale in the secondary market while retaining some loans for portfolio income and provides mortgage lending capabilities in multiple states. The subsidiary underwrites loans follows secondary market guidelines and manages the risks associated with interest rate fluctuations.
• Insurance segment: Tri County Insurance Services Inc doing business as First State Insurance provides personal and commercial insurance products including home auto motorcycle health life and agricultural policies to clients in north central Illinois. The agency also offers risk management consulting and works with clients to tailor coverage to their specific needs.

Within the regional banking industry Tri County Financial Group holds a competitive position as a community focused bank that emphasizes local relationships and personalized service. It competes with larger national and regional banks as well as other community banks credit unions and non bank financial providers but differentiates itself through its deep knowledge of the local market and its ability to tailor products to the needs of farmers small businesses and households. The bank’s long standing presence in the area and its reputation for responsive customer service contribute to its ability to attract and retain deposits and loans. Its focus on relationship banking allows it to understand the unique credit profiles of local borrowers and to offer flexible terms that larger institutions may not provide.

The customer base consists of individual consumers small and medium sized businesses agricultural producers and public sector entities located primarily in the communities served by its nineteen branch offices. The bank serves retail depositors who maintain checking savings and money market accounts and also provides certificates of deposit and individual retirement accounts. Commercial customers include manufacturers wholesalers retailers service providers and professional firms that rely on the bank for working capital lines of credit equipment financing and commercial mortgages. Agricultural customers consist of farm operators who need operating loans equipment financing and real estate loans to support their production activities. Public sector entities such as municipalities and school districts use the bank for treasury management and public fund deposits. Specific customer names are not disclosed in the filing but the bank serves a diverse mix of retail depositors commercial borrowers and farm operators throughout north central Illinois.