First BancTrust Corporation Reports Improved Second Quarter Results and Declares Quarterly Cash Dividend
Year over year results
- Net Interest Income - increases by $691,970 or 10.68%
- Non Interest Income - increases by $67,440 or 3.45%
- Non Interest Expense - increases by $250,483 or 4.69%
- Provision for loan losses - decreases by $134,000 or 11.83%
- Net Income available to common shareholders - increases by $383,293 or 34.91%
PARIS, Ill., Aug. 5, 2011 /PRNewswire/ -- First BancTrust Corporation (the "Company") (OTCQB: FIRT), today reported a 2011 second quarter net income available to common shareholders of $771,257 or 37 cents per diluted share, compared with $550,532 or 27 cents per diluted share, for the same period in the prior year. This is an improvement of $61,400 over the previous quarter's performance in net income available to common shareholders. The Company's net income was positively impacted primarily by an increase in net interest income and a decrease in the provision for loan losses, although this was partially offset by an increase in noninterest expense.
Net Interest Income
Net interest income for the second quarter of 2011 increased 12.10 percent, or $396,997, to $3.68 million compared with $3.28 million for the second quarter of the prior year. This increase was primarily due to a 30.21 percent decrease in interest expense. While the continued low interest rate environment has been the primary driver in the reduction in overall interest expense, the retirement of a $10 million Federal Home Loan advance in February also contributed to this year over year reduction. The low rate environment continues to negatively affect the earning potential of interest-bearing assets, particularly investments.
The provision for loan losses for the second quarter decreased 9.18 percent from $550,000 in 2010 to $499,500 in 2011. While there was a decrease in the provision for loan losses, the allowance for loan loss to total loan ratio increased from the year end figure of 1.38 percent to 1.58 percent at June 30, 2011. The sluggish recovery and extended duration of stressful economic conditions continue to burden many borrowers and has resulted in the sustained elevated levels of the provision for loan losses.
Noninterest Income, Expense
Second quarter 2011 noninterest income increased minimally by $1,172 to $993,994 compared to $992,822 for the same period a year ago. Noninterest expense for the second quarter of 2011 increased $58,601 to $2.81 million from the $2.75 million reported during the same quarter last year. The primary reason for the increase was increases in salaries and benefits ($203,259), which was offset by decreases in other expenses ($81,120), and FDIC insurance ($44,646).
Assets, Loans, Deposits
Total assets at June 30, 2011, were $394.57 million compared with $405.38 million at December 31, 2010, a decrease of $10.81 million or 2.67 percent. During the same period, loans net of allowance for loan losses, decreased by $7.23 million to $286.04 million from the 2010 year end level of $293.27 million. The decrease in loans was the result of elevated year end numbers combined with lower than average utilization of agricultural lines of credit during 2011. Deposits decreased by $3.11 million or 1.03 percent to $298.12 million compared with $301.23 million at year-end 2010. The loan to deposit ratio as of June 30, 2011 was 97.49 percent.
Quarterly Dividend
The Board of Directors declared a quarterly cash dividend of one cent per common share, payable September 15, 2011 to stockholders of record at the close of business on September 1, 2011. The minimal dividend level has been determined appropriate for the preservation of capital in these uncertain economic times and to allow for the future repayment of TARP funds. This dividend level will allow the Company to maintain its desired capital level while simultaneously contributing to a sinking fund established by our capital plan for the purpose of retiring TARP before the five year automatic rate increase. The strategy allows the Company to position itself to continue asset and income growth with no shareholder dilution thus creating a favorable position for the company and its shareholders. Consistent earnings over the past several quarters have reaffirmed our commitment to this plan.
About First BancTrust Corporation
First BancTrust Corporation is a holding company that owns all of the capital stock of First Bank & Trust, S. B., an Illinois-chartered savings bank that conducts business from its main office located in Paris, Illinois, and branch banks in Marshall, Savoy, Rantoul, Champaign, and Martinsville, Illinois. On June 30, 2011, the Company had $394.57 million of total assets, $356.47 million of total liabilities and $38.10 million of stockholders' equity. First Bank & Trust, S. B. remains a well capitalized bank with a Tier 1 Ratio of 10.40 percent, a Tier 1 Risk-Based Ratio of 14.42 percent, and a Total Risk Based Ratio of 15.67 percent.
Footnote:
This earnings report may contain certain forward-looking statements which are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Company's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, and competition, changes in accounting principles, policies, or guidelines, changes in legislation or regulation, and other economic, competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products, and services. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning the Company and its business, including additional factors that could materially affect the company's financial results is available at www.firstbanktrust.com/firt.htm or by faxing a request for a copy of our latest press release to 217.465.0285. First BancTrust Corporation stock is traded Over-the-Counter (OTC). Investors can view First BancTrust Corporation's security quotes and profile on www.otcmarkets.com under ticker symbol, "FIRT".
… table follows …
First BancTrust Corporation |
|||||
Selected Financial Information |
|||||
(in thousands of dollars except share data) |
|||||
Balance Sheet Data |
June 30, |
Dec. 31, |
|||
2011 |
2010 |
||||
(unaudited) |
|||||
Total Assets |
$ 394,572 |
$ 405,381 |
|||
Cash And Cash Equivalents |
15,568 |
17,357 |
|||
Investment Securities |
59,373 |
60,571 |
|||
FHLB Stock |
3,749 |
3,749 |
|||
Loans Held For Sale |
370 |
303 |
|||
Loans, Net of Allowance for |
286,037 |
293,268 |
|||
Deposits |
298,117 |
301,230 |
|||
Federal Home Loan Bank Advances |
49,000 |
59,000 |
|||
Stockholders' Equity |
38,100 |
36,112 |
|||
Book Value Per Common Share |
$14.61 |
$13.69 |
|||
Summary Of Operations |
Three Months Ended |
Six Months Ended |
|||
6/30/2011 |
6/30/2010 |
6/30/2011 |
6/30/2010 |
||
(unaudited) |
(unaudited) |
||||
Interest Income |
$ 4,891 |
$ 5,019 |
$ 9,759 |
$ 10,057 |
|
Interest Expense |
1,212 |
1,737 |
2,590 |
3,580 |
|
Net Interest Income |
3,679 |
3,282 |
7,169 |
6,477 |
|
Provision For Loan Losses |
500 |
550 |
999 |
1,133 |
|
Net Interest Income After Provision For Loan Losses |
3,179 |
2,732 |
6,170 |
5,344 |
|
Noninterest Income |
994 |
993 |
2,023 |
1,956 |
|
Noninterest Expense |
2,805 |
2,747 |
5,594 |
5,343 |
|
Income Before Income Tax |
1,368 |
978 |
2,599 |
1,957 |
|
Income Tax Expense |
476 |
306 |
876 |
617 |
|
Net Income |
$ 892 |
$ 672 |
$ 1,723 |
$ 1,340 |
|
Preferred Stock Dividends and accretion |
$ 121 |
$ 121 |
$ 242 |
$ 242 |
|
Net Income Available to Common Stockholders |
$ 771 |
$ 551 |
$ 1,481 |
$ 1,098 |
|
Share Data |
|||||
Weighted Avg. Shares Outstanding - Basic |
2,068,730 |
2,068,597 |
2,068,680 |
2,068,564 |
|
Weighted Avg. Shares Outstanding - Diluted |
2,121,878 |
2,068,597 |
2,121,330 |
2,068,564 |
|
Basic Net Income Available to Common Shareholders Per Share |
$ 0.38 |
$ 0.27 |
$ 0.72 |
$ 0.53 |
|
Diluted Net Income Available to Common Shareholders Per Share |
$ 0.37 |
$ 0.27 |
$ 0.70 |
$ 0.53 |
|
Ratios Based On Net Income |
|||||
Return on Average Common Shareholders' Equity |
10.15% |
7.89% |
9.90% |
7.95% |
|
Return on Average Assets |
0.90% |
0.68% |
0.86% |
0.68% |
|
SOURCE First BancTrust Corporation
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