First BancTrust Corporation Reports Positive Third Quarter Results and Declares Quarterly Cash Dividend

PARIS, Ill., Nov. 5, 2010 /PRNewswire-FirstCall/ -- First BancTrust Corporation (the "Company") (Pink Sheets: FIRT), today reported a 2010 third quarter net income available to common shareholders of $741,000 or 36 cents per diluted share, compared with net loss of $25,000 or 01 cent per diluted share, for the same period in the prior year. Year to date for 2010, the Company is reporting net income available to common shareholders of $1.8 million or 89 cents per diluted share. The Company's net income was positively impacted primarily from higher levels of net interest income accompanied by lower levels of noninterest expense and provision for loan losses, although this was partially offset by a reduction in noninterest income from the prior year.

Net Interest Income

Net interest income for the third quarter of 2010 increased 14.0 percent, or $419,000, to $3.4 million compared with $3.0 million for the third quarter of the prior year. This increase was primarily due to a 24.6% reduction in interest expense. Year over year, net interest income has increased 17.7 percent or $1.5 million. While the continued low interest rate environment has been the primary driver in the reduction of overall interest expense, this has also negatively impacted the earning potential of interest-bearing assets, particularly investments.

The provision for loan losses for the third quarter decreased from $1.6 million in 2009 to $565,000 in 2010. Year to date provision for the current year is $1.7 million versus $4.5 million for 2009. The sluggish recovery, as well as the prolonged duration of stressful economic conditions, continues to burden many borrowers resulting in the provision remaining at elevated levels.  

Noninterest Income, Expense

Third quarter 2010 noninterest income increased by $88,000 to $1.2 million compared to $1.1 million for the same period a year ago. This is primarily due to increases in net gains on loan sales and other service charges and fees resulting from increased levels of activity in the residential mortgage secondary market for the quarter. For the year, noninterest income decreased by $738,000 or 18.9 percent compared to the prior year as a result of historically high mortgage loan activity in the secondary market during the first half of 2009.

Noninterest expense for the third quarter of 2010 increased $341,000 to $2.8 million from the $2.4 million reported during the same quarter last year. The majority of this increase was the direct result of a one time reduction in 2009 of the Management Recognition Program expense. For the year, noninterest expense decreased by $286,000 or 3.4 percent. The primary reasons for the year to date reduction were decreases in occupancy expense, secondary market loan delivery expenses, professional fees, and FDIC insurance premiums.

Assets, Loans, Deposits

Total assets at September 30, 2010, were $402.3 million compared with $389.8 million at December 31, 2009, an increase of $12.5 million or 3.2 percent. During the same period, loans net of allowance for loan losses, increased by $4.0 million to $288.4 million from the 2009 level of $284.5 million.  Deposits increased by $10.2 million or 3.6 percent to $297.9 million compared with $287.7 million at year-end 2009.  

Quarterly Dividend

The Board of Directors declared a quarterly cash dividend of one cent per common share, payable December 15, 2010 to stockholders of record at the close of business on December 1, 2010.  While this dividend represents a minimal dividend level, it has been deemed appropriate by the Board of Directors and senior management. This continues the preservation of capital during the prolonged economic recovery and provides for the funding of future repayment of TARP. This dividend level will allow the Company to maintain its desired capital level to pursue a strategy to retire all preferred stock issued in exchange for TARP funds before the dividend rate under that agreement increases from 5 to 9 percent. In following this strategy, the Company will position itself to continue asset and income growth without shareholder dilution and further enhance shareholder value.

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 September 30, 2010, the Company had $402.3 million of total assets, $366.1 million of total liabilities and $36.2 million of stockholders' equity. First Bank & Trust, S. B. remains a well capitalized bank with a Tier 1 Ratio of 9.85 percent, a Tier 1 Risk-Based Ratio of 13.82 percent, and a Total Risk Based Ratio of 15.07 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) on Pink Sheets.  Investors can view First BancTrust Corporation's security quotes and profile on www.pinksheets.com under ticker symbol "FIRT".

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SOURCE First BancTrust Corporation