First BancTrust Corporation Reports Second Quarter Results and Declares Quarterly Cash Dividend

PARIS, Ill., Aug. 6 /PRNewswire-FirstCall/ -- First BancTrust Corporation (the "Company") (Pink Sheets: FIRT), today reported a 2010 second quarter net income available to common shareholders of $551,000 or 27 cents per diluted share, compared with net loss of $644,000 or 31 cents per diluted share, for the same period in the prior year. Year to date, the Company is reporting net income available to common shareholders of $1.1 million or 53 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 second quarter of 2010 increased 17.6 percent, or $491,000, to $3.3 million compared with $2.8 million for the second quarter of the prior year. This increase was primarily due to a 24.7% decrease in interest expense. Year over year, net interest income has increased 19.8 percent or $1.1 million. While the continued low interest rate environment has been the primary driver in the reduction in overall interest expense, this has also negatively affected the earning potential of interest-bearing assets, particularly investments.

The provision for loan losses for the second quarter decreased from $2.4 million in 2009 to $550,000 in 2010. Year to date provision for the current year is $1.1 million versus $2.9 million for 2009. The sluggish recovery, as well as the continued duration of stressful economic conditions continue to burden many borrowers resulting in the provision remaining at elevated levels.  

Noninterest Income, Expense

Second quarter 2010 noninterest income declined by $495,000 to $1.0 million compared to $1.5 million for the same period a year ago. This is primarily a result of decreases in net gains on loan sales and other service charges and fees as a result of reduced levels of activity in the residential mortgage secondary market. This activity has returned to normalized levels following historically high levels in 2009. For the year, noninterest income decreased by $826,000 or 29.7 percent compared to the prior year.

Noninterest expense for the second quarter of 2010 decreased $153,000 to $2.7 million from the $2.9 million reported during the same quarter last year. For the year, noninterest expense decreased by $628,000 or 10.5 percent. The primary reasons for the year to date reduction were decreases in salaries and benefits, secondary market loan delivery expenses, professional fees, and FDIC insurance premiums.

Assets, Loans, Deposits

Total assets at June 30, 2010, were $395.7 million compared with $389.8 million at December 31, 2009, an increase of $5.9 million or 1.5 percent. During the same period, loans net of allowance for loan losses, remained at a relatively constant level of $284 million.  Deposits increased by $4.3 million or 1.5 percent to $292.0 million compared with $287.7 million at year-end 2009. In comparison to the prior year at June 30, 2009, assets have increased $15.5 million with loans increasing $4.6 million during the same time period and deposits increasing $14.2 million.

Quarterly Dividend

The Board of Directors declared a quarterly cash dividend of one cent per common share, payable September 17, 2010 to stockholders of record at the close of business on September 8, 2010.  While this dividend represents a minimal dividend level, it has been deemed appropriate at this time in relation to the preservation of capital in still uncertain economic times and future repayment of TARP funds.

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, 2010, the Company had $395.7 million of total assets, $360.4 million of total liabilities and $35.3 million of stockholders' equity. First Bank & Trust, S. B. remains a well capitalized bank with a Tier 1 Ratio of 9.75 percent, a Tier 1 Risk-Based Ratio of 13.91 percent, and a Total Risk Based Ratio of 15.16 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