- Loans Increase 15% for the Year
- Net Interest Income Improves
- Provision for Loan Losses Increased Significantly
- Fourth Quarter Net Income Declines
"The year 2008 was an exceptionally challenging year for financial institutions, as well as the economy in general. Our earnings were significantly impacted by two major events during the past year, delisting and additions beyond original projections to the provision for loan losses. We increased the balance of our loan portfolio by
"The overall quality of our loan portfolio is continually being reviewed and as such management identified certain specific credits, weakened by both economic and non-economic events, which required the recognition of actual and anticipated losses in the fourth quarter. The total amount of the provision for loan losses for the fourth quarter of
Total assets increased by
Net Interest Income
The increase in net interest income for the year was primarily the result of the increase in average interest earning assets of
Non-interest Income
Non-interest income for 2008 was
Noninterest Expense
Noninterest expense for 2008 was
Outlook
"The outlook for 2009 would indicate considerable uncertainties in the financial sector and the economy in general. With this in mind, we continue to make progress in the areas of net interest income, non-interest income, deposit growth and loan growth. Operating expenses spiked for the year of 2008 as a result of previously mentioned events, but are expected to return to normalized levels in the future. Net interest income increased significantly during the year as a result of the continued growth of quality credits in our loan portfolio which serve to build a revenue base that will contribute to our future profitability. Funding for the asset growth is concentrated in gathering lower-cost local core deposits that assist in the ongoing growth of this income stream. We will continue our marketing efforts to attract lower-cost, core deposits and utilize other lower-cost sources of funds while growing," Franklin noted.
"We continue to believe in the advantages of the community bank model that benefits our customers, shareholders, and employees. During the upcoming year, we will build on the improvement we achieved in net interest income, based on an enhanced net interest margin. We will also continue to develop new products and services that provide value to our customers and revenue to our bank while continuing to keep operating expenses in check," Franklin concluded.
Quarterly Dividend
Franklin also announced that the Board of Directors had declared a regular quarterly cash dividend of
About First BancTrust
First BancTrust Corporation is a holding company that owns all of the capital stock of First Bank & Trust, S. B., an
This press release contains forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on the operations and future prospects of the Company and its wholly-owned subsidiaries include, but are not limited to, changes in: interest rates; general economic conditions; legislative/regulatory provisions; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality of composition of the loan or investment portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company's market area; and accounting principles, policies, and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.
First BancTrust Corporation Selected Financial Information (in thousands of dollars except share data) Balance Sheet Data Dec. 31, Dec. 31, 2008 2007 (unaudited) Total Assets $361,655 $326,875 Cash And Cash Equivalents 12,796 10,339 Investment Securities 49,590 53,959 FHLB Stock 3,749 3,749 Loans Held For Sale 1,457 394 Loans, Net of Allowance for Loans Losses of $3,520 and $2,091 269,794 234,855 Deposits 265,248 232,139 Federal Home Loan Bank Advances 59,000 55,800 Stockholders' Equity 26,215 26,501 Book Value Per Common Share $12.36 $12.07
Summary Of 3 Months Ended Year Ended Operations December 31 December 31 2008 2007 2008 2007 (unaudited) (unaudited) Interest Income $5,119 $4,846 $20,028 $18,489 Interest Expense 2,555 2,740 10,334 10,274 Net Interest Income 2,564 2,106 9,694 8,215 Provision For Loan Losses 1,319 329 2,590 775 Net Interest Income After Provision For Loan Losses 1,245 1,777 7,104 7,440 Noninterest Income 988 966 3,884 3,783 Noninterest Expense 2,830 2,545 10,361 9,872 Income Before Income Tax (597) 198 627 1,351 Income Tax Expense (215) 19 146 295 Net Income $(382) $179 $481 $1,056 Share Data Weighted Avg. Shares Out. - Basic 2,056,868 2,120,031 2,094,561 2,146,063 Weighted Avg. Shares Out. - Diluted 2,056,868 2,189,251 2,148,616 2,234,141 Basic Earnings Per Share $(0.18) $0.08 $0.23 $0.49 Diluted Earnings Per Share $(0.18) $0.08 $0.22 $0.47 Ratios Based On Net Income Return on Average Stockholders' Equity -5.73% 2.70% 1.79% 4.00% Return On Average Assets -0.43% 0.23% 0.14% 0.35%
SOURCE First BancTrust Corporation