FIRST BANCTRUST CORPORATION 
By PARIS, Ill., Nov. 13 /PRNewswire-FirstCall/ -- First BancTrust Corporation (the "Company") (Pink Sheets: FIRT), today reported a 2009 third quarter net loss available to common shareholders of $3,588 or no cents per diluted share, compared with net income of $93,932 or 4 cents per diluted share, for the same period in the prior year. Year to date, the Company is reporting a loss available to shareholders of $452,916 or 22 cents per diluted share. The Company's net income was impacted primarily from an aggressive provision for loan losses combined with a significant one time special FDIC assessment expense. Strong performance in the core areas of net interest income and noninterest income have served to buffer the accelerated provision and loan loss levels as the Company continues to navigate through the current difficult economic conditions. "On a positive note, we are pleased to announce that our new 5,000 square foot branch in downtown Champaign opened for business on October 19th. This facility, strategically located in the heart of the Champaign business community, will serve as our Champaign County commercial loan center, as well as a full service depository," stated Jack R. Franklin, president and chief executive officer.
Net Interest Income
Net interest income for the third quarter of 2009 increased 19 percent, or $472,660, to $2.99 million from $2.52 million for the third quarter of the prior year, primarily due to increased interest income from growth in the loan portfolio, as well as a reduction in interest expense. Year over year, net interest income has increased 18 percent or $1.27 million. This represents a very positive aspect of our core earnings potential.
The provision for loan losses for the third quarter of 2009 increased to $1.63 million from $870,000 for the prior year. The additional provision for loan losses in the third quarter occurred primarily to provide adequate reserves to recognize the challenges of the current economic environment and to offset recognized loan losses. The impact to earnings can best be reflected in the year over year numbers with year to date 2009 provision equaling $4.51 million versus 2008 provision of $1.27 million for the same period. In this regard it should be noted that non-earning assets to total loans have decreased from a first quarter high of 2.07% to its current 1.13% level.
Noninterest Income, Expense
Third quarter 2009 noninterest income increased $179,713 to $1.12 million compared to $935,737 for the same period a year ago, primarily as a result of increases in net gains on loan sales, a one time gain on sale of securities, and other service charges and fees. The significant level of activity in the secondary market residential mortgage lending area was the major factor contributing to the increase in the gains on loan sales and other service charges and fees. Non-interest income was $1.00 million or 35 percent above 2008 year to date.
Noninterest expense for the third quarter of 2009 decreased $58,000 to $2.43 million from the $2.49 million reported during the same quarter last year. For the year, noninterest expense is $867,000 or 12 percent greater than the same period in 2008. The primary reasons for the year to date increase of $867,000 were the increases in salaries and benefits (mainly as the result of a one time event in the form of a severance package accrual), FDIC insurance premiums (including the special one-time assessment of $171,000), as well as increases in Freddie Mac delivery fees due to higher levels of secondary market mortgage loan activities. These expenses continue to be partially offset by reduced expenditures for equipment expense and data processing.
Assets, Loans, Deposits
Total assets at September 30, 2009, were $386.04 million compared with $361.65 million at December 31, 2008, an increase of $24.39 million or 7 percent. During the same period, loans, net of allowance for loan losses, increased by $15.23 million from $269.79 million to $285.02 million, an increase of 6 percent. Deposits increased by $19.11 million or 7 percent to $284.36 million compared with $265.25 million at year-end 2008.
Quarterly Dividend
The Board of Directors declared a quarterly cash dividend of one cent per common share, payable December 15, 2009 to stockholders of record at the close of business on December 1, 2009. Although the level of this dividend is not what we would normally expect to provide to our shareholders, it has been deemed an appropriate action in the preservation of capital during the current economic downturn.
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 Champaign, Marshall, Savoy, Rantoul, and Martinsville, Illinois. On September 30, 2009, the Company had $386.04 million of total assets, $352.44 million of total liabilities and $33.60 million of stockholders' equity. First Bank & Trust, S. B. remains a well capitalized bank with a Tier 1 Ratio of 9.66 percent, a Tier 1 Risk-Based Ratio of 13.35 percent, and a Total Risk Based Ratio of 14.60 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".
... tables follow ...
First BancTrust Corporation
Selected Financial Information
(in thousands of dollars except share data)
Balance Sheet Data Sept. 30, Dec. 31,
2009 2008
(unaudited)
Total Assets $386,044 $361,655
-------- --------
Cash And Cash Equivalents 15,741 12,796
------ ------
Investment Securities 54,824 49,590
------ ------
FHLB Stock 3,749 3,749
----- -----
Loans Held For Sale 970 1,457
--- -----
Loans, Net of Allowance for
Loan Losses of $3,443
and $3,520 285,023 269,794
------- -------
Deposits 284,360 265,248
------- -------
Federal Home Loan Bank Advances 59,000 59,000
------ ------
Stockholders' Equity 33,605 26,215
------ ------
Book Value Per Common Share $12.37 $12.36
------ ------
Summary Of Operations Three Months Nine Months
Ended Ended
9/30/2009 9/30/2008 9/30/2009 9/30/2008
(unaudited)
Interest Income $5,170 $5,036 $15,318 $14,909
------ ------ ------- -------
Interest Expense 2,177 2,515 6,919 7,779
----- ----- ----- -----
Net Interest Income 2,993 2,521 8,399 7,130
----- ----- ----- -----
Provision For Loan Losses 1,628 869 4,514 1,271
----- --- ----- -----
Net Interest Income After
Provision For Loan Losses 1,365 1,652 3,885 5,859
----- ----- ----- -----
Noninterest Income 1,116 936 3,897 2,896
----- --- ----- -----
Noninterest Expense 2,427 2,486 8,397 7,531
----- ----- ----- -----
Income (Loss) Before Income
Tax 54 102 (615) 1,224
-- --- ---- -----
Income Tax Expense (Benefit) (42) 8 (407) 361
--- - ---- ---
Net Income (Loss) $96 $94 $(208) $863
--- --- ----- ----
Preferred Stock Dividends $100 $- $245 $-
---- -- ---- --
Net Income (Loss) Available to
Common Stockholders $(4) $94 $(453) $863
--- --- ----- ----
Share Data
Weighted Avg. Shares
Outstanding - Basic 2,068,497 2,114,650 2,067,321 2,107,048
--------- --------- --------- ---------
Weighted Avg. Shares
Outstanding - Diluted 2,068,497 2,169,176 2,067,321 2,162,549
--------- --------- --------- ---------
Basic Net Income (Loss)
Available to Common
Shareholders Per Share $- $0.04 $(0.22) $0.41
-- ----- ------ -----
Diluted Net Income (Loss)
Available to Common
Shareholders Per Share $- $0.04 $(0.22) $0.40
-- ----- ------ -----
Ratios Based On Net Income
Return on Average Common
Shareholders' Equity -0.01% 1.38% -1.72% 4.24%
----- ---- ----- ----
Return on Average Assets 0.00% 0.11% -0.12% 0.39%
---- ---- ----- ----
SOURCE First BancTrust Corporation
