FIRST BANKERS TRUSTSHARES, INC. 1201 Broadway
P.O. Box 3566
Quincy, Il 62305-3566
April 28, 2023
1st Quarter 2023 Financial Highlights
Investor Information
Stock Transfer Agent:
Dear Valued Shareholders,
On behalf of First Bankers Trustshares, Inc., the Board of Directors, the management team and all of our dedicated employees, I am pleased to update you on the company's progress and quarterly results.
As the broader market and banking industry had a number of notable events occur during the quarter, our focus has been to continue executing against our strategy and enable our more than thirty thousand customers to achieve their dreams.
From an economic standpoint, inflation levels started to come down from multi-decade highs, a welcome reprieve, though they remain stubbornly high. This, coupled with a tight labor market, has meant interest rates have also remained elevated, resulting in the Federal Reserve raising rates another 50 basis points during the quarter. We expect this to result in further deposit competition and potentially for net interest margins to remain challenging in the near term.
Our financial results for the quarter were healthy, with continued loan growth and improvements in credit quality helping offset tighter interest margins. We achieved net income of $2.6 million or $0.89 per share, which was $1.0 million higher versus the previous quarter and $0.5 million higher from the same quarter a year ago.
Total assets were $1.12 billion at the end of the quarter, down modestly from the prior quarter. Loan growth was up $1.6 million, with deposits down $16.6 million in the period, the latter reflective of healthy market competition for deposits.
Credit quality has remained strong and improving. Non-performing loans ("NPL's") fell to 1.32% in the quarter, down from 1.39% in the previous quarter and reaching seven consecutive quarters of improvements.
Loss reserve levels improved to 1.68% from 1.96% in the previous quarter. This marks the lowest level since 2016. Of note, the Company also adopted the Current Expected Credit Loss ("CECL") model, as required by regulation, in the first quarter. While the economic outlook remains uncertain, delinquency rates and other leading indicators continue to remain positive.
Net interest income was $6.1 million for the quarter, equating to a net interest margin of 2.24%. Margins were lower by 0.26% versus the preceding quarter, reflecting a higher cost for deposits, which outweighed the benefits achieved through higher asset yields.
Non-interest income was $1.8 million in the first quarter, 6.2% above the prior quarter. Increases in loan servicing, brokerage and insurance income offset lower deposit fee income.
Non-interest expense was $6.0 million for the quarter which was $0.7 million lower versus the previous quarter, primarily attributable to non-recurring technology investment costs in the fourth quarter.
Enclosed, please find your regular dividend check; or the funds have been deposited to your account as previously directed.
Allen W. Shafer
President/CEO
American Stock Transfer & Trust Company, LLC
Operations Center
6201 15th Avenue
Brooklyn, NY 11219 (800) 937.5449
Market Makers:
Raymond James Chicago, Il 60606 (800) 800.4693
Stifel Nicolas & Co., Inc. St. Louis, MO 63102 (800) 679.5446
Monroe Financial Partners Chicago, IL 60606
(312) 327.2530
Janney Montgomery Scott, LLC Atlanta, GA 30309
(844) 273.2189
D.A. Davidson & Co. Red Bank, NJ 07701 (800) 332.5915
Corporate Information:
First Bankers Trustshares, Inc. Phone: (217) 228.8000
Fax: (217)228.8091
Email: fbti@firstbankers.com
Corporate Officers:
Chairman of the Board of Directors
William D. Daniels
President/Chief Executive Officer
Allen W. Shafer
Chief Financial Officer
Seth H. Runkle
Secretary
Melinda K. Boyer
Directors:
Carl W. Adams Jr.
Scott A. Cisel
William D. Daniels
Mark E. Freiburg
Charles M. Gnuse
Arthur E. Greenbank
Phyllis J. Hofmeister
Kemia M. Sarraf, M.D., MPH
Richard W. Schulte
Allen W. Shafer
Steven E. Siebers
Board Emeritus
Donald K. Gnuse
This release contains information and "forward-looking statements" that relate to matters that are not historical facts and which are usually preceded by words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. These forward-looking statements are subject to significant risks, assumptions and uncertainties. Because of these and other uncertainties, our actual results may be materially different from those described in these forward-looking statements. The forward-looking statements in this release speak only as of the date of the release, and we do not assume any obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements.
Financial Highlights (Dollars in thousands, except per share data) (Unaudited) | Page 2 | |||||||||||||
For The Three Month | For the Twelve Month | |||||||||||||
Period Ended March 31, | Period Ended December 31, | |||||||||||||
Income Statement Data | 2023 | 2022 | % Chg | 2022 | 2021 | 2020 | ||||||||
Net Interest Income | $ | 6,105 | $ | 6,575 | (7.15) % | $ | 27,649 | $ | 24,124 | $ | 25,918 | |||
Provision for Loan Losses | ($1,500) | $0 | NM % | (500) | ($580) | 2,400 | ||||||||
Noninterest Income | 1,843 | 1,843 | 0.00 % | 7,003 | 7,468 | 7,519 | ||||||||
Noninterest Expense | 6,041 | 5,722 | 5.57 % | 24,087 | 21,899 | 21,099 | ||||||||
Income Taxes | 829 | 546 | 51.83 % | 2,242 | 2,103 | 2,185 | ||||||||
Net Income | $ | 2,642 | $ | 2,150 | 22.88 % | $ | 8,823 | $ | 8,170 | $ | 7,843 | |||
For The Three Month | For the Twelve Month | |||||||||||||
Period Ended March 31, | Period Ended December 31, | |||||||||||||
Ratios | 2023 | 2022 | % Chg | 2022 | 2021 | 2020 | ||||||||
Return on Average Assets (Excludes preferred stock | 0.95 % | 0.72 % | 31.94 % | 0.76 % | 0.68 % | 0.75 % | ||||||||
dividends/accretion.) | ||||||||||||||
Return on Average Common Stockholders' Equity | ||||||||||||||
(Calculated by dividing net income, excluding preferred stock dividends/ | ||||||||||||||
accretion, by average common stockholders' equity. Common | ||||||||||||||
stockholders' equity is defined as equity less preferred stock and | 9.98 % | 8.37 % | 19.24 % | 8.33 % | 8.13 % | 8.24 % | ||||||||
accumulated other comprehensive income or loss.) | ||||||||||||||
Net Interest Margin | 2.24 % | 2.27 % | (1.32) % | 2.43 % | 2.11 % | 2.62 % | ||||||||
Allowance as a Percent of Total Loans | 1.68 % | 2.27 % | (25.99) % | 1.96 % | 2.39 % | 2.50 % | ||||||||
Dividends per Common Share Paid | $ | 0.20 | $ | 0.19 | 5.56 % | $ | 0.76 | $ | 0.72 | $ | 0.68 | |||
Earnings per Common Share (Calculated by dividing net income | ||||||||||||||
less dividends and accretion on preferred stock by the weighted average | $ | 0.89 | $ | 0.70 | 27.14 % | $ | 2.92 | $ | 2.64 | $ | 2.54 | |||
number of common stock shares outstanding.) | ||||||||||||||
Book Value per Common Share (Calculated by dividing | ||||||||||||||
stockholders' equity, excluding preferred stock and accumulated | $ | 36.64 | $ | 33.97 | 7.86 % | $ | 35.78 | $ | 33.46 | $ | 31.54 | |||
other comprehensive income or loss, by outstanding common | ||||||||||||||
shares) | ||||||||||||||
At March 31, | At December 31, | |||||||||||||
Balance Sheet | 2023 | 2022 | % Chg | 2022 | 2021 | 2020 | ||||||||
Assets | $ | 1,109,829 | $ | 1,190,627 | (6.79) % | $ | 1,118,117 | $ | 1,226,137 | $ | 1,117,675 | |||
Investment Securities | $ | 468,585 | $ | 594,019 | (21.12) % | $ | 483,311 | $ | 667,157 | $ | 542,170 | |||
Loans, net of Unearned Income | $ | 552,831 | $ | 505,000 | 9.47 % | $ | 551,269 | $ | 478,398 | $ | 485,153 | |||
Deposits | $ | 896,922 | $ | 926,907 | (3.23) % | $ | 913,551 | $ | 978,624 | $ | 853,302 | |||
Short-term and Other Borrowings | $ | 133,445 | $ | 169,175 | (21.12) % | $ | 130,478 | $ | 126,273 | $ | 137,904 | |||
Junior Subordinated Debentures | $ | 10,310 | $ | 10,310 | 0.00 % | $ | 10,310 | $ | 10,310 | $ | 10,310 | |||
Stockholders' Equity (excludes accumulated other | ||||||||||||||
comprehensive income or loss.) | $ | 109,094 | $ | 104,662 | 4.23 % | $ | 106,844 | $ | 103,214 | $ | 97,606 | |||
For The Three Month | For The Years Ended | |||||||||||||
Period Ended March 31, | December 31, | |||||||||||||
Stock Value Per Common Share Information | 2023 | 2022 | % Chg | 2022 | 2021 | 2020 | ||||||||
Price/Earnings ratio | 6.2 | 10.9 | (43.12) % | 8.1 | 11.9 | 10.9 | ||||||||
Stock Price-High | $ | 23.59 | $ | 31.45 | (24.99) % | $ | 31.45 | $ | 32.25 | $ | 33.25 | |||
Low | $ | 21.55 | $ | 30.70 | (29.80) % | $ | 22.75 | $ | 27.84 | $ | 24.75 | |||
Ending | $ | 22.40 | $ | 30.95 | (27.63) % | $ | 23.59 | $ | 31.45 | $ | 27.75 | |||
Book Value per Common Share 1 | $ | 36.64 | $ | 33.97 | 7.86 % | $ | 35.78 | $ | 33.46 | $ | 31.54 | |||
Price/Book Value per Common Share | 0.61 | 0.91 | (32.97) % | 0.66 | 0.94 | .88 | ||||||||
Common Shares Outstanding | 2,977,589 | 3,080,959 | 2,986,281 | 3,084,736 | 3,094,598 | |||||||||
1 Book Value excludes other accumulated comprehensive income ("AOCI")
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Disclaimer
First Bankers Trustshares Inc. published this content on 19 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 14:16:22 UTC.
