FIRST BANKERS TRUSTSHARES, INC. First Bankers Trustshares, Inc.
1201 Broadway
P.O. Box 3566
Quincy, Il 62305-3566
October 28 2022
3rd Quarter 2022 Financial Highlights
Investor Information
Stock Transfer Agent:
Dear Valued Shareholders,
On behalf of First Bankers Trustshares, Inc., the Board of Directors, the executive management team and all of our dedicated employees, I am pleased to update you on the company's third quarter results.
Through the first three quarters of the year we are fortunate to have navigated past the end of the pandemic period and sharpened our focus on executing against our strategic plan. This has led to above-peer loan growth, accelerated earnings, provided a solid liquidity base and built upon already strong regulatory capital.
From an economic perspective, the labor market slowed moderately, though has remained generally resilient, this at a time of elevated inflation. The core consumer price index, a measure followed closely by the Federal Reserve, reached a 40-year high in September, driving an already hawkish Fed to increase interest rates by 150 basis points in the quarter, with markets anticipating similar moves in the fourth quarter.
As with virtually all banks, we have seen the effects of higher interest rates on our fixed income portfolio. Increases in rates have the effect of reducing the value of fixed income investments in the short term, even though no losses are actually incurred, unless such investments are sold. As part of the bank's balance sheet strategy and to partially mitigate the impact of rising rates, we have elected to hold a minority portion of the bank's investments to maturity.
Overall, our financial results for the quarter remained healthy. We achieved net income of $2.4 million or $0.80 per share, an increase of 1.3% from the same period a year ago. When excluding the impact of loan loss reserves released in Q3 of 2021, earnings were up 10.7%. Earnings quality remained strong, with a return on average assets of 0.82% for the quarter and on a year-to-date basis.
Total assets for First Bankers Trustshares, Inc. ended the quarter at $1.12 billion, down 3.1% from the prior quarter. Loan growth remained positive, with $9 million in net new loans added in the quarter. Deposits declined by 4.6%
versus the second quarter, reflecting a moderate drawdown of excess liquidity.
Credit quality has remained strong, with non-performing loans ("NPL's") continuing to improve. In the third quarter, NPL's fell to 1.52%, the lowest level since 2019. Allowance for loan losses were unchanged from the prior quarter, as new loan growth offset the impact of improved credit quality.
Net interest margin increased to 2.53%, marking the fifth consecutive quarterly improvement. Increasing loan and bond yields more than offset an increase in funding costs.
Non-interest income of $1.8 million for the quarter was $0.2 million higher versus Q2. Mortgage originations remained soft, with brokerage activities also down modestly, in line with market performance. The net sequential improvement is primarily attributable to non- recurring security sales in the second quarter.
Non-interest expense was $5.96 million in the quarter, up 3.6% from the same quarter a year ago, primarily attributable to business growth.
As previously reported, on July 1, 2019, First Bankers Trust Services, Inc. (The Trust Subsidiary) was spun off into a separate company named TI-Trust, Inc. The Company's 2019 consolidated results include TI-Trust's results through June 30, 2019.
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
Steven E. Siebers
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.
Page 2 | Financial Highlights (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||
For The Three Month Period | For the Nine Month Period | ||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||
Income Statement Data | 2022 | 2021 | % Chg | 2022 | 2021 | 2020 | |||||||||
Net Interest Income | $ | 7,210 | $ | 6,094 | 18.31 % | $ | 20,721 | $ | 17,661 | $ | 19,563 | ||||
Provision for Loan Losses | 0 | ($200) | NM % | (500) | ($30) | 1,600 | |||||||||
Noninterest Income | 1,816 | 2,425 | (25.11) % | 5,265 | 5,767 | 5,439 | |||||||||
Noninterest Expense | 5,958 | 5,750 | 3.62 % | 17,355 | 16,120 | 15,629 | |||||||||
Income Taxes | 683 | 615 | 11.06 % | 1,949 | 1,498 | 1,700 | |||||||||
Net Income | $ | 2,385 | $ | 2,354 | 1.32 % | $ | 7,182 | $ | 5,840 | $ | 6,073 | ||||
For The Three Month Period | For the Nine Month Period | ||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||
Ratios | 2022 | 2021 | % Chg | 2022 | 2021 | 2020 | |||||||||
Return on Average Assets (Excludes preferred stock dividends/ | 0.82 % | 0.77% | 6.49 % | 0.82 % | 0.67 % | 0.81 % | |||||||||
accretion.) | |||||||||||||||
Return on Average Common Stockholders' Equity | |||||||||||||||
(Calculated by dividing net income, excluding preferred stock dividends/ | |||||||||||||||
accretion, by average common stockholders' equity. Common stockhold- | |||||||||||||||
ers' equity is defined as equity less preferred stock and accumulated other | 8.96 % | 9.25% | (3.14%) % | 9.13 % | 7.83 % | 8.59 % | |||||||||
comprehensive income or loss.) | |||||||||||||||
Net Interest Margin | 2.53 % | 2.08 % | 21.63 % | 2.40 % | 2.11 % | 2.73 % | |||||||||
Allowance as a Percent of Total Loans | 2.04 % | 2.54 % | (19.69) % | 2.04 % | 2.54 % | 2.30 % | |||||||||
Dividends per Common Share Paid | $ | 0.19 | $ | 0.18 | 5.56 % | $ | 0.57 | $ | 0.54 | $ | 0.51 | ||||
Earnings per Common Share (Calculated by dividing net income | $ | 0.80 | $ | 0.76 | 5.26 % | $ | 2.36 | $ | 1.89 | $ | 1.96 | ||||
less dividends and accretion on preferred stock by the weighted average | |||||||||||||||
number of common stock shares outstanding.) | |||||||||||||||
Book Value per Common Share (Calculated by dividing | $ | 35.42 | $ | 32.89 | 7.69 % | $ | 35.42 | $ | 32.89 | $ | 31.15 | ||||
stockholders' equity, excluding preferred stock and accumulated other | |||||||||||||||
comprehensive income or loss, by outstanding common shares.) | |||||||||||||||
At September 30, | At December 31, | ||||||||||||||
Balance Sheet | 2022 | 2021 | % Chg | 2021 | 2020 | 2019 | |||||||||
Assets | $ | 1,116,544 | $ | 1,243,613 | (10.22) % | $ | 1,226,137 | $ | 1,117,675 | $ | 922,579 | ||||
Investment Securities | $ | 500,756 | $ | 679,299 | (26.28) % | $ | 667,157 | $ | 542,170 | $ | 345,140 | ||||
Loans, net of Unearned Income | $ | 535,142 | $ | 476,663 | 12.27 % | $ | 478,398 | $ | 485,153 | $ | 500,599 | ||||
Deposits | $ | 915,694 | $ | 966,232 | (5.23) % | $ | 978,624 | $ | 853,302 | $ | 727,656 | ||||
Short-term and Other Borrowings | $ | 131,286 | $ | 150,494 | (12.76) % | $ | 126,273 | $ | 137,904 | $ | 81,572 | ||||
Junior Subordinated Debentures | $ | 10,310 | $ | 10,310 | 0.00 % | $ | 10,310 | $ | 10,310 | $ | 10,310 | ||||
Stockholders' Equity (excludes accumulated other comprehensive | $ | 105,855 | $ | 101,468 | 4.32 % | $ | 103,214 | $ | 97,606 | $ | 91,711 | ||||
income or loss.) | |||||||||||||||
For The Nine Month Period | For The Years | ||||||||||||||
Ended September 30, | Ended December 31, | ||||||||||||||
Stock Value Per Common Share Information | 2022 | 2021 | % Chg | 2021 | 2020 | 2019 | |||||||||
Price/Earnings ratio | 8.6 | 12.1 | (28.93) % | 11.9 | 10.9 | 11.6 | |||||||||
Stock Price-High | $ | 31.45 | $ | 32.25 | (2.48) % | $ | 32.25 | $ | 33.50 | $ | 36.00 | ||||
Low 1 | $ | 26.00 | $ | 27.84 | (6.61) % | $ | 27.84 | $ | 24.00 | $ | 30.05 | ||||
Ending | $ | 27.00 | $ | 30.50 | (11.48) % | $ | 31.45 | $ | 27.75 | $ | 31.20 | ||||
Book Value per Common Share 2 | $ | 35.42 | $ | 32.89 | 7.69 % | $ | 33.46 | $ | 31.54 | $ | 29.68 | ||||
Price/Book Value per Common Share | 0.76 | 0.93 | (18.28) % | 0.94 | 0.88 | 1.05 | |||||||||
Common Shares Outstanding | 2,988,481 | 3,084,736 | 3,084,736 | 3,094,598 | 3,089,773 | ||||||||||
- Low and high stock prices for years prior to 2022 had minor errors that have been corrected
- Book Value excludes other accumulated comprehensive income
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Disclaimer
First Bankers Trustshares Inc. published this content on 28 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2022 14:09:09 UTC.
