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FRANKFORT, Ky., Oct. 21, 2015 (GLOBE NEWSWIRE) -- Farmers Capital Bank Corporation (NASDAQ:FFKT) (the “Company”) reported net income of $3.8 million or $.51 per common share for the third quarter and $11.4 million or $1.47 per common share for the first nine months of 2015. Net income for the current quarter increased $330 thousand or 9.4% compared with the current-year second quarter. On a per common share basis, net income increased $.07 or 15.9% in the linked quarter comparison. Compared to their respective year ago periods, net income decreased $275 thousand or 6.7% for the current quarter and $893 thousand or 7.3% for the first nine months. On a per common share basis, net income increased $.02 or 4.1% when compared with the prior-year third quarter and $.03 or 2.1% in the nine-month comparison. The Company’s redemption of its preferred shares beginning in the second quarter of 2014 has positively impacted net income available to common shareholders in each of the comparable periods.
“High quality loan growth remains a challenge, but the modest increase we had in loans during the second quarter held steady, with an overall increase of $1.8 million for the current quarter,” says Lloyd C. Hillard, Jr., President and Chief Executive Officer of the Company. “Loans are up for the quarter despite the early payoff of two larger-balance credits totaling $9.8 million. The back-to-back quarterly increase in net loans marks the first consecutive quarterly increase since the first quarter of 2009. While we continue to maintain our strong underwriting standards, current loan demand is encouraging.”
“We continue to make progress reducing the level of our nonperforming assets, which are at the lowest level since the first quarter of 2009,” Mr. Hillard continues. “Over the past four quarters nonaccrual loans have declined $7.3 million or 47%, including $7.0 million from principal repayments. Repossessed real estate has decreased in each of the last five quarters and is at the lowest level in six years. Excluding performing restructured loans, which make up 75% of our nonperforming loans, our ratio of nonperforming assets to total assets is 1.8%.”
A summary of nonperforming assets follows for the periods indicated.
|(In thousands)||September 30,|
|Loans 90 days or more past due and still accruing||-||-||2||-||-|
|Total nonperforming loans||32,356||34,193||36,948||35,937||40,819|
|Other real estate owned||22,868||26,214||29,700||31,960||34,766|
|Other foreclosed assets||-||39||66||52||25|
|Total nonperforming assets||$||55,224||$||60,446||$||66,714||$||67,949||$||75,610|
|Ratio of total nonperforming loans to total loans||3.5||%||3.7||%||4.0||%||3.9||%||4.3||%|
|Ratio of total nonperforming assets to total assets||3.1||3.5||3.7||3.8||4.3|
Activity during the current quarter for nonaccrual loans, restructured loans, and other real estate owned follows:
|Balance at June 30, 2015||$||9,921||$||24,272||$||26,214|
|Transfers to performing status||(420||)||-||-|
|Transfers to other real estate owned and other changes, net||(799||)||-||799|
|Proceeds from sales||-||-||(3,978||)|
|Net loss on sales||-||-||(138||)|
|Balance at September 30, 2015||$||8,201||$||24,155||$||22,868|
Nonaccrual loans decreased $1.7 million or 17.3% during the quarter, driven mainly by principal payments received of $1.1 million. Principal paydowns include $338 thousand related to a single larger-balance residential real estate credit and $227 thousand related to one larger-balance credit secured by a real estate development project. Restructured loans decreased $117 thousand or 0.5% related to principal payments.
Other real estate owned properties with an aggregate carrying value of $4.1 million were sold during the quarter with a related loss of $138 thousand. Property sales for the quarter include three larger-balance commercial real estate properties sold for $2.7 million and related $174 thousand net loss in the aggregate. The company also sold one larger-balance real estate development property for $547 thousand resulting in a gain of $26 thousand.
The allowance for loan losses was $11.3 million or 1.21% of loans outstanding at September 30, 2015. At June 30, 2015 and December 31, 2014, the allowance for loan losses was $12.2 million or 1.31% and $14.0 million or 1.50% of loans outstanding, respectively. Net loan charge-offs were $24 thousand in the current three months, down $119 thousand from $143 thousand in the linked quarter. Net loan charge-offs as a percentage of outstanding loans were less than 0.01% for the current quarter compared with 0.02% for the linked quarter. Loans were $935 million at quarter-end, an increase of $1.8 million or 0.2% compared with $933 million for the linked quarter. The increase in loans marks the first back-to-back quarterly increase since the fourth quarter of 2008 and the first quarter of 2009.
Third Quarter 2015 Compared to Second Quarter 2015
Third Quarter 2015 Compared to Third Quarter 2014
Farmers Capital Bank Corporation is a bank holding company headquartered in Frankfort, Kentucky. The Company operates 35 banking locations in 22 communities throughout Central and Northern Kentucky, a data processing company, and an insurance company. Its stock is publicly traded on the NASDAQ Stock Market LLC exchange in the Global Select Market tier under the symbol: FFKT.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations, but are subject to certain risks and uncertainties that may cause actual results to differ materially. Among the risks and uncertainties that could cause actual results to differ materially are economic conditions generally and in the subject market areas, overall loan demand, increased competition in the financial services industry which could negatively impact the ability of the subject entities to increase total earning assets, and retention of key personnel. Actions by the Federal Reserve Board and changes in interest rates, loan prepayments by, and the financial health of, borrowers, and other factors described in the reports filed by the Company with the Securities and Exchange Commission (“SEC”) could also impact current expectations. For more information about these factors please see the Company’s Annual Report on Form 10-K on file with the SEC. All of these factors should be carefully reviewed, and readers should not place undue reliance on these forward-looking statements.
These forward-looking statements were based on information, plans and estimates at the date of this press release, and the Company does not promise to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Consolidated Financial Highlights-Unaudited
|(In thousands, except per share data)|
|Three Months Ended||Nine Months Ended|
|Net interest income||12,965||13,573||13,463||39,541||40,869|
|Provision for loan losses||(898||)||(264||)||(1,536||)||(2,707||)||(2,792||)|
|Net interest income after provision for loan losses||13,863||13,837||14,999||42,248||43,661|
|Income before income tax expense||5,271||4,871||5,390||15,621||16,663|
|Income tax expense||1,439||1,369||1,283||4,213||4,362|
|Less preferred stock dividends and discount accretion||-||170||450||395||1,550|
|Net income available to common shareholders||$||3,832||$||3,332||$||3,657||$||11,013||$||10,751|
|Basic and diluted net income per common share||$||.51||$||.44||$||.49||$||1.47||$||1.44|
|Loans, net of unearned interest||$||936,988||$||931,768||$||960,914||$||930,775||$||977,759|
|Weighted average common shares outstanding – |
basic and diluted
|Return on average assets||.86||%||.79||%||.91||%||.85||%||.91||%|
|Return on average equity||8.95||%||7.97||%||9.17||%||8.76||%||9.31||%|
|Cash and cash equivalents||$||107,855||$||81,622||$||100,914|
|Loans, net of allowance of $11,277, $12,199, and $13,968||923,868||921,106||917,975|
|Federal funds purchased and other short-term borrowings||34,757||27,359||28,590|
|Total liabilities and shareholders’ equity||$||1,764,755||$||1,750,413||$||1,782,606|
|End of period tangible book value per common share1||$||23.14||$||22.36||$||21.69|
|End of period per common share closing price||24.85||28.43||23.29|
1Represents total common equity less intangible assets divided by the number of common shares outstanding at the end of the period.
Mark Hampton 502 227 1668
Source:Farmers Capital Bank Corporation