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First BancTrust Corporation Reports Earnings Per Share For The Third Quarter

CHAMPAIGN, Ill., Nov. 3, 2017 /PRNewswire/ -- First BancTrust Corporation (the "Company") (OTCQX: FIRT) today reported 2017 third quarter net income of $621,000, or $0.30 per diluted share, compared with $972,000, or $0.48 per diluted share, for the same period in the prior year. The third quarter decrease was primarily the result of a non-recurring expense of $545,000 related to the Company's 2002 Recognition and Retention Plan (the "RRP").

"The third quarter year over year results represent a 37.5% decrease in earnings per share over the third quarter of 2016," stated Jack Franklin, the Company's President and Chief Executive Officer. "While we are disappointed with this result, we are encouraged that our core income remained strong and in line with 2016 results when excluding the one-time charge and the related tax effect."

EXPANDING CORE EARNINGS CAPACITY

  • Total assets of the Company as of September 30, 2017 were $465.6 million, compared with $453.6 million at December 31, 2016, an increase of $12.0 million, or 2.6%.
  • Total loans, net of allowance for loan losses, for the same period increased by $16.6 million, or 4.8%, primarily due to increases in the commercial loan portfolio in the Champaign market.
  • Deposits increased $14.9 million, or 4.1%, to $377.8 million compared to the prior year end level of $362.9 million.

"Business and retail activity in our markets remains strong and we are well positioned to continue to grow and have positive returns for our shareholders. An appropriate balance of both loan and deposit growth contributed to the performance for the quarter. We are very pleased that we continue to produce strong growth in our Champaign market as well as the southern region of our market, including Edgar and Clark Counties," said Matt Carr, President and Chief Lending Officer at First Bank & Trust, the Company's commercial bank subsidiary.

THIRD QUARTER 2017 HIGHLIGHTS

Revenue Growth Continues

Net interest income after provision for loan loss for the third quarter of 2017 increased 3.5% to $3.7 million compared to $3.6 million for the third quarter of the prior year. Solid loan growth in the third quarter generated significant interest income and was the primary component in the increase in net interest income. Interest expense savings in the current year continue to reflect the retirement of a $5.0 million FHLB advance in April, as well as, another FHLB advance restructured in the first quarter of 2017. In addition, interest expense in the third quarter continued to benefit in cost reduction from the two FHLB advance restructures executed last year. It should be noted that an additional $70,000 was contributed to the provision for loan losses.

Third quarter 2017 noninterest income was $1.0 million during the period, a decrease of $239,000 from 2016. This decrease in noninterest income was primarily due to a decrease in net gains on loans sold into the secondary market, as mortgage activity has not been as strong as in 2016. Additionally, non-interest income was also impacted by a decrease in loan related fees. Franklin stated, "We anticipate that our net interest income will be positively impacted in the future by continued loan growth as we expand our commercial loan portfolio, as well as, the continuing effects of the FHLB restructuring."

Noninterest Expense

Noninterest expense for the third quarter of 2017 increased $452,000, or 13.6%, to $3.8 million from the $3.3 million reported during the same quarter last year. Year over year expense has increased 5.4%, with the most significant portion of the increase being the result of the previously mentioned RRP expenses. Franklin stated, "We are committed to managing our noninterest expense and we will continue to monitor our expenses closely."

Asset Quality Remains Stable

Significant asset quality measures as of September 30, 2017 are:

  • Nonperforming Loans to Total Loans were 0.8%.
  • Net Charge-offs to Total Loans were 0.3%.
  • ALLL to Nonperforming Loans coverage was 138.3%.

Carr stated, "Asset quality has remained stable quarter over quarter and, assuming normal economic conditions, we anticipate continued strong asset quality throughout 2017."

Capital Levels Remain Strong

On September 30, 2017, the Company had $465.6 million of total assets, $419.0 million of total liabilities and $46.6 million of stockholders' equity. First Bank & Trust remains a well-capitalized bank with a Tier 1 Ratio of 10.2%, a Common Equity Tier 1 Capital Ratio of 12.8%, a Tier 1 Capital Ratio of 12.8% and a Total Capital Ratio of 14.0%.

BOARD OF DIRECTORS DECLARES QUARTERLY DIVIDEND

The Board of Directors declared a quarterly cash dividend. The quarterly dividend of $0.11 per common share, payable December 15, 2017 to stockholders of record at the close of business on December 1, 2017.

ABOUT FIRST BANCTRUST CORPORATION

First BancTrust Corporation, headquartered in Champaign, Illinois, is a bank holding company that serves the Champaign, Paris, Marshall, Rantoul, Martinsville and Savoy, Illinois communities through its wholly-owned commercial bank, First Bank & Trust, which has its main office in Paris, Illinois. The Bank provides full-service commercial and consumer banking and trust and wealth management services. First BancTrust Corporation common stock is traded on the OTCQX under the ticker symbol "FIRT". Investors can view trading information and our profile on www.otcmarkets.com.

Special Note Concerning Forward Looking Statements: 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 or by faxing a request for a copy of our latest press release to 217.465.0285.

First BancTrust Corporation

Selected Financial Information

(in thousands of dollars except share data)










Balance Sheet Data






Sept. 30,


Dec. 31,







2017


2016







(unaudited)



Total Assets






$ 465,553


$ 453,548

Cash And Cash Equivalents






15,343


18,337

Investment Securities






57,645


58,210

FHLB Stock






1,345


2,610

Loans Held For Sale






832


324

Loans, Net of Allowance for Loan Losses of $4,383 and $4,686






362,952


346,346

Deposits






377,845


362,902

Federal Home Loan Bank Advances






31,000


36,000

Stockholders' Equity






46,558


43,933










Book Value Per Common Share






$22.92


$21.98










Summary Of Operations

Three Months Ended



Nine Months Ended


9/30/2017


9/30/2016



9/30/2017


9/30/2016


(unaudited)



(unaudited)

Interest Income

$ 4,716


$ 4,494



$ 13,649


$ 13,345

Interest Expense

820


793



2,388


2,462










Net Interest Income

3,896


3,701



11,261


10,883










Provision For Loan Losses

190


120



495


360










Net Interest Income After Provision For Loan Losses

3,706


3,581



10,766


10,523

Noninterest Income

1,041


1,280



3,164


3,360

Noninterest Expense

3,789


3,337



10,485


9,950










Income Before Income Tax

958


1,524



3,445


3,933

Income Tax Expense

337


552



1,218


1,406










Net Income

$ 621


$ 972



$ 2,227


$ 2,527










Share Data









Weighted Avg. Shares Outstanding - Basic

2,032,217


2,018,116



2,022,601


2,038,894

Weighted Avg. Shares Outstanding - Diluted

2,032,217


2,018,116



2,022,601


2,038,894










Basic Net Income Per Share

$ 0.30


$ 0.48



$ 1.10


$ 1.24

Diluted Net Income Per Share

$ 0.30


$ 0.48



$ 1.10


$ 1.24










Ratios Based On Net Income









Return on Average Shareholders' Equity

5.38%


8.83%



6.56%


7.76%

Return on Average Assets

0.53%


0.87%



0.64%


0.75%

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SOURCE First BancTrust Corporation