Highlights Include:
- For the second quarter of 2013, earnings per share of
$0.38 were 52% over the $0.25 for the second quarter of
2012
- Provision expense down 57% from the first quarter of
2013 and down 78% from the year-ago second quarter
- Non-accrual loans down 8% in the quarter and down 34%
from year-ago; other real estate owned down 29% from the prior
quarter and 33% less than year-ago
- Redemption of all preferred stock
completed
- Back room conversions related to the consolidation of
Firstbank charters completed on schedule with little or no
disruption of customer service
- Equity ratios remained strong with affiliate banks
continuing to exceed regulatory well-capitalized
requirements
Thomas R. Sullivan, President and Chief Executive Officer of
Firstbank Corporation (Nasdaq:FBMI), announced net income of
$3,343,000 for the second quarter of 2013, increasing 39.1% from
$2,404,000 for the second quarter of 2012, with net income
available to common shareholders of $3,077,000 in the second
quarter of 2013 increasing 55.1% from $1,984,000 in the second
quarter of 2012. Earnings per share were $0.38 in the second
quarter of 2013 compared to $0.25 in the second quarter of 2012.
Returns on average assets and average equity for the second quarter
of 2013 were 0.90% and 9.1%, respectively, compared to 0.65% and
6.3% respectively in the second quarter of 2012.
For the first half of 2013, net income of $6,206,000 increased
28.7% from $4,821,000 for the first half of 2012, with net income
available to common shareholders of $5,725,000 in the first half of
2013 increasing 43.8% from $3,981,000 in the first half of 2012.
Earnings per share were $0.71 in the first half of 2013 compared to
$0.50 in the first half of 2012. Returns on average assets and
average equity for the first half of 2013 were 0.83% and 8.5%,
respectively, compared to 0.65% and 6.3% respectively in the first
half of 2012.
Mr. Sullivan stated, "The second quarter of 2013 saw significant
progress for our company. With the redemption and retirement of $17
million of our Series A Preferred Stock, we completed the
redemption of all of the preferred shares and warrants issued in
2009 as part of the U.S. Treasury's TARP Capital Purchase Program.
This redemption marked a key milestone in our company's successful
navigation of the 'great recession.'
"We saw growth in portfolio loans, which helps our earning asset
mix and hopefully is a sign of an improving economic environment.
With the growth in loans, we saw the first quarterly increase in
our yield on earning assets since the third quarter of 2007.
"We continued to make progress on reducing non-accrual loans and
other real estate owned. Getting these non-performing assets off
our balance sheet allows our lending staff to focus more on
developing new relationships and serving existing good
customers.
"The back room conversions related to the integration of our
bank charters was completed and the whole charter consolidation
project has gone well and without disruption. We continue to serve
our customers with the same high quality, timely, personal,
professional, community bank service.
"Improvement in our earnings and asset quality metrics are the
result of all of this progress, and we thank our wonderful staff
for their hard work and dedication to our customers and
company."
Provision for Loan Losses. The provision for
loan losses, at $552,000 in the second quarter of 2013, was 57%
less than the amount required in the first quarter of 2013 and was
78% less than the amount in the year-ago second quarter. Net
charge-offs of $1,161,000 in the second quarter included $798,000
that had been specifically reserved in periods prior to the
beginning of the quarter, making it unnecessary to provide the full
amount of net charge-offs in the quarter. The provision expense of
$552,000 in the second quarter of 2013 did exceed the amount of net
charge-offs that had not been previously reserved. The level of
provision expense and other expenses related to management and
collection of the loan portfolio, while coming down, continue to be
the major impediments to higher levels of profitability.
Net Interest Income. Net interest income, at
$13,191,000 in the second quarter of 2013 was 4.7%, lower than in
the second quarter of 2012, as a result of a 16 basis point lower
net interest margin compared to the year-ago quarter. More
importantly, Firstbank's net interest margin in the second quarter
of 2013 improved to 3.89% from 3.83% in the first quarter of 2013.
Although competitive pricing pressure continued to force yields
lower on some loan renewals, portfolio loans grew in the second
quarter of 2013. With the improvement in earning asset mix in the
quarter, the yield on average earning assets increased by 3 basis
points, to 4.34% in the second quarter of 2013 from 4.31% in the
first quarter of 2013. The cost of funds to average earning assets
declined by 3 basis points, to 0.45% in the second quarter of 2013
from 0.48% in the first quarter of 2013.
Non-interest Income. Total non-interest income,
at $2,973,000 in the second quarter of 2013, was 1.8% lower than in
the second quarter of 2012. Although mortgage refinance activity
remained at a historically strong level, gain on sale of mortgages,
at $1,467,000 in the second quarter of 2013, decreased 6.0%
compared to the first quarter of 2013 but was 0.5% above the
year-ago level. The category of "other" non-interest income, at
$481,000 in the second quarter of 2013, was 20% more than the
amount in the first quarter of 2013 and 4.1% more than in the
second quarter of 2012. Included in this category of income was a
$103,000 net gain on sale of other real estate owned in the second
quarter of 2013, compared to a net gain of $54,000 in the first
quarter of 2012 and a net loss of $13,000 in the second quarter of
2012. In the year-ago second quarter a non-taxable income item of
$178,000, related to a director benefit plan of an affiliate bank,
affected this category and did not recur in 2013.
Non-interest Expense. Total non-interest
expense, at $10,907,000 in the second quarter of 2013, was 1.1%
lower than the level in the second quarter of 2012. Salaries and
employee benefits were 4.3% higher than in the second quarter of
2012. The salary and wage component increased 6.0%, mostly due to
the reinstatement of normal incentive plans which were in
suspension during the year-ago second quarter. Benefits costs
decreased 1.9%. Occupancy and equipment costs were 3.3% more than
the amount in last year's second quarter mostly due to upgrades of
computer equipment and routine building maintenance. FDIC insurance
premium expense, at $276,000 in the second quarter of 2013, was 15%
less than the level in the second quarter of 2012 due to the timing
of expense recognition related to the FDIC's change in methodology
for assessing premiums based on assets rather than deposits. The
category of "other" non-interest expense, totaling $3,496,000 in
the second quarter of 2013, decreased 8.7% compared to the second
quarter of 2012. Write-downs of valuations of other real estate
owned (OREO) were $96,000 in the second quarter of 2013, well below
the $257,000 amount in the second quarter of 2012. Also affecting
this category in the second quarter of 2013 was a $270,000
write-down of a municipal note that had previously been taken as
collateral on a loan that had been charged-off in prior
periods.
Total Assets. Total assets of Firstbank
Corporation at June 30, 2013, were $1.457 billion, a decrease of
1.9% from year-ago. Total portfolio loans of $975 million increased
1.4% from the level at March 31, 2013, although reaching a level
still 1.3% less than year-ago. Commercial and commercial real
estate loans increased 0.4% in the second quarter of 2013, but were
2.7% less than year ago, and real estate construction loans
decreased 2.6% from year ago, including a 3.2% decrease in the
second quarter of 2013. Residential mortgage loans increased 2.9%
in the second quarter of 2013, but were 0.2% less than year ago.
Consumer loans increased 5.4% in the second quarter of 2013 and
were 4.3% above year ago. Firstbank continues to have ample capital
and funding resources to increase loans on its balance sheet,
although demand for funds for new ventures by quality borrowers
remains weak. Strong mortgage refinance activity has resulted in
many mortgage loans being financed in the secondary market rather
than on the balance sheet of the company. Total deposits as of June
30, 2013, were $1.208 billion, compared to $1.212 billion at June
30, 2012, a decrease of 0.3%. Core deposits at June 30, 2013, were
0.2% below the year-ago level, and they decreased $48.2 million in
the second quarter of 2013, mostly in interest bearing demand and
time deposits. Until more loan demand materializes and excess
liquidity is deployed into loans, deposit growth can receive less
emphasis.
Net Charge-offs. Net charge-offs were
$1,161,000 in the second quarter of 2013, decreasing from
$1,770,000 in the first quarter of 2013 and decreasing from
$2,192,000 in the second quarter of 2012. In the second quarter of
2013, net charge-offs annualized represented 0.48% of average
loans, down significantly from 0.73% in the first quarter of 2013
and 0.89% in the second quarter of 2012.
Allowance and Asset Quality. At the end of the
second quarter of 2013 the ratio of the allowance for loan losses
to loans was 2.08%, compared to 2.17% at March 31, 2013, and 2.18%
at June 30, 2012. Performing adjusted loans (troubled debt
restructurings, or TDRs) were $21,815,000 at June 30, 2013,
compared to $20,898,000 at March 31, 2013, and $19,274,000 at June
30, 2012. Loans past due over 90 days and accruing interest were
$18,000 at June 30, 2013, compared to $64,000 at March 31, 2013,
and reduced from the $558,000 amount at June 30, 2012. Non-accrual
loans were $11,849,000 at June 30, 2013, a decrease of 7.9% from
the level at March 31, 2013, and a decrease of 33.7% from the
$17,875,000 amount at June 30, 2012.
Other real estate owned decreased to $2,504,000 at June 30,
2013, compared to the $3,541,000 level at March 31, 2013, and was
down 33% from the $3,741,000 level at June 30, 2012.
Equity to Assets Ratio. The ratio of average
equity to average assets remained a strong 9.8% in the second
quarter of 2013, the same as in the prior quarter. The decline in
this ratio from 10.4% in the second quarter of 2012 reflects the
repurchase in 2012 of $16 million of the original $33 million
outstanding of preferred stock and the repurchase and retirement of
all outstanding warrants. On June 14, 2013, Firstbank redeemed all
of the remaining $17 million outstanding preferred stock, and at
June 30, 2013, after this redemption of preferred stock, the ratio
of equity to assets was 9.1%, still quite strong. Firstbank
Corporation's affiliate banks continue to meet regulatory
well-capitalized requirements.
Firstbank Corporation, headquartered in Alma, Michigan, is a
bank holding company using a community bank local decision-making
format with assets of $1.5 billion and 46 banking offices serving
Michigan's Lower Peninsula.
This press release contains certain forward-looking statements
that involve risks and uncertainties. When used in this press
release the words "anticipate," "believe," "expect," "hopeful,"
"potential," "should," and similar expressions identify
forward-looking statements. Forward-looking statements include, but
are not limited to, future business growth, changes in interest
rates, loan charge-off rates, demand for new loans, future
profitability, and the resolution of problem loans. Such statements
are subject to certain risks and uncertainties which could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements, including, but not limited to,
economic, competitive, governmental, regulatory and technological
factors affecting the Company's operations, markets, products,
services, interest rates and fees for services. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press
release.
| FIRSTBANK CORPORATION |
| CONSOLIDATED STATEMENTS OF
INCOME |
| (Dollars in thousands except
per share data) |
| UNAUDITED |
| |
|
|
|
|
|
| |
Three Months
Ended: |
Six Months
Ended: |
| |
Jun 30 |
Mar 31 |
Jun 30 |
Jun 30 |
Jun 30 |
| |
2013 |
2013 |
2012 |
2013 |
2012 |
| Interest income: |
|
|
|
|
|
| Interest and fees on loans |
$13,399 |
$13,284 |
$14,493 |
$26,683 |
$29,061 |
| Investment securities |
|
|
|
|
|
| Taxable |
865 |
962 |
1,183 |
1,827 |
2,404 |
| Exempt from
federal income tax |
432 |
371 |
290 |
803 |
573 |
| Short term
investments |
55 |
55 |
54 |
110 |
108 |
| Total interest income |
14,751 |
14,672 |
16,020 |
29,423 |
32,146 |
| |
|
|
|
|
|
| Interest expense: |
|
|
|
|
|
| Deposits |
1,237 |
1,350 |
1,718 |
2,587 |
3,610 |
| Notes payable and other
borrowing |
323 |
310 |
463 |
633 |
930 |
| Total interest expense |
1,560 |
1,660 |
2,181 |
3,220 |
4,540 |
| |
|
|
|
|
|
| Net interest income |
13,191 |
13,012 |
13,839 |
26,203 |
27,606 |
| Provision for loan losses |
552 |
1,278 |
2,494 |
1,830 |
4,988 |
| Net interest income after provision for loan
losses |
12,639 |
11,734 |
11,345 |
24,373 |
22,618 |
| |
|
|
|
|
|
| Noninterest income: |
|
|
|
|
|
| Gain on sale of mortgage
loans |
1,467 |
1,561 |
1,460 |
3,028 |
3,155 |
| Service charges on deposit
accounts |
1,044 |
1,020 |
1,060 |
2,064 |
2,118 |
| Gain on trading account
securities |
6 |
0 |
5 |
6 |
6 |
| Gain on sale of AFS
securities |
2 |
50 |
27 |
52 |
40 |
| Mortgage servicing |
(27) |
(136) |
15 |
(163) |
(79) |
| Other |
481 |
400 |
462 |
881 |
1,003 |
| Total noninterest income |
2,973 |
2,895 |
3,029 |
5,868 |
6,243 |
| |
|
|
|
|
|
| Noninterest expense: |
|
|
|
|
|
| Salaries and employee
benefits |
5,705 |
5,918 |
5,468 |
11,623 |
11,138 |
| Occupancy and equipment |
1,327 |
1,359 |
1,284 |
2,686 |
2,645 |
| Amortization of
intangibles |
103 |
102 |
126 |
205 |
271 |
| FDIC insurance premium |
276 |
259 |
325 |
535 |
699 |
| Other |
3,496 |
2,963 |
3,829 |
6,459 |
7,326 |
| Total noninterest expense |
10,907 |
10,601 |
11,032 |
21,508 |
22,079 |
| |
|
|
|
|
|
| Income before federal income taxes |
4,705 |
4,028 |
3,342 |
8,733 |
6,782 |
| Federal income taxes |
1,362 |
1,165 |
938 |
2,527 |
1,961 |
| Net Income |
3,343 |
2,863 |
2,404 |
6,206 |
4,821 |
| Preferred Stock Dividends |
266 |
215 |
420 |
481 |
840 |
| Net Income available to Common
Shareholders |
$3,077 |
$2,648 |
$1,984 |
$5,725 |
$3,981 |
| |
|
|
|
|
|
| Fully Tax Equivalent Net Interest Income |
$13,438 |
$13,232 |
$14,023 |
$26,670 |
$27,919 |
| |
|
|
|
|
|
| Per Share Data: |
|
|
|
|
|
| Basic Earnings |
$0.38 |
$0.33 |
$0.25 |
$0.71 |
$0.50 |
| Diluted Earnings |
$0.38 |
$0.33 |
$0.25 |
$0.71 |
$0.50 |
| Dividends Paid |
$0.06 |
$0.06 |
$0.01 |
$0.12 |
$0.07 |
| |
|
|
|
|
|
| Performance Ratios: |
|
|
|
|
|
| Return on Average Assets
(a) |
0.90% |
0.77% |
0.65% |
0.83% |
0.65% |
| Return on Average Equity
(a) |
9.1% |
7.9% |
6.3% |
8.5% |
6.3% |
| Net Interest Margin (FTE)
(a) |
3.89% |
3.83% |
4.05% |
3.86% |
4.04% |
| Book Value Per Share (b) |
$16.41 |
$16.49 |
$16.14 |
$16.41 |
$16.14 |
| Tangible Book Value per Share
(b) |
$11.92 |
$11.96 |
$11.52 |
$11.92 |
$11.52 |
| Average Equity/Average
Assets |
9.8% |
9.8% |
10.4% |
9.8% |
10.4% |
| Net Charge-offs |
$1,161 |
$1,770 |
$2,192 |
$2,931 |
$4,485 |
| Net Charge-offs as a % of
Average Loans (c)(a) |
0.48% |
0.73% |
0.89% |
0.61% |
0.91% |
| |
|
|
|
|
|
| (a) Annualized |
|
|
|
|
|
| (b) Period End |
|
|
|
` |
|
| (c) Total loans less loans held for
sale |
|
|
|
|
|
| |
|
|
|
|
|
| FIRSTBANK CORPORATION |
| CONSOLIDATED BALANCE
SHEETS |
| (Dollars in thousands) |
| UNAUDITED |
| |
|
|
|
|
| |
Jun 30 |
Mar 31 |
Dec 31 |
Jun 30 |
| |
2013 |
2013 |
2012 |
2012 |
| ASSETS |
|
|
|
|
| |
|
|
|
|
| Cash and cash equivalents: |
|
|
|
|
| Cash and due from banks |
$14,132 |
$23,275 |
$38,544 |
$29,340 |
| Short term investments |
40,298 |
90,419 |
63,984 |
64,759 |
| Total cash and cash equivalents |
54,430 |
113,694 |
102,528 |
94,099 |
| |
|
|
|
|
| Securities available for sale |
351,022 |
360,942 |
353,684 |
326,680 |
| Federal Home Loan Bank stock |
7,266 |
7,266 |
7,266 |
7,266 |
| Loans: |
|
|
|
|
| Loans held for sale |
992 |
3,022 |
2,921 |
3,857 |
| Portfolio loans: |
|
|
|
|
|
Commercial |
155,787 |
150,845 |
149,265 |
160,106 |
| Commercial real
estate |
356,137 |
358,957 |
357,831 |
365,801 |
| Residential
mortgage |
339,054 |
329,428 |
331,896 |
339,663 |
| Real estate
construction |
55,138 |
56,940 |
58,530 |
56,599 |
| Consumer |
68,688 |
65,148 |
66,240 |
65,861 |
| Total portfolio loans |
974,804 |
961,318 |
963,762 |
988,030 |
| Less allowance for loan
losses |
(20,239) |
(20,848) |
(21,340) |
(21,522) |
| Net portfolio loans |
954,565 |
940,470 |
942,422 |
966,508 |
| |
|
|
|
|
| Premises and equipment, net |
24,322 |
24,499 |
24,356 |
24,978 |
| Goodwill |
35,513 |
35,513 |
35,513 |
35,513 |
| Other intangibles |
761 |
863 |
965 |
1,177 |
| Other assets |
28,175 |
29,234 |
29,107 |
25,660 |
| TOTAL ASSETS |
$1,457,046 |
$1,515,503 |
$1,498,762 |
$1,485,738 |
| |
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
| |
|
|
|
|
| LIABILITIES |
|
|
|
|
| |
|
|
|
|
| Deposits: |
|
|
|
|
| Noninterest bearing
accounts |
$251,742 |
$243,126 |
$251,109 |
$217,824 |
| Interest bearing accounts: |
|
|
|
|
| Demand |
338,168 |
371,929 |
348,598 |
330,582 |
| Savings |
273,921 |
281,043 |
265,323 |
258,607 |
| Time |
327,596 |
343,495 |
358,791 |
386,762 |
| Wholesale CD's |
16,875 |
17,285 |
17,580 |
18,071 |
| Total deposits |
1,208,302 |
1,256,878 |
1,241,401 |
1,211,846 |
| |
|
|
|
|
| Securities sold under agreements
to repurchase and overnight borrowings |
43,661 |
43,065 |
42,785 |
45,746 |
| FHLB Advances and notes payable |
27,862 |
19,959 |
22,493 |
24,334 |
| Subordinated Debt |
36,084 |
36,084 |
36,084 |
36,084 |
| Accrued interest and other liabilities |
8,693 |
10,150 |
8,941 |
22,585 |
| Total liabilities |
1,324,602 |
1,366,136 |
1,351,704 |
1,340,595 |
| |
|
|
|
|
| SHAREHOLDERS' EQUITY |
|
|
|
|
| Preferred stock; no par value,
300,000 shares authorized, 33,000 outstanding |
0 |
16,912 |
16,908 |
16,901 |
| Common stock; 20,000,000 shares
authorized |
116,369 |
115,861 |
115,621 |
117,087 |
| Retained earnings |
15,679 |
13,085 |
10,921 |
7,397 |
| Accumulated other comprehensive income |
396 |
3,509 |
3,608 |
3,758 |
| Total shareholders' equity |
132,444 |
149,367 |
147,058 |
145,143 |
| TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$1,457,046 |
$1,515,503 |
$1,498,762 |
$1,485,738 |
| |
|
|
|
|
| Common stock shares issued and
outstanding |
8,070,268 |
8,032,661 |
8,001,903 |
7,945,647 |
| Principal Balance of Loans Serviced for
Others ($mil) |
$609.9 |
$606.7 |
$608.2 |
$595.3 |
| |
|
|
|
|
| Asset Quality Information: |
|
|
|
|
| Performing Adjusted Loans
(TDRs) (b) |
21,815 |
20,898 |
20,720 |
19,274 |
| Loans Past Due over 90
Days |
18 |
64 |
37 |
558 |
| Non-Accrual Loans |
11,849 |
12,872 |
15,668 |
17,875 |
| Other Real Estate Owned |
2,504 |
3,541 |
2,925 |
3,741 |
| Allowance for Loan Loss as a %
of Loans (a) |
2.08% |
2.17% |
2.21% |
2.18% |
| |
|
|
|
|
| Quarterly Average Balances: |
|
|
|
|
| Total Portfolio Loans (a) |
$965,722 |
$963,994 |
$968,509 |
$984,898 |
| Total Earning Assets |
1,384,833 |
1,396,999 |
1,381,004 |
1,392,597 |
| Total Shareholders' Equity |
146,755 |
147,384 |
145,186 |
157,080 |
| Total Assets |
1,489,905 |
1,508,084 |
1,496,135 |
1,508,406 |
| Diluted Shares
Outstanding |
8,118,717 |
8,063,604 |
7,994,996 |
7,995,343 |
| |
|
|
|
|
| (a) Total Loans less loans held for sale |
|
|
|
|
| (b) Troubled Debt Restructurings in Call
Reports |
|
|
|
|
| |
|
|
|
|
CONTACT: Samuel G. Stone
Executive Vice President and
Chief Financial Officer
(989) 466-7325
Firstbank Corp. (MM) (NASDAQ:FBMI)
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부터 1월(1) 2025 으로 2월(2) 2025
Firstbank Corp. (MM) (NASDAQ:FBMI)
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