FRANKFORT, Ky., April 21 /PRNewswire-FirstCall/ -- Farmers Capital
Bank Corporation (NASDAQ:FFKT) (the "Company") reported net income
of $3.3 million or $.39 per common share for the quarter ended
March 31, 2009. This represents an increase of $1.3 million or $.12
per share compared to $2.0 million or $.27 per share for the linked
quarter ended December 31, 2008. Net interest income and
noninterest income increased $329 thousand or 2.4% and $1.6 million
or 31.9%, respectively, in the linked quarter comparison while
noninterest expenses decreased $1.3 million or 8.1%. Compared to
the quarter ended March 31 a year ago, net income in the current
period declined $1.1 million or $.20 per share. During January
2009, the Company received a $30.0 million equity investment by
issuing 30 thousand shares of preferred stock to the U.S. Treasury
("Treasury") through its voluntary Capital Purchase Program
("Program"). The Company also issued a warrant to the Treasury
under the Program allowing it to purchase 223,992 shares of Company
common stock at an exercise price of $20.09 per share. The issuance
of the preferred stock decreased earnings per share by $.06 in the
current quarter. Nonperforming assets were $43.9 million at March
31, 2009 compared to $40.0 million at December 31, 2008. This
represents an increase of $4.0 million or 9.9% in the linked
quarter comparison. Other real estate, which represents properties
acquired through foreclosure, totaled $14.9 million, an increase of
$487 thousand or 3.4%. Loans past due 90 days or more and still
accruing interest increased $2.2 million or 57.3% to $6.2 million.
Nonaccrual loans were $22.8 million, up $1.3 million or 5.9%.
Economic conditions continue to stress the Company's lending
portfolio, particularly real estate development and related
industries. Net charge-offs were $727 thousand and $729 thousand in
the current three months and linked quarter, respectively. Net
charge-offs as a percentage of outstanding loans (net of unearned
income) were .055% in each of these quarters. The allowance for
loan losses as a percentage of net loans outstanding increased to
1.35% at March 31, 2009 compared to 1.28% at year-end 2008. The
overall interest rate environment during the first quarter of 2009
has been more stable compared to the dramatic volatility that
occurred during 2008. However, the overall interest rate
environment remains near historic lows and has made managing the
Company's net interest margin very challenging. First Quarter 2009
Compared to Fourth Quarter 2008 -- Net income was $3.3 million in
the current quarter, up $1.3 million or 64.9% compared to $2.0
million in the fourth quarter of 2008. Per share earnings were $.39
in the current period, an increase of $.12 or 44.4% compared to
$.27 in the linked quarter comparison. The percentage increase in
per share earnings is lower than the percentage increase in net
income due to the dividends on the preferred stock issued during
the current quarter. -- Noninterest income increased $1.6 million
or 31.9% due mainly to the sale of investment securities. The
Company had net investment securities gains of $754 thousand in the
current three months compared to net investment securities losses
of $751 thousand in the linked quarter. The net loss on investment
securities in the linked quarter is primarily attributed to the
sale of the Company's entire holdings of Federal Home Loan Mortgage
Company ("Freddie") and Federal National Mortgage Association
("Fannie") preferred stock investments. -- Noninterest expenses
decreased $1.3 million or 8.1%. The decrease in noninterest
expenses were partly attributed to lower costs associated with the
merger of three of the Company's subsidiary banks, lower scheduled
intangible amortization, and lower deposit insurance expense. --
Net interest income increased $329 thousand or 2.4% mainly a result
of lower interest expense on deposits. -- The provision for loan
losses decreased $280 thousand or 14.3% and totaled $1.7 million
for the current quarter. -- Income tax expense was $871 thousand
compared to $1.4 million tax benefit in the linked quarter,
resulting in a $2.3 million decrease to net income in the
comparable periods. The linked quarter tax benefit is attributed to
the non-cash other-than-temporary impairment charge taken on the
Company's preferred stock investments of Freddie and Fannie that
occurred prior to the sale of these investments. First Quarter 2009
Compared to First Quarter 2008 -- Net income was $3.3 million in
the current quarter, a decrease of $1.1 million or 24.5% compared
to $4.4 million in the first quarter of 2008. Per share earnings
were $.39 in the current period, a decrease of $.20 or 33.9%
compared to $.59 for the first quarter a year ago. The percentage
decrease in per share earnings is greater than the percentage
decrease in net income due to the dividends on the preferred stock
issued during the current quarter. -- Net interest income decreased
$516 thousand or 3.5%. Interest income on loans declined $2.8
million or 12.4% partially offset by lower interest expense on
deposits of $2.4 million or 21.7%. -- The provision for loan losses
increased $574 thousand or 52.1% compared to a year ago. --
Noninterest income increased $338 thousand or 5.3% mainly due to a
$388 thousand increase in net gains on the sale of investment
securities and a $221 thousand increase in net gains on the sale of
loans. Service charges and fees on deposits decreased $192 thousand
or 8.1% in the comparison. -- Noninterest expenses increased $732
thousand or 5.1%. Salary and benefit expenses were relatively
unchanged at $7.5 million. Higher expenses occurred across a broad
range of line items. -- Income tax expense decreased $413 thousand
or 32.2%. The effective income tax rate was 20.9% in the current
period compared to 22.7% a year earlier. Balance Sheet -- Total
assets were $2.2 billion at March 31, 2009 and December 31, 2008,
increasing $39.0 million or 1.8% between the two periods. The
increase in assets is primarily related to $35.9 million higher
cash and equivalents and an increase in loans (net of unearned
interest) and investment securities of $6.4 million and $4.5
million, respectively. -- The increase in assets was funded mainly
by the additional equity capital raised from issuing $30.0 million
of preferred stock to the Treasury. -- Net deposits increased $8.5
million or 0.5%. -- Nonperforming loans were $29.0 million at March
31, 2009, an increase of $3.5 million or 13.8% compared to $25.5
million at December 31, 2008. -- The allowance for loan losses was
1.35% of net loans outstanding at March 31, 2009, an increase of 7
basis points compared to 1.28% at December 31, 2008. -- The
Company's regulatory capital level remains in excess of
"well-capitalized" as defined by its regulators. Farmers Capital
Bank Corporation is a financial holding company headquartered in
Frankfort, Kentucky. The Company operates 37 banking locations in
23 communities throughout Central and Northern Kentucky, a leasing
company, 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 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 (In thousands
except per share data) Three Months Ended March 31, December 31,
March 31, 2009 2008 2008 Interest income $26,329 $26,989 $30,035
Interest expense 12,090 13,079 15,280 Net interest income 14,239
13,910 14,755 Provision for loan losses 1,676 1,956 1,102 Net
interest income after provision for loan losses 12,563 11,954
13,653 Noninterest income 6,725 5,097 6,387 Noninterest expenses
15,112 16,447 14,380 Income before income tax expense 4,176 604
5,660 Income tax expense (benefit) 871 (1,400) 1,284 Net income
$3,305 $2,004 $4,376 Net Income $3,305 $2,004 $4,376 Preferred
stock dividends and discount accretion (414) Net income available
to common Shareholders $2,891 $2,004 $4,376 Per common share Basic
and diluted net income $.39 $.27 $.59 Cash dividend declared .25
.33 .33 Averages Loans, net of unearned interest $1,315,584
$1,307,561 $1,295,913 Total assets 2,225,577 2,165,341 2,136,653
Deposits 1,591,758 1,552,549 1,520,542 Shareholders' equity 195,154
160,739 171,234 Weighted Average Shares outstanding- basic and
diluted 7,357 7,354 7,374 Return on average assets .60% .37% .82%
Return on average equity 6.87% 4.96% 10.28% March 31, December 31,
2009 2008 Cash and cash equivalents $226,638 $190,775 Investment
securities 540,638 536,109 Loans, net of allowance of $17,777 and
$16,828 1,301,216 1,295,752 Other assets 172,641 179,531 Total
assets 2,241,133 2,202,167 Deposits $1,602,590 $1,594,115 Federal
funds purchased and other short-term borrowings 71,709 77,474 Other
borrowings 335,480 335,661 Other liabilities 33,3422 6,621 Total
liabilities 2,043,121 2,033,871 Shareholders' equity 198,012
168,296 Total liabilities and shareholders' Equity $2,241,133
$2,202,167 End of period book value per share (1) $23.08 $22.87 End
of period share value 15.67 24.42 End of period dividend yield (2)
6.38% 5.41% (1) Represents total common equity divided by the
number of common shares outstanding at the end of the period. (2)
Represents annualized common dividend declared divided by the end
of period share value. DATASOURCE: Farmers Capital Bank Corporation
CONTACT: Doug Carpenter of Farmers Capital Bank Corporation,
+1-502-227-1668 Web Site: http://www.farmerscapital.com/
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