First BancTrust Corporation Reports An Increase In Earnings Per Share And Increases Quarterly Cash Dividend

CHAMPAIGN, Ill., Aug. 8, 2016 /PRNewswire/ -- First BancTrust Corporation (the "Company") (OTCQX: FIRT) today reported 2016 second quarter net income of 42 cents per diluted share, compared with 36 cents per diluted share for the same period in the prior year. The year to date net income of $1.56 million compared to $1.44 million for the same period in the prior year represents a 7.67 percent increase in net income available to common stockholders.

"The second quarter and year over year results were characterized by a solid increase in earnings per share primarily as a result of continued stock repurchase activity and increased core earnings," stated Jack Franklin, the Company's President and Chief Executive Officer.

Balance Sheet Summary

• Total assets of the Company as of June 30, 2016 were $446.30 million compared with $450.30 million at December 31, 2015, a decrease of $4.00 million or 0.89 percent.
• Total loans net of allowance for loan losses for the same period decreased by $6.98 million or 2.00 percent primarily as the result of the timing of commercial lines of credit advances and the pay down of one large commercial credit near the end of the first quarter.
• Deposits decreased $3.92 million or 1.09 percent to $355.54 million compared to the prior year end level of $359.47 million.

Franklin continued, "Business and retail activity in our markets remain strong which will allow us to continue to maintain assets and increase net interest income."

SECOND QUARTER 2016 HIGHLIGHTS

Revenue Growth

Net interest income after provision for loan loss for the second quarter of 2016 increased 3.00 percent to $3.50 million compared with $3.40 million for the second quarter of the prior year. Year over year net interest income after provision increased $245,000 or 3.66 percent. The main factors for this increase in net interest income were a stable loan interest rate environment combined with reduced interest expense as the result of the restructure of two FHLB advances.  

Second quarter 2016 noninterest income increased 7.88 percent to $1.12 million compared to $1.04 million for the same period a year ago. This increase in income was primarily due to an increase in mortgage related fee income which was somewhat offset by decreased deposit related fees. Year over year noninterest income has increased by 2.16 percent. Franklin stated, "Operationally we had another very sound quarter that was characterized by a continuing positive trend in net interest income, although continued pressure on interest margin remains a concern."

Noninterest Expense

Noninterest expense for the second quarter of 2016 decreased slightly to $3.27 million from the $3.28 million reported during the same quarter last year. Year over year noninterest expense has increased 1.33 percent with the most significant portions of the increase being in Salaries and Benefits and Data Processing.  Franklin stated, "Noninterest expense will continue to be monitored closely to ensure that it will remain within budgeted expectations."

Asset Quality

Significant asset quality measures for year to date are:

• Nonperforming Loans to Total Loans were 0.34 percent at June 30, 2016.
• Net Charge offs to Total Loans were 0.09 percent for 2016.
• ALLL to Nonperforming Loans coverage was 391.74 percent at second quarter end, 2016.

Franklin continued, "Asset quality continues to be a strength of our Company with positive trends in problem loans, nonperforming assets and net charge offs at quarter end.  Additionally, the consistent asset quality has allowed us to maintain our year to date provision for loan losses at a comparable level to the prior year."

BOARD OF DIRECTORS DECLARES QUARTERLY DIVIDEND

The Board of Directors declared a 28.57 percent increase in the Company's quarterly cash dividend.  The quarterly dividend will increase from seven cents to nine cents per common share, payable September 16, 2016 to stockholders of record at the close of business on
September 2, 2016. At this new level, the annual dividend will increase from $0.28 to $0.36 per common share.  "We have had several consistent years of earnings that have given us a solid capital base allowing for this increase," noted Franklin.

ABOUT FIRST BANCTRUST CORPORATION

First BancTrust Corporation is a holding company that owns all of the capital stock of First Bank & Trust, IL, an Illinois-chartered state bank that conducts business from its main office located in Paris, Illinois, and branch banks in Marshall, Savoy, Rantoul, Champaign and Martinsville, Illinois. On June 30, 2016, the Company had $446.30 million of total assets, $402.63 million of total liabilities and $43.68 million of stockholders' equity. First Bank & Trust, IL remains a well-capitalized bank with a Tier 1 Ratio of 10.06 percent, a Common Equity Tier 1 Capital Ratio of 12.72, a Tier 1 Capital Ratio of 12.72 percent and a Total Capital Ratio of 13.97 percent.

Footnote: 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 stock is traded Over-the-Counter (OTCQX). Investors can view First BancTrust Corporation's security quotes and profile on www.otcmarkets.com under ticker symbol, "FIRT". 

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SOURCE First BancTrust Corporation

Related Links

https://www.firstbanktrust.com