First BancTrust Corporation Reports Fourth Quarter Results and Declares Quarterly Cash Dividend

PARIS, Ill., March 9, 2012  /PRNewswire/ -- First BancTrust Corporation (the "Company") (OTCQB: FIRT), today reported a 2011 fourth quarter net income available to common shareholders of $878,602 or 41 cents per diluted share, compared with $513,732 or 25 cents per diluted share, for the same period in the prior year. This is an improvement of $364,870 over the previous year quarter's performance in net income available to common shareholders.  The Company's net income was positively impacted primarily by an increase in net interest income and a significant decrease in noninterest expense accompanied by a minimal decrease in noninterest income for the quarter year over year. Net income available to common stockholders for the year 2011 was $3.3 million or $1.61 per share which was a $983,400 improvement over the 2010 total of $2.4 million or $1.14 per share.  This 41.81% improvement year over year was primarily a result of the increase in net interest income, and to a lesser extent, to a moderate increase in total noninterest income and a slight decrease in noninterest expense, partially offset by an increase in income tax expense.

Net Interest Income

Net interest income for the fourth quarter of 2011 increased 6.20 percent, or $215,963, to $3.70 million compared with $3.49 million for the fourth quarter of the prior year. This increase was primarily due to a 33.32 percent decrease in interest expense. While the continued low interest rate environment has been the primary driver in the reduction in overall interest expense, the retirement of a $10 million Federal Home Loan Bank advance in February and another $5 million in September also contributed to this year over year reduction. Net interest income increased by $1.31 million year over year. The increase in net interest income from the year was primarily the result of a decrease in interest expense of $2.02 million.

The provision for loan losses for the fourth quarter increased 22.11 percent from $450,000 in 2010 to $549,500 in 2011. We continue to aggressively fund the allowance for loan loss (ALLL) which has resulted in the ALLL to total loan ratio increasing from the year end 2010 figure of 1.38 percent to 1.56 percent at year end 2011. 

Noninterest Income, Expense

Fourth quarter 2011 noninterest income decreased by $64,833 or 4.87% to $1.27 million compared to $1.33 million for the same period a year ago. Noninterest expense for the fourth quarter of 2011 decreased $625,614 to $2.82 million from the $3.45 million reported during the same quarter last year. The primary reason for the decrease was a decrease in other expenses of $674,843 as a result of a one-time event in 2010. Year over year noninterest expense was $394,896 less in 2011 versus 2010. Noninterest income for 2011 was $139,820 or 3.11% greater than 2010. Areas of noninterest income increases were abstract and title fees and the increase in the cash surrender value of life insurance.

Assets, Loans, Deposits

Total assets at December 31, 2011, were $392.84 million compared with $405.38 million at December 31, 2010, a decrease of $12.54 million or 3.09 percent. During the same period, loans net of allowance for loan losses, decreased by $6.52 million to $286.75 million from the 2010 year end level of $293.27 million.  The decrease in loans was the result of elevated year end 2010 numbers combined with lower than average utilization of agricultural lines of credit during 2011. Deposits decreased by $1.78 million or 0.59 percent to $299.45 million compared with $301.23 million at year end 2010. The consolidated loan to deposit ratio as of December 31, 2011 was 95.90 percent. Declines in cash levels, as well as in the investment and loan portfolios were the primary components of the $12.54 million decline in total assets which provided the funds necessary to retire $15 million in maturing Federal Home Loan Bank advances. The significant reduction in borrowing has not only reduced our reliance on non-core funding, but has also enhanced our interest rate risk position.  

Quarterly Dividend and TARP Redemption

The Board of Directors declared a quarterly cash dividend of one cent per common share, payable March 15, 2012 to stockholders of record at the close of business on March 1, 2012.  The minimal dividend level has been determined appropriate to allow for the future repayment of remaining TARP funds. This dividend level allows the Company to maintain its desired capital level while simultaneously contributing to a sinking fund established by our capital plan for the purpose of retiring TARP. Consistent earnings over the past several quarters have allowed us to implement the plan with a 50% or $3.75 million partial redemption of TARP on January 18, 2012.

About First BancTrust Corporation

First BancTrust Corporation is a holding company that owns all of the capital stock of First Bank & Trust, S. B., an Illinois-chartered savings bank that conducts business from its main office located in Paris, Illinois, and branch banks in Marshall, Savoy, Rantoul, Champaign, and Martinsville, Illinois. On December 31, 2011, the Company had $392.84 million of total assets, $352.84 million of total liabilities and $40.00 million of stockholders' equity. First Bank & Trust, S. B. remains a well-capitalized bank with a Tier 1 Ratio of 10.10 percent, a Tier 1 Risk-Based Ratio of 13.68 percent, and a Total Risk Based Ratio of 14.94 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 https://www.firstbanktrust.com/investor-relations-center.htm 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 (OTC). Investors can view First BancTrust Corporation's security quotes and profile on www.otcmarkets.com under ticker symbol, "FIRT". 

… table follows …

First BancTrust Corporation
Selected Financial Information
(in thousands of dollars except share data)
Balance Sheet Data	Dec. 31,	Dec. 31,
	2011	2010
	(unaudited)
Total Assets	$  392,839	$  405,381
Cash And Cash Equivalents	16,585	17,357
Investment Securities	56,153	60,571
FHLB Stock	3,749	3,749
Loans Held For Sale	414	303
Loans, Net of Allowance for    Loan Losses of $4,555 and $4,097	286,751	293,268
Deposits	299,446	301,230
Federal Home Loan Bank Advances	44,000	59,000
Stockholders' Equity	39,997	36,112
Book Value Per Common Share	$15.49	$13.69
Summary Of Operations	Three Months Ended		Year Ended
	12/31/2011	12/31/2010	12/31/2011	12/31/2010
	(unaudited)		(unaudited)
Interest Income	$     4,752	$     5,060	$    19,463	$    20,170
Interest Expense	1,050	1,575	4,780	6,795
Net Interest Income	3,702	3,485	14,683	13,375
Provision For Loan Losses	550	450	2,298	2,148
Net Interest Income After Provision For Loan Losses	3,152	3,035	12,385	11,227
Noninterest Income	1,267	1,332	4,631	4,491
Noninterest Expense	2,821	3,447	11,164	11,559
Income Before Income Tax	1,598	920	5,852	4,159
Income Tax Expense (Benefit)	598	285	2,032	1,323
Net Income	$     1,000	$        635	$     3,820	$     2,836
Preferred Stock Dividends and accretion	$        121	$        121	$        484	$        484
Net Income Available to Common Stockholders	$        879	$        514	$     3,336	$     2,352
Share Data
Weighted Avg. Shares Outstanding - Basic	2,068,697	2,068,597	2,068,680	2,068,580
Weighted Avg. Shares Outstanding - Diluted	2,121,251	2,068,597	2,121,271	2,068,580
Basic Net Income Available to Common Shareholders Per Share	$       0.42	$       0.25	$       1.61	$       1.14
Diluted Net Income Available to Common Shareholders Per Share	$       0.41	$       0.25	$       1.57	$       1.14
Ratios Based On Net Income
Return on Average Common Shareholders' Equity	10.83%	7.07%	10.78%	8.26%
Return on Average Assets	1.02%	0.63%	0.96%	0.71%

SOURCE First BancTrust Corporation

RELATED LINKS
http://www.firstbanktrust.com