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

PARIS, Ill., May 6, 2011 /PRNewswire/ --

Year over year results

• Net Interest Income  - increases by $294,973
• Non-Interest Expense – increases by $191,882
• Provision for loan losses – decreases by $83,500
• Net Income available to common shareholders – increases by $162,568

First BancTrust Corporation (the "Company") (Pink Sheets: FIRT), today reported a 2011 first quarter net income available to common shareholders of $709,857 or 33 cents per diluted share, compared with $547,289 or 26 cents per diluted share, for the same period in the prior year. This is an improvement over the previous quarter's performance of $513,732. The Company's net income was positively impacted by an increase in noninterest income and a decrease in the provision for loan losses, although this was partially offset by an increase in noninterest expense.

Net Interest Income

Net interest income for the first quarter of 2011 increased 9.23 percent, or $294,973, to $3.49 million compared with $3.20 million for the first quarter of the prior year. This increase was primarily due to a 25.24% 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 advance in February also contributed to this reduction. The low rate environment continues to negatively affect the earning potential of interest-bearing assets, particularly investments.

The provision for loan losses for the first quarter decreased 14.32% from $583,000 in 2010 to $499,500 in 2011. While there was a decrease in the provision for loan losses, the allowance for loan loss to total loan ratio increased from the year end figure of 1.38 percent to 1.54 percent at March 31, 2011. The sluggish recovery and extended duration of stressful economic conditions continue to burden many borrowers and has resulted in the sustained elevated levels of the provision for loan losses.  

Noninterest Income, Expense

First quarter 2011 noninterest income increased by $66,300 to $1.03 million compared to $963,000 for the same period a year ago. This is primarily a result of increases in net gains on loan sales and other service charges and fees as a result of the increased level of activity in the residential mortgage secondary market for the quarter. In addition, 2011 noninterest income included a one-time event in the amount of $58,500 which resulted from death benefits received on a bank owned life insurance policy.  

Noninterest expense for the first quarter of 2011 increased $191,882 to $2.79 million from the $2.60 million reported during the same quarter last year. The primary reasons for the increase were increases in salaries and benefits ($74,896), foreclosed asset expenses ($59,161) and marketing expenses ($29,186).

Assets, Loans, Deposits

Total assets at March 31, 2011, were $400.06 million compared with $405.38 million at December 31, 2010, a decrease of $5.32 million or 1.31 percent. During the same period, loans net of allowance for loan losses, decreased by $11.12 million to $282.15 million from the 2010 year end level of $293.27 million.  The decrease in loans was the result of elevated year end numbers combined with lower than average utilization of agricultural lines of credit in the first quarter. Deposits increased by $3.43 million or 1.14 percent to $304.66 million compared with $301.23 million at year-end 2010. The loan to deposit ratio as of March 31, 2011 was 93.10 percent.

Quarterly Dividend

The Board of Directors declared a quarterly cash dividend of one cent per common share, payable June 14, 2011 to stockholders of record at the close of business on June 01, 2011.  The minimal dividend level has been determined appropriate for the preservation of capital in these uncertain economic times and to allow for the future repayment of TARP funds. This dividend level will allow 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 before the five year automatic rate increase. The strategy allows the Company to position itself to continue asset and income growth with no shareholder dilution thus creating a favorable position for the company and its shareholders. Consistent earnings over the past several quarters have reaffirmed our commitment to this plan.

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 March 31, 2011, the Company had $400.06 million of total assets, $363.17 million of total liabilities and $36.89 million of stockholders' equity. First Bank & Trust, S. B. remains a well capitalized bank with a Tier 1 Ratio of 10.08 percent, a Tier 1 Risk-Based Ratio of 14.59 percent, and a Total Risk Based Ratio of 15.85 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/firt.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) on Pink Sheets.  Investors can view First BancTrust Corporation's security quotes and profile on www.pinksheets.com under ticker symbol "FIRT".  

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SOURCE First BancTrust Corporation

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