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

PARIS, Ill., Nov. 4, 2011 /PRNewswire/ -- First BancTrust Corporation (the "Company") (OTCQB: FIRT), today reported a 2011 third quarter net income available to common shareholders of $976,002 or 46 cents per diluted share, compared with $740,757 or 36 cents per diluted share, for the same period in the prior year. This is an improvement of $235,245 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 non-interest income accompanied by a minimal decrease in noninterest expense for the quarter year over year.

Net Interest Income

Net interest income for the third quarter of 2011 increased 11.74 percent, or $400,517, to $3.81 million compared with $3.41 million for the third quarter of the prior year. This increase was primarily due to a 30.55 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.

The provision for loan losses for the third quarter increased 32.66 percent from $565,000 in 2010 to $749,500 in 2011. We continue to conservatively fund the allowance for loan loss (ALLL) which has resulted in the ALLL to total loan ratio increasing from the year end figure of 1.38 percent to 1.63 percent at September 30, 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

Third quarter 2011 noninterest income increased substantially by $137,213 or 11.41% to $1.34 million compared to $1.2 million for the same period a year ago. Noninterest expense for the third quarter of 2011 decreased $19,765 to $2.75 million from the $2.77 million reported during the same quarter last year. The primary reasons for the decrease were decreases in foreclosed asset expense ($61,585) and FDIC insurance ($60,831) which was partially offset by increases in salaries and benefits ($43,747) and professional fees ($24,059).

Assets, Loans, Deposits

Total assets at September 30, 2011, were $392.49 million compared with $405.38 million at December 31, 2010, a decrease of $12.89 million or 3.18 percent. During the same period, loans net of allowance for loan losses, decreased by $3.65 million to $289.62 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 during 2011. Deposits decreased by $1.46 million or 0.49 percent to $299.77 million compared with $301.23 million at year-end 2010. The consolidated gross loan to deposit ratio as of September 30, 2011 was 98.51 percent. Declines in cash levels, as well as in the investment and loan portfolios were the primary components of the $12.98 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 December 15, 2011 to stockholders of record at the close of business on December 1, 2011.  The minimal dividend level has been determined appropriate for the preservation of capital and to allow for the future repayment of 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 facilitated the implementation of the plan and a partial redemption of TARP in the near future is anticipated pending regulatory approval.  

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 September 30, 2011, the Company had $392.49 million of total assets, $353.31 million of total liabilities and $39.18 million of stockholders' equity. First Bank & Trust, S. B. remains a well capitalized bank with a Tier 1 Ratio of 10.54 percent, a Tier 1 Risk-Based Ratio of 14.31 percent, and a Total Risk Based Ratio of 15.56 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). 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