First Trust Bank Reports First Quarter Earnings

Apr 30, 2009, 10:00 ET from First Trust Bank

CHARLOTTE, N.C., April 30 /PRNewswire-FirstCall/ -- First Trust Bank (OTC Bulletin Board: NCFT) reported results for the first quarter of 2009 today. The Bank reported net income of $638 thousand, or $0.14 per share, for the quarter ended March 31, 2009 compared to net income of $972 thousand, or $0.22 per share, for the first quarter of 2008. Fully diluted earnings for the quarter ended March 31, 2009 were $0.14 per share, compared to $0.21 per diluted share for the first quarter of 2008.

Assets at March 31, 2009 grew to $466 million, an increase of $43 million, or 10%, over the $423 million reported at March 31, 2008. Loans continued to increase incrementally during the first quarter of 2009; totaling $338 million at quarter end, an increase of 10% over March 31, 2008.

"Despite the challenges the banking industry is facing, First Trust Bank remains focused on operating in a safe and sound manner while providing value to our shareholders and funding to qualified borrowers. Earnings were relatively strong for the first quarter of 2009, despite being adversely affected by a higher provision to the allowance for loan losses and an "other than temporary impairment" (OTTI) charge of $123 thousand under Financial Accounting Standards Board (FASB) Statement No. 115. Our net interest margin remained compressed due to lower earnings on variable rate assets in this low interest rate environment. At the same time, we remain well-capitalized. We have no "toxic assets" nor did we participate in the federal government's TARP program. While we hope for positive signs of recovery from this recession in the second half of 2009, it remains one of the most challenging years for the banking industry in recent history," said Jim Bolt, President and CEO.

First Trust Bank is a commercial bank whose target market is small to medium sized businesses and professionals. The Bank operates three banking offices at 1420 East Third Street and 2245 Rexford Road, Charlotte, NC and 108 Gateway Boulevard, Mooresville, NC; and a loan production office at 2616 W. Roosevelt Boulevard in Monroe, NC.

Information in this press release may contain forward looking statements that might involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, and changes in interest rates.

      (dollars in thousands, except
       share and per share)

                                        March 31,     December 31,
                                          2009           2008
    SELECTED BALANCE SHEET DATA        (Unaudited)     (Audited)
      Total loans                        $338,428       $334,737
      Allowance for loan losses            (5,175)        (4,602)
      Investment securities                95,963         89,745
      Total assets                        466,446        468,114

      Deposits                            372,957        372,757
      Borrowed funds                       45,970         47,888
      Shareholders' equity                 42,522         42,034

    Shares Outstanding at period
     end                                4,491,232      4,491,232

    Allowance for loan losses to
     total loans                             1.53%          1.37%
    Nonperforming loans to total
     loans                                   0.32%          0.32%
    Nonperforming assets to total
     assets                                  0.23%          0.23%

    Income Statements
                                          March 31,      March 31,      %
                                            2009           2008      Change
    For the quarter ended                (Unaudited)    (Unaudited)
      Net interest income                  $3,246         $3,334     -2.64%
      Provision for loan losses               580              -       n/a
      Other income                            172            157      9.55%
      Other expenses                        1,840          1,843     -0.16%
      Income tax expense                      360            676    -46.75%
      Net income                             $638           $972    -34.36%
    Per Share Data
      Net income per share-basic            $0.14          $0.22
      Net income per share-diluted          $0.14          $0.21

SOURCE First Trust Bank