Firstbank Corporation Announces First Quarter 2001 Results

Apr 20, 2001, 01:00 ET from Firstbank Corporation

    ALMA, Mich., April 20 /PRNewswire Interactive News Release/ -- Thomas R.
 Sullivan, President and Chief Executive Officer of Firstbank Corporation
 (OTC Bulletin Board:   FBMI), announced that the Corporation has achieved
 increased operating earnings per share of $0.43 during the quarter ended March
 31, 2001 versus the $0.42 per share earned during the first quarter of 2000.
 Operating earnings were $2,058,000, which excludes after tax non-recurring
 charges totaling $446,000, in the quarter ended March 31, 2001, compared to
 $2,110,000 in the first quarter of 2000.  Per share earnings improved as a
 result of share repurchase activity which was concluded at the end of 2000.
 Average shares outstanding were 3.3% lower in the first quarter of 2001
 compared to the first quarter of 2000 adjusted for the December 2000 stock
 dividend.  These results are unaudited and subject to change.  All per share
 amounts are fully diluted amounts and have been adjusted to reflect the 5%
 stock dividend paid in December 2000.
     Net income during the first quarter of 2001 was reduced by several non-
 recurring charges totaling $446,000 after tax, resulting in net income of
 $1,612,000 and earnings per share of $0.33 for the first quarter of 2001,
 compared to net income of $2,110,000 and earnings per share of $0.42 in the
 first quarter of 2000.  These charges were related primarily to the
 consolidation of various activities into the corporate processing center.  The
 largest of these charges related to processing errors that occurred over time
 at a subsidiary bank on mortgages sold into the secondary market.  Those
 errors have been corrected, and the consolidation of mortgage processing at
 the corporate operations center will prevent their reoccurrence.  The
 remaining charges relate to employee severance, formation of mortgage
 subsidiaries, and expenses incurred in preparing to list the Corporation's
 common stock on the NASDAQ National Market System.  These efforts should
 result in improved profitability along with increased stock market visibility
 and liquidity for our shareholders.
     The rapid decline in interest rates in the first quarter of 2001 caused
 interest earned on loans and other earning assets to decline faster than
 interest costs on deposits and other funding sources, resulting in a decline
 in Firstbank's net interest margin.  According to Mr. Sullivan, "We were
 pleased that we were able to maintain operating earnings per share at the
 levels of a year ago under the difficult interest rate conditions of the first
 quarter.  The strength of our mortgage originations and gain on sale of
 mortgage loans helped to partially offset the pressure on our net interest
 margin.  We expect to be able to further reduce deposit and funding costs as
 the year progresses if the lower interest rate environment continues."
     Total assets and total loans reached record levels on March 31, 2001.
 Total assets increased 10.8% from March 31, 2000, reaching $734 million at
 quarter end.  Total loans increased to $607 million, a 14.7% increase versus
 the total loans of $530 million one year ago.  The addition of Firstbank - St.
 Johns, 1st Title, Gladwin Land, and C.A. Hanes Realty, Inc., increased both
 non-interest income and noninterest expense in the first quarter of 2001
 compared to the first quarter of 2000.
     Asset quality has remained very strong as net charge offs of loans for the
 first quarter of 2001 were only 0.003% of average total loans.  The loan loss
 provision in the first quarter of 2001 totaled $203,000 a 16% increase from
 the $175,000 provided during the first quarter of 2000.  This increased
 provision has been in response to the substantial loan growth occurring
 throughout the Corporation, and the allowance for loan losses now totals
 $10,044,000, or 1.65% of total loans.
     Firstbank Corporation, headquartered in Alma, Michigan is currently a five
 bank financial services company with assets of $734 million and 40 offices
 located in central and northeast Michigan.  Bank subsidiaries include:
 Firstbank - Alma; Firstbank (Mt. Pleasant); Firstbank - West Branch; Firstbank
 - Lakeview; and Firstbank - St. Johns.  Other corporate affiliates include 1st
 Armored, Inc.; 1st Collections, Inc.; 1st Title; Gladwin Land Company, Inc.;
 and C. A. Hanes Realty, Inc.  Investment services are available through
 affiliations with Raymond James Financial Services Inc. and SunAmerica
 Securities Inc.
     This press release contains certain forward-looking statements that
 involve risks and uncertainties.  When used in this report the words
 "believe," "expect," "potential," and similar expressions identify forward-
 looking statements within the meaning of the Private Securities Litigation
 Reform Act of 1995.  Forward-looking statements include, but are not limited
 to, statements concerning future growth in assets and profitability and
 expected fiscal 2001 year-end results.  Such statements are subject to certain
 risks and uncertainties which could cause actual results to differ materially
 from those expressed or implied by such forward-looking statements, including,
 but not limited to, economic, competitive, governmental and technological
 factors affecting the Company's operations, markets, products, services,
 interest rates and fees for services.  Readers are cautioned not to place
 undue reliance on these forward-looking statements, which speak only as of the
 date of this report.
 
                      CONSOLIDATED  STATEMENTS  OF  INCOME
                         EXCLUDING  NONRECURRING ITEMS
               (Dollars  in  Thousands  except  per  share  data)
                                     UNAUDITED
 
                                                       Three months
                                                      ended March  31,
                                                    2001            2000
 
     Interest income:
      Interest and fees on loans                  $13,223          $11,197
      Investment securities
       Taxable                                        712              914
       Exempt from Federal Income Tax                 335              394
     Short term investments                            96               49
                       Total interest income       14,366           12,554
 
     Interest expense:
      Deposits                                      5,320            4,325
      Notes payable and other                       1,734            1,262
                       Total interest expense       7,054            5,587
                       Net interest income          7,312            6,967
 
     Provision for loan losses                        203              175
                       Net interest income after
                        provision for loan losses   7,109            6,792
 
     Noninterest income:
      Gain on sale of mortgage loans                  335               93
      Service charges on deposit accounts             424              387
      Trust fees                                       89               88
      Gain on sale of securities                       25               (3)
      Mortgage Servicing                               41               79
      Other                                           961              682
                       Total noninterest income     1,875            1,326
 
     Noninterest expense:
      Salaries and employee benefits                3,254            2,735
      Occupancy                                       889              775
      Amortization of Intangibles                     200              171
      FDIC Insurance premium                           25               25
      Michigan Single Business Tax                    143              163
      Other                                         1,455            1,227
                       Total noninterest expense    5,966            5,096
 
 
     Income before federal income taxes             3,018            3,022
     Federal income taxes                             960              912
     Income Excluding Nonrecurring Items            2,058            2,110
     Nonrecurring Items Net of Tax                    446                0
     Net Income                                    $1,612           $2,110
     Per Share Data Excluding Nonrecurring Items:
      Basic Earnings                                $0.43            $0.43
      Diluted Earnings                              $0.43            $0.42
      Dividends Paid                                $0.17            $0.16
     Performance Ratios Excluding Nonrecurring Items:
      Return on Average Assets                       1.15%            1.31%
      Return on Average Equity                      12.88%           13.77%
      Net Interest Margin                            4.45%            4.74%
      Book Value Per Share                         $13.73           $12.57
      Average Equity/Average Assets                   8.9%             9.5%
      Allowance for Loan Loss as a % of Total Loans  1.65%            1.81%
      Net Charge-offs (Recoveries) as a
       % of Average Loans                           0.003%          (0.010%)
 
 
                        CONSOLIDATED  STATEMENTS  OF  INCOME
                    (Dollars in Thousands except per share data)
                                     UNAUDITED
 
                                                     Three months ended
                                                          March 31,
 
                                                    2001            2000
 
      Interest income:
       Interest and fees on loans                 $13,223          $11,197
       Investment securities
        Taxable                                       712              914
        Exempt from Federal Income Tax                335              394
       Short term investments                          96               49
                       Total interest income       14,366           12,554
 
      Interest expense:
       Deposits                                     5,320            4,325
       Notes payable and other                      1,734            1,262
                       Total interest expense       7,054            5,587
                       Net interest income          7,312            6,967
     Provision for loan losses                        203              175
                       Net interest income after
                        provision for loan losses   7,109            6,792
 
     Noninterest income:
      Gain on sale of mortgage loans                  335               93
      Service charges on deposit accounts             424              387
      Trust fees                                       89               88
      Gain on sale of securities                       25               (3)
      Mortgage Servicing                               41               79
      Other                                           961              682
                       Total noninterest income     1,875            1,326
 
 
     Noninterest expense:
      Salaries and employee benefits                3,254            2,735
      Occupancy                                       889              775
      FDIC Insurance premium                           25               25
      Amortization of Intangibles                     200              171
      Michigan Single Business Tax                    132              163
      Other                                         2,142            1,227
                       Total noninterest expense    6,642            5,096
     Income before federal income taxes             2,342            3,022
     Federal income taxes                             730              912
     Net Income                                    $1,612           $2,110
     Per Share Data:
      Basic Earnings                                $0.34            $0.43
      Diluted Earnings                              $0.33            $0.42
      Dividends                                     $0.17            $0.16
 
                            CONSOLIDATED  BALANCE  SHEET
                               (Dollars in Thousands)
                                     UNAUDITED
 
                                  March 31,      December 31,      March 31,
                                    2001            2000              2000
     ASSETS
     Cash and due from banks      $20,630          $25,716          $19,611
     Short term investments         6,168            2,380              495
          Total cash and cash
           equivalents             26,798           28,096           20,106
 
     Securities available
      for sale                     71,767           76,175           85,959
     Loans
      Loans held for sale             712            1,018              602
      Portfolio loans
       Commercial                 290,986          279,060          243,660
       Real estate mortgage       235,781          238,899          207,978
       Consumer                    79,801           81,790           77,321
          Total loans             607,280          600,767          529,561
       Less allowance for loan
        losses                    (10,044)          (9,857)          (9,560)
          Net loans               597,236          590,910          520,001
 
     Premises and equipment, net   15,815           15,682           15,297
     Acquisition intangibles        9,029            8,974            8,667
     Accrued interest receivable    4,448            4,623            3,362
     Other assets                   9,033            8,807            8,947
          TOTAL ASSETS           $734,126         $733,267         $662,339
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     LIABILITIES
     Deposits:
     Noninterest bearing accounts  74,270           80,295           71,492
     Interest bearing accounts:
      Demand                      134,568          135,467          133,605
      Savings                      69,203           68,641           70,683
      Time                        269,730          252,821          216,352
          Total deposits          547,771          537,224          492,132
 
     Securities sold under agreements
      to repurchase and overnight
      borrowings                   24,256           38,307           43,310
     Notes payable                 85,236           83,952           55,870
     Accrued interest and
      other liabilities            11,052            9,580            9,261
          Total liabilities       668,315          669,063          600,573
 
 
     SHAREHOLDERS' EQUITY
     Preferred stock; no par value,
      300,000 shares authorized,
      none issued
     Common stock; 10,000,000 shares
      authorized, 4,793,217
      shares issued and
      outstanding                  56,927           56,550           54,915
     Retained earnings              8,088            7,286            7,748
     Unrealized gain on available
      for sale securities             796              368             (897)
          Total shareholders'
           equity                  65,811           64,204           61,766
 
          TOTAL LIABILITIES AND
           SHAREHOLDERS' EQUITY  $734,126         $733,267         $662,339
 
 
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SOURCE Firstbank Corporation
    ALMA, Mich., April 20 /PRNewswire Interactive News Release/ -- Thomas R.
 Sullivan, President and Chief Executive Officer of Firstbank Corporation
 (OTC Bulletin Board:   FBMI), announced that the Corporation has achieved
 increased operating earnings per share of $0.43 during the quarter ended March
 31, 2001 versus the $0.42 per share earned during the first quarter of 2000.
 Operating earnings were $2,058,000, which excludes after tax non-recurring
 charges totaling $446,000, in the quarter ended March 31, 2001, compared to
 $2,110,000 in the first quarter of 2000.  Per share earnings improved as a
 result of share repurchase activity which was concluded at the end of 2000.
 Average shares outstanding were 3.3% lower in the first quarter of 2001
 compared to the first quarter of 2000 adjusted for the December 2000 stock
 dividend.  These results are unaudited and subject to change.  All per share
 amounts are fully diluted amounts and have been adjusted to reflect the 5%
 stock dividend paid in December 2000.
     Net income during the first quarter of 2001 was reduced by several non-
 recurring charges totaling $446,000 after tax, resulting in net income of
 $1,612,000 and earnings per share of $0.33 for the first quarter of 2001,
 compared to net income of $2,110,000 and earnings per share of $0.42 in the
 first quarter of 2000.  These charges were related primarily to the
 consolidation of various activities into the corporate processing center.  The
 largest of these charges related to processing errors that occurred over time
 at a subsidiary bank on mortgages sold into the secondary market.  Those
 errors have been corrected, and the consolidation of mortgage processing at
 the corporate operations center will prevent their reoccurrence.  The
 remaining charges relate to employee severance, formation of mortgage
 subsidiaries, and expenses incurred in preparing to list the Corporation's
 common stock on the NASDAQ National Market System.  These efforts should
 result in improved profitability along with increased stock market visibility
 and liquidity for our shareholders.
     The rapid decline in interest rates in the first quarter of 2001 caused
 interest earned on loans and other earning assets to decline faster than
 interest costs on deposits and other funding sources, resulting in a decline
 in Firstbank's net interest margin.  According to Mr. Sullivan, "We were
 pleased that we were able to maintain operating earnings per share at the
 levels of a year ago under the difficult interest rate conditions of the first
 quarter.  The strength of our mortgage originations and gain on sale of
 mortgage loans helped to partially offset the pressure on our net interest
 margin.  We expect to be able to further reduce deposit and funding costs as
 the year progresses if the lower interest rate environment continues."
     Total assets and total loans reached record levels on March 31, 2001.
 Total assets increased 10.8% from March 31, 2000, reaching $734 million at
 quarter end.  Total loans increased to $607 million, a 14.7% increase versus
 the total loans of $530 million one year ago.  The addition of Firstbank - St.
 Johns, 1st Title, Gladwin Land, and C.A. Hanes Realty, Inc., increased both
 non-interest income and noninterest expense in the first quarter of 2001
 compared to the first quarter of 2000.
     Asset quality has remained very strong as net charge offs of loans for the
 first quarter of 2001 were only 0.003% of average total loans.  The loan loss
 provision in the first quarter of 2001 totaled $203,000 a 16% increase from
 the $175,000 provided during the first quarter of 2000.  This increased
 provision has been in response to the substantial loan growth occurring
 throughout the Corporation, and the allowance for loan losses now totals
 $10,044,000, or 1.65% of total loans.
     Firstbank Corporation, headquartered in Alma, Michigan is currently a five
 bank financial services company with assets of $734 million and 40 offices
 located in central and northeast Michigan.  Bank subsidiaries include:
 Firstbank - Alma; Firstbank (Mt. Pleasant); Firstbank - West Branch; Firstbank
 - Lakeview; and Firstbank - St. Johns.  Other corporate affiliates include 1st
 Armored, Inc.; 1st Collections, Inc.; 1st Title; Gladwin Land Company, Inc.;
 and C. A. Hanes Realty, Inc.  Investment services are available through
 affiliations with Raymond James Financial Services Inc. and SunAmerica
 Securities Inc.
     This press release contains certain forward-looking statements that
 involve risks and uncertainties.  When used in this report the words
 "believe," "expect," "potential," and similar expressions identify forward-
 looking statements within the meaning of the Private Securities Litigation
 Reform Act of 1995.  Forward-looking statements include, but are not limited
 to, statements concerning future growth in assets and profitability and
 expected fiscal 2001 year-end results.  Such statements are subject to certain
 risks and uncertainties which could cause actual results to differ materially
 from those expressed or implied by such forward-looking statements, including,
 but not limited to, economic, competitive, governmental and technological
 factors affecting the Company's operations, markets, products, services,
 interest rates and fees for services.  Readers are cautioned not to place
 undue reliance on these forward-looking statements, which speak only as of the
 date of this report.
 
                      CONSOLIDATED  STATEMENTS  OF  INCOME
                         EXCLUDING  NONRECURRING ITEMS
               (Dollars  in  Thousands  except  per  share  data)
                                     UNAUDITED
 
                                                       Three months
                                                      ended March  31,
                                                    2001            2000
 
     Interest income:
      Interest and fees on loans                  $13,223          $11,197
      Investment securities
       Taxable                                        712              914
       Exempt from Federal Income Tax                 335              394
     Short term investments                            96               49
                       Total interest income       14,366           12,554
 
     Interest expense:
      Deposits                                      5,320            4,325
      Notes payable and other                       1,734            1,262
                       Total interest expense       7,054            5,587
                       Net interest income          7,312            6,967
 
     Provision for loan losses                        203              175
                       Net interest income after
                        provision for loan losses   7,109            6,792
 
     Noninterest income:
      Gain on sale of mortgage loans                  335               93
      Service charges on deposit accounts             424              387
      Trust fees                                       89               88
      Gain on sale of securities                       25               (3)
      Mortgage Servicing                               41               79
      Other                                           961              682
                       Total noninterest income     1,875            1,326
 
     Noninterest expense:
      Salaries and employee benefits                3,254            2,735
      Occupancy                                       889              775
      Amortization of Intangibles                     200              171
      FDIC Insurance premium                           25               25
      Michigan Single Business Tax                    143              163
      Other                                         1,455            1,227
                       Total noninterest expense    5,966            5,096
 
 
     Income before federal income taxes             3,018            3,022
     Federal income taxes                             960              912
     Income Excluding Nonrecurring Items            2,058            2,110
     Nonrecurring Items Net of Tax                    446                0
     Net Income                                    $1,612           $2,110
     Per Share Data Excluding Nonrecurring Items:
      Basic Earnings                                $0.43            $0.43
      Diluted Earnings                              $0.43            $0.42
      Dividends Paid                                $0.17            $0.16
     Performance Ratios Excluding Nonrecurring Items:
      Return on Average Assets                       1.15%            1.31%
      Return on Average Equity                      12.88%           13.77%
      Net Interest Margin                            4.45%            4.74%
      Book Value Per Share                         $13.73           $12.57
      Average Equity/Average Assets                   8.9%             9.5%
      Allowance for Loan Loss as a % of Total Loans  1.65%            1.81%
      Net Charge-offs (Recoveries) as a
       % of Average Loans                           0.003%          (0.010%)
 
 
                        CONSOLIDATED  STATEMENTS  OF  INCOME
                    (Dollars in Thousands except per share data)
                                     UNAUDITED
 
                                                     Three months ended
                                                          March 31,
 
                                                    2001            2000
 
      Interest income:
       Interest and fees on loans                 $13,223          $11,197
       Investment securities
        Taxable                                       712              914
        Exempt from Federal Income Tax                335              394
       Short term investments                          96               49
                       Total interest income       14,366           12,554
 
      Interest expense:
       Deposits                                     5,320            4,325
       Notes payable and other                      1,734            1,262
                       Total interest expense       7,054            5,587
                       Net interest income          7,312            6,967
     Provision for loan losses                        203              175
                       Net interest income after
                        provision for loan losses   7,109            6,792
 
     Noninterest income:
      Gain on sale of mortgage loans                  335               93
      Service charges on deposit accounts             424              387
      Trust fees                                       89               88
      Gain on sale of securities                       25               (3)
      Mortgage Servicing                               41               79
      Other                                           961              682
                       Total noninterest income     1,875            1,326
 
 
     Noninterest expense:
      Salaries and employee benefits                3,254            2,735
      Occupancy                                       889              775
      FDIC Insurance premium                           25               25
      Amortization of Intangibles                     200              171
      Michigan Single Business Tax                    132              163
      Other                                         2,142            1,227
                       Total noninterest expense    6,642            5,096
     Income before federal income taxes             2,342            3,022
     Federal income taxes                             730              912
     Net Income                                    $1,612           $2,110
     Per Share Data:
      Basic Earnings                                $0.34            $0.43
      Diluted Earnings                              $0.33            $0.42
      Dividends                                     $0.17            $0.16
 
                            CONSOLIDATED  BALANCE  SHEET
                               (Dollars in Thousands)
                                     UNAUDITED
 
                                  March 31,      December 31,      March 31,
                                    2001            2000              2000
     ASSETS
     Cash and due from banks      $20,630          $25,716          $19,611
     Short term investments         6,168            2,380              495
          Total cash and cash
           equivalents             26,798           28,096           20,106
 
     Securities available
      for sale                     71,767           76,175           85,959
     Loans
      Loans held for sale             712            1,018              602
      Portfolio loans
       Commercial                 290,986          279,060          243,660
       Real estate mortgage       235,781          238,899          207,978
       Consumer                    79,801           81,790           77,321
          Total loans             607,280          600,767          529,561
       Less allowance for loan
        losses                    (10,044)          (9,857)          (9,560)
          Net loans               597,236          590,910          520,001
 
     Premises and equipment, net   15,815           15,682           15,297
     Acquisition intangibles        9,029            8,974            8,667
     Accrued interest receivable    4,448            4,623            3,362
     Other assets                   9,033            8,807            8,947
          TOTAL ASSETS           $734,126         $733,267         $662,339
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     LIABILITIES
     Deposits:
     Noninterest bearing accounts  74,270           80,295           71,492
     Interest bearing accounts:
      Demand                      134,568          135,467          133,605
      Savings                      69,203           68,641           70,683
      Time                        269,730          252,821          216,352
          Total deposits          547,771          537,224          492,132
 
     Securities sold under agreements
      to repurchase and overnight
      borrowings                   24,256           38,307           43,310
     Notes payable                 85,236           83,952           55,870
     Accrued interest and
      other liabilities            11,052            9,580            9,261
          Total liabilities       668,315          669,063          600,573
 
 
     SHAREHOLDERS' EQUITY
     Preferred stock; no par value,
      300,000 shares authorized,
      none issued
     Common stock; 10,000,000 shares
      authorized, 4,793,217
      shares issued and
      outstanding                  56,927           56,550           54,915
     Retained earnings              8,088            7,286            7,748
     Unrealized gain on available
      for sale securities             796              368             (897)
          Total shareholders'
           equity                  65,811           64,204           61,766
 
          TOTAL LIABILITIES AND
           SHAREHOLDERS' EQUITY  $734,126         $733,267         $662,339
 
 
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 SOURCE  Firstbank Corporation