FIRST BANKERS TRUSTSHARES, INC. First Bankers Trustshares, Inc.
1201 Broadway
P.O. Box 3566
Quincy, Il 62305-3566
July 29, 2022
2nd Quarter 2022 Financial Highlights
Investor Information
Stock Transfer Agent:
Dear Valued Shareholders,
On behalf of First Bankers Trustshares, Inc., the Board of Directors, the executive management team and all of our dedicated employees, I am pleased to update you on the company's second quarter results.
The first half of the year has seen the macroeconomic environment squarely in focus, with the Federal Reserve taking a hawkish stance and maintaining a path of interest rate increases to combat persistently high inflation. Conversely, consumers have proven to be incredibly resilient, even as the labor market begins to show signs of cooling down.
We remain focused on helping our customers and communities achieve their dreams, with our financial results reflecting the progress of that mission. Following a first quarter that saw the strongest lending growth in the company's history, Q2 remained robust, growing another 4.2%. In the second quarter, we achieved net income of $2.65 million or $0.87 per share, an increase of 24% from Q1 and more than 61% from the same period a year ago. Earnings quality also continued to improve, with return on average assets and return on average common equity of 0.91% and 10.10%, respectively, both up materially from prior quarter and last year.
Total assets for First Bankers Trustshares, Inc. ended the quarter at $1.15 billion, down slightly from a year ago. In addition to loan growth, strong deposit growth of 4.6% versus the same period a year ago further bolstered the company's liquidity position and also helped facilitate the paydown of all wholesale borrowings.
Credit quality remained strong in the quarter, with non-performing loans dropping to 1.59% of total loans, which continues to be at the lowest levels in two years. Allowance for loan losses decreased to $10.9 million, $500 thousand lower than the first quarter, as the company released excess reserves as a function of improved credit quality.
Net interest margin rose to 2.41%, up .14% from the prior quarter and .37% from the prior year. Margin improvements were helped by an increase in loan yields and through fixed income investment performance.
Non-interest income totaled $1.6 million for the quarter, $0.2 million lower versus the prior quarter and preceding year. Continued strength in brokerage performance and consumer spending that increased interchange income helped offset reduced revenues from a softening residential real estate market. The company also recognized a $250 thousand non-recurring gain associated with the sale a previously closed branch, which helped offset non-recurring expenses related to security sales used to further bolster liquidity positions and fund record loan growth.
Non-interest expense was $5.7 million in the second quarter, in line with the first quarter and up 3.8% from the same quarter a year ago, primarily attributable to business growth.
As we continue to invest in technology and growth initiatives to drive top line revenue growth and maintain a conservative expense profile, the company's efficiency ratio improved to 62.7% versus 68.7% a year prior.
As previously reported, on July 1, 2019, First Bankers Trust Services, Inc. (The Trust Subsidiary) was spun off into a separate company named TI-Trust, Inc. The Company's 2019 consolidated results include TI-Trust's results through June 30, 2019.
Enclosed, please find your regular dividend check; or the funds have been deposited to your account as previously directed.
Allen W. Shafer
President/CEO
American Stock Transfer & Trust Company, LLC
Operations Center
6201 15th Avenue Brooklyn, NY 11219 (800) 937-5449
Market Makers:
Raymond James Chicago, Il 60606 (800) 800.4693
Stifel Nicolas & Co., Inc. St. Louis, MO 63102 (800) 679.5446
Monroe Financial Partners Chicago, IL 60606
(312) 327.2530
Janney Montgomery Scott, LLC Atlanta, GA 30309
(844) 273-2189
D.A. Davidson & Co. Red Bank, NJ 07701 (800) 332-5915
Corporate Information:
First Bankers Trustshares, Inc. Phone: (217) 228.8000
Fax: (217)228.8091
Email: fbti@firstbankers.com
Corporate Officers:
Chairman of the Board of Directors
William D. Daniels
President/Chief Executive Officer
Allen W. Shafer
Chief Financial Officer
Seth H. Runkle
Secretary
Steven E. Siebers
Directors:
Carl W. Adams Jr.
Scott A. Cisel
William D. Daniels
Mark E. Freiburg
Charles M. Gnuse
Arthur E. Greenbank
Phyllis J. Hofmeister
Kemia M. Sarraf, M.D., MPH
Richard W. Schulte
Allen W. Shafer
Steven E. Siebers
Board Emeritus
Donald K. Gnuse
This release contains information and "forward-looking statements" that relate to matters that are not historical facts and which are usually preceded by words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. These forward-looking statements are subject to significant risks, assumptions and uncertainties. Because of these and other uncertainties, our actual results may be materially different from those described in these forward-looking statements. The forward-looking statements in this release speak only as of the date of the release, and we do not assume any obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements.
Page 2 | Financial Highlights (Dollars in thousands, except per share data) (Unaudited) | |||||||||||||
For The Three Month Period | For the Six Month Period | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
Income Statement Data | 2022 | 2021 | % Chg | 2022 | 2021 | 2020 | ||||||||
Net interest income | $ | 6,933 | $ | 5,687 | 21.91 % | $ | 13,510 | $ | 11,566 | $ | 13,175 | |||
Provision for loan losses | (500) | 0 | NM % | (500) | 170 | 1,000 | ||||||||
Noninterest income | 1,606 | 1,806 | (11.07) % | 3,450 | 3,714 | 3,311 | ||||||||
Noninterest expense | 5,673 | 5,463 | 3.84 % | 11,399 | 10,741 | 10,308 | ||||||||
Income taxes | 719 | 361 | 99.17 % | 1,265 | 882 | 1,126 | ||||||||
Net Income | $ | 2,647 | $ | 1,669 | 58.60 % | $ | 4,796 | $ | 3,487 | $ | 4,052 | |||
For The Three Month Period | For the Six Month Period | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
Ratios | 2022 | 2021 | % Chg | 2022 | 2021 | 2020 | ||||||||
Return on average assets (Excludes preferred stock dividends/ | 0.91 % | 0.57 % | 59.65 % | 0.82 % | 0.61 % | 0.84 % | ||||||||
accretion.) | ||||||||||||||
Return on average common stockholders' equity | ||||||||||||||
(Calculated by dividing net income, excluding preferred stock dividends/ | ||||||||||||||
accretion, by average common stockholders' equity. Common stockhold- | ||||||||||||||
ers' equity is defined as equity less preferred stock and accumulated other | 10.10 % | 6.70% | 50.75 % | 9.24 % | 7.09 % | 8.71 % | ||||||||
comprehensive income or loss.) | ||||||||||||||
Net interest margin | 2.41 % | 2.04 % | 18.14 % | 2.34 % | 2.12 % | 2.86 % | ||||||||
Allowance as a percent of total loans | 2.08 % | 2.56 % | (18.75) % | 2.08 % | 2.56 % | 2.34 % | ||||||||
Dividends per common share paid | $ | 0.19 | $ | 0.18 | 5.56 % | $ | 0.38 | $ | 0.36 | $ | 0.34 | |||
Earnings per common share (Calculated by dividing net income | $ | 0.87 | $ | 0.54 | 61.11 % | $ | 1.57 | $ | 1.13 | $ | 1.31 | |||
less dividends and accretion on preferred stock by the weighted average | ||||||||||||||
number of common stock shares outstanding.) | ||||||||||||||
Book value per common share (Calculated by dividing stock- | $ | 34.68 | $ | 32.31 | 7.34 % | $ | 34.68 | $ | 32.31 | $ | 30.66 | |||
holders' equity, excluding preferred stock and accumulated other compre- | ||||||||||||||
hensive income or loss, by outstanding common shares.) | ||||||||||||||
At June 30, | At December 31, | |||||||||||||
Balance Sheet | 2022 | 2021 | % Chg | 2021 | 2020 | 2019 | ||||||||
Assets | $ | 1,152,387 | $ | 1,182,589 | (2.55) % | $ | 1,226,137 | $ | 1,117,675 | $ | 922,579 | |||
Investment securities | $ | 524,121 | $ | 617,081 | (15.06) % | $ | 667,157 | $ | 542,170 | $ | 345,140 | |||
Loans, net of unearned income | $ | 526,012 | $ | 482,781 | 8.95 % | $ | 478,398 | $ | 485,153 | $ | 500,599 | |||
Deposits | $ | 960,693 | $ | 918,562 | 4.59 % | $ | 978,624 | $ | 853,302 | $ | 727,656 | |||
Short-term and other borrowings | $ | 121,152 | $ | 142,680 | (15.09) % | $ | 126,273 | $ | 137,904 | $ | 81,572 | |||
Junior subordinated debentures | $ | 10,310 | $ | 10,310 | 0.00 % | $ | 10,310 | $ | 10,310 | $ | 10,310 | |||
Stockholders' equity (excludes accumulated other comprehensive | $ | 105,255 | $ | 99,690 | 5.58 % | $ | 103,214 | $ | 97,606 | $ | 91,711 | |||
income or loss.) | ||||||||||||||
For The Six Month Period | For The Years | |||||||||||||
Ended June 30, | Ended December 31, | |||||||||||||
Stock Value Per Common Share Information | 2022 | 2021 | % Chg | 2021 | 2020 | 2019 | ||||||||
Price/earnings ratio | 8.9 | 13.9 | (15.91) % | 11.9 | 10.9 | 11.6 | ||||||||
Stock price-High | $ | 31.45 | $ | 32.00 | (0.16) % | $ | 32.25 | $ | 33.50 | $ | 36.00 | |||
Low 1 | $ | 27.27 | $ | 31.45 | 11.64 % | $ | 27.84 | $ | 24.00 | $ | 30.05 | |||
Ending | $ | 28.30 | $ | 31.70 | (1.59) % | $ | 31.45 | $ | 27.75 | $ | 31.20 | |||
Book value per common share 2 | $ | 34.68 | $ | 32.31 | 6.29 % | $ | 33.46 | $ | 31.54 | $ | 29.68 | |||
Price/book value per common share | 0.82 | 0.98 | 6.82 % | 0.94 | 0.88 | 1.05 | ||||||||
Common shares outstanding | 3,035,201 | 3,085,417 | 3,084,736 | 3,094,598 | 3,089,773 | |||||||||
- Low and high stock prices for years prior to 2022 had minor errors that have been corrected
- Book Value excludes other accumulated comprehensive income
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
First Bankers Trustshares Inc. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 14:21:07 UTC.
