FIRST BANKERS TRUSTSHARES, INC. First Bankers Trustshares, Inc.
1201 Broadway
P.O. Box 3566
Quincy, Il 62305-3566
January 27, 2023
4th Quarter 2022 Financial Highlights
Investor Information
Stock Transfer Agent:
Dear Valued Shareholders,
On behalf of First Bankers Trustshares, Inc., the Board of Directors, the management team and all of our dedicated employees, I am pleased to update you on the company's fourth quarter results.
The fourth quarter and the year as a whole
represented a period of notable achievements for the company. The execution of our various growth strategies was reflected with loan growth exceeding 15% for the year. In addition, we completed the migration to a new online banking platform, providing our business and retail customers with enhanced capabilities.
More broadly, the economy continued to show signs of a correction. Inflation exceeded 9% at its peak, levels not seen in three decades. A forty year decline in mortgage rates ended, with rates rising throughout the year. In addition, the bond market logged its worst performance in more than a century. The labor market, though, remained quite resilient, with unemployment rates ending the year at 3.5%.
Overall, our financial results for the quarter remained healthy. We achieved net income of $1.6 million or $0.55 per share. Excluding one time, non-recurring costs of implementing a new online banking solution, net income was $2.0 million, an increase of 5.6% from the same period a year ago when excluding the impact of loan loss reserves released in Q4 of 2021. In addition, we executed on our stock repurchase program totaling $3.1 million during the year.
Total assets for First Bankers Trustshares, Inc. ended the quarter at $1.12 billion, up slightly from the prior quarter. Loan growth accelerated in the quarter, with $16.1 million in net new loans added. Deposits declined by $2.1 million in the quarter, reflecting lower savings rates by customers.
Credit quality has remained strong, with non-performing loans ("NPL's") continuing to improve. In the fourth quarter, NPL's fell to
1.39%, the sixth consecutive quarterly improvement. Allowance for loan losses declined to 1.96% of loans, the lowest level since the first quarter of 2018. While our portfolio has performed well, we remain cautious in our outlook given the direction of the economy.
Net interest margin increased by 0.32% for the year and was 2.50% for the fourth quarter. We continue to benefit from higher yields, though the quarter itself was down by .03% from the prior quarter, as competition for deposits increased funding rates.
Non-interest income was $1.7 million for the quarter, 2.2% higher from the same period a year ago. Mortgage originations continued to be soft as a function of higher mortgage rates. Brokerage activities improved modestly from the preceding quarter.
Non-interest expense was $6.73 million in the quarter, up 13% from prior quarter, primarily attributable to non-recurring costs associated with the implementation of a new online banking platform. The bank's efficiency ratio improved by 3.8% for the year, with improvements driven by strong revenue growth and cost controls.
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
Melinda K. Boyer
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 Twelve Month Period | ||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||
Income Statement Data | 2022 | 2021 | % Chg | 2022 | 2021 | 2020 | |||||||||
Net Interest Income | $ | 6,931 | $ | 6,466 | 7.19 % | $ | 27,649 | $ | 24,124 | $ | 25,918 | ||||
Provision for Loan Losses | 0 | ($550) | NM % | (500) | ($580) | 2,400 | |||||||||
Noninterest Income | 1,736 | 1,698 | 2.24 % | 7,003 | 7,468 | 7,519 | |||||||||
Noninterest Expense | 6,732 | 5,777 | 16.53 % | 24,087 | 21,899 | 21,099 | |||||||||
Income Taxes | 294 | 604 | (51.32) % | 2,242 | 2,103 | 2,185 | |||||||||
Net Income | $ | 1,641 | $ | 2,333 | (29.66) % | $ | 8,823 | $ | 8,170 | $ | 7,843 | ||||
For The Three Month Period | For the Twelve Month Period | ||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||
Ratios | 2022 | 2021 | % Chg | 2022 | 2021 | 2020 | |||||||||
Return on Average Assets (Excludes preferred stock dividends/ | 0.58 % | 0.73% | (20.55) % | 0.76 % | 0.68 % | 0.75 % | |||||||||
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 | 6.09 % | 9.02% | (32.48) % | 8.33 % | 8.13 % | 8.24 % | |||||||||
comprehensive income or loss.) | |||||||||||||||
Net Interest Margin | 2.50 % | 2.10 % | 19.05 % | 2.43 % | 2.11 % | 2.62 % | |||||||||
Allowance as a Percent of Total Loans | 1.96 % | 2.39 % | (17.99) % | 1.96 % | 2.39 % | 2.50 % | |||||||||
Dividends per Common Share Paid | $ | 0.19 | $ | 0.18 | 5.56 % | $ | 0.76 | $ | 0.72 | $ | 0.68 | ||||
Earnings per Common Share (Calculated by dividing net income | $ | 0.55 | $ | 0.76 | (27.63) % | $ | 2.92 | $ | 2.64 | $ | 2.54 | ||||
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 | $ | 35.78 | $ | 33.46 | 6.93 % | $ | 35.78 | $ | 33.46 | $ | 31.54 | ||||
stockholders' equity, excluding preferred stock and accumulated other | |||||||||||||||
comprehensive income or loss, by outstanding common shares.) | |||||||||||||||
At December 31, | At December 31, | ||||||||||||||
Balance Sheet | 2022 | 2021 | % Chg | 2021 | 2020 | 2019 | |||||||||
Assets | $ | 1,118,117 | $ | 1,226,137 | (8.81) % | $ | 1,226,137 | $ | 1,117,675 | $ | 922,579 | ||||
Investment Securities | $ | 483,311 | $ | 667,157 | (27.56) % | $ | 667,157 | $ | 542,170 | $ | 345,140 | ||||
Loans, net of Unearned Income | $ | 551,269 | $ | 478,398 | 15.23 % | $ | 478,398 | $ | 485,153 | $ | 500,599 | ||||
Deposits | $ | 913,551 | $ | 978,624 | (6.65) % | $ | 978,624 | $ | 853,302 | $ | 727,656 | ||||
Short-term and Other Borrowings | $ | 130,478 | $ | 126,273 | 3.33 % | $ | 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 | $ | 106,844 | $ | 103,214 | 3.52 % | $ | 103,214 | $ | 97,606 | $ | 91,711 | ||||
income or loss.) | |||||||||||||||
For The Twelve Month Period | For The Years | ||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||
Stock Value Per Common Share Information | 2022 | 2021 | % Chg | 2021 | 2020 | 2019 | |||||||||
Price/Earnings ratio | 8.1 | 11.9 | (31.93) % | 11.9 | 10.9 | 11.6 | |||||||||
Stock Price-High | $ | 31.45 | $ | 32.25 | (2.48) % | $ | 32.25 | $ | 33.50 | $ | 36.00 | ||||
Low 1 | $ | 22.75 | $ | 27.84 | (18.28) % | $ | 27.84 | $ | 24.00 | $ | 30.05 | ||||
Ending | $ | 23.59 | $ | 31.45 | (22.66) % | $ | 31.45 | $ | 27.75 | $ | 31.20 | ||||
Book Value per Common Share 2 | $ | 35.78 | $ | 33.46 | 6.93 % | $ | 33.46 | $ | 31.54 | $ | 29.68 | ||||
Price/Book Value per Common Share | 0.66 | 0.94 | (29.79) % | 0.94 | 0.88 | 1.05 | |||||||||
Common Shares Outstanding | 2,986,281 | 3,084,736 | 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
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Disclaimer
First Bankers Trustshares Inc. published this content on 18 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2023 15:19:01 UTC.
