Highlights Include:
- For the first nine months of 2013, diluted earnings per
share were $1.06, increasing 29% from $0.82 for the first nine
months of 2012
- For the third quarter of 2013, diluted earnings per
share were $0.35, increasing from $0.31 for the third quarter of
2012
- Merger related expenses recorded in the third quarter
of 2013 reduced diluted earnings per share for the quarter and
nine-months by $0.07 per share
- Provision expense in third quarter of 2013 reduced to
zero due to continued improvement in asset quality metrics and
strong level of reserves
- Non-accrual loans reduced 5% in the quarter and 30%
less than year-ago; other real estate owned reduced 14% from the
prior quarter and 28% less than year-ago
- Merger with Mercantile Bank Corporation proceeding and
expected to complete and be effective January 1,
2014
- Equity ratios remained strong with affiliate banks
continuing to exceed regulatory well-capitalized
requirements
Thomas R. Sullivan, President and Chief Executive Officer of
Firstbank Corporation (Nasdaq:FBMI), announced net income of
$2,869,000 for the third quarter of 2013, increasing 5.7% from
$2,715,000 for the third quarter of 2012, with net income available
to common shareholders of $2,869,000 in the third quarter of 2013
increasing 15.0% from $2,495,000 in the third quarter of 2012.
Diluted earnings per share were $0.35 in the third quarter of 2013
compared to $0.31 in the third quarter of 2012. Returns on average
assets and average equity for the third quarter of 2013 were 0. 78%
and 8.6%, respectively, compared to 0.72% and 7.4% respectively in
the third quarter of 2012.
For the first nine months of 2013, net income of $9,075,000
increased 20.4% from $7,536,000 for the first nine months of 2012,
with net income available to common shareholders of $8,594,000 in
the first nine months of 2013 increasing 32.7% from $6,476,000 in
the first nine months of 2012. Diluted earnings per share were
$1.06 in the first nine months of 2013 compared to $0.82 in the
first nine months of 2012. Returns on average assets and average
equity for the first nine months of 2013 were 0.81% and 8.5%,
respectively, compared to 0.68% and 6.7% respectively in the first
nine months of 2012.
Expenses of $738,000 related to the pending merger with
Mercantile Bank Corporation were recorded in the third quarter of
2013. These expenses reduced after tax earnings and net income
available to common shareholders by $569,000 for both the third
quarter of 2013 and the nine months ended September 30, 2013.
Correspondingly, they reduced diluted earnings per share for both
periods by $0.07 per share.
Mr. Sullivan stated, "We continued to make great progress on
reducing non-accrual loans and other real estate owned. Resolving
these situations and getting these non-performing assets removed
from our balance sheet allow our lending staff to focus more on
developing new relationships and serving existing good customers.
We have achieved growth in portfolio loans for two consecutive
quarters, which helps our earning asset mix and is a sign of an
improving economic environment. However, we do continue to
experience more competitive pricing pressure on new and renewed
loans, and the improvement in mix in the quarter was not quite
enough to offset the pricing pressure. Therefore, we did see a
decline in earning asset yield in the quarter. With continued
improvement in mix, we would expect to see this negative trend in
yield reverse and become positive.
"We are proceeding with the previously announced merger with
Mercantile Bank Corporation and expect to complete the merger
effective January 1, 2014, subject to shareholder and regulatory
approvals. Strong improvement in our earnings and asset quality
metrics, and our exciting plans for the future are the result of
much hard work and dedication to our customers and company by our
wonderful staff, and we thank them for their efforts."
Provision for Loan Losses. The provision for
loan losses was zero in the third quarter of 2013, compared to the
$552,000 amount required in the second quarter of 2013 and the
$1,364,000 amount in the year-ago third quarter. Net charge-offs of
only $630,000 in the third quarter and the strong level of
allowance for loan losses made it unnecessary to provide additional
amounts to the allowance in the quarter.
Net Interest Income. Net interest income, at
$12,855,000 in the third quarter of 2013 was 5.1%, lower than in
the third quarter of 2012, as a result of a 17 basis point lower
net interest margin compared to the year-ago quarter. Net interest
margin in the third quarter of 2013 decreased to 3.82% from 3.89%
in the second quarter of 2013. Average portfolio loans grew in the
second quarter of 2013, but competitive pricing pressure continued
to force yields lower on new and renewed loans. The yield on
average earning assets decreased by 8 basis points, to 4.26% in the
third quarter of 2013 from 4.34% in the second quarter of 2013. The
cost of funds to average earning assets declined by 1 basis point,
to 0.44% in the third quarter of 2013 from 0.45% in the second
quarter of 2013.
Non-interest Income. Total non-interest income,
at $2,486,000 in the third quarter of 2013, was 17.6% lower than in
the third quarter of 2012, as the anticipated slowdown in mortgage
refinance volume materialized. Gain on sale of mortgages, at
$894,000 in the third quarter of 2013, decreased 39.1% compared to
the second quarter of 2013 and was 46.2% less than the year-ago
level. The category of "other" non-interest income, at $444,000 in
the third quarter of 2013, was 7.7% less than the amount in the
second quarter of 2013, primarily due to reduced CD early
withdrawal fees and $40,000 loss on sale of fixed assets related to
the sale of former branch properties. This category of "other"
non-interest income was 9.6% more than in the third quarter of
2012, primarily due to gain on sale of other real estate of
$107,000 in the third quarter of 2013 compared to $64,000 in the
third quarter of 2012.
Non-interest Expense. Total non-interest
expense, at $11,247,000 in the third quarter of 2013, was 1.6%
lower than the level in the third quarter of 2012, even with the
above mentioned merger related expenses included, and salaries and
employee benefits were 1.0% less than in the third quarter of 2012.
Occupancy and equipment costs were 5.4% more than the amount in
last year's third quarter mostly due to upgrades of computer
equipment. FDIC insurance premium expense, at $233,000 in the third
quarter of 2013, was 12.1% less than the level in the third quarter
of 2012 due to the timing of expense recognition related to the
FDIC's change in methodology for assessing premiums based on assets
rather than deposits. The category of "other" non-interest expense,
totaling $3,050,000 in the third quarter of 2013 included a
$250,000 expense for adding to the reserve for potential put-back
claims related to mortgages previously sold in the secondary
market. This reserve now stands at $1 million. In spite of this
additional expense, the category of "other" non-interest expense
decreased 22.3% compared to the third quarter of 2012, as
write-downs of valuations of other real estate owned (OREO)
included in the category were $48,000 in the third quarter of 2013,
well below the $341,000 amount in the third quarter of 2012, and
expenses related to the maintenance of OREO properties declined to
$95,000 compared to $172,000.
Total Assets. Total assets of Firstbank
Corporation at September 30, 2013, were $1.477 billion, a decrease
of 0.3% from year-ago. Total portfolio loans of $982 million
increased 0.8% from the level at June 30, 2013, and reached a level
0.5% above year-ago. Commercial and commercial real estate loans
increased 2.0% in the third quarter of 2013, and were 1.1% more
than year ago, and real estate construction loans decreased 11.9%
from year ago, including a 10.7% decrease in the third quarter of
2013. Residential mortgage loans increased 0.5% in the third
quarter of 2013, and were 1.0% more than year ago. Consumer loans
increased 1.8% in the third quarter of 2013 and were 3.9% above
year ago. Firstbank continues to have ample capital and funding
resources to increase loans on its balance sheet. Total deposits as
of September 30, 2013, were $1.230 billion, compared to $1.225
billion at September 30, 2012, an increase of 0.4%. Core deposits
at September 30, 2013, were 0.7% above the year-ago level, and they
increased $22.7 million in the third quarter of 2013, mostly in
interest bearing demand deposits.
Net Charge-offs. Net charge-offs were $630,000
in the third quarter of 2013, decreasing from $1,161,000 in the
second quarter of 2013 and decreasing from $1,554,000 in the third
quarter of 2012. In the third quarter of 2013, net charge-offs
annualized represented 0.26% of average loans, down significantly
from 0.48% in the second quarter of 2013 and 0.63% in the third
quarter of 2012.
Allowance and Asset Quality. Asset quality
metrics continued to improve in the third quarter of 2013,
indicating a lesser need for reserves. At the end of the third
quarter of 2013 the ratio of the allowance for loan losses to loans
was 2.00%, compared to 2.08% at June 30, 2013, and 2.18% at
September 30, 2012. Performing adjusted loans (troubled debt
restructurings, or TDRs) were $20,170,000 at September 30, 2013,
compared to $21,815,000 at June 30, 2013, and $19,619,000 at
September 30, 2012. Loans past due over 90 days and accruing
interest were $26,000 at September 30, 2013, compared to $18,000 at
June 30, 2013, and reduced from the $655,000 amount at September
30, 2012. Non-accrual loans were $11,204,000 at September 30, 2013,
a decrease of 5.4% from the level at June 30, 2013, and a decrease
of 30.5% from the $16,118,000 amount at September 30, 2012.
Other real estate owned decreased to $2,161,000 at September 30,
2013, compared to the $2,504,000 level at June 30, 2013, and was
down 28% from the $3,001,000 level at September 30, 2012.
Equity to Assets Ratio. The ratio of average
equity to average assets remained a strong 9.1% in the third
quarter of 2013. The decline in this ratio from 9.7% in the third
quarter of 2012 reflects the repurchase and retirement of all
remaining preferred stock outstanding during the second quarter of
2013, as reported previously. Firstbank Corporation's affiliate
banks continue to meet or exceed regulatory well-capitalized
requirements.
Firstbank Corporation, headquartered in Alma, Michigan, is a
bank holding company using a community bank local decision-making
format with assets of $1.5 billion and 46 banking offices serving
Michigan's Lower Peninsula. Firstbank Corporation has a pending
merger with the similarly sized Mercantile Bank Corporation.
Important Information for Investors
Communications in this press release do not constitute an offer
to sell or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval. The proposed merger and
issuance of Mercantile Bank Corporation common stock in connection
with the proposed merger will be submitted to Mercantile's
shareholders for their consideration, and the proposed merger will
be submitted to Firstbank's shareholders for their consideration.
On September 17, 2013 Mercantile filed with the Securities and
Exchange Commission ("SEC") a registration statement on Form S-4
that includes a preliminary joint proxy statement to be used by
Mercantile and Firstbank to solicit the required approval of their
respective shareholders in connection with the proposed merger, and
will constitute a prospectus of Mercantile. Mercantile and
Firstbank may also file other documents with the SEC concerning the
proposed merger. INVESTORS AND SECURITY HOLDERS OF MERCANTILE AND
FIRSTBANK ARE URGED TO READ THE JOINT PROXY STATEMENT AND
PROSPECTUS REGARDING THE PROPOSED MERGER AND OTHER RELEVANT
DOCUMENTS THAT HAVE BEEN AND WILL BE FILED WITH THE SEC CAREFULLY
AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. Investors
and security holders may obtain a free copy of the joint proxy
statement and prospectus and other documents containing important
information about Mercantile and Firstbank, once such documents are
filed with the SEC, through the website maintained by the SEC at
www.sec.gov. Copies of documents filed with the SEC by Firstbank
will be available free of charge on Firstbank's website at
www.firstbankmi.com under the tab "Investor Relations." or by
contacting Samuel Stone, Executive Vice President and Chief
Financial Officer at (989) 466-7325. Copies of the documents filed
with the SEC by Mercantile will be available free of charge on
Mercantile's website at www.mercbank.com under the tab "Investor
Relations." or by contacting Charles Christmas, Chief Financial
Officer, at 616-726-1202.
Participants in the Transaction
Firstbank, Mercantile and certain of their respective directors
and executive officers may be deemed to be participants in the
solicitation of proxies from the shareholders of Mercantile and
Firstbank in connection with the proposed transaction. Information
about the directors and executive officers of Firstbank is set
forth in its proxy statement for its 2013 annual meeting of
shareholders, which was filed with the SEC on March 15, 2013.
Information about the directors and executive officers of
Mercantile is set forth in its proxy statement for its 2013 annual
meeting of shareholders, which was filed with the SEC on March 15,
2013. These documents can be obtained free of charge from the
sources indicated above. Other information regarding the
participants in the proxy solicitation and a description of their
direct and indirect interests, by security holdings or otherwise,
will be contained in the joint proxy statement and prospectus and
other relevant materials to be filed with the SEC.
This press release contains certain forward-looking statements
that involve risks and uncertainties. When used in this press
release the words "anticipate," "believe," "expect," "hopeful,"
"potential," "should," and similar expressions identify
forward-looking statements. Forward-looking statements include, but
are not limited to, future business growth, changes in interest
rates, loan charge-off rates, demand for new loans, future
profitability, and the resolution of problem loans. 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, regulatory 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 press
release.
| FIRSTBANK CORPORATION |
| CONSOLIDATED STATEMENTS OF
INCOME |
| (Dollars in thousands except
per share data) |
| UNAUDITED |
| |
|
|
|
|
|
| |
Three Months Ended: |
Nine Months Ended: |
| |
Sep 30 |
Jun 30 |
Sep 30 |
Sep 30 |
Sep 30 |
| |
2013 |
2013 |
2012 |
2013 |
2012 |
| Interest income: |
|
|
|
|
|
| Interest and fees on loans |
$13,012 |
$13,399 |
$14,145 |
$39,695 |
$43,206 |
| Investment securities |
|
|
|
|
|
| Taxable |
894 |
865 |
1,104 |
2,721 |
3,508 |
| Exempt from federal income tax |
441 |
432 |
272 |
1,244 |
845 |
| Short term investments |
36 |
55 |
53 |
146 |
161 |
| Total interest income |
14,383 |
14,751 |
15,574 |
43,806 |
47,720 |
| |
|
|
|
|
|
| Interest expense: |
|
|
|
|
|
| Deposits |
1,190 |
1,237 |
1,588 |
3,777 |
5,198 |
| Notes payable and other borrowing |
338 |
323 |
444 |
971 |
1,374 |
| Total interest expense |
1,528 |
1,560 |
2,032 |
4,748 |
6,572 |
| |
|
|
|
|
|
| Net interest income |
12,855 |
13,191 |
13,542 |
39,058 |
41,148 |
| Provision for loan losses |
0 |
552 |
1,364 |
1,830 |
6,352 |
| Net interest income after provision for loan
losses |
12,855 |
12,639 |
12,178 |
37,228 |
34,796 |
| |
|
|
|
|
|
| Noninterest income: |
|
|
|
|
|
| Gain on sale of mortgage loans |
894 |
1,467 |
1,661 |
3,922 |
4,816 |
| Service charges on deposit accounts |
1,043 |
1,044 |
1,048 |
3,107 |
3,166 |
| Gain on trading account securities |
(4) |
6 |
(5) |
2 |
1 |
| Gain on sale of AFS securities |
0 |
2 |
2 |
52 |
42 |
| Mortgage servicing |
109 |
(27) |
(95) |
(54) |
(174) |
| Other |
444 |
481 |
405 |
1,325 |
1,408 |
| Total noninterest income |
2,486 |
2,973 |
3,016 |
8,354 |
9,259 |
| |
|
|
|
|
|
| Noninterest expense: |
|
|
|
|
|
| Salaries and employee benefits |
5,805 |
5,705 |
5,865 |
17,428 |
17,003 |
| Occupancy and equipment |
1,335 |
1,327 |
1,267 |
4,021 |
3,912 |
| Amortization of intangibles |
86 |
103 |
109 |
291 |
380 |
| FDIC insurance premium |
233 |
276 |
265 |
768 |
964 |
| Other |
3,050 |
3,496 |
3,923 |
9,509 |
11,249 |
| Merger related expense |
738 |
|
|
738 |
|
| Total noninterest expense |
11,247 |
10,907 |
11,429 |
32,755 |
33,508 |
| |
|
|
|
|
|
| Income before federal income taxes |
4,094 |
4,705 |
3,765 |
12,827 |
10,547 |
| Federal income taxes |
1,225 |
1,362 |
1,050 |
3,752 |
3,011 |
| Net Income |
2,869 |
3,343 |
2,715 |
9,075 |
7,536 |
| Preferred Stock Dividends |
0 |
266 |
220 |
481 |
1,060 |
| Net Income available to Common
Shareholders |
$2,869 |
$3,077 |
$2,495 |
$8,594 |
$6,476 |
| |
|
|
|
|
|
| Fully Tax Equivalent Net Interest Income |
$13,122 |
$13,438 |
$13,719 |
$39,792 |
$41,638 |
| |
|
|
|
|
|
| Per Share Data: |
|
|
|
|
|
| Basic Earnings |
$0.36 |
$0.38 |
$0.31 |
$1.07 |
$0.82 |
| Diluted Earnings |
$0.35 |
$0.38 |
$0.31 |
$1.06 |
$0.82 |
| Dividends Paid |
$0.06 |
$0.06 |
$0.01 |
$0.18 |
$0.08 |
| |
|
|
|
|
|
| Performance Ratios: |
|
|
|
|
|
| Return on Average Assets (a) |
0.78% |
0.90% |
0.72% |
0.81% |
0.68% |
| Return on Average Equity (a) |
8.6% |
9.1% |
7.4% |
8.5% |
6.7% |
| Net Interest Margin (FTE) (a) |
3.82% |
3.89% |
3.99% |
3.85% |
4.02% |
| Book Value Per Share (b) |
$16.75 |
$16.41 |
$16.24 |
$16.75 |
$16.24 |
| Tangible Book Value per Share (b) |
$12.27 |
$11.92 |
$11.64 |
$12.27 |
$11.64 |
| Average Equity/Average Assets |
9.1% |
9.8% |
9.7% |
9.6% |
10.2% |
| Net Charge-offs |
$630 |
$1,161 |
$1,554 |
$3,561 |
$6,039 |
| Net Charge-offs as a % of Average Loans
(c)(a) |
0.26% |
0.48% |
0.63% |
0.49% |
0.82% |
| |
|
|
|
|
|
| (a) Annualized |
|
|
|
|
|
| (b) Period End |
|
|
|
` |
|
| (c) Total loans less loans held for
sale |
|
|
|
|
|
| |
| FIRSTBANK CORPORATION |
| CONSOLIDATED BALANCE
SHEETS |
| (Dollars in thousands) |
| UNAUDITED |
| |
|
|
|
|
| |
Sep 30 |
Jun 30 |
Dec 31 |
Sep 30 |
| |
2013 |
2013 |
2012 |
2012 |
| ASSETS |
|
|
|
|
| |
|
|
|
|
| Cash and cash equivalents: |
|
|
|
|
| Cash and due from banks |
$30,384 |
$14,132 |
$38,544 |
$29,710 |
| Short term investments |
31,019 |
40,298 |
63,984 |
45,192 |
| Total cash and cash equivalents |
61,403 |
54,430 |
102,528 |
74,902 |
| |
|
|
|
|
| Securities available for sale |
357,429 |
351,022 |
353,684 |
350,231 |
| Federal Home Loan Bank stock |
7,266 |
7,266 |
7,266 |
7,266 |
| Loans: |
|
|
|
|
| Loans held for sale |
732 |
992 |
2,921 |
3,813 |
| Portfolio loans: |
|
|
|
|
| Commercial |
159,199 |
155,787 |
149,265 |
151,252 |
| Commercial real estate |
363,059 |
356,137 |
357,831 |
365,402 |
| Residential mortgage |
340,877 |
339,054 |
331,896 |
337,587 |
| Real estate construction |
49,215 |
55,138 |
58,530 |
55,855 |
| Consumer |
69,936 |
68,688 |
66,240 |
67,314 |
| Total portfolio loans |
982,286 |
974,804 |
963,762 |
977,410 |
| Less allowance for loan losses |
(19,608) |
(20,239) |
(21,340) |
(21,332) |
| Net portfolio loans |
962,678 |
954,565 |
942,422 |
956,078 |
| |
|
|
|
|
| Premises and equipment, net |
23,893 |
24,322 |
24,356 |
24,926 |
| Goodwill |
35,513 |
35,513 |
35,513 |
35,513 |
| Other intangibles |
675 |
761 |
965 |
1,068 |
| Other assets |
27,362 |
28,175 |
29,107 |
28,313 |
| TOTAL ASSETS |
$1,476,951 |
$1,457,046 |
$1,498,762 |
$1,482,110 |
| |
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
| |
|
|
|
|
| LIABILITIES |
|
|
|
|
| |
|
|
|
|
| Deposits: |
|
|
|
|
| Noninterest bearing accounts |
$259,946 |
$251,742 |
$251,109 |
$229,437 |
| Interest bearing accounts: |
|
|
|
|
| Demand |
359,926 |
338,168 |
348,598 |
348,712 |
| Savings |
276,783 |
273,921 |
265,323 |
262,314 |
| Time |
317,440 |
327,596 |
358,791 |
365,745 |
| Wholesale CD's |
16,021 |
16,875 |
17,580 |
18,653 |
| Total deposits |
1,230,116 |
1,208,302 |
1,241,401 |
1,224,861 |
| |
|
|
|
|
| Securities sold under agreements to
repurchase and overnight borrowings |
47,333 |
43,661 |
42,785 |
45,927 |
| FHLB Advances and notes payable |
19,861 |
27,862 |
22,493 |
19,558 |
| Subordinated Debt |
36,084 |
36,084 |
36,084 |
36,084 |
| Accrued interest and other liabilities |
8,242 |
8,693 |
8,941 |
9,591 |
| Total liabilities |
1,341,636 |
1,324,602 |
1,351,704 |
1,336,021 |
| |
|
|
|
|
| SHAREHOLDERS' EQUITY |
|
|
|
|
| Preferred stock; no par value, 300,000 shares
authorized, 33,000 outstanding |
0 |
0 |
16,908 |
16,904 |
| Common stock; 20,000,000 shares
authorized |
116,466 |
116,369 |
115,621 |
115,228 |
| Retained earnings |
18,064 |
15,679 |
10,921 |
9,812 |
| Accumulated other comprehensive income |
785 |
396 |
3,608 |
4,145 |
| Total shareholders' equity |
135,315 |
132,444 |
147,058 |
146,089 |
| TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$1,476,951 |
$1,457,046 |
$1,498,762 |
$1,482,110 |
| |
|
|
|
|
| Common stock shares issued and
outstanding |
8,076,621 |
8,070,268 |
8,001,903 |
7,952,502 |
| Principal Balance of Loans Serviced for
Others ($mil) |
$609.1 |
$609.9 |
$608.2 |
$594.8 |
| |
|
|
|
|
| Asset Quality Information: |
|
|
|
|
| Performing Adjusted Loans (TDRs) (b) |
20,170 |
21,815 |
20,720 |
19,619 |
| Loans Past Due over 90 Days |
26 |
18 |
37 |
655 |
| Non-Accrual Loans |
11,204 |
11,849 |
15,668 |
16,118 |
| Other Real Estate Owned |
2,161 |
2,504 |
2,925 |
3,001 |
| Allowance for Loan Loss as a % of Loans
(a) |
2.00% |
2.08% |
2.21% |
2.18% |
| |
|
|
|
|
| Quarterly Average Balances: |
|
|
|
|
| Total Portfolio Loans (a) |
$977,069 |
$965,722 |
$968,509 |
$982,144 |
| Total Earning Assets |
1,366,068 |
1,384,833 |
1,381,004 |
1,371,768 |
| Total Shareholders' Equity |
133,557 |
146,755 |
145,186 |
143,805 |
| Total Assets |
1,471,510 |
1,489,905 |
1,496,135 |
1,483,546 |
| Diluted Shares Outstanding |
8,134,948 |
8,118,717 |
7,994,996 |
7,987,968 |
| |
|
|
|
|
| (a) Total Loans less loans held for sale |
|
|
|
|
| (b) Troubled Debt Restructurings in Call
Reports |
|
|
|
|
CONTACT: Samuel G. Stone
Executive Vice President and
Chief Financial Officer
(989) 466-7325
Firstbank Corp. (MM) (NASDAQ:FBMI)
過去 株価チャート
から 10 2024 まで 11 2024
Firstbank Corp. (MM) (NASDAQ:FBMI)
過去 株価チャート
から 11 2023 まで 11 2024
