ELIZABETHTOWN,
Ky., Nov. 12,
2013 /PRNewswire/ -- First Financial
Service Corporation (the Company, NASDAQ: FFKY) today reported net
income to common stockholders of $1.2
million for the quarter ended September 30, 2013, an improvement from the net
loss to common stockholders of $1.0
million for the same quarter in 2012. Net income per diluted
common share was $0.25 for the
quarter ended September 30, 2013,
compared to a net loss per diluted common share of $0.21 for the same quarter in 2012.
First Financial also reported a net loss of $328,000 for the nine months ended September 30, 2013, an improvement from the net
loss to common stockholders of $6.0
million for the same nine-month period in 2012. The
net loss per diluted common share was $0.07 for the nine months ended September 30, 2013, compared to a net loss per
diluted common share of $1.25 for the
nine months ended September 30,
2013.
"We continue to execute on improving the overall
profitability and risk profile of the Company," said President,
Greg Schreacke.
"Non-performing assets improved for the sixth consecutive
quarter, net interest margin trends remain favorable, and capital
ratios continue to improve with the net income posted for the
quarter. More importantly, serving our customers remains at
the heart of everything we do. New loan production for
portfolio loans exceeded $30 million
for the third consecutive quarter, though net loan growth declined
3.0% for the quarter. Retail and commercial checking continue
to grow with a 5% increase in deposits for the year."
THIRD QUARTER 2013 HIGHLIGHTS
- Net interest margin improved to 2.96% for the quarter ended
September 30, 2013, up from 2.87%
last quarter and 2.54% for the quarter ended September 30, 2012.
- Non-performing assets, excluding restructured loans that
are accruing and paying as agreed, declined by $1.7 million or 5.0%, to $30.4 million from June
30, 2013 and $30.0 million or
49.7% from September 30, 2012.
This represents the sixth consecutive quarterly reduction in
non-performing assets, excluding restructured loans that are
accruing and paying as agreed.
- Other real estate owned has decreased $13.4 million or 60.2% to $8.9 million for the quarter ended September 30, 2013 compared to $22.3 for the quarter ended December 31, 2012. Related expenses have
declined 61.7% for the nine months ended September 30, 2013 to $1.3
million when compared to $3.3
million for the same period last year. Also, a gain of
$1.5 million was realized during the
quarter on a piece of commercial real estate property that was
sold.
- Regulatory capital ratios continue to improve at the bank
level. The tier I leverage ratio was 7.80%, the tier I
risk-based ratio was 11.83% and the total risk-based ratio was
13.09% for the quarter ended September 30,
2013 compared to 6.50%, 10.61%, and 11.88% respectively for
the quarter ended September 30,
2012.
"Third quarter 2013 noninterest expenses were relatively
flat with a slight increase of approximately $41,000 over the second quarter. Noninterest
income in the second quarter of 2013 improved by $1.9 million and included a $1.5 million gain on the sale of one other real
estate owned property," said Chief Financial Officer, Frank Perez. "Noninterest income also benefited
from increased overdraft and mortgage fee income."
First Financial Service Corporation is the parent bank
holding company of First Federal Savings Bank of Elizabethtown, which was chartered in 1923.
The Bank serves the needs and caters to the economic strengths of
the local communities in which it operates and strives to provide a
high level of personal and professional customer service. The Bank
offers a variety of financial services to its retail and commercial
banking customers. These services include personal and corporate
banking services, and personal investment financial counseling
services. Currently, the Bank serves six contiguous counties in
central Kentucky through its 17
full-service banking centers.
This release includes forward-looking statements. The
words "expect," "anticipate," "goal," "objective," "intend,"
"plan," "believe," "should," "seek," "estimate" and similar
expressions identify forward-looking statements, but other
statements not limited to historical information may also be
considered forward-looking. All forward-looking statements are
subject to risks, uncertainties and other factors that may cause
our actual results to differ materially from any results expressed
or implied by such forward-looking statements. Such risks and
uncertainties include, without limitation, (i) events or conditions
that adversely affect the financial condition of borrowers; (ii)
continuation of the current historically low short-term interest
rate environment; (iii) our ability to attract performing loans;
(iv) changes in loan underwriting, credit review or loss reserve
policies resulting from economic conditions, regulatory oversight
or regulatory developments; (v) the effectiveness of our efforts to
improve, resolve or liquidate lower-quality assets; (vi) increased
competition from other financial institutions; (vii) greater than
anticipated adverse conditions in the national or local economies,
particularly in commercial and residential real estate markets;
(viii) rapid fluctuations or unanticipated changes in interest
rates; (ix) events that would cause us to conclude that there
was impairment of any asset, including intangible assets; (x)
events that further reduce the value of, or increase expenses
associated with, other real estate owned; (xi) our ability to
comply with regulatory capital requirements; and (xiii) changes in
state and federal legislation, regulations or policies applicable
to banks and other financial service providers, including
implementation of the Dodd-Frank Wall Street Reform and Consumer
Protection Act. A more detailed description of these and other
risks and uncertainties is contained in our most recent annual
report on Form 10-K and our most recent quarterly report on Form
10-Q filed with the Securities and Exchange Commission. Many of the
risks and uncertainties described above are beyond our ability to
control or predict, and therefore readers are cautioned not to put
undue reliance on the forward-looking statements made in this
release. First Financial Service Corporation disclaims any
obligation to update or revise any forward-looking statements made
in this release, whether as a result of new information, future
events or otherwise, unless required by law.
|
|
FIRST FINANCIAL
SERVICE CORPORATION
|
|
|
|
Consolidated Balance Sheets
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
(Dollars in
thousands, except per share data)
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
Cash and due from
banks
|
|
|
|
$
13,441
|
|
$
12,598
|
|
Interest bearing
deposits
|
|
|
|
18,076
|
|
50,505
|
|
Total cash and cash equivalents
|
|
|
31,517
|
|
63,103
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale
|
|
|
|
290,183
|
|
354,131
|
|
Loans held for
sale
|
|
|
|
|
1,068
|
|
3,887
|
|
|
|
|
|
|
|
|
|
|
Loans, net of
unearned fees
|
|
|
|
476,031
|
|
524,835
|
|
Allowance for loan
losses
|
|
|
|
(12,224)
|
|
(17,265)
|
|
Net
loans
|
|
|
|
|
463,807
|
|
507,570
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan
Bank stock
|
|
|
|
4,430
|
|
4,805
|
|
Cash surrender value
of life insurance
|
|
|
10,336
|
|
10,060
|
|
Premises and
equipment, net
|
|
|
|
25,907
|
|
27,048
|
|
Real estate
owned:
|
|
|
|
|
|
|
|
|
Acquired
through foreclosure, net of valuation
|
|
|
|
|
|
allowance of $721 Sept
(2013) and $500 Dec (2012)
|
8,859
|
|
22,286
|
|
Other repossessed
assets
|
|
|
|
16
|
|
34
|
|
Accrued interest
receivable
|
|
|
|
2,283
|
|
2,690
|
|
Accrued income
taxes
|
|
|
|
2,907
|
|
2,928
|
|
Low-income housing
investments
|
|
|
7,039
|
|
7,061
|
|
Other
assets
|
|
|
|
|
1,804
|
|
1,459
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
$
850,156
|
|
$
1,007,062
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing
|
|
|
|
$
80,308
|
|
$
75,842
|
|
Interest
bearing
|
|
|
|
|
666,570
|
|
846,778
|
|
Total
deposits
|
|
|
|
|
746,878
|
|
922,620
|
|
|
|
|
|
|
|
|
|
|
Advances from Federal
Home Loan Bank
|
|
|
38,424
|
|
12,596
|
|
Subordinated
debentures
|
|
|
|
18,000
|
|
18,000
|
|
Accrued interest
payable
|
|
|
|
4,137
|
|
3,121
|
|
Accrued senior
preferred dividend
|
|
|
3,219
|
|
2,469
|
|
Accounts payable and
other liabilities
|
|
|
4,977
|
|
3,884
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
|
|
815,635
|
|
962,690
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
Senior
preferred stock, $1 par value per share;
|
|
|
|
|
|
authorized 5,000,000 shares; issued and
|
|
|
|
|
|
outstanding, 20,000 shares with a liquidation
|
|
|
|
|
|
preference of $23.2 million Sept (2013), and
|
|
|
|
|
|
$22.5 million Dec (2012)
|
|
|
|
19,984
|
|
19,943
|
|
Common stock, $1 par
value per share;
|
|
|
|
|
|
|
authorized 35,000,000 shares; issued and
|
|
|
|
|
|
outstanding, 4,861,523 shares Sept (2013), and 4,775,114
|
|
|
|
|
shares
Dec (2012)
|
|
|
|
|
4,861
|
|
4,775
|
|
Additional paid-in
capital
|
|
|
|
36,137
|
|
35,782
|
|
Accumulated
deficit
|
|
|
|
|
(17,726)
|
|
(17,398)
|
|
Accumulated other
comprehensive income
|
|
|
(8,735)
|
|
1,270
|
|
|
|
|
|
|
|
|
|
|
TOTAL
STOCKHOLDERS' EQUITY
|
|
34,521
|
|
44,372
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
850,156
|
|
$
1,007,062
|
|
|
|
|
|
|
|
|
|
|
|
FIRST FINANCIAL
SERVICE CORPORATION
|
|
|
|
|
Consolidated
Statements of Operations
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(Amounts in
thousands, except per share data)
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2013
|
2012
|
|
2013
|
2012
|
|
Interest and
Dividend Income:
|
|
|
|
|
|
|
|
|
|
Loans,
including fees
|
|
|
$
6,308
|
$
8,082
|
|
$
19,729
|
$
26,911
|
|
Taxable
securities
|
|
|
|
1,700
|
1,666
|
|
4,898
|
5,303
|
|
Tax exempt
securities
|
|
|
53
|
74
|
|
185
|
230
|
|
Total interest
income
|
|
8,061
|
9,822
|
|
24,812
|
32,444
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
1,561
|
2,952
|
|
5,471
|
10,341
|
|
Federal Home
Loan Bank advances
|
|
133
|
216
|
|
397
|
783
|
|
Subordinated
debentures
|
|
|
340
|
421
|
|
1,022
|
1,103
|
|
Total interest
expense
|
|
2,034
|
3,589
|
|
6,890
|
12,227
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
6,027
|
6,233
|
|
17,922
|
20,217
|
|
Provision for loan
losses
|
|
|
(500)
|
2,671
|
|
(1,325)
|
4,598
|
|
Net interest income
after provision for loan losses
|
6,527
|
3,562
|
|
19,247
|
15,619
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
Income:
|
|
|
|
|
|
|
|
|
|
|
Customer
service fees on deposit accounts
|
1,444
|
1,339
|
|
3,942
|
4,121
|
|
Gain on sale
of mortgage loans
|
|
230
|
505
|
|
818
|
1,200
|
|
Gain on sale
of investments
|
|
|
|
|
235
|
2,054
|
|
1,078
|
3,363
|
|
Loss on sale
of investments
|
|
|
|
|
(223)
|
(350)
|
|
(839)
|
(653)
|
|
Other than
temporary impairment loss:
|
|
|
|
|
|
|
|
|
|
|
Total
other-than-temporary impairment losses
|
-
|
-
|
|
-
|
(26)
|
|
Portion of loss
recognized in other comprehensive
|
|
|
|
|
|
|
income/(loss) (before taxes)
|
|
-
|
-
|
|
-
|
-
|
|
Net impairment losses
recognized in earnings
|
|
-
|
-
|
|
-
|
(26)
|
|
Loss on sale
and write downs on real estate acquired
|
|
|
|
|
|
|
|
through
foreclosure
|
|
|
|
|
(365)
|
(1,587)
|
|
(1,957)
|
(5,169)
|
|
Gain on branch
divesture
|
|
|
|
|
-
|
3,124
|
|
-
|
3,124
|
|
Gain on sale
of premises and equipment
|
|
-
|
-
|
|
-
|
322
|
|
Gain on sale
on real estate acquired through foreclosure
|
|
1,632
|
630
|
|
1,839
|
1,243
|
|
Gain on sale
of real estate held for development
|
|
-
|
-
|
|
-
|
175
|
|
Brokerage
commissions
|
|
|
127
|
109
|
|
384
|
316
|
|
Other
income
|
|
|
|
466
|
632
|
|
1,421
|
1,660
|
|
Total non-interest
income
|
|
3,546
|
6,456
|
|
6,686
|
9,676
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
Expense:
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation and benefits
|
|
3,955
|
3,609
|
|
11,505
|
11,284
|
|
Office
occupancy expense and equipment
|
653
|
777
|
|
2,051
|
2,327
|
|
Marketing and
advertising
|
|
|
99
|
113
|
|
273
|
281
|
|
Outside
services and data processing
|
|
900
|
853
|
|
2,704
|
2,557
|
|
Bank franchise
tax
|
|
|
|
315
|
402
|
|
708
|
1,146
|
|
FDIC insurance
premiums
|
|
|
460
|
663
|
|
1,654
|
1,760
|
|
Amortization
of intangible assets
|
|
-
|
-
|
|
-
|
127
|
|
Real estate
acquired through foreclosure expense
|
452
|
638
|
|
1,270
|
3,314
|
|
Loan
expense
|
|
|
|
485
|
568
|
|
1,092
|
1,732
|
|
FHLB advance
perpayment penalty
|
|
-
|
1,548
|
|
-
|
1,548
|
|
Other
expense
|
|
|
|
1,286
|
1,682
|
|
4,211
|
4,482
|
|
Total non-interest
expense
|
|
8,605
|
10,853
|
|
25,468
|
30,558
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before
income taxes
|
|
1,468
|
(835)
|
|
465
|
(5,263)
|
|
Income tax
expense/(benefit)
|
|
|
1
|
(84)
|
|
2
|
(83)
|
|
Net Income
(Loss)
|
|
|
|
1,467
|
(751)
|
|
463
|
(5,180)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Dividends on preferred stock
|
|
(250)
|
(250)
|
|
(750)
|
(750)
|
|
Accretion on preferred stock
|
|
|
(14)
|
(14)
|
|
(41)
|
(41)
|
|
Net income (loss)
attributable to common shareholders
|
$
1,203
|
$
(1,015)
|
|
$
(328)
|
$
(5,971)
|
|
|
|
|
|
|
|
|
|
|
|
Shares applicable to
basic income (loss) per common share
|
4,860,115
|
4,772,987
|
|
4,816,538
|
4,766,898
|
|
Basic income
(loss) per common share
|
|
$
0.25
|
$
(0.21)
|
|
$
(0.07)
|
$
(1.25)
|
|
|
|
|
|
|
|
|
|
|
|
Shares applicable to
diluted income (loss) per common share
|
4,905,542
|
4,772,987
|
|
4,816,538
|
4,766,898
|
|
Diluted income
(loss) per common share
|
$
0.25
|
$
(0.21)
|
|
$
(0.07)
|
$
(1.25)
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
-
|
$
-
|
|
$
-
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
|
|
Balance
|
Interest
|
Yield/Cost
(5)
|
|
Balance
|
Interest
|
Yield/Cost
(5)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Interest earning
assets:
|
|
|
|
|
|
|
|
|
U.S.
Government and federal agency
|
$
-
|
$
-
|
-%
|
|
$
13,174
|
$
63
|
1.90%
|
|
Mortgage-backed securities
|
235,530
|
1,173
|
1.98%
|
|
280,664
|
1,328
|
1.88%
|
|
State and
political subdivision
|
|
|
|
|
|
|
|
|
securities (1)
|
|
14,251
|
188
|
5.23%
|
|
13,529
|
242
|
7.10%
|
|
Trust
Preferred Securities
|
|
-
|
-
|
-%
|
|
1,040
|
9
|
3.43%
|
|
Corporate
bonds
|
|
56,013
|
400
|
2.83%
|
|
14,109
|
84
|
2.36%
|
|
Loans (2)
(3) (4)
|
|
488,494
|
6,308
|
5.12%
|
|
590,418
|
8,082
|
5.43%
|
|
FHLB
stock
|
|
4,430
|
47
|
4.21%
|
|
4,805
|
49
|
4.05%
|
|
Interest
bearing deposits
|
17,150
|
9
|
0.21%
|
|
69,444
|
47
|
0.27%
|
|
Total interest earning assets
|
815,868
|
8,125
|
3.95%
|
|
987,183
|
9,904
|
3.98%
|
|
Less: Allowance
for loan losses
|
(15,871)
|
|
|
|
(16,507)
|
|
|
|
Non-interest earning
assets
|
74,394
|
|
|
|
90,665
|
|
|
|
Total assets
|
|
$
874,391
|
|
|
|
$
1,061,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
Savings
accounts
|
|
$
89,356
|
$
40
|
0.18%
|
|
$
83,542
|
$
66
|
0.31%
|
|
NOW and money
market
|
|
|
|
|
|
|
|
|
accounts
|
|
243,533
|
82
|
0.13%
|
|
280,913
|
317
|
0.45%
|
|
Certificates
of deposit and
|
|
|
|
|
|
|
|
|
other time deposits
|
365,675
|
1,439
|
1.56%
|
|
521,093
|
2,569
|
1.96%
|
|
FHLB
advances
|
|
32,750
|
133
|
1.61%
|
|
21,300
|
216
|
4.02%
|
|
Subordinated
debentures
|
18,000
|
340
|
7.49%
|
|
18,000
|
421
|
9.28%
|
|
Total
interest bearing liabilities
|
749,314
|
2,034
|
1.08%
|
|
924,848
|
3,589
|
1.54%
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
Non-interest
bearing deposits
|
80,523
|
|
|
|
79,266
|
|
|
|
Other
liabilities
|
|
11,759
|
|
|
|
8,467
|
|
|
|
Total
liabilities
|
|
841,596
|
|
|
|
1,012,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
32,795
|
|
|
|
48,760
|
|
|
|
Total
liabilities and
|
|
|
|
|
|
|
|
|
stockholders' equity
|
$
874,391
|
|
|
|
$
1,061,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
6,091
|
|
|
|
$
6,315
|
|
|
Net interest
spread
|
|
|
|
2.87%
|
|
|
|
2.44%
|
|
Net interest
margin
|
|
|
|
2.96%
|
|
|
|
2.54%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable
equivalent yields are calculated assuming a 34% federal income tax
rate.
|
|
|
|
(2) Includes loan
fees, immaterial in amount, in both interest income and the
calculation of yield on loans.
|
|
(3) Calculations
include non-accruing loans in the average loan amounts
outstanding.
|
|
(4) Includes loans
held for sale.
|
|
(5)
Annualized
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
|
|
Balance
|
Interest
|
Yield/Cost
(5)
|
|
Balance
|
Interest
|
Yield/Cost
(5)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Interest earning
assets:
|
|
|
|
|
|
|
|
|
|
U.S.
Government and federal agency
|
|
$
2,548
|
$
28
|
1.47%
|
|
$
18,749
|
$
293
|
2.09%
|
|
Mortgage-backed securities
|
|
256,138
|
3,414
|
1.78%
|
|
290,143
|
4,297
|
1.98%
|
|
State and
political subdivision
|
|
|
|
|
|
|
|
|
|
securities (1)
|
|
14,803
|
609
|
5.50%
|
|
15,600
|
783
|
6.71%
|
|
Trust
Preferred Securities
|
|
|
-
|
-
|
-%
|
|
1,050
|
38
|
4.84%
|
|
Corporate
bonds
|
|
52,579
|
1,051
|
2.67%
|
|
4,840
|
85
|
2.35%
|
|
Loans (2)
(3) (4)
|
|
503,227
|
19,729
|
5.24%
|
|
659,961
|
26,911
|
5.45%
|
|
FHLB
stock
|
|
4,513
|
145
|
4.30%
|
|
4,805
|
152
|
4.23%
|
|
Interest
bearing deposits
|
|
24,184
|
43
|
0.24%
|
|
87,051
|
151
|
0.23%
|
|
Total interest earning assets
|
|
857,992
|
25,019
|
3.90%
|
|
1,082,199
|
32,710
|
4.04%
|
|
Less: Allowance
for loan losses
|
|
(16,348)
|
|
|
|
(17,415)
|
|
|
|
Non-interest earning
assets
|
|
78,918
|
|
|
|
92,218
|
|
|
|
Total assets
|
|
$
920,562
|
|
|
|
$
1,157,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
|
$
89,083
|
$
147
|
0.22%
|
|
$
92,174
|
$
209
|
0.30%
|
|
NOW and money
market
|
|
|
|
|
|
|
|
|
|
accounts
|
|
262,660
|
437
|
0.22%
|
|
296,952
|
1,155
|
0.52%
|
|
Certificates
of deposit and
|
|
|
|
|
|
|
|
|
|
other time deposits
|
|
401,583
|
4,887
|
1.63%
|
|
588,119
|
8,977
|
2.04%
|
|
FHLB
advances
|
|
19,695
|
397
|
2.70%
|
|
25,607
|
783
|
4.09%
|
|
Subordinated
debentures
|
|
18,000
|
1,022
|
7.59%
|
|
18,000
|
1,103
|
8.19%
|
|
Total
interest bearing liabilities
|
|
791,021
|
6,890
|
1.16%
|
|
1,020,852
|
12,227
|
1.60%
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing deposits
|
|
79,836
|
|
|
|
79,230
|
|
|
|
Other
liabilities
|
|
11,071
|
|
|
|
6,061
|
|
|
|
Total
liabilities
|
|
881,928
|
|
|
|
1,106,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
38,634
|
|
|
|
50,859
|
|
|
|
Total
liabilities and
|
|
|
|
|
|
|
|
|
|
stockholders' equity
|
|
$
920,562
|
|
|
|
$
1,157,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
18,129
|
|
|
|
$ 20,483
|
|
|
Net interest
spread
|
|
|
|
2.74%
|
|
|
|
2.44%
|
|
Net interest
margin
|
|
|
|
2.83%
|
|
|
|
2.53%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Taxable
equivalent yields are calculated assuming a 34% federal income tax
rate.
|
|
|
|
(2) Includes loan
fees, immaterial in amount, in both interest income and the
calculation of yield on loans.
|
|
(3) Calculations
include non-accruing loans in the average loan amounts
outstanding.
|
|
|
|
|
(4) Includes loans
held for sale.
|
|
|
|
|
(5)
Annualized
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
(Dollars in
thousands)
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period
|
|
|
|
$ 15,947
|
|
$ 15,300
|
|
$ 17,265
|
|
$ 17,181
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
charged-off:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
|
73
|
|
-
|
|
73
|
|
62
|
|
Consumer &
home equity
|
|
|
|
156
|
|
110
|
|
311
|
|
386
|
|
Commercial
& commercial real estate
|
|
|
|
3,124
|
|
361
|
|
3,670
|
|
3,351
|
|
Total
charge-offs
|
|
|
3,353
|
|
471
|
|
4,054
|
|
3,799
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
|
13
|
|
-
|
|
17
|
|
1
|
|
Consumer &
home equity
|
|
|
|
44
|
|
59
|
|
134
|
|
145
|
|
Commercial
& commercial real estate
|
|
|
|
73
|
|
64
|
|
187
|
|
166
|
|
Total
recoveries
|
|
|
130
|
|
123
|
|
338
|
|
312
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans
charged-off
|
|
|
|
3,223
|
|
348
|
|
3,716
|
|
3,487
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
|
(500)
|
|
2,671
|
|
(1,325)
|
|
4,598
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of
period
|
|
|
|
12,224
|
|
17,623
|
|
12,224
|
|
18,292
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Allowance
allocated to loans held for
|
|
|
|
|
|
|
|
|
sale in probable branch divestiture
|
-
|
|
201
|
|
-
|
|
(468)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of
period, net
|
|
$ 12,224
|
|
$ 17,824
|
|
$ 12,224
|
|
$ 17,824
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to total loans (1) (2)
|
|
|
|
2.57%
|
|
3.19%
|
|
2.57%
|
|
3.19%
|
|
Annualized net
charge-offs to average
|
|
|
|
|
|
|
|
|
loans
outstanding
|
|
|
|
2.62%
|
|
0.23%
|
|
0.99%
|
|
0.71%
|
|
Allowance for loan
losses to
|
|
|
|
|
|
|
|
|
|
|
|
total
non-performing loans (2)
|
|
|
|
57%
|
|
58%
|
|
57%
|
|
58%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
loans held for sale in probable
|
|
|
|
branch
divestiture and probable loan sale for 2012
|
|
|
|
|
|
(2) Includes
allowance allocated to loans held for sale
|
|
|
|
|
|
in probable
branch divestiture for 2012
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
(Dollars in
thousands)
|
|
|
2013
|
|
2013
|
|
2013
|
|
2012
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured on
non-accrual status
|
|
|
$
7,927
|
|
$
8,639
|
|
$
9,099
|
|
$
9,753
|
|
$
16,151
|
|
Restructured past due
90 days still on accrual
|
|
|
4,837
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Past due 90 days
still on accrual
|
|
2,238
|
|
-
|
|
1,950
|
|
-
|
|
-
|
|
Loans on non-accrual
status
|
|
6,511
|
|
9,215
|
|
9,596
|
|
11,702
|
|
15,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing loans
|
|
21,513
|
|
17,854
|
|
20,645
|
|
21,455
|
|
31,716
|
|
Real estate acquired
through
|
|
|
|
|
|
|
|
|
|
|
|
foreclosure
|
|
8,859
|
|
14,169
|
|
19,705
|
|
22,286
|
|
28,649
|
|
Other repossessed
assets
|
|
16
|
|
37
|
|
32
|
|
34
|
|
24
|
|
Total
non-performing assets
|
|
$
30,388
|
|
$
32,060
|
|
$
40,382
|
|
$
43,775
|
|
$
60,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income that
would have
|
|
|
|
|
|
|
|
|
|
|
|
been earned on
non-performing loans
|
|
$
1,127
|
|
$
946
|
|
$
1,094
|
|
$
1,163
|
|
$
1,729
|
|
Interest income
recognized
|
|
|
|
|
|
|
|
|
|
|
|
on
non-performing loans
|
|
38
|
|
-
|
|
16
|
|
-
|
|
-
|
|
Ratios:
Non-performing loans
|
|
|
|
|
|
|
|
|
|
|
|
to total loans (includes loans held for sale in
|
|
|
|
|
|
|
|
|
|
|
|
probable branch divestiture and probable
|
|
|
|
|
|
|
|
|
|
|
|
loan sale for 2012)
|
|
|
4.52%
|
|
3.64%
|
|
4.08%
|
|
4.09%
|
|
5.53%
|
|
Non-performing assets
|
|
|
|
|
|
|
|
|
|
|
|
to total loans (includes loans held for sale in
|
|
|
|
|
|
|
|
|
|
|
|
probable branch divestiture and probable
|
|
|
|
|
|
|
|
|
|
|
|
loan sale for 2012)
|
|
|
6.38%
|
|
6.54%
|
|
7.98%
|
|
8.34%
|
|
10.53%
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE First Financial Service Corporation