333-185041 | ||||
333-185043 | ||||
Illinois | 333-185044 | 20-4718752 | ||
(State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
2801 Black Road, Joliet, IL | 60435 | |
(Address of Principal Executive Offices) | (Zip Code) |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | Press Release dated July 22, 2014 |
Exhibit No. | Description | |
99.1 | Press Release dated July 22, 2014 |
• | Loans increased $16.3 million to $664.4 million, from to June 30, 2013 to June 30, 2014. |
• | Non-interest bearing deposit accounts increased $16.4 million from June 30, 2013 to $125.2 million at June 30, 2014. |
• | Net interest income stabilized and increased to $7.3 million for the quarter ended June 30, 2014 compared to $7.0 million for the quarter ended June 30, 2013. |
• | Pre-tax pre-provision income was $2.7 million for the quarter ended June 30, 2014 compared to $2.3 million for the same quarter in 2013. |
• | Effective July 2014, First Community implemented a reorganization of duties and four positions were eliminated. The job eliminations will result in $555,000 in annual salary and benefit savings which will be realized starting in the first quarter of 2015. |
• | Nonperforming assets declined by $16.6 million from June 30, 2013 and $7.1 million from March 30, 2014 to $12.4 million at June 30, 2014. |
◦ | Non-performing assets were 1.35% of total assets at June 30, 2014 compared to 2.24% at March 31, 2014 and 3.47% at June 30, 2013. |
◦ | Nonperforming loans declined by $6.8 million in the second quarter of 2014, a 44.41% decrease. Non-performing loans have decreased $17.9 million or 67.89% since June 30, 2013. |
◦ | Provision for loan losses expense decreased from $2.0 million for the quarter ended March 31, 2014 and $1.5 million for the quarter ended June 30, 2013 to $667,000 for the quarter ended June 30, 2014. The results reflect the substantial improvement in the credit quality of the loan portfolio since June 30, 2013. |
◦ | Net charge-offs were $2.6 million for the quarter ended June 30, 2014, compared to $1.5 million for the quarter ended March 31, 2014 and $2.8 million for the quarter ended June 30, 2013. |
◦ | The allowance for loan losses represents 2.16% of total loans and 169.49% of non-performing loans |
• | Balance sheet |
◦ | Commercial loans increased $1.7 million in the second quarter 2014 and increased $11.9 million year over year, which allowing First Community to reduce its overall reliance on commercial real estate loans. |
◦ | Money market accounts increased $19.5 million in the second quarter of 2014 and $42.6 million year over year as First Community reduced its overall reliance on time deposits for funding its balance sheet. |
◦ | First Community's ratio of tangible common stockholders' equity to tangible assets was 9.55% at June 30, 2014, compared to 9.93% at March 31, 2014, and 8.30% at June 30, 2013. |
◦ | Book value per common share increased $0.10 to $5.32 at June 30, 2014, compared to $5.22 at March 31, 2014, and increased $1.03 compared to $4.29 at June 30, 2013. |
• | Revenues |
◦ | Net interest income was $7.3 million for the second quarter of 2014 compared to $6.8 million for the first quarter of 2014, an increase of $488,000 due largely to loan growth and a reduction in nonperforming assets. |
◦ | Non-interest income was $845,000 for the second quarter of 2014 compared to $621,000 for the first quarter of 2014. This includes $483,000 of income related to proceeds received from a bank owned life insurance policy, in addition to $28,000 in gains on the sale of loans and $38,000 in gains on the sale of securities. |
• | Non-interest expense |
◦ | Non-interest expense was $5.4 million for the second quarter of 2014 compared to $4.7 million for the first quarter of 2014. The difference related to the reversal of an accrual for a contingent liability recorded during the first quarter of 2014, and write downs based on updated appraisals on the value of foreclosed assets during the second quarter of 2014 in the amount of $369,000, |
▪ | Salaries and benefits expense decreased $70,000 or 2.5% from the first quarter of 2014 and increased $84,000 from the same period in 2013 due to additions to mortgage lending staff and the additions of two market presidents. |
▪ | Occupancy expense decreased $34,000 or 7.2% in the second quarter of 2014 compared to the first quarter of 2014 due to the purchase of our previously leased Channahon branch building in the second quarter in 2014. |
2014 | 2013 | ||||||||||||||
Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||
Selected Operating Data | (dollars in thousands, except per share data)(unaudited) | ||||||||||||||
Interest income | $ | 8,842 | $ | 8,356 | $ | 8,800 | $ | 8,609 | $ | 8,595 | |||||
Interest expense | 1,582 | 1,584 | 1,601 | 1,514 | 1,575 | ||||||||||
Net interest income | 7,260 | 6,772 | 7,199 | 7,095 | 7,020 | ||||||||||
Provision for loan losses | 667 | 1,999 | 4,086 | 1,216 | 1,468 | ||||||||||
Net interest income after provision for loan losses | 6,593 | 4,773 | 3,113 | 5,879 | 5,552 | ||||||||||
Noninterest income | 845 | 621 | 424 | 306 | 317 | ||||||||||
Noninterest expense | 5,411 | 4,657 | 4,853 | 5,079 | 5,066 | ||||||||||
Income (loss) before income taxes | 2,027 | 737 | (1,316 | ) | 1,106 | 803 | |||||||||
Income tax expense (benefit) | 557 | 231 | (572 | ) | (14,102 | ) | — | ||||||||
Income (loss) | 1,470 | 506 | (744 | ) | 15,208 | 803 | |||||||||
Net income (loss) applicable to First Community Financial Partners, Inc. | 1,470 | 506 | (744 | ) | 15,208 | 803 | |||||||||
Dividends and accretion on preferred shares | (144 | ) | (145 | ) | (177 | ) | (236 | ) | (236 | ) | |||||
Redemption of preferred shares | — | — | — | 1,988 | — | ||||||||||
Net income (loss) applicable to common shareholders | $ | 1,326 | $ | 361 | $ | (921 | ) | $ | 16,960 | $ | 567 | ||||
Per Share Data | |||||||||||||||
Basic earnings (loss) per common share | $ | 0.08 | $ | 0.02 | $ | (0.06 | ) | $ | 1.05 | $ | 0.04 | ||||
Diluted earnings (loss) per common share | $ | 0.08 | $ | 0.02 | $ | (0.06 | ) | $ | 1.03 | $ | 0.03 | ||||
Book value per common share | $ | 5.32 | $ | 5.22 | $ | 5.24 | $ | 5.34 | $ | 4.29 | |||||
Weighted average common shares - basic | 16,548,399 | 16,398,348 | 16,231,167 | 16,198,676 | 16,155,938 | ||||||||||
Weighted average common shares - diluted | 16,740,390 | 16,642,021 | 16,231,167 | 16,403,793 | 16,299,591 | ||||||||||
Common shares outstanding-end of period | 16,548,563 | 16,548,313 | 16,333,582 | 16,221,413 | 16,175,938 | ||||||||||
Performance Ratios | |||||||||||||||
Annualized return on average assets | 0.60 | % | 0.17 | % | (0.42 | )% | 8.05 | % | 0.27 | % | |||||
Annualized return on average common equity | 5.66 | % | 1.67 | % | (3.40 | )% | 71.68 | % | 2.72 | % | |||||
Net interest margin | 3.45 | % | 3.29 | % | 3.52 | % | 3.47 | % | 3.39 | % | |||||
Interest rate spread | 3.26 | % | 3.10 | % | 3.32 | % | 3.26 | % | 3.19 | % | |||||
Efficiency ratio (1) | 66.76 | % | 62.99 | % | 63.66 | % | 68.63 | % | 67.52 | % | |||||
Average interest-earning assets to average interest-bearing liabilities | 124.87 | % | 125.03 | % | 125.67 | % | 128.05 | % | 126.06 | % | |||||
Average loans to average deposits | 89.68 | % | 90.95 | % | 92.97 | % | 92.29 | % | 88.94 | % |
Footnotes: |
(1) We calculate our efficiency ratio by dividing non-interest expense by the sum of net interest income and non-interest income. |
June 30, 2014 | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | |||||||||||
Selected Balance Sheet Data | (dollars in thousands)(unaudited) | ||||||||||||||
Total assets | $ | 922,128 | $ | 870,058 | $ | 867,576 | $ | 852,409 | $ | 837,108 | |||||
Total securities (1) | 168,072 | 149,902 | 142,283 | 144,111 | 116,270 | ||||||||||
Loans | 664,390 | 661,898 | 652,131 | 659,040 | 648,081 | ||||||||||
Allowance for loan losses | (14,383 | ) | (16,351 | ) | (15,820 | ) | (20,203 | ) | (20,634 | ) | |||||
Net loans | 650,007 | 645,547 | 636,311 | 638,837 | 627,447 | ||||||||||
Total deposits | 763,632 | 729,426 | 725,401 | 698,330 | 708,412 | ||||||||||
Subordinated debt | 19,319 | 19,312 | 19,305 | 19,298 | 13,791 | ||||||||||
Other borrowed funds | 30,890 | 25,798 | 25,563 | 38,659 | 28,536 | ||||||||||
Shareholders’ equity (2) | 94,266 | 92,534 | 91,587 | 92,660 | 82,756 | ||||||||||
Asset Quality | |||||||||||||||
Nonperforming loans(3) | 8,486 | 15,264 | 23,194 | 20,303 | 26,429 | ||||||||||
Nonperforming assets(4) | 12,414 | 19,465 | 27,610 | 24,517 | 29,014 | ||||||||||
Nonperforming loans (3) to total loans | 1.28 | % | 2.31 | % | 3.56 | % | 3.08 | % | 4.08 | % | |||||
Nonperforming assets(4) to total assets | 1.35 | % | 2.24 | % | 3.18 | % | 2.88 | % | 3.47 | % | |||||
Allowance for loan losses to non-performing loans | 169.49 | % | 107.12 | % | 68.21 | % | 99.51 | % | 78.07 | % | |||||
Allowance for loan losses to total loans | 2.16 | % | 2.47 | % | 2.43 | % | 3.07 | % | 3.18 | % | |||||
Capital Ratios | |||||||||||||||
Tangible common equity to tangible assets(5) | 9.55 | % | 9.93 | % | 9.86 | % | 10.16 | % | 8.30 | % | |||||
Average equity to average total assets | 10.54 | % | 10.66 | % | 10.85 | % | 9.91 | % | 9.77 | % | |||||
Tier 1 leverage | 8.79 | % | 8.76 | % | 8.87 | % | 9.22 | % | 9.41 | % | |||||
Tier 1 risk-based capital | 10.52 | % | 9.61 | % | 9.77 | % | 10.48 | % | 11.53 | % | |||||
Total risk-based capital | 14.44 | % | 13.37 | % | 13.55 | % | 14.41 | % | 14.80 | % |
Footnotes: |
(1) Includes available for sale securities recorded at fair value and Federal Home Loan Bank stock at cost. |
(2) Includes shareholders’ equity attributable to outstanding shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B, and Fixed Rate Cumulative Perpetual Preferred Stock, Series C. |
(3) Nonperforming loans include loans on non-accrual status and those past due more than 90 days and still accruing interest. |
(4) Nonperforming assets consist of nonperforming loans and other real estate owned. |
(5) Tangible common equity to tangible assets is total shareholders' equity less preferred stock divided by total assets |
2014 | 2013 | ||||||||||||||
Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||
Selected Operating Data | (dollars in thousands)(unaudited) | ||||||||||||||
Net interest income | $ | 7,260 | $ | 6,772 | $ | 7,199 | $ | 7,095 | $ | 7,020 | |||||
Noninterest income | 845 | 621 | 424 | 306 | 317 | ||||||||||
Noninterest expense | 5,411 | 4,657 | 4,853 | 5,079 | 5,066 | ||||||||||
Adjusted pre-tax pre-provision income | $ | 2,694 | $ | 2,736 | $ | 2,770 | $ | 2,322 | $ | 2,271 |