Illinois | 001-37505 | 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 January 20, 2016 |
FIRST COMMUNITY FINANCIAL PARTNERS, INC. | ||
Date: January 20, 2016 | /s/ Glen L. Stiteley | |
Glen L. Stiteley | ||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release dated January 20, 2016 |
• | Diluted earnings per share (“EPS”) of $0.57 for the year; $0.25 or 78.13% per diluted share increase over prior year |
• | Tangible book value growth of $0.53, or 9.60%, year-over-year to $6.05 |
• | Asset growth of $116.6 million, or 12.62%, year-over-year to $1.0 billion |
• | Loan growth of $83.1 million, or 12.06%, year-over-year to $772.3 million |
• | Noninterest bearing deposit growth of $37.7 million, or 23.83%, year-over-year |
• | Pre-tax, pre-provision core income growth year-to-date in 2015 of $1.7 million or 15.80% year-over-year |
• | Net interest income growth year to date in 2015 of $1.9 million, or 6.53%, due to increased income from loan growth and reduction in interest expense |
• | Noninterest expense was stable and decreased by $31,000, or 0.15%, year-over-year, and $372,000, or 6.87%, from the fourth quarter of 2014 to the fourth quarter of 2015 |
• | Negative loan loss provision of $2.1 million year to date in 2015 reflecting overall improvement in asset quality |
• | Improved capital flexibility as bank subsidiary reached positive retained earnings during the fourth quarter allowing it to provide cash dividends to the parent company |
• | Return on average assets (“ROAA”) improved to 1.11% in the fourth quarter of 2015 from 0.78% in the fourth quarter of 2014, while return on average equity (“ROAE”) rose sharply to 11.48% in the fourth quarter of 2015 compared with 7.57% in the fourth quarter of 2014. |
• | Tangible book value per share rose to $6.05 at December 31, 2015, from $5.88 at September 30, 2015, and $5.52 at December 31, 2014. |
• | Pre-tax pre-provision core income, a non-GAAP measure, rose $1.2 million, or 48.26%, to $3.8 million in the fourth quarter of 2015 compared with $2.6 million in the fourth quarter of 2014. |
• | Net interest income before provision for loan losses increased to $8.2 million in the fourth quarter of 2015, up 7.64% compared with $7.6 million in the fourth quarter of 2014, reflecting higher interest income and lower year-over-year interest expense. |
• | Noninterest expense decreased 6.87% or $372,000, from $5.0 million in the fourth quarter of 2015 compared to $5.4 million in the fourth quarter of 2014. |
• | Total assets increased 1.68% or $17.2 million to $1.0 billion at December 31, 2015 from September 30, 2015. |
• | Total loans increased 3.79%, or $29.3 million, to $772.3 million at December 31, 2015 from September 30, 2015. |
• | Loan growth in the fourth quarter was over all loan categories led by commercial real estate, commercial, and residential 1-4 family real estate. |
• | Total deposits increased 2.28%, or $19.3 million, to $866.0 million at December 31, 2015 from September 30, 2015. |
• | Noninterest bearing demand deposits grew 12.13%, or $21.2 million, during the fourth quarter of 2015. |
• | ROAA improved to 0.99% for the year ended December 31, 2015, from 0.60% for the year ended December 31, 2014, while ROAE rose sharply to 10.08% for the year ended December 31, 2015 compared with 5.68% for the year ended December 31, 2014. |
• | Pre-tax pre-provision core income, a non-GAAP measure, rose 11.5%, or $1.3 million, to $12.6 million for the year ended December 31, 2015 compared with $10.9 million for the same period in 2014. |
• | Net interest income before provision for loan losses increased 6.53% or $1.9 million to $30.8 million for the year ended December 31, 2015 compared with $28.9 million for the year ended December 31, 2014. This was the result of higher interest income from current year loan growth, and lower year-over-year interest expense. Interest expense was lower in 2015 due to a decrease in debt related expenses, in addition to improved deposit funding including noninterest bearing deposit growth. |
• | Noninterest expense was stable with a decrease of $31,000, or 0.15%, from the year ended December 31, 2014 to the year ended December 31, 2015. |
• | Total assets increased $116.6 million, or 12.62%, and reached a Company-record $1.0 billion at December 31, 2015 from $924.1 million at December 31, 2014. |
• | Total loans increased 12.06%, or $83.1 million, to $772.3 million at December 31, 2015 from $689.1 million at December 31, 2014, with year-over-year growth in almost all loan categories led by commercial, commercial real estate, and residential 1-4 family. |
• | Total deposits increased 12.55%, or $96.6 million, to $866.0 million at December 31, 2015 from $769.4 million at December 31, 2014. Core demand deposits comprised 65.6% of total deposits at the end of 2015 compared with 59.59% of total deposits at the end of 2014. Noninterest bearing deposit accounts, an |
• | Asset quality measures improved dramatically, including a decline in the ratio of nonperforming assets to total assets to 0.67% at December 31, 2015 from 1.03% a year earlier. Nonperforming assets decreased $2.5 million, or 26.89%, from $9.5 million to $7.0 million at December 31, 2015. |
FINANCIAL SUMMARY | ||||||||||||
Three months ended December 31, | Year ended December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Interest income: | (In thousands, except per share data)(Unaudited) | |||||||||||
Loans, including fees | $ | 8,401 | $ | 8,328 | $ | 32,525 | $ | 32,066 | ||||
Securities | 1,117 | 844 | 4,134 | 3,104 | ||||||||
Federal funds sold and other | 19 | 19 | 66 | 78 | ||||||||
Total interest income | 9,537 | 9,191 | 36,725 | 35,248 | ||||||||
Interest expense: | ||||||||||||
Deposits | 986 | 1,041 | 3,923 | 4,439 | ||||||||
Federal funds purchased and other borrowed funds | 87 | — | 215 | 68 | ||||||||
Subordinated debt | 297 | 563 | 1,800 | 1,841 | ||||||||
Total interest expense | 1,370 | 1,604 | 5,938 | 6,348 | ||||||||
Net interest income | 8,167 | 7,587 | 30,787 | 28,900 | ||||||||
Provision for loan losses | (515 | ) | 333 | (2,077 | ) | 3,000 | ||||||
Net interest income after provision for loan losses | 8,682 | 7,254 | 32,864 | 25,900 | ||||||||
Noninterest income: | ||||||||||||
Service charges on deposit accounts | 190 | 184 | 756 | 677 | ||||||||
Gain on sale of loans | — | 6 | — | 39 | ||||||||
Gain on foreclosed assets, net | — | — | — | 19 | ||||||||
Gain on sale of securities | 212 | 466 | 484 | 912 | ||||||||
Mortgage fee income | 96 | 66 | 531 | 402 | ||||||||
Other | 261 | 139 | 726 | 1,244 | ||||||||
Total noninterest income | 759 | 861 | 2,497 | 3,293 | ||||||||
Noninterest expenses: | ||||||||||||
Salaries and employee benefits | 3,004 | 2,739 | 11,538 | 11,191 | ||||||||
Occupancy and equipment expense | 494 | 542 | 1,977 | 2,111 | ||||||||
Data processing | 203 | 243 | 912 | 959 | ||||||||
Professional fees | 68 | 228 | 1,201 | 1,283 | ||||||||
Advertising and business development | 219 | 282 | 853 | 845 | ||||||||
Losses (gains) on sale and writedowns of foreclosed assets, net | 109 | (13 | ) | 187 | 434 | |||||||
Foreclosed assets, net of rental income | 50 | 30 | 130 | 219 | ||||||||
Other expense | 898 | 1,366 | 3,744 | 3,531 | ||||||||
Total noninterest expense | 5,045 | 5,417 | 20,542 | 20,573 | ||||||||
Income before income taxes | 4,396 | 2,698 | 14,819 | 8,620 | ||||||||
Income taxes | 1,474 | 800 | 5,000 | 2,737 | ||||||||
Net income | 2,922 | 1,898 | 9,819 | 5,883 | ||||||||
Dividends and accretion on preferred shares | — | (93 | ) | — | (526 | ) | ||||||
Gain on redemption of preferred shares | — | 5 | — | 5 | ||||||||
Net income applicable to common shareholders | $ | 2,922 | $ | 1,810 | $ | 9,819 | $ | 5,362 | ||||
Basic earnings per share | $ | 0.17 | $ | 0.11 | $ | 0.58 | $ | 0.32 | ||||
Diluted earnings per share | $ | 0.17 | $ | 0.11 | $ | 0.57 | $ | 0.32 |
FINANCIAL SUMMARY | |||||||
December 31, 2015 | December 31, 2014 | ||||||
Period-End Balance Sheet | |||||||
(Dollars in thousands)(Unaudited) | |||||||
Assets | |||||||
Mortgage loans held for sale | $ | 400 | $ | 738 | |||
Construction and land development | 22,082 | 18,700 | |||||
Farmland and agricultural production | 9,989 | 9,350 | |||||
Residential 1-4 family | 135,864 | 100,773 | |||||
Multifamily | 34,272 | 24,426 | |||||
Commercial real estate | 381,098 | 353,973 | |||||
Commercial | 179,623 | 171,452 | |||||
Consumer and other | 9,391 | 10,519 | |||||
Total loans | 772,319 | 689,193 | |||||
Allowance for credit losses | 11,741 | 13,905 | |||||
Net loans | 760,578 | 675,288 | |||||
Investment securities | 206,971 | 170,054 | |||||
Other earning assets | 23,967 | 23,990 | |||||
Other non-earning assets | 48,736 | 54,005 | |||||
Total Assets | $ | 1,040,652 | $ | 924,075 | |||
Liabilities and Shareholders' Equity | |||||||
Noninterest bearing deposits | $ | 196,063 | $ | 158,329 | |||
Savings deposits | 36,206 | 30,211 | |||||
NOW accounts | 102,882 | 73,755 | |||||
Money market accounts | 233,315 | 196,222 | |||||
Time deposits | 297,525 | 310,893 | |||||
Total deposits | 865,991 | 769,410 | |||||
Total borrowings | 68,315 | 58,662 | |||||
Other liabilities | 3,305 | 3,950 | |||||
Total Liabilities | 937,611 | 832,022 | |||||
Shareholders’ equity - common | 103,041 | 92,053 | |||||
Total Shareholders’ Equity | 103,041 | 92,053 | |||||
Total Liabilities and Shareholders’ Equity | $ | 1,040,652 | $ | 924,075 |
COMMON STOCK DATA | |||||||
2015 | 2014 | ||||||
Fourth Quarter | Fourth Quarter | ||||||
Market value (1): | |||||||
End of period | $ | 7.24 | $ | 5.20 | |||
High | 7.31 | 5.43 | |||||
Low | 6.26 | 4.60 | |||||
Book value (end of period) | 6.05 | 5.52 | |||||
Tangible book value (end of period) | 6.05 | 5.52 | |||||
Shares outstanding (end of period) | 17,026,941 | 16,668,002 | |||||
Average shares outstanding | 16,939,010 | 16,563,405 | |||||
Average diluted shares outstanding | 17,085,752 | 16,800,247 |
(1) The prices shown are as reported on the NASDAQ Capital Market. |
INVESTMENT PORTFOLIO | |||||||||||||||||||||
(Dollars in thousands)(Unaudited) | |||||||||||||||||||||
As of December 31, 2015 | |||||||||||||||||||||
Cost | Unrealized Gains | Unrealized Loss | Fair Value | Yield (%) | Duration (Years) | ||||||||||||||||
Investment Securities | |||||||||||||||||||||
Government sponsored enterprises | $ | 16,284 | $ | 125 | $ | — | $ | 16,409 | 1.82 | % | 3.48 | ||||||||||
Residential collateralized mortgage obligations | 62,701 | 138 | 475 | 62,364 | 2.13 | % | 3.37 | ||||||||||||||
Residential mortgage backed securities | 28,494 | 65 | 268 | 28,291 | 1.54 | % | 2.88 | ||||||||||||||
State and political subdivisions | 96,480 | 2,178 | 118 | 98,540 | 2.58 | % | 4.82 | ||||||||||||||
Total debt securities | 203,959 | 2,506 | 861 | 205,604 | 2.23 | % | 4.42 | ||||||||||||||
Federal Home Loan Bank stock | 1,367 | — | — | 1,367 | — | % | — | ||||||||||||||
Total Investment Securities | $ | 205,326 | $ | 2,506 | $ | 861 | $ | 206,971 | 2.23 | % | 4.42 | ||||||||||
(Dollars in thousands) (Unaudited) | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Cost | Unrealized Gains | Unrealized Loss | Fair Value | Yield (%) | Duration (Years) | ||||||||||||||||
Investment Securities | |||||||||||||||||||||
Government sponsored enterprises | $ | 30,904 | $ | 83 | $ | 36 | $ | 30,951 | 1.69 | % | 2.80 | ||||||||||
Residential collateralized mortgage obligations | 44,095 | 241 | 62 | 44,274 | 2.35 | % | 2.71 | ||||||||||||||
Residential mortgage backed securities | 27,208 | 137 | 128 | 27,217 | 2.26 | % | 4.10 | ||||||||||||||
State and political subdivisions | 65,240 | 1,096 | 91 | 66,245 | 2.48 | % | 4.16 | ||||||||||||||
Total debt securities | 167,447 | 1,557 | 317 | 168,687 | 2.27 | % | 3.85 | ||||||||||||||
Federal Home Loan Bank stock | 1,367 | — | — | 1,367 | — | % | — | ||||||||||||||
Total Investment Securities | $ | 168,814 | $ | 1,557 | $ | 317 | $ | 170,054 | 2.27 | % | 3.85 |
ASSET QUALITY DATA | |||||||
December 31, 2015 | December 31, 2014 | ||||||
(Dollars in thousands)(Unaudited) | |||||||
Loans identified as nonperforming | $ | 1,411 | $ | 6,947 | |||
Other nonperforming loans | 67 | 50 | |||||
Total nonperforming loans | 1,478 | 6,997 | |||||
Foreclosed assets | 5,487 | 2,530 | |||||
Total nonperforming assets | $ | 6,965 | $ | 9,527 | |||
Allowance for loan losses losses | 11,741 | 13,905 | |||||
Nonperforming assets to total assets | 0.67 | % | 1.03 | % | |||
Nonperforming loans to total assets | 0.14 | % | 0.76 | % | |||
Allowance for loan losses to nonperforming loans | 794.38 | % | 198.73 | % |
Allowance for loan losses rollforward: | |||||||||||||||
Three months ended December 31, | Years ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Beginning balance | $ | 11,753 | $ | 13,871 | $ | 13,905 | $ | 15,820 | |||||||
Charge-offs | 133 | 875 | 1,859 | 6,633 | |||||||||||
Recoveries | 636 | 576 | 1,772 | 1,718 | |||||||||||
Net charge-offs | (503 | ) | 299 | 87 | 4,915 | ||||||||||
Provision for loan losses | (515 | ) | 333 | (2,077 | ) | 3,000 | |||||||||
Ending Balance | $ | 11,741 | $ | 13,905 | $ | 11,741 | $ | 13,905 | |||||||
Net charge-offs | (503 | ) | 299 | 87 | 4,915 | ||||||||||
Net chargeoff percentage (annualized) | (0.26 | )% | 0.17 | % | 0.01 | % | 0.73 | % |
OTHER DATA (1) | ||||||||||
(Unaudited) | ||||||||||
For the three months ended December 31, | For the year ended December 31, | |||||||||
2015 | 2014 | 2015 | 2014 | |||||||
Return on average assets | 1.11 | % | 0.78 | % | 0.99 | % | 0.60 | % | ||
Return on average equity | 11.48 | % | 7.57 | % | 10.08 | % | 5.68 | % | ||
Net yield on earning assets | 3.29 | % | 3.46 | % | 3.41 | % | 3.39 | % | ||
Average loans to assets | 72.12 | % | 75.80 | % | 87.68 | % | 75.04 | % | ||
Average loans to deposits | 85.95 | % | 91.74 | % | 87.62 | % | 90.13 | % | ||
Average noninterest bearing deposits to total deposits | 23.45 | % | 20.00 | % | 20.45 | % | 16.96 | % | ||
Average equity to assets | 9.79 | % | 10.35 | % | 9.36 | % | 10.21 | % | ||
COMPANY CAPITAL RATIOS | ||||||||||
(Dollars in thousands)(Unaudited) | December 31, 2015 | December 31, 2014 | ||||||||
Tier 1 leverage ratio | 9.36 | % | 8.55 | % | ||||||
Common equity tier 1 capital ratio | 11.62 | % | n/a | |||||||
Tier 1 capital ratio | 11.62 | % | 10.27 | % | ||||||
Total capital ratio | 14.69 | % | 15.28 | % | ||||||
Tangible common equity | $ | 89,748 | $ | 92,053 | ||||||
(1) The December 31, 2015 capital ratios are calculated under the Basel III capital rules that became effective on January 1, 2015. Prior period capital ratios were calculated under the prompt corrective action capital rules that were in effect for those periods. |
OTHER NON-GAAP MEASURES | ||||||||||||||||
Pre-tax pre-provision core income (1) | ||||||||||||||||
(Dollars in thousands)(Unaudited) | ||||||||||||||||
For the three months ended December 31, | For the years ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Pre-tax net income | $ | 4,396 | $ | 2,698 | $ | 14,819 | $ | 8,620 | ||||||||
Provision for loan losses | (515 | ) | 333 | (2,077 | ) | 3,000 | ||||||||||
Gain on sale of securities | (212 | ) | (466 | ) | (484 | ) | 466 | (912 | ) | |||||||
Gain on sale of foreclosed assets | — | — | — | (19 | ) | |||||||||||
Bank owned life insurance gain | — | — | — | (483 | ) | |||||||||||
Losses on sale and writedowns of foreclosed assets, net | 109 | (13 | ) | 187 | 434 | |||||||||||
Foreclosed assets, net of rental income | 50 | 30 | 130 | 219 | ||||||||||||
Adjusted pre-tax pre-provision core income | $ | 3,828 | $ | 2,582 | $ | 12,575 | $ | 10,859 |
(1) This is a non-GAAP financial measure. The Company’s management believes the presentation of pre-tax pre-provision core net operating income provides investors with a greater understanding of the Company’s operating results, in addition to the results measured in accordance with GAAP. |