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 April 25, 2017 |
FIRST COMMUNITY FINANCIAL PARTNERS, INC. | ||
Date: April 25, 2017 | /s/ Glen L. Stiteley | |
Glen L. Stiteley | ||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release dated April 25, 2017 |
• | Signed definitive agreement to merge with First Busey Corporation (“First Busey”) |
• | Diluted earnings per share (“EPS”) of $0.19 for the three months ended March 31, 2017, an increase of 26.67% from the fourth quarter 2016 |
• | Asset growth of $68.6 million, or 5.41%, from the end of the fourth quarter of 2016 |
• | Loan growth of $72.1 million, or 7.30%, from the end of the fourth quarter of 2016 |
• | Deposit growth of $25.1 million, or 2.32%, from the end of the fourth quarter of 2016 |
• | Noninterest bearing deposits increase of $13.7 million, or 5.52%, from the the end of the fourth quarter 2016 |
FINANCIAL SUMMARY | |||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||
Period-End Balance Sheet | |||||||||||||||
(In thousands)(Unaudited) | |||||||||||||||
Assets | |||||||||||||||
Cash and due from banks | $ | 12,740 | $ | 16,225 | $ | 21,622 | $ | 13,777 | $ | 9,132 | |||||
Interest-bearing deposits in banks | 13,494 | 8,548 | 33,349 | 19,335 | 30,558 | ||||||||||
Securities available for sale | 200,758 | 202,198 | 188,062 | 179,517 | 203,874 | ||||||||||
Mortgage loans held for sale | 78 | 1,230 | 1,331 | 711 | 133 | ||||||||||
Loans held for sale | — | 1,085 | — | — | — | ||||||||||
Leases, net | 3,381 | 3,290 | 739 | 448 | — | ||||||||||
Commercial real estate | 474,035 | 425,910 | 419,958 | 410,461 | 378,304 | ||||||||||
Commercial | 296,309 | 281,804 | 274,889 | 239,038 | 181,142 | ||||||||||
Residential 1-4 family | 181,426 | 175,978 | 167,388 | 143,908 | 139,208 | ||||||||||
Multifamily | 36,040 | 36,703 | 31,880 | 30,809 | 31,511 | ||||||||||
Construction and land development | 51,085 | 47,338 | 39,836 | 30,834 | 27,798 | ||||||||||
Farmland and agricultural production | 11,892 | 12,628 | 12,985 | 9,235 | 9,060 | ||||||||||
Consumer and other | 9,664 | 7,967 | 9,280 | 7,924 | 7,250 | ||||||||||
Total loans | 1,060,451 | 988,328 | 956,216 | 872,209 | 774,273 | ||||||||||
Allowance for loan losses | 11,951 | 11,684 | 12,284 | 12,044 | 11,335 | ||||||||||
Net loans | 1,048,500 | 976,644 | 943,932 | 860,165 | 762,938 | ||||||||||
Other assets | 57,818 | 58,990 | 57,563 | 51,409 | 54,227 | ||||||||||
Total Assets | $ | 1,336,769 | $ | 1,268,210 | $ | 1,246,598 | $ | 1,125,362 | $ | 1,060,862 | |||||
Liabilities and Shareholders' Equity | |||||||||||||||
Noninterest bearing deposits | $ | 261,532 | $ | 247,856 | $ | 246,262 | $ | 203,258 | $ | 204,414 | |||||
Savings deposits | 69,295 | 64,695 | 61,399 | 40,603 | 38,481 | ||||||||||
NOW accounts | 165,696 | 160,862 | 151,243 | 103,324 | 104,136 | ||||||||||
Money market accounts | 293,999 | 282,865 | 267,667 | 238,229 | 237,873 | ||||||||||
Time deposits | 317,724 | 326,878 | 338,680 | 311,416 | 294,076 | ||||||||||
Total deposits | 1,108,246 | 1,083,156 | 1,065,251 | 896,830 | 878,980 | ||||||||||
Total borrowings | 104,598 | 66,419 | 61,879 | 114,701 | 72,237 | ||||||||||
Other liabilities | 3,161 | 4,920 | 4,304 | 2,722 | 2,855 | ||||||||||
Total Liabilities | 1,216,005 | 1,154,495 | 1,131,434 | 1,014,253 | 954,072 | ||||||||||
Shareholders’ equity | 120,764 | 113,715 | 115,164 | 111,109 | 106,790 | ||||||||||
Total Shareholders’ Equity | 120,764 | 113,715 | 115,164 | 111,109 | 106,790 | ||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,336,769 | $ | 1,268,210 | $ | 1,246,598 | $ | 1,125,362 | $ | 1,060,862 |
FINANCIAL SUMMARY | |||||||||||||||
Three months ended, | |||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||
Interest income: | (In thousands, except per share data)(Unaudited) | ||||||||||||||
Loans, including fees | $ | 11,032 | $ | 10,663 | $ | 10,229 | $ | 9,024 | $ | 8,508 | |||||
Securities | 1,134 | 1,033 | 1,041 | 1,042 | 1,101 | ||||||||||
Federal funds sold and other | 39 | 53 | 43 | 21 | 19 | ||||||||||
Total interest income | 12,205 | 11,749 | 11,313 | 10,087 | 9,628 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 1,211 | 1,150 | 1,081 | 957 | 940 | ||||||||||
Federal funds purchased and other borrowed funds | 69 | 61 | 112 | 119 | 93 | ||||||||||
Subordinated debentures | 297 | 297 | 297 | 297 | 297 | ||||||||||
Total interest expense | 1,577 | 1,508 | 1,490 | 1,373 | 1,330 | ||||||||||
Net interest income | 10,628 | 10,241 | 9,823 | 8,714 | 8,298 | ||||||||||
Provision for loan losses | 375 | 183 | 383 | 500 | — | ||||||||||
Net interest income after provision for loan losses | 10,253 | 10,058 | 9,440 | 8,214 | 8,298 | ||||||||||
Noninterest income: | |||||||||||||||
Service charges on deposit accounts | 309 | 285 | 289 | 207 | 204 | ||||||||||
Gain on sale of loans | — | 9 | — | 7 | — | ||||||||||
Gain on sale of securities | — | — | 14 | 603 | — | ||||||||||
Mortgage fee income | 116 | 214 | 169 | 109 | 78 | ||||||||||
Bargain purchase gain | — | — | 1,920 | — | — | ||||||||||
Other | 532 | 390 | 381 | 315 | 273 | ||||||||||
Total noninterest income | 957 | 898 | 2,773 | 1,241 | 555 | ||||||||||
Noninterest expenses: | |||||||||||||||
Salaries and employee benefits | 4,222 | 4,309 | 3,812 | 3,311 | 3,256 | ||||||||||
Occupancy and equipment expense | 475 | 548 | 568 | 429 | 437 | ||||||||||
Data processing | 420 | 267 | 700 | 690 | 257 | ||||||||||
Professional fees | 734 | 286 | 369 | 375 | 392 | ||||||||||
Advertising and business development | 210 | 245 | 328 | 262 | 215 | ||||||||||
Losses on sale and writedowns of foreclosed assets, net | — | — | 1 | 31 | 16 | ||||||||||
Foreclosed assets expenses, net of rental income | 19 | 26 | (99 | ) | 60 | 53 | |||||||||
Other expense | 1,359 | 1,237 | 1,380 | 974 | 1,310 | ||||||||||
Total noninterest expense | 7,439 | 6,918 | 7,059 | 6,132 | 5,936 | ||||||||||
Income before income taxes | 3,771 | 4,038 | 5,154 | 3,323 | 2,917 | ||||||||||
Income taxes | 365 | 1,358 | 1,019 | 1,058 | 889 | ||||||||||
Net income applicable to common shareholders | $ | 3,406 | $ | 2,680 | $ | 4,135 | $ | 2,265 | $ | 2,028 | |||||
Basic earnings per share | $ | 0.19 | $ | 0.16 | $ | 0.24 | $ | 0.13 | $ | 0.12 | |||||
Diluted earnings per share | $ | 0.19 | $ | 0.15 | $ | 0.24 | $ | 0.13 | $ | 0.12 |
Three months ended, | ||||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||||||||||||||||
Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Income/ Expense | Yields/ Rates | ||||||||||||||||
Assets | (Dollars in thousands)(Unaudited) | |||||||||||||||||||||||
Loans (1) | $ | 1,013,044 | $ | 11,032 | 4.42 | % | $ | 971,198 | $ | 10,663 | 4.37 | % | $ | 768,983 | $ | 8,508 | 4.45 | % | ||||||
Investment securities (2) | 203,886 | 1,134 | 2.26 | % | 199,940 | 1,033 | 2.06 | % | 206,535 | 1,101 | 2.14 | % | ||||||||||||
Interest-bearing deposits with other banks | 13,566 | 39 | 1.17 | % | 25,612 | 53 | 0.82 | % | 13,690 | 19 | 0.56 | % | ||||||||||||
Total earning assets | $ | 1,230,496 | $ | 12,205 | 4.02 | % | $ | 1,196,750 | $ | 11,749 | 3.91 | % | $ | 989,208 | $ | 9,628 | 3.91 | % | ||||||
Other assets | 61,583 | 61,777 | 55,124 | |||||||||||||||||||||
Total assets | $ | 1,292,079 | $ | 1,258,527 | $ | 1,044,332 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
NOW accounts | $ | 163,922 | $ | 117 | 0.29 | % | $ | 147,627 | $ | 118 | 0.32 | % | $ | 104,467 | $ | 71 | 0.27 | % | ||||||
Money market accounts | 284,043 | 270 | 0.39 | % | 279,110 | 203 | 0.29 | % | 234,455 | 162 | 0.28 | % | ||||||||||||
Savings accounts | 65,882 | 16 | 0.10 | % | 63,816 | 15 | 0.09 | % | 37,194 | 11 | 0.12 | % | ||||||||||||
Time deposits | 325,690 | 808 | 1.01 | % | 331,025 | 814 | 0.98 | % | 292,491 | 696 | 0.96 | % | ||||||||||||
Total interest bearing deposits | 839,537 | 1,211 | 0.58 | % | 821,578 | 1,150 | 0.56 | % | 668,607 | 940 | 0.57 | % | ||||||||||||
Securities sold under agreements to repurchase | 23,543 | 10 | 0.17 | % | 26,548 | 11 | 0.16 | % | 23,902 | 9 | 0.15 | % | ||||||||||||
Secured borrowings | — | — | — | % | 2,134 | 22 | 4.10 | % | 10,528 | 74 | 2.83 | % | ||||||||||||
FHLB borrowings | 31,398 | 59 | 0.76 | % | 21,764 | 28 | 0.51 | % | 12,067 | 10 | 0.33 | % | ||||||||||||
Subordinated debentures | 15,300 | 297 | 7.87 | % | 15,300 | 297 | 7.72 | % | 15,300 | 297 | 7.81 | % | ||||||||||||
Total interest bearing liabilities | $ | 909,778 | $ | 1,577 | 0.70 | % | $ | 887,324 | $ | 1,508 | 0.68 | % | $ | 730,404 | $ | 1,330 | 0.73 | % | ||||||
Noninterest bearing deposits | 260,632 | 253,877 | 205,215 | |||||||||||||||||||||
Other liabilities | 4,370 | 3,817 | 3,051 | |||||||||||||||||||||
Total liabilities | $ | 1,174,780 | $ | 1,145,018 | $ | 938,670 | ||||||||||||||||||
Total shareholders’ equity | $ | 117,299 | $ | 113,509 | $ | 105,662 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,292,079 | $ | 1,258,527 | $ | 1,044,332 | ||||||||||||||||||
Net interest income | $ | 10,628 | $ | 10,241 | $ | 8,298 | ||||||||||||||||||
Interest rate spread | 3.32 | % | 3.23 | % | 3.18 | % | ||||||||||||||||||
Net interest margin | 3.50 | % | 3.40 | % | 3.37 | % |
Footnotes: |
(1) Average loans include nonperforming loans. |
(2) No tax-equivalent adjustments were made, as the effect thereof was not material. |
COMMON STOCK DATA | |||||||||||||||
2017 | 2016 | ||||||||||||||
First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||
(Unaudited) | |||||||||||||||
Market value (1): | |||||||||||||||
End of period | $ | 12.75 | $ | 11.70 | $ | 9.52 | $ | 8.80 | $ | 8.70 | |||||
High | 13.65 | 12.15 | 9.55 | 9.10 | 8.84 | ||||||||||
Low | 10.70 | 9.10 | 8.35 | 8.18 | 7.00 | ||||||||||
Book value (end of period) | 6.79 | 6.59 | 6.68 | 6.47 | 6.22 | ||||||||||
Tangible book value (end of period) | 6.73 | 6.53 | 6.62 | 6.47 | 6.22 | ||||||||||
Shares outstanding (end of period) | 17,774,886 | 17,242,645 | 17,237,845 | 17,183,780 | 17,175,864 | ||||||||||
Average shares outstanding | 17,533,867 | 17,239,897 | 17,189,113 | 17,182,197 | 17,125,928 | ||||||||||
Average diluted shares outstanding | 18,213,720 | 17,860,017 | 17,565,667 | 17,550,547 | 17,451,354 |
(1) The prices shown are as reported on the NASDAQ Capital Market. |
ASSET QUALITY DATA | |||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||
(Dollars in thousands)(Unaudited) | |||||||||||||||
Loans identified as nonperforming | $ | 5,441 | $ | 5,856 | $ | 8,385 | $ | 2,622 | $ | 2,146 | |||||
Other nonperforming loans | — | — | 91 | — | — | ||||||||||
Total nonperforming loans | 5,441 | 5,856 | 8,476 | 2,622 | 2,146 | ||||||||||
Foreclosed assets | 915 | 725 | 725 | 2,211 | 5,231 | ||||||||||
Total nonperforming assets | $ | 6,356 | $ | 6,581 | $ | 9,201 | $ | 4,833 | $ | 7,377 | |||||
Allowance for loan losses | $ | 11,951 | $ | 11,684 | $ | 12,284 | $ | 12,044 | $ | 11,335 | |||||
Nonperforming assets to total assets | 0.48 | % | 0.52 | % | 0.74 | % | 0.43 | % | 0.70 | % | |||||
Nonperforming loans to total assets | 0.41 | % | 0.46 | % | 0.68 | % | 0.23 | % | 0.20 | % | |||||
Allowance for loan losses to nonperforming loans | 219.65 | % | 199.52 | % | 144.93 | % | 459.34 | % | 528.19 | % |
ALLOWANCE FOR LOAN LOSSES ROLLFORWARD | |||||||||||||||
(Dollars in thousands)(Unaudited) | Three months ended, | ||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||
Beginning balance | $ | 11,684 | $ | 12,284 | $ | 12,044 | $ | 11,335 | $ | 11,741 | |||||
Charge-offs | 206 | 1,363 | 340 | 193 | 506 | ||||||||||
Recoveries | 98 | 580 | 197 | 402 | 100 | ||||||||||
Net charge-offs | 108 | 783 | 143 | (209 | ) | 406 | |||||||||
Provision for loan losses | 375 | 183 | 383 | 500 | — | ||||||||||
Ending balance | $ | 11,951 | $ | 11,684 | $ | 12,284 | $ | 12,044 | $ | 11,335 | |||||
Net charge-offs | $ | 108 | $ | 783 | $ | 143 | $ | (209 | ) | $ | 406 | ||||
Net chargeoff percentage annualized | 0.04 | % | 0.32 | % | 0.06 | % | (0.11 | )% | 0.21 | % |
OTHER DATA | ||||||||||
(Unaudited) | ||||||||||
Three months ended, | ||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||
Return on average assets | 1.05 | % | 0.85 | % | 1.36 | % | 0.84 | % | 0.78 | % |
Return on average equity | 11.61 | % | 9.44 | % | 14.50 | % | 8.36 | % | 7.68 | % |
Net interest margin | 3.50 | % | 3.42 | % | 3.44 | % | 3.39 | % | 3.36 | % |
Average loans to assets | 78.40 | % | 77.20 | % | 75.50 | % | 76.55 | % | 73.63 | % |
Average loans to deposits | 92.08 | % | 90.49 | % | 90.92 | % | 94.16 | % | 88.00 | % |
Average noninterest bearing deposits to total deposits | 23.52 | % | 23.44 | % | 22.51 | % | 22.75 | % | 23.35 | % |
COMPANY CAPITAL RATIOS | ||||||||||
(Unaudited) | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||
Tier 1 leverage ratio | 9.26 | % | 9.10 | % | 9.15 | % | 9.77 | % | 9.72 | % |
Common equity tier 1 capital ratio | 10.33 | % | 10.51 | % | 10.83 | % | 11.26 | % | 11.94 | % |
Tier 1 capital ratio | 10.33 | % | 10.51 | % | 10.83 | % | 11.26 | % | 11.94 | % |
Total capital ratio | 12.68 | % | 12.99 | % | 13.52 | % | 14.14 | % | 14.99 | % |
Tangible common equity to tangible assets | 8.95 | % | 8.88 | % | 9.24 | % | 10.47 | % | 10.26 | % |
NON-GAAP MEASURES | |||||||||||||||
Pre-tax pre-provision core income (1) | |||||||||||||||
(In thousands)(Unaudited) | |||||||||||||||
For the three months ended, | |||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||
Pre-tax net income | $ | 3,771 | $ | 4,038 | $ | 5,154 | $ | 3,323 | $ | 2,917 | |||||
Provision for loan losses | 375 | 183 | 383 | 500 | — | ||||||||||
Gain on sale of securities | — | — | (14 | ) | (603 | ) | — | ||||||||
Merger related employee retention payments | 232 | — | — | — | — | ||||||||||
Merger related expenses included in professional fees | 417 | — | 24 | 26 | 100 | ||||||||||
Merger related expenses included in data processing fees | — | 14 | 363 | 410 | — | ||||||||||
Severances paid in relation to the merger | — | — | 92 | — | — | ||||||||||
Stock options included in other expense | — | — | 165 | — | — | ||||||||||
Bargain purchase option | — | — | (1,920 | ) | — | — | |||||||||
Losses (gain) on sale and writedowns of foreclosed assets, net | — | — | 1 | 31 | 16 | ||||||||||
Foreclosed assets expense, net of rental income | 19 | 26 | (99 | ) | 60 | 53 | |||||||||
Pre-tax pre-provision core income | $ | 4,814 | $ | 4,261 | $ | 4,149 | $ | 3,747 | $ | 3,086 |
(1) This is a non-GAAP financial measure. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to pre-tax net income, which is the most directly comparable GAAP financial measure. The Company’s management believes the presentation of pre-tax pre-provision core income provides investors with a greater understanding of the Company’s operating results, in addition to the results measured in accordance with GAAP. |