EXHIBIT 99.1
February 2011
To Our Shareholders:
It has been quite some time since we have been able to share positive news with you about the financial performance of your company—so I am pleased to report that Fentura, and each of the subsidiary banks, achieved a profit during the fourth quarter of 2010. For the quarter, Fentura reported a profit of $214,000 or $0.09 per diluted share; a substantial improvement over the operating losses reported in the first, second and third quarters of the year. Additionally, the performance for the quarter reflects marked improvement over the fourth quarter of 2009 on an operating pre-tax basis. On a pre-tax basis, the fourth quarter of 2010 reflects a $2,393,000 improvement in the pre-tax operating income over the same quarter of the prior year. In December of 2009, a change in federal income tax regulation allowed Fentura to realize the benefit of an extended tax loss carry back, resulting in a $3,658,000 tax benefit for the quarter.
The quarterly financial performance improvement as compared to each of the prior four quarters is primarily a result of a substantial reduction in the provision for loan losses. After 14 consecutive quarters of extraordinarily high loan loss provision expense, (due to the impact of the economy on many of our borrowers), we were able to reduce the provision expense for the fourth quarter of 2010 and still maintain an adequate reserve for loan losses. Clearly, we are beginning to achieve improvement in asset quality ratios as our bankers continue to successfully address problem loan situations through restructuring and upgrading loans, and working with borrowers to liquidate assets or collateral to reduce problem loans. We are also seeing signs of stabilization of real estate collateral values. So it is with a sense of guarded optimism that we anticipate further improvement in our performance as the economy continues to strengthen.
Non-interest income of $1,381,000 reflects a 22% increase over the $1,130,000 reported for the fourth quarter of last year, as increases in residential mortgage gains and wealth management income more than offset a decline in deposit related service charge fee income. Our bankers continue to exercise good stewardship in controlling and reducing overhead and operating expenses, as total non interest expense of $3,305,000 declined $594,000 from the level reported for the fourth quarter of 2009.
5
On a year-to-date basis, Fentura reported an operating loss of $5,385,000 or $2.37 per diluted share which is a substantial improvement over the $16,980,000 or $7.70 per diluted share loss reported for 2009. The substantial improvement was primarily a result of elevated provision for loan loss expense in 2009; for both continuing operations and discontinued operations. For the year, the net interest margin improved 22 basis points from 3.50% in 2009 to 3.72% in 2010. Aggressive relationship management pricing by our lenders and retail bankers was the primary cause for the improvement.
At year-end 2010, assets totaled $424,228,000, a $97,851,000 decrease from the prior year. Approximately half of the decline resulted from the sale of Davison State Bank with the remaining portion a result of the banks managing to lower loan and deposit levels to maintain appropriate capital ratios. At year-end, both banks were adequately capitalized as measured against regulatory standards.
During the second quarter of 2010, we reported that Fentura had entered into an agreement to sell West Michigan Community Bank to a group of private investors. The sale of the bank was completed January 31, 2011. The financial results for West Michigan Community Bank are reported at year-end 2010 as discontinued operations, net of tax for income reporting purposes. The sale resulted in an approximate $750,000 gain on sale, which will be accounted for in the first quarter 2011 results. As reported previously, the sale benefits both Fentura Financial, Inc. and The State Bank. Effective with the sale, the pro forma Fentura Tier 1 capital leverage ratio improved 36% to approximately 6.7%. Additionally, it is expected that during the first quarter of 2011, Fentura will be able to downstream proceeds connected with the sale to further strengthen the capital position of The State Bank.
Just prior to year-end 2010, the Boards of Directors of The State Bank appointed Ronald Justice President and Chief Operating Officer. Most recently, Ron served as President and CEO of West Michigan Community Bank. He began his career with The State Bank in 1985 and served in various banking capacities prior to his West Michigan appointment. Ron will serve on the board of The State Bank and he is expected to again become very active in community and civic activities.
I hope you detected the note of optimism that this shareholder letter is intended to provide. Your company has gone through a very difficult period starting in the third quarter of 2007. The impact from the collapse of the housing industry in 2007, the partial meltdown of the financial industry in 2008, the contraction of
6
the auto industry and the dramatic drop in real estate values all had a staggering impact on our banks. Our decision to shrink the company through divestitures and other internal measures now appears to have been a very effective survival strategy; as the company’s financial performance is improving and the capital position at both Fentura and The State Bank are at their highest levels since the recession first started.
We deeply appreciate your continued support as we look forward; anticipating further performance improvement in 2011 and beyond.
Sincerely,
![-s- Donald L. Grill](https://capedge.com/proxy/8-K/0000950123-11-010815/k50036k5003601.gif)
Donald L. Grill
President & CEO
President & CEO
7
Fentura Financial Inc.
Consolidated Statement of Condition
(000’s omitted except per share data)
Unaudited
Consolidated Statement of Condition
(000’s omitted except per share data)
Unaudited
December 30, | ||||||||
2010 | 2009 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 11,592 | $ | 15,490 | ||||
Federal Funds Sold | 21,900 | 16,150 | ||||||
Total cash and cash equivalents | 33,492 | 31,640 | ||||||
Securities available for sale, at fair value | 41,875 | 33,939 | ||||||
Securities held to maturity (fair value of $4,383 at December 31, 2010 and $5,492 at December 31, 2009) | 4,350 | 5,455 | ||||||
Total securities | 46,225 | 39,394 | ||||||
Loans held for sale | 850 | 229 | ||||||
Commercial loans | 150,179 | 164,163 | ||||||
Construction loans | 9,597 | 21,904 | ||||||
Real estate loans | 19,046 | 23,681 | ||||||
Consumer loans | 29,153 | 32,302 | ||||||
Total loans | 207,975 | 242,050 | ||||||
Less: Allowance for loan losses | (10,027 | ) | (8,589 | ) | ||||
Net loans | 197,948 | 233,461 | ||||||
Bank premises and equipment | 10,335 | 10,994 | ||||||
Accrued interest receivable | 1,050 | 1,289 | ||||||
Bank-owned life insurance | 5,800 | 5,947 | ||||||
Assets of discontinued operations | 122,968 | 188,006 | ||||||
Other assets | 5,560 | 11,119 | ||||||
Total assets | $ | 424,228 | $ | 522,079 | ||||
LIABILITIES | ||||||||
Noninterest bearing deposits | $ | 55,044 | $ | 53,113 | ||||
Interest bearing deposits | 220,933 | 258,438 | ||||||
Total deposits | 275,977 | 311,551 | ||||||
Short-term borrowings | 879 | 164 | ||||||
Other borrowings | 954 | 981 | ||||||
Subordinated debt | 14,000 | 14,000 | ||||||
Liabilities of discontinued operations | 113,321 | 171,758 | ||||||
Accrued taxes, interest and other liabilities | 3,042 | 3,093 | ||||||
Total liabilities | 408,173 | 501,547 | ||||||
Common stock — 2,308,765 issued (2,248,553 in 2009) | 43,036 | 42,913 | ||||||
Retained deficit | (27,042 | ) | (21,657 | ) | ||||
Accumulated other comprehensive income (loss) | 61 | (724 | ) | |||||
Total stockholders’ equity | 16,055 | 20,532 | ||||||
Total liabilities and stockholders’ equity | $ | 424,228 | $ | 522,079 | ||||
Fentura Financial Inc.
Consolidated Statement of Income
(000’s omitted except per share data)
Unaudited
Consolidated Statement of Income
(000’s omitted except per share data)
Unaudited
Three Months Ended December 31, | ||||||||
2010 | 2009 | |||||||
INTEREST INCOME | ||||||||
Interest and fees on loans | $ | 3,291 | $ | 3,801 | ||||
Interest and dividends on securities: | ||||||||
Taxable | 213 | 246 | ||||||
Tax-exempt | 45 | 113 | ||||||
Interest on short-term securities | 8 | 2 | ||||||
Total interest income | 3,557 | 4,162 | ||||||
INTEREST EXPENSE | ||||||||
Deposits | 856 | 1,303 | ||||||
Borrowings | 132 | 129 | ||||||
Total interest expense | 988 | 1,432 | ||||||
NET INTEREST INCOME | 2,569 | 2,730 | ||||||
Provision for loan losses | 700 | 2,409 | ||||||
Net interest income after provision for loan losses | 1,869 | 321 | ||||||
NONINTEREST INCOME | ||||||||
Service charges on deposit accounts | 320 | 472 | ||||||
Trust and investment services income | 260 | 178 | ||||||
Gain on sale of loans | 283 | 141 | ||||||
Other operating income | 518 | 339 | ||||||
Total noninterest income | 1,381 | 1,130 | ||||||
NONINTEREST EXPENSE | ||||||||
Salaries and benefits | 1,600 | 1,480 | ||||||
Occupancy of bank premises | 284 | 306 | ||||||
Equipment expense | 297 | 340 | ||||||
Loss on equity impairment | — | — | ||||||
Other operating expenses | 1,124 | 1,773 | ||||||
Total noninterest expense | 3,305 | 3,899 | ||||||
NET INCOME (LOSS) BEFORE TAXES FROM CONTINUING OPERATIONS | (55 | ) | (2,448 | ) | ||||
Federal income taxes (benefit) | 106 | (3,658 | ) | |||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (161 | ) | 1,210 | |||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | 375 | (320 | ) | |||||
NET INCOME (LOSS) | $ | 214 | $ | 890 | ||||
Per share amounts: | ||||||||
INCOME (LOSS) PER SHARE FROM CONTINUING OPERATIONS: | ||||||||
Basic | $ | (0.07 | ) | $ | 0.54 | |||
Diluted | $ | (0.07 | ) | $ | 0.54 | |||
NET INCOME (LOSS) PER SHARE: | ||||||||
Basic | $ | 0.09 | $ | (0.40 | ) | |||
Diluted | $ | 0.09 | $ | (0.40 | ) |
Fentura Financial Inc.
Consolidated Statement of Income
(000’s omitted except per share data)
Unaudited
Consolidated Statement of Income
(000’s omitted except per share data)
Unaudited
Twelve Months Ended December 31, | ||||||||
2010 | 2009 | |||||||
INTEREST INCOME | ||||||||
Interest and fees on loans | $ | 13,874 | $ | 16,239 | ||||
Interest and dividends on securities: | ||||||||
Taxable | 881 | 1,173 | ||||||
Tax-exempt | 295 | 474 | ||||||
Interest on short-term securities | 27 | 3 | ||||||
Total interest income | 15,077 | 17,889 | ||||||
INTEREST EXPENSE | ||||||||
Deposits | 4,032 | 6,230 | ||||||
Borrowings | 520 | 695 | ||||||
Total interest expense | 4,552 | 6,925 | ||||||
NET INTEREST INCOME | 10,525 | 10,964 | ||||||
Provision for loan losses | 6,934 | 11,040 | ||||||
Net interest income (loss) after provision for loan losses | 3,591 | (76 | ) | |||||
NONINTEREST INCOME | ||||||||
Service charges on deposit accounts | 1,445 | 1,726 | ||||||
Trust and investment services income | 915 | 919 | ||||||
Gain on sale of loans | 701 | 744 | ||||||
Other operating income | 1,709 | 1 | ||||||
Loss on equity investment | — | (1,360 | ) | |||||
Total noninterest income | 4,770 | 2,030 | ||||||
NONINTEREST EXPENSE | ||||||||
Salaries and benefits | 6,387 | 6,650 | ||||||
Occupancy of bank premises | 1,225 | 1,326 | ||||||
Equipment expense | 1,265 | 1,339 | ||||||
Loss on equity impairment | — | 200 | ||||||
Other operating expenses | 4,389 | 4,537 | ||||||
Total noninterest expense | 13,266 | 14,052 | ||||||
NET INCOME (LOSS) BEFORE TAXES | (4,905 | ) | (12,098 | ) | ||||
Federal income taxes (benefit) | (22 | ) | 221 | |||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (4,883 | ) | (12,319 | ) | ||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | (502 | ) | (4,661 | ) | ||||
NET INCOME (LOSS) | $ | (5,385 | ) | $ | (16,980 | ) | ||
Per share amounts: | ||||||||
INCOME (LOSS) PER SHARE FROM CONTINUING OPERATIONS: | ||||||||
Basic | $ | (2.15 | ) | $ | (5.59 | ) | ||
Diluted | $ | (2.15 | ) | $ | (5.59 | ) | ||
NET INCOME (LOSS) PER SHARE: | ||||||||
Basic | $ | (2.37 | ) | $ | (7.70 | ) | ||
Diluted | $ | (2.37 | ) | $ | (7.70 | ) |
Financial Highlights
$ in thousands except per share data
Unaudited
$ in thousands except per share data
Unaudited
December 30, | ||||||||||||
2010 | 2009 | %Change | ||||||||||
Net Income | $ | (5,385 | ) | $ | (16,980) | % | (68.29 | )% | ||||
Return on average total equity | (28.52 | ) | (61.18) | % | (53.38 | )% | ||||||
Return on average assets | (1.15 | ) | (3.02) | % | (61.92 | )% | ||||||
Net interest margin | 3.72 | 3.50 | % | 6.29 | % | |||||||
Efficiency ratio | 86.73 | 108.14 | 19.80 | % | ||||||||
Per Common Share: | ||||||||||||
Net Income(Loss) — basic | ($2.37 | ) | ($7.70 | ) | (69.22 | )% | ||||||
Net Income(Loss) — diluted | ($2.37 | ) | ($7.70 | ) | (69.22 | )% | ||||||
Book value | $ | 6.95 | $ | 9.13 | (23.88 | )% | ||||||
Market price (last trade) | $ | 1.75 | $ | 1.36 | 28.68 | % |
Forward Looking Statements
This discussion contains forward looking statements that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and about the Corporation itself. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “is likely,” “plans,” “projects,” variations of such words and similar expressions are intended to identify such forward looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”), which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecast in such forward looking statements. The Corporation undertakes no obligation to update, amend or clarify forward looking statements as a result of new information, future events, or otherwise.
Future factors that could cause a difference between an ultimate actual outcome and a preceding forward looking statement include, but are not limited to, changes in interest rate and interest rate relationships, demands for products and service, the degree of competition by traditional and non-traditional competitors, changes in banking laws or regulations, changes in tax laws, changes in prices, the impact of technological advances, government and regulatory policy changes, the outcome of pending and future litigation and contingencies, trends in customer behavior as well as their ability to repay loans, and the local and national economy.
Fentura Financial Inc.
Consolidated Balance Sheets
(Dollars in thousands)
UNAUDITED
Consolidated Balance Sheets
(Dollars in thousands)
UNAUDITED
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | ||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||
Cash and due from banks | $ | 11,592 | $ | 12,804 | $ | 13,119 | $ | 13,385 | $ | 15,490 | ||||||||||
Short term investments | 21,900 | 30,950 | 21,900 | 15,150 | 16,150 | |||||||||||||||
Total cash & cash equivalents | 33,492 | 43,754 | 35,019 | 28,535 | 31,640 | |||||||||||||||
Securities: | ||||||||||||||||||||
Securities available for sale | 41,875 | 38,141 | 27,925 | 31,981 | 33,939 | |||||||||||||||
Securities held to maturity | 4,350 | 4,481 | 4,702 | 5,453 | 5,455 | |||||||||||||||
Total securities | 46,225 | 42,622 | 32,627 | 37,434 | 39,394 | |||||||||||||||
Loans held for sale | 850 | 1,877 | 1,386 | 1,046 | 229 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | 150,179 | 155,875 | 163,069 | 167,177 | 164,163 | |||||||||||||||
Real estate — construction | 9,597 | 10,807 | 12,391 | 14,363 | 21,904 | |||||||||||||||
Real estate — mortgage | 19,046 | 20,136 | 21,079 | 21,958 | 23,681 | |||||||||||||||
Consumer | 29,153 | 30,341 | 30,424 | 31,110 | 32,302 | |||||||||||||||
Total loans | 207,975 | 217,159 | 226,963 | 234,608 | 242,050 | |||||||||||||||
Less: Allowance for loan losses | (10,027 | ) | (11,456 | ) | (10,610 | ) | (9,686 | ) | (8,589 | ) | ||||||||||
Net loans | 197,948 | 205,703 | 216,353 | 224,922 | 233,461 | |||||||||||||||
Bank owned life insurance | 5,800 | 5,764 | 6,024 | 5,985 | 5,947 | |||||||||||||||
Bank premises and equipment | 10,335 | 10,490 | 10,651 | 10,818 | 10,994 | |||||||||||||||
Federal Home Loan Bank stock | 740 | 806 | 806 | 806 | 806 | |||||||||||||||
Accrued interest receivable | 1,050 | 1,036 | 1,154 | 1,386 | 1,289 | |||||||||||||||
Acquisition intangibles | — | — | — | — | — | |||||||||||||||
Other Real Estate Owned | 2,742 | 3,920 | 3,851 | 4,452 | 3,761 | |||||||||||||||
Assets of discontinued operations | 122,968 | 130,996 | 139,053 | 184,543 | 188,006 | |||||||||||||||
Other assets | 2,078 | 2,411 | 8,365 | 9,067 | 6,552 | |||||||||||||||
TOTAL ASSETS | $ | 424,228 | $ | 449,379 | $ | 455,289 | $ | 508,994 | $ | 522,079 | ||||||||||
LIABILITIES & SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest bearing deposits | 55,044 | 54,555 | 56,097 | 53,529 | 53,113 | |||||||||||||||
Interest bearing deposits | 220,933 | 239,172 | 232,523 | 245,360 | 258,438 | |||||||||||||||
Total deposits | 275,977 | 293,727 | 288,620 | 298,889 | 311,551 | |||||||||||||||
Short-term borrowings | 879 | 116 | 10 | 67 | 164 | |||||||||||||||
Federal Home Loan Bank Advances | 954 | 954 | 954 | 981 | 981 | |||||||||||||||
Subordinated debentures | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | |||||||||||||||
Liabilities of discontinued operations | 113,321 | 121,659 | 129,579 | 171,910 | 171,758 | |||||||||||||||
Accrued interest, taxes & other liabilities | 3,042 | 2,851 | 4,231 | 2,904 | 3,093 | |||||||||||||||
Total liabilities | 408,173 | 433,307 | 437,394 | 488,751 | 501,547 | |||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Common stock — no par value 5,000,000 shares authorized | 43,036 | 43,002 | 42,974 | 42,945 | 42,913 | |||||||||||||||
Retained earnings | (27,042 | ) | (27,257 | ) | (24,920 | ) | (22,140 | ) | (21,657 | ) | ||||||||||
Accumulated other comprehensive income (loss) | 61 | 327 | (159 | ) | (562 | ) | (724 | ) | ||||||||||||
Total stockholders’ equity | 16,055 | 16,072 | 17,895 | 20,243 | 20,532 | |||||||||||||||
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | $ | 424,228 | $ | 449,379 | $ | 455,289 | $ | 508,994 | $ | 522,079 | ||||||||||
Common stock shares issued & outstanding | 2,272,065 | 2,289,912 | 2,276,441 | 2,267,135 | 2,205,419 | |||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||
Non-Performing Loans as a % of Total Loans | 6.61 | % | 6.35 | % | 6.46 | % | 6.06 | % | 5.45 | % | ||||||||||
Allowance for Loan Losses as a % of Non-Performing Loans | 72.62 | % | 82.32 | % | 71.93 | % | 67.73 | % | 65.01 | % | ||||||||||
Accruing Loans Past Due 90 Days More to Total Loans | 0.06 | % | 0.00 | % | 0.73 | % | 0.17 | % | 0.13 | % | ||||||||||
Non-Performing Assets as a % of Total Assets | 4.10 | % | 4.10 | % | 4.41 | % | 4.07 | % | 3.77 | % | ||||||||||
Quarterly Average Balances: | ||||||||||||||||||||
Total Loans | 203,277 | 224,170 | 232,237 | 240,828 | 254,810 | |||||||||||||||
Total Earning Assets | 270,867 | 290,127 | 255,044 | 294,175 | 311,418 | |||||||||||||||
Total Shareholders’ Equity | 16,713 | 18,260 | 19,870 | 20,750 | 20,281 | |||||||||||||||
Total Assets | 432,033 | 457,986 | 477,761 | 513,830 | 530,250 | |||||||||||||||
Diluted Shares Outstanding | 2,291,629 | 2,277,406 | 2,276,441 | 2,249,917 | 2,226,745 |
Fentura Financial Inc.
Consolidated Income Statements
(Dollars in thousands, except per share data)
UNAUDITED
Consolidated Income Statements
(Dollars in thousands, except per share data)
UNAUDITED
Three Months ended | Twelve months ended | |||||||||||||||||||||||||||
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Dec 31 | Dec 31 | ||||||||||||||||||||||
(prior periods restated with out DSB and WMCB) | 2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||
Interest & fees on loans | $ | 3,291 | $ | 3,453 | $ | 3,538 | $ | 3,592 | $ | 3,801 | $ | 13,874 | $ | 16,239 | ||||||||||||||
Interest & dividends on securities: | ||||||||||||||||||||||||||||
Taxable | 213 | 224 | 219 | 225 | 246 | 881 | 1,173 | |||||||||||||||||||||
Tax-exempt | 45 | 46 | 92 | 112 | 113 | 295 | 474 | |||||||||||||||||||||
Interest on federal funds sold | 8 | 9 | 7 | 3 | 2 | 27 | 3 | |||||||||||||||||||||
Total interest income | 3,557 | 3,732 | 3,856 | 3,932 | 4,162 | 15,077 | 17,889 | |||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Deposits | 856 | 985 | 1,057 | 1,134 | 1,303 | 4,032 | 6,230 | |||||||||||||||||||||
Borrowings | 132 | 135 | 127 | 126 | 129 | 520 | 695 | |||||||||||||||||||||
Total interest expense | 988 | 1,120 | 1,184 | 1,260 | 1,432 | 4,552 | 6,925 | |||||||||||||||||||||
Net interest income | 2,569 | 2,612 | 2,672 | 2,672 | 2,730 | 10,525 | 10,964 | |||||||||||||||||||||
Provision for loan losses | 700 | 2,650 | 2,449 | 1,135 | 2,409 | 6,934 | 11,040 | |||||||||||||||||||||
Net interest income after provision for loan losses | 1,869 | (38 | ) | 223 | 1,537 | 321 | 3,591 | (76 | ) | |||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Service charges on deposit accounts | 320 | 341 | 359 | 425 | 472 | 1,445 | 1,726 | |||||||||||||||||||||
Gain on sale of mortgage loans | 283 | 214 | 123 | 81 | 140 | 701 | 744 | |||||||||||||||||||||
Trust & investment services income | 260 | 192 | 194 | 269 | 178 | 915 | 919 | |||||||||||||||||||||
Gain (Loss) on sale of securities | (23 | ) | — | 71 | — | — | 48 | — | ||||||||||||||||||||
Other than temporary impairment loss | — | (307 | ) | — | — | (79 | ) | (307 | ) | (288 | ) | |||||||||||||||||
Income (Loss) on Equity Investment | — | — | — | — | — | — | (1,360 | ) | ||||||||||||||||||||
Other income and fees | 541 | 498 | 589 | 340 | 419 | 1,968 | 289 | |||||||||||||||||||||
Total non-interest income | 1,381 | 938 | 1,336 | 1,115 | 1,130 | 4,770 | 2,030 | |||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||
Salaries & employee benefits | 1,600 | 1,573 | 1,595 | 1,619 | 1,480 | 6,387 | 6,650 | |||||||||||||||||||||
Occupancy | 284 | 309 | 311 | 321 | 306 | 1,225 | 1,326 | |||||||||||||||||||||
Furniture and equipment | 297 | 340 | 322 | 306 | 340 | 1,265 | 1,339 | |||||||||||||||||||||
Loan and collection | 338 | 296 | 272 | 373 | 981 | 1,279 | 2,559 | |||||||||||||||||||||
Advertising and promotional | 12 | 22 | 41 | 26 | 16 | 101 | 121 | |||||||||||||||||||||
Loss on Equity Impairment | — | — | — | — | 9 | — | 200 | |||||||||||||||||||||
Other operating expenses | 774 | 765 | 837 | 633 | 767 | 3,009 | 1,857 | |||||||||||||||||||||
Total non-interest expense | 3,305 | 3,305 | 3,378 | 3,278 | 3,899 | 13,266 | 14,052 | |||||||||||||||||||||
�� | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before income tax | (55 | ) | (2,405 | ) | (1,819 | ) | (626 | ) | (2,448 | ) | (4,905 | ) | (12,098 | ) | ||||||||||||||
Federal income taxes (benefit) | 106 | (235 | ) | 421 | (314 | ) | (3,658 | ) | (22 | ) | 221 | |||||||||||||||||
Net income (loss) from continuing operations | (161 | ) | (2,170 | ) | (2,240 | ) | (312 | ) | 1,210 | (4,883 | ) | (12,319 | ) | |||||||||||||||
Net Income (loss) from discontinued operations, net of tax | 375 | (165 | ) | (541 | ) | (171 | ) | (320 | ) | (502 | ) | (4,661 | ) | |||||||||||||||
Net Income (loss) | $ | 214 | $ | (2,335 | ) | $ | (2,781 | ) | $ | (483 | ) | $ | 890 | $ | (5,385 | ) | $ | (16,980 | ) | |||||||||
Net Income (Loss) per share from continuing operations: | ||||||||||||||||||||||||||||
Basic and diluted earnings | $ | (0.07 | ) | $ | (0.95 | ) | $ | (0.99 | ) | $ | (0.14 | ) | $ | 0.54 | $ | (2.15 | ) | $ | (5.59 | ) | ||||||||
Net Income (Loss) per share from discontinued operations: | ||||||||||||||||||||||||||||
Basic and diluted earnings | $ | 0.16 | $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.08 | ) | $ | (0.14 | ) | $ | (0.22 | ) | (2.11 | ) | |||||||||
Net Income (Loss) per share: | ||||||||||||||||||||||||||||
Basic and diluted earnings | $ | 0.09 | $ | (1.02 | ) | $ | (1.22 | ) | $ | (0.22 | ) | $ | 0.40 | $ | (2.37 | ) | $ | (7.70 | ) | |||||||||
Performance Ratios: | ||||||||||||||||||||||||||||
Return on Average Assets | 0.05 | % | -0.51 | % | -0.58 | % | -0.09 | % | 0.17 | % | -1.15 | % | -3.02 | % | ||||||||||||||
Return on Average Equity | 1.28 | % | -12.79 | % | -14.00 | % | -2.33 | % | 4.39 | % | -28.52 | % | -61.18 | % | ||||||||||||||
Net Interest Margin (FTE) | 3.66 | % | 3.62 | % | 3.76 | % | 3.78 | % | 3.57 | % | 3.72 | % | 3.50 | % | ||||||||||||||
Book Value Per Share | $ | 6.95 | $ | 7.02 | $ | 7.86 | $ | 8.93 | $ | 9.13 | $ | 6.95 | $ | 9.13 | ||||||||||||||
Net Charge-offs | 2,095 | 2,095 | 1,908 | 178 | 7,278 | 5,496 | 9,779 | |||||||||||||||||||||
Ratio of Net charge-offs to Gross Loans | 1.01 | % | 0.96 | % | 0.84 | % | 0.08 | % | 3.01 | % | 2.53 | % | 4.04 | % | ||||||||||||||
Average QTD/YTD Shares Outstanding | 2,291,628.50 | 2,277,406.14 | 2,268,791.19 | 2,249,916.95 | 2,226,715.47 | 2,272,064.96 | 2,205,419.46 |