First Financial Service Corp. (FFKY, Financial) filed Quarterly Report for the period ended 2011-09-30.
First Financial Service Corp. has a market cap of $6.74 million; its shares were traded at around $1.42 with and P/S ratio of 0.1.
The shift in the mix of assets resulting from the addition of lower yielding assets and the increase in the amount of non-performing assets also negatively impacted our net interest margin. The yield on earning assets averaged 4.50% and 4.62% for the three and nine month 2011 periods compared to an average yield on earning assets of 5.00% and 5.10% for the 2010 periods. This decrease was offset somewhat by a decrease in our cost of funds. Net interest margin as a percent of average earning assets decreased 31 basis points to 2.76% for the quarter ended September 30, 2011 and 30 basis points to 2.84% for the nine months ended September 30, 2011 compared to 3.07% and 3.14% for the 2010 periods.
Interest on securities provides us our largest source of interest income after interest on loans, constituting 14.4% of the total interest income for the nine months ended September 30, 2011. The securities portfolio serves as a source of liquidity and earnings and contributes to the management of interest rate risk. We have the authority to invest in various types of liquid assets, including short-term United States Treasury obligations and securities of various federal agencies, obligations of states and political subdivisions, corporate bonds, certificates of deposit at insured savings and loans and banks, bankers' acceptances, and federal funds. We may also invest a portion of our assets in certain commercial paper and corporate debt securities. We are also authorized to invest in mutual funds and stocks whose assets conform to the investments that we are authorized to make directly. The available-for-sale investment portfolio increased by $136.3 million due to the purchase of U.S. Government agency securities, government-sponsored mortgage-backed securities and obligations of states and political subdivisions.
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First Financial Service Corp. has a market cap of $6.74 million; its shares were traded at around $1.42 with and P/S ratio of 0.1.
Highlight of Business Operations:
The large decline in the volume of interest earning assets for the quarter and the change in the mix of interest earning assets caused a negative impact on net interest income, which decreased $1.2 million and $2.7 million for the three and nine month 2011 periods compared to the prior year periods. Average interest earning assets decreased $40.9 million for the 2011 quarter compared to 2010 due to a decrease in average loans and our efforts to increase liquidity by increasing lower yielding investments. The decrease in average loans was due to loan principal payments, payoffs, charge-offs and the conversion of nonperforming loans to other real estate owned properties. Average loan yields were 5.44% and 5.57% for the three and nine month 2011 periods compared to average loan yields of 5.69% and 5.79% for the 2010 periods.The shift in the mix of assets resulting from the addition of lower yielding assets and the increase in the amount of non-performing assets also negatively impacted our net interest margin. The yield on earning assets averaged 4.50% and 4.62% for the three and nine month 2011 periods compared to an average yield on earning assets of 5.00% and 5.10% for the 2010 periods. This decrease was offset somewhat by a decrease in our cost of funds. Net interest margin as a percent of average earning assets decreased 31 basis points to 2.76% for the quarter ended September 30, 2011 and 30 basis points to 2.84% for the nine months ended September 30, 2011 compared to 3.07% and 3.14% for the 2010 periods.
Interest on securities provides us our largest source of interest income after interest on loans, constituting 14.4% of the total interest income for the nine months ended September 30, 2011. The securities portfolio serves as a source of liquidity and earnings and contributes to the management of interest rate risk. We have the authority to invest in various types of liquid assets, including short-term United States Treasury obligations and securities of various federal agencies, obligations of states and political subdivisions, corporate bonds, certificates of deposit at insured savings and loans and banks, bankers' acceptances, and federal funds. We may also invest a portion of our assets in certain commercial paper and corporate debt securities. We are also authorized to invest in mutual funds and stocks whose assets conform to the investments that we are authorized to make directly. The available-for-sale investment portfolio increased by $136.3 million due to the purchase of U.S. Government agency securities, government-sponsored mortgage-backed securities and obligations of states and political subdivisions.
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