Firstbank Corp. (FBMI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Firstbank Corp. has a market cap of $46.4 million; its shares were traded at around $6 with a P/E ratio of 300 and P/S ratio of 0.5. The dividend yield of Firstbank Corp. stocks is 3.4%.FBMI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Total shareholders equity was basically unchanged from year end. Net income of $659,000 million and common stock issuances of $128,000 increased shareholders equity, while common and preferred stock dividends of $799,000 decreased shareholders equity. Common stock issuance was primarily related to shares issued through dividend reinvestment. The per share book value of shareholders common equity was $14.73 at March 31, 2010, decreasing from $15.77 at December 31, 2009. Tangible shareholders common equity per share (total equity less goodwill and other intangible assets) was $9.79 at the end of the first quarter of 2010, unchanged from year end 2009. Shareholders common equity per share calculations excludes preferred stock of $32.7 million.
For the first quarter of 2010, net income was $659,000, basic and diluted earnings per share were $0.03, compared with a loss of $101,000, and $(0.07) basic and diluted per share for the fourth quarter of 2009, and net income of $1,513,000, $0.16 basic and diluted earnings per share, for the first quarter of 2009. Net income available to shareholders was $246,000 in the current quarter compared with a net loss of $514,000 in the fourth quarter of 2009 and net income of $1,238,000 in the first quarter of 2009. This years first quarter was once again, heavily impacted by a $2.5 million charge to loan loss provision, as well as $844,000 in expense relating to other real estate owned. The charge to loan loss provision was necessary as we identified additional loans for which the borrowers had exhausted their sources of repayment, or the value of the supporting collateral had declined. These loans were either transferred into nonaccrual status and specific reserves established, or charged down to the estimated value of the collateral that can be recovered on the loan.
Average earning assets increased $38.1 million, or 2.9%, when the first quarter of 2010 is compared to the same quarter a year ago. This is due primarily to an increase in interest-bearing balances held at the Federal Reserve and securities available for sale, offsetting a decline in loan balances. Compared with the previous quarter, earning assets increased $25.2 million, or 1.9%. The yield on earning assets decreased 36 basis points, to 5.51%, for the quarter ended March 31, 2010, compared to 5.87% for the same quarter a year ago, and was 30 basis points lower when compared with the quarter ended December 31, 2009. The cost of funding related liabilities also decreased, falling 47 basis points when comparing this years first quarter to the same period a year ago, from 2.21% in 2009, to 1.74% in 2010. Compared with the prior quarter, the cost of funding related liabilities fell by 26 basis points. Since the decrease in the cost of funds relative to earning assets was larger than the decrease in the yield on earning assets, the net interest margin increased 11 basis points from last years first quarter to 3.77% in the current quarter. The net interest margin decreased 5 basis points when compared to the previous quarter. Net interest income increased $723,000 to $12.3 million in the first quarter of 2010 compared with the same period of 2009, as the increase in earning assets and the higher net interest margin both contributed to higher net interest income. Unpaid interest on loans which are transferred to nonaccrual status is reversed against interest income in the period. During the first quarter, interest reversals associated with loans moving to nonaccrual status were $136,000 compared with $176,000 in the same quarter a year ago and $248,000 in the fourth quarter of 2009.
Total non-interest income was $2.3 million in the first quarter, compared with $3.2 million in the first quarter of 2009 and $4.1 million in the fourth quarter of 2009. Compared with 2009s first quarter, gains on sale of mortgages were lower by $2.0 million, primarily due to a decrease in mortgage refinancing resulting from a higher rate environment and new regulatory restrictions on making residential mortgages. Other factors affecting non-interest income in the current quarter compared to first quarter of last year were gains on trading account securities and securities available for sale, which increased a combined $264,000, higher mortgage servicing income which was up $478,000 on fewer write downs of serving rights, and other income which was up $314,000. As a result of our sale of the armored car business, other income will lower by $200,000 to $250,000 per quarter.
Total non-interest expense increased $200,000, or 1.8%, when comparing the three month periods ended March 31, 2010 and 2009 and was due to an increase in other real estate owned expenses of $435,000 and FDIC premiums of $174,000, which were partially offset by lower salary and benefits costs lower occupancy costs which were down $170,000 and $237,000, respectively. Going forward, our non-interest expenses will be $200,000 to 250,000 per quarter lower due to the sale of 1st Armored.
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Firstbank Corp. has a market cap of $46.4 million; its shares were traded at around $6 with a P/E ratio of 300 and P/S ratio of 0.5. The dividend yield of Firstbank Corp. stocks is 3.4%.FBMI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Total deposits increased $7.3 million, or 0.6% when compared with year end 2009 balances. Within the deposit base, non-interest bearing demand account balances decreased $8.5 million or 5.2%, primarily due to seasonal fluctuations. Interest bearing demand account balances increased $7.4 million, or 2.9%, savings balances increased $16.1 million, or 9.2%, and time balances decreased $7.7 million, or 1.4%. Within time balances, wholesale CDs were $7.0 million lower than year end, while core market CDs was down $0.7 million. Given our current low levels of loan demand, wholesale CDs were allowed to mature without replacement.Total shareholders equity was basically unchanged from year end. Net income of $659,000 million and common stock issuances of $128,000 increased shareholders equity, while common and preferred stock dividends of $799,000 decreased shareholders equity. Common stock issuance was primarily related to shares issued through dividend reinvestment. The per share book value of shareholders common equity was $14.73 at March 31, 2010, decreasing from $15.77 at December 31, 2009. Tangible shareholders common equity per share (total equity less goodwill and other intangible assets) was $9.79 at the end of the first quarter of 2010, unchanged from year end 2009. Shareholders common equity per share calculations excludes preferred stock of $32.7 million.
For the first quarter of 2010, net income was $659,000, basic and diluted earnings per share were $0.03, compared with a loss of $101,000, and $(0.07) basic and diluted per share for the fourth quarter of 2009, and net income of $1,513,000, $0.16 basic and diluted earnings per share, for the first quarter of 2009. Net income available to shareholders was $246,000 in the current quarter compared with a net loss of $514,000 in the fourth quarter of 2009 and net income of $1,238,000 in the first quarter of 2009. This years first quarter was once again, heavily impacted by a $2.5 million charge to loan loss provision, as well as $844,000 in expense relating to other real estate owned. The charge to loan loss provision was necessary as we identified additional loans for which the borrowers had exhausted their sources of repayment, or the value of the supporting collateral had declined. These loans were either transferred into nonaccrual status and specific reserves established, or charged down to the estimated value of the collateral that can be recovered on the loan.
Average earning assets increased $38.1 million, or 2.9%, when the first quarter of 2010 is compared to the same quarter a year ago. This is due primarily to an increase in interest-bearing balances held at the Federal Reserve and securities available for sale, offsetting a decline in loan balances. Compared with the previous quarter, earning assets increased $25.2 million, or 1.9%. The yield on earning assets decreased 36 basis points, to 5.51%, for the quarter ended March 31, 2010, compared to 5.87% for the same quarter a year ago, and was 30 basis points lower when compared with the quarter ended December 31, 2009. The cost of funding related liabilities also decreased, falling 47 basis points when comparing this years first quarter to the same period a year ago, from 2.21% in 2009, to 1.74% in 2010. Compared with the prior quarter, the cost of funding related liabilities fell by 26 basis points. Since the decrease in the cost of funds relative to earning assets was larger than the decrease in the yield on earning assets, the net interest margin increased 11 basis points from last years first quarter to 3.77% in the current quarter. The net interest margin decreased 5 basis points when compared to the previous quarter. Net interest income increased $723,000 to $12.3 million in the first quarter of 2010 compared with the same period of 2009, as the increase in earning assets and the higher net interest margin both contributed to higher net interest income. Unpaid interest on loans which are transferred to nonaccrual status is reversed against interest income in the period. During the first quarter, interest reversals associated with loans moving to nonaccrual status were $136,000 compared with $176,000 in the same quarter a year ago and $248,000 in the fourth quarter of 2009.
Total non-interest income was $2.3 million in the first quarter, compared with $3.2 million in the first quarter of 2009 and $4.1 million in the fourth quarter of 2009. Compared with 2009s first quarter, gains on sale of mortgages were lower by $2.0 million, primarily due to a decrease in mortgage refinancing resulting from a higher rate environment and new regulatory restrictions on making residential mortgages. Other factors affecting non-interest income in the current quarter compared to first quarter of last year were gains on trading account securities and securities available for sale, which increased a combined $264,000, higher mortgage servicing income which was up $478,000 on fewer write downs of serving rights, and other income which was up $314,000. As a result of our sale of the armored car business, other income will lower by $200,000 to $250,000 per quarter.
Total non-interest expense increased $200,000, or 1.8%, when comparing the three month periods ended March 31, 2010 and 2009 and was due to an increase in other real estate owned expenses of $435,000 and FDIC premiums of $174,000, which were partially offset by lower salary and benefits costs lower occupancy costs which were down $170,000 and $237,000, respectively. Going forward, our non-interest expenses will be $200,000 to 250,000 per quarter lower due to the sale of 1st Armored.
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