Firstbank Corp. (FBMI, Financial) filed Quarterly Report for the period ended 2009-03-31.
Firstbank Corporation is a bank holding company. Firstbank Corp. has a market cap of $48.26 million; its shares were traded at around $6.35 with and P/S ratio of 0.56. The dividend yield of Firstbank Corp. stocks is 6.3%. Firstbank Corp. had an annual average earning growth of 4.6% over the past 10 years.
Total shareholders equity increased $33.0 million, or 28.7%, during the first three months of 2009. Net income of $1.5 million and common and preferred stock issuances of $32.9 million increased shareholders equity, while common and preferred stock dividends of $1.0 million decreased shareholders equity. Common stock issuance was primarily related to shares issued through dividend reinvestment while preferred stock issuance arose from the Corporations participation in the CPP. Of the total CPP proceeds of $33 million, initially $32.7 million was allocated to preferred stock and $293,000 was allocated to the warrants (included in capital surplus) based on the relative fair value of each. The CPP proceeds will be used in the near-term to paydown wholesale funding and expand lending in the long-term. The per share book value of shareholders common equity was $15.10 at March 31, 2009, decreasing from $15.17 at December 31, 2008. Tangible shareholders common equity per share (total equity less goodwill and other intangible assets) was $9.96 at the end of the first quarter of 2009, compared with $9.96 at year end 2008. Shareholders common equity per share calculations exclude preferred stock of $32.7 million.
For the first quarter of 2009, net income was $1,513,000, basic and diluted earnings per share were $0.16, compared with $2,150,000, and $0.29 basic and diluted per share for the first quarter of 2008, and a net loss of $2,460,000, ($0.33) basic and diluted earnings per share, for the fourth quarter of 2008. After preferred stock dividends of $275,000, net income available to shareholders was $1,238,000 in the current quarter. This years first quarter was heavily impacted by a $1.6 million charge to loan loss provision. The charge to loan loss provision was necessary as we identified additional loans for which the borrowers had exhausted their sources of repayment. These loans were either transferred into nonaccrual status and specific reserves established, or charged down to the value of the collateral that can be recovered on the loan.
Average earning assets increased $57.5 million, or 4.6%, when the first quarter of 2009 is compared to the same quarter a year ago. Compared with the previous quarter, earning assets increased $26.4 million, or 2.1%. The yield on earning assets decreased 106 basis points, to 5.87%, for the quarter ended March 31, 2009, compared to 6.93% for the same quarter a year ago, and was 46 basis points lower when compared with the quarter ended December 31, 2008. The cost of funding related liabilities also decreased, falling 92 basis points when comparing this years first quarter to the same period a year ago, from 3.13% in 2008, to 2.21% in 2009. Compared with prior quarter, the cost of funding related liabilities fell by 29 basis points. Since the decrease in yield on earning assets was larger than the decrease in the cost of funds relative to earning assets, the net interest margin decreased 14 basis points from last years first quarter to 3.66% in the current quarter, and 16 basis points when compared to the previous quarter. Net interest income increased $137,000 to $11.6 million in the first quarter of 2009 compared with the same period of 2008, primarily due to the $57.5 million increase in average earning assets compared with the year ago quarter. 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 $176,000 compared with $223,000 in the fourth quarter of 2008.
Total non-interest income was $3.2 million in the first quarter, compared with $2.9 million in the first quarter of 2008 and ($1.8) million in the fourth quarter of 2008. Compared with 2008s first quarter, mortgage gains were higher by $1.2 million, primarily due to an increase in mortgage refinancing resulting from a historically low rate environment, while deposit fees fell by $85,000. Also reducing non-interest income in the current quarter were losses on trading account securities of $129,000 and write-offs of mortgage servicing rights of $352,000. Other income also fell $349,000 compared with the previous year.
At March 31, 2009, we have adequate sources of liquidity to meet our needs. Compared with year end, cash and cash equivalents increased $8.4 million primarily from loan paydowns of $16.3 million, net investment securities maturities of $6.9 million and the issuance of preferred stock of $33.0 million. Partially offsetting these sources of funds was the net paydown of FHLB advances of $22.0 million, deposit runoff of $10.9 million, and a reduction of $15.5 million in other wholesale funding sources.
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Firstbank Corporation is a bank holding company. Firstbank Corp. has a market cap of $48.26 million; its shares were traded at around $6.35 with and P/S ratio of 0.56. The dividend yield of Firstbank Corp. stocks is 6.3%. Firstbank Corp. had an annual average earning growth of 4.6% over the past 10 years.
Highlight of Business Operations:
Securities available for sale were down by $8.3 million or 7.4% in the first three months of 2009, primarily due to a $9.9 million decrease in agency backed securities. We held $1.1 million of auction rate securities at March 31, 2009 compared with $4.0 million at year end 2008. This portfolio had reached a peak at the end of the first quarter of 2008 of $9.4 million. In the third and fourth quarters of 2008, we wrote down $5.3 million of auction rate securities through an other-than-temporary-impairment charge. During the first quarter of 2009, the additional reduction in auction rate securities was primarily due to the conversion of $1.7 million of these securities to preferred stock. Additionally, $1.2 million of market value adjustments were recorded in the first quarter through other comprehensive income.Total shareholders equity increased $33.0 million, or 28.7%, during the first three months of 2009. Net income of $1.5 million and common and preferred stock issuances of $32.9 million increased shareholders equity, while common and preferred stock dividends of $1.0 million decreased shareholders equity. Common stock issuance was primarily related to shares issued through dividend reinvestment while preferred stock issuance arose from the Corporations participation in the CPP. Of the total CPP proceeds of $33 million, initially $32.7 million was allocated to preferred stock and $293,000 was allocated to the warrants (included in capital surplus) based on the relative fair value of each. The CPP proceeds will be used in the near-term to paydown wholesale funding and expand lending in the long-term. The per share book value of shareholders common equity was $15.10 at March 31, 2009, decreasing from $15.17 at December 31, 2008. Tangible shareholders common equity per share (total equity less goodwill and other intangible assets) was $9.96 at the end of the first quarter of 2009, compared with $9.96 at year end 2008. Shareholders common equity per share calculations exclude preferred stock of $32.7 million.
For the first quarter of 2009, net income was $1,513,000, basic and diluted earnings per share were $0.16, compared with $2,150,000, and $0.29 basic and diluted per share for the first quarter of 2008, and a net loss of $2,460,000, ($0.33) basic and diluted earnings per share, for the fourth quarter of 2008. After preferred stock dividends of $275,000, net income available to shareholders was $1,238,000 in the current quarter. This years first quarter was heavily impacted by a $1.6 million charge to loan loss provision. The charge to loan loss provision was necessary as we identified additional loans for which the borrowers had exhausted their sources of repayment. These loans were either transferred into nonaccrual status and specific reserves established, or charged down to the value of the collateral that can be recovered on the loan.
Average earning assets increased $57.5 million, or 4.6%, when the first quarter of 2009 is compared to the same quarter a year ago. Compared with the previous quarter, earning assets increased $26.4 million, or 2.1%. The yield on earning assets decreased 106 basis points, to 5.87%, for the quarter ended March 31, 2009, compared to 6.93% for the same quarter a year ago, and was 46 basis points lower when compared with the quarter ended December 31, 2008. The cost of funding related liabilities also decreased, falling 92 basis points when comparing this years first quarter to the same period a year ago, from 3.13% in 2008, to 2.21% in 2009. Compared with prior quarter, the cost of funding related liabilities fell by 29 basis points. Since the decrease in yield on earning assets was larger than the decrease in the cost of funds relative to earning assets, the net interest margin decreased 14 basis points from last years first quarter to 3.66% in the current quarter, and 16 basis points when compared to the previous quarter. Net interest income increased $137,000 to $11.6 million in the first quarter of 2009 compared with the same period of 2008, primarily due to the $57.5 million increase in average earning assets compared with the year ago quarter. 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 $176,000 compared with $223,000 in the fourth quarter of 2008.
Total non-interest income was $3.2 million in the first quarter, compared with $2.9 million in the first quarter of 2008 and ($1.8) million in the fourth quarter of 2008. Compared with 2008s first quarter, mortgage gains were higher by $1.2 million, primarily due to an increase in mortgage refinancing resulting from a historically low rate environment, while deposit fees fell by $85,000. Also reducing non-interest income in the current quarter were losses on trading account securities of $129,000 and write-offs of mortgage servicing rights of $352,000. Other income also fell $349,000 compared with the previous year.
At March 31, 2009, we have adequate sources of liquidity to meet our needs. Compared with year end, cash and cash equivalents increased $8.4 million primarily from loan paydowns of $16.3 million, net investment securities maturities of $6.9 million and the issuance of preferred stock of $33.0 million. Partially offsetting these sources of funds was the net paydown of FHLB advances of $22.0 million, deposit runoff of $10.9 million, and a reduction of $15.5 million in other wholesale funding sources.
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