Farmers Capital Bank Corp. (FFKT, Financial) filed Quarterly Report for the period ended 2009-06-30.
FARMERS CAPITAL BANK CORP. is a bank holding company engaged in general banking business. Farmers Capital Bank Corp. has a market cap of $137.8 million; its shares were traded at around $18.71 with and P/S ratio of 1.1. The dividend yield of Farmers Capital Bank Corp. stocks is 5.3%. Farmers Capital Bank Corp. had an annual average earning growth of 3.3% over the past 10 years. GuruFocus rated Farmers Capital Bank Corp. the business predictability rank of 2.5-star.
Net interest income was $13.4 million for the three months ended June 30, 2009, a decrease of $1.9 million or 12.7% from $15.4 million in the same period a year earlier. The decrease in net interest income is attributed mainly to a $2.6 million or 11.7% decline in interest income on loans that was partially offset by a $1.2 million or 12.1% decrease in interest expense on deposit accounts. The decrease in both of these line items was driven by overall rate declines, which offset the effect on net interest income of volume increases in both loans and deposits. Rate declines were driven mainly by weaker economic conditions.
Total interest income was $25.5 million in the second quarter of 2009, a decrease of $3.6 million or 12.3% and was driven by lower interest income on loans of $2.6 million or 11.7%. The average rate earned on loans was 6.0% in the current quarter, down 92 basis points from 6.9% a year earlier. Similar declines were experienced in other earning asset categories. Interest income from deposits held in other banks and federal funds sold and securities purchased under agreements to resell was down $201 thousand or 70.3% as a 179 basis point decrease in the average rate earned offset a volume increase of $74.3 million. Interest on taxable securities decreased $907 thousand or 15.2% which is also attributed to an 81 basis point lower average rate earned.
Total interest expense was $12.1 million in the current quarter. This represents a decrease of $1.6 million or 11.8% compared to $13.7 million a year ago. The decrease in interest expense was driven by lower interest expense on deposits of $1.2 million or 12.1%. The average rate paid on deposit accounts was 2.44% in the current period, a decrease of 55 basis points compared to 2.99% a year earlier. Interest expense on time deposits, the largest component of interest expense, declined $532 thousand or 6.3% in the quarterly comparison. Interest expense on savings and interest bearing demand accounts decreased $384 thousand or 43.8% and $266 thousand or 53.0%, respectively. Interest expense on short and long-term borrowings decreased $326 thousand or 72.9% and $102 thousand or 2.9%, respectively. The decrease in interest expense was mainly driven by a lower average rate paid on the Company s deposits and borrowings and is attributed to the overall lower interest rate environment.
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FARMERS CAPITAL BANK CORP. is a bank holding company engaged in general banking business. Farmers Capital Bank Corp. has a market cap of $137.8 million; its shares were traded at around $18.71 with and P/S ratio of 1.1. The dividend yield of Farmers Capital Bank Corp. stocks is 5.3%. Farmers Capital Bank Corp. had an annual average earning growth of 3.3% over the past 10 years. GuruFocus rated Farmers Capital Bank Corp. the business predictability rank of 2.5-star.
Highlight of Business Operations:
The Company reported a net loss of $801 thousand or $.17 per common share for the quarter ended June 30, 2009 compared to net income of $4.9 million or $.67 per common share for the quarter ended June 30, 2008. A summary of the quarterly comparison follows.Net interest income was $13.4 million for the three months ended June 30, 2009, a decrease of $1.9 million or 12.7% from $15.4 million in the same period a year earlier. The decrease in net interest income is attributed mainly to a $2.6 million or 11.7% decline in interest income on loans that was partially offset by a $1.2 million or 12.1% decrease in interest expense on deposit accounts. The decrease in both of these line items was driven by overall rate declines, which offset the effect on net interest income of volume increases in both loans and deposits. Rate declines were driven mainly by weaker economic conditions.
Total interest income was $25.5 million in the second quarter of 2009, a decrease of $3.6 million or 12.3% and was driven by lower interest income on loans of $2.6 million or 11.7%. The average rate earned on loans was 6.0% in the current quarter, down 92 basis points from 6.9% a year earlier. Similar declines were experienced in other earning asset categories. Interest income from deposits held in other banks and federal funds sold and securities purchased under agreements to resell was down $201 thousand or 70.3% as a 179 basis point decrease in the average rate earned offset a volume increase of $74.3 million. Interest on taxable securities decreased $907 thousand or 15.2% which is also attributed to an 81 basis point lower average rate earned.
Total interest expense was $12.1 million in the current quarter. This represents a decrease of $1.6 million or 11.8% compared to $13.7 million a year ago. The decrease in interest expense was driven by lower interest expense on deposits of $1.2 million or 12.1%. The average rate paid on deposit accounts was 2.44% in the current period, a decrease of 55 basis points compared to 2.99% a year earlier. Interest expense on time deposits, the largest component of interest expense, declined $532 thousand or 6.3% in the quarterly comparison. Interest expense on savings and interest bearing demand accounts decreased $384 thousand or 43.8% and $266 thousand or 53.0%, respectively. Interest expense on short and long-term borrowings decreased $326 thousand or 72.9% and $102 thousand or 2.9%, respectively. The decrease in interest expense was mainly driven by a lower average rate paid on the Company s deposits and borrowings and is attributed to the overall lower interest rate environment.
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