Farmers Capital Bank Corp. (FFKT, Financial) filed Quarterly Report for the period ended 2009-09-30.
FARMERS CAPITAL BANK CORP. is a bank holding company engaged in general banking business. Farmers Capital Bank Corp. has a market cap of $80.5 million; its shares were traded at around $10.93 with a P/E ratio of 27.2 and P/S ratio of 0.7. The dividend yield of Farmers Capital Bank Corp. stocks is 9.1%. 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 $13.5 million for the three months ended September 30, 2009, a decrease of $1.3 million or 8.6% from $14.8 million in the same period a year earlier. The decrease in net interest income is attributed mainly to a $2.5 million or 8.9% decline in interest income, primarily on loans, that was partially offset by a $1.2 million or 9.2% decrease in interest expense, mainly on deposit accounts and short term borrowed funds. The decrease in each of these line items was driven by overall rate declines, which were driven mainly by weaker economic conditions in the current quarter compared to a year earlier.
Total interest income was $25.4 million in the third quarter of 2009, a decrease of $2.5 million or 8.9% and was driven by lower interest income on loans of $2.1 million or 9.7%. The average rate earned on loans was 6.0% in the current quarter, down 59 basis points from 6.6% a year ago. 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 $130 thousand or 66.7% as a 163 basis point decrease in the average rate earned offset a volume increase of $69.7 million. Interest on taxable securities decreased $392 thousand or 7.2% which is also attributed to an 82 basis point lower average rate earned.
Total interest expense was $11.9 million in the current quarter. This represents a decrease of $1.2 million or 9.2% compared to $13.1 million a year ago. The decrease in interest expense was driven by lower interest expense on deposits of $670 thousand or 7.4%. The average rate paid on all interest bearing deposit accounts was 2.4% in the current period, a decrease of 45 basis points compared to 2.8% a year earlier. Interest expense on time deposits, the largest component of interest expense, declined $77 thousand or 1.0% in the quarterly comparison. Although the average rate paid on time deposits decreased 70 basis points in the comparison, the average outstanding balance was up 19.5% compared to a year ago. The increase in time deposits outstanding is perceived to be mainly a result of customers that have moved money out of a volatile stock market and into more stable investments in time deposits. The increase in deposit insurance coverage generally up to $250 thousand has also had a net positive impact on outstanding balances of time deposits. Interest expense on savings and interest bearing demand accounts decreased $392 thousand or 43.8% and $201 thousand or 58.1%, respectively. Interest expense on short and long-term borrowings decreased $342 thousand or 75.5% and $194 thousand or 5.5%, 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.
Net interest income for the current three months includes $721 thousand of income related to the Company s balance sheet leverage transaction that occurred during the fourth quarter of 2007. This represents a decrease of $104 thousand or 12.6% compared to the same three month period in 2008. The leverage transaction reduced net interest margin by 16 basis points for the current three months compared to a 27 basis point reduction a year earlier.
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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 $80.5 million; its shares were traded at around $10.93 with a P/E ratio of 27.2 and P/S ratio of 0.7. The dividend yield of Farmers Capital Bank Corp. stocks is 9.1%. 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 $174 thousand or $.09 per common share for the quarter ended September 30, 2009 compared to a net loss of $6.9 million or $.94 per common share for the quarter ended September 30 a year ago. A summary of the quarterly comparison follows.Net interest income was $13.5 million for the three months ended September 30, 2009, a decrease of $1.3 million or 8.6% from $14.8 million in the same period a year earlier. The decrease in net interest income is attributed mainly to a $2.5 million or 8.9% decline in interest income, primarily on loans, that was partially offset by a $1.2 million or 9.2% decrease in interest expense, mainly on deposit accounts and short term borrowed funds. The decrease in each of these line items was driven by overall rate declines, which were driven mainly by weaker economic conditions in the current quarter compared to a year earlier.
Total interest income was $25.4 million in the third quarter of 2009, a decrease of $2.5 million or 8.9% and was driven by lower interest income on loans of $2.1 million or 9.7%. The average rate earned on loans was 6.0% in the current quarter, down 59 basis points from 6.6% a year ago. 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 $130 thousand or 66.7% as a 163 basis point decrease in the average rate earned offset a volume increase of $69.7 million. Interest on taxable securities decreased $392 thousand or 7.2% which is also attributed to an 82 basis point lower average rate earned.
Total interest expense was $11.9 million in the current quarter. This represents a decrease of $1.2 million or 9.2% compared to $13.1 million a year ago. The decrease in interest expense was driven by lower interest expense on deposits of $670 thousand or 7.4%. The average rate paid on all interest bearing deposit accounts was 2.4% in the current period, a decrease of 45 basis points compared to 2.8% a year earlier. Interest expense on time deposits, the largest component of interest expense, declined $77 thousand or 1.0% in the quarterly comparison. Although the average rate paid on time deposits decreased 70 basis points in the comparison, the average outstanding balance was up 19.5% compared to a year ago. The increase in time deposits outstanding is perceived to be mainly a result of customers that have moved money out of a volatile stock market and into more stable investments in time deposits. The increase in deposit insurance coverage generally up to $250 thousand has also had a net positive impact on outstanding balances of time deposits. Interest expense on savings and interest bearing demand accounts decreased $392 thousand or 43.8% and $201 thousand or 58.1%, respectively. Interest expense on short and long-term borrowings decreased $342 thousand or 75.5% and $194 thousand or 5.5%, 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.
Net interest income for the current three months includes $721 thousand of income related to the Company s balance sheet leverage transaction that occurred during the fourth quarter of 2007. This represents a decrease of $104 thousand or 12.6% compared to the same three month period in 2008. The leverage transaction reduced net interest margin by 16 basis points for the current three months compared to a 27 basis point reduction a year earlier.
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