-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AbE7GpLj1qvcUreJFlkOMiJ2wy4/TB9FATt/sSn0dwHzXTTKfYNXET3W5PhnpMn/ 7cadxKlju+YoZIaAY4y/ag== 0000926044-02-000201.txt : 20020719 0000926044-02-000201.hdr.sgml : 20020719 20020719110532 ACCESSION NUMBER: 0000926044-02-000201 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020718 ITEM INFORMATION: FILED AS OF DATE: 20020719 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRSTBANK CORP CENTRAL INDEX KEY: 0000778972 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 382633910 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14209 FILM NUMBER: 02706269 BUSINESS ADDRESS: STREET 1: 311 WOODWORTH AVE STREET 2: PO BOX 1029 CITY: ALMA STATE: MI ZIP: 48801 BUSINESS PHONE: 5174633131 MAIL ADDRESS: STREET 1: 311 WOODWORTH AVE CITY: ALMA STATE: MI ZIP: 48801 8-K 1 firstbankform8k.txt SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: July 18, 2002 FIRSTBANK CORPORATION (Exact name of registrant as specified in its charter) Michigan 0-14209 38-2633910 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification no.) incorporation) 311 Woodworth Avenue Alma, Michigan 48801 (Address of principal executive office) (Zip Code) Registrant's telephone number, including area code: (517) 463-3131 Item 9. Regulation FD Disclosure. On July 18, 2002, Firstbank Corporation ("Firstbank") issued a news release with respect to its Second Quarter Results. A copy of the news release is attached as Exhibit 99.1. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: July 18, 2002 FIRSTBANK CORPORATION (Registrant) By: /s/ Thomas R. Sullivan ________________________________________ Thomas R. Sullivan President and Chief Executive Officer 3 EXHIBIT INDEX 99.1 Press Release Dated July 18, 2002 4 EXHIBIT 99.1 FOR IMMEDIATE RELEASE NEWS RELEASE Date Submitted: July 18, 2002 Contact: Samuel G. Stone NASDAQ Symbol: FBMI Executive Vice President and Chief Financial Officer (989) 466-7325 FIRSTBANK CORPORATION ANNOUNCES SECOND QUARTER 2002 RESULTS Highlights for the Quarter Include: o Record earnings of $2.8 million, up 14% o 10.6% increase in earnings per share(diluted) o Continued benefit from relatively strong mortgage business o Strong asset quality and growing capital ratios Alma, Michigan ---- Thomas R. Sullivan, President and Chief Executive Officer of Firstbank Corporation announced net income of $2,757,000 for the quarter ended June 30, 2002, compared to $2,418,000 for 2001, an increase of 14.0%. Earnings per share were $0.52 up 10.6% from $0.47 for the same quarter of 2001. Returns on average assets and average equity for the second quarter were 1.51% and 14.7%, respectively, compared with 1.32% and 14.5%, respectively, in the quarter ended June 30, 2001. All per share amounts are fully diluted amounts and have been adjusted to reflect the 5% stock dividend paid in December 2001. The net income of $5,424,000 in the first half of 2002 represented an increase of 21.2% from operating earnings and an increase of 34.6% from net income in the first half of 2001. Net income in the 2001 first half included a one-time charge as previously disclosed. Earnings per share were $1.03 up 30.4% from $0.79 for the same period of 2001, and up 17.0% from operating earnings per share. Returns on average assets and average equity for the first half of 2002 were 1.48% and 14.7%, respectively, compared with 1.23% and 13.6%, respectively, in first half of 2001 excluding the one-time charge. Total assets declined modestly to $736,292,000 at June 30, 2002, compared to $737,399,000 at March 31, 2002, and were 1.1% over the level at June 30, 2001. Total loans increased 1.7% from March 31, 2002, but declined 0.4% from the year-ago level. The decline from year-ago was primarily in the real estate mortgage portfolio which was affected by sales of portfolio mortgage loans related to the high level of mortgage refinance activity. The commercial loan portfolio increased 2.6% from March 31, 2002, and 7.0% from June 30, 2001. Total deposits declined 0.2% in the second quarter of 2002 but at June 30, 2002, were 1.2% ahead of the year-ago level. Shareholders' equity increased 14.0% from its year-ago level, and the ratio of average equity to average assets increased to 10.3% in the second quarter of 2002 compared to 9.1% in the second quarter of 2001. According to Mr. Sullivan, "The year 2002 is continuing with very strong earnings fueled by historically low funding costs and continued strong, although below recent peak, mortgage business. We have been extremely pleased with the quality of our loan portfolio. In keeping with our long term strategy of developing new growth opportunities, we recently began an initiative to establish a presence in Cadillac, Michigan. We believe that this is a market where Firstbank's approach to community banking will be successful." Firstbank Corporation's net interest margin was 4.95% in the second quarter of 2002 compared to 4.87% in the prior quarter, and 4.66% in the second quarter of 2001. The improvement continues to reflect successful efforts to respond to rapidly changing interest rates, inflows of lower cost deposits, and reductions in higher cost borrowings. Mortgage refinance activity slowed in the second quarter of 2002 and was the primary reason for the slower rate of growth in earnings compared to the prior quarter. Gain on sale of mortgage loans of $580,000 in the second quarter of 2002 were down 42.1% from the first quarter of 2002, and down 6.8% from the level in the second quarter of 2001. Firstbank Corporation's servicing portfolio continues to grow. Excluding the impact of accounting for mortgage servicing rights, mortgage servicing income grew 60% to $551,000 in the first half of 2002 compared to $344,000 in the first half of 2001. The principal balance of loans serviced for others increased to $346.8 million as of June 30, 2002, an increase of 33% from $261.1 million at June 30, 2001. The ratio of non-performing loans to total gross loans declined as of June 30, 2002, to 0.24% compared to 0.30% at March 31, 2002, 0.44% at December 31, 2001, and 0.29% at June 30, 2001, an indication of continuing strong asset quality in the loan portfolio. Net charge-offs of loans in the second quarter of 2002 decreased to $51,000, compared to $303,000 in the first quarter of 2002 and $109,000 in the second quarter of 2001. However, in the first half of 2002, net charge-offs were greater than the year earlier first half. As a ratio of average loans, net charge-offs for the first half of 2002 were still low at an annualized rate of 0.12%, and this ratio was just 0.03% in the second quarter of 2002. The provision for loan losses was $223,000 in the second quarter of 2002, compared to $372,000 in the first quarter of 2002 and $228,000 in the second quarter of 2001. Firstbank Corporation, headquartered in Alma, Michigan is currently a five bank financial services company with assets of $736 million and 41 offices located in central and northeast Michigan. Bank subsidiaries include: Firstbank - Alma; Firstbank (Mt. Pleasant); Firstbank - West Branch; Firstbank - Lakeview; and Firstbank - St. Johns. Other corporate affiliates include 1st Armored, Inc.; 1st Title; Gladwin Land Company, Inc.; and C. A. Hanes Realty, Inc. Investment services are available through affiliations with Raymond James Financial Services Inc., SunAmerica Securities Inc., and MML Investors Services, Inc. This press release contains certain forward-looking statements that involve risks and uncertainties. When used in this press release the words "believe," "expect," "potential," and similar expressions identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning future asset quality and growth in assets and profitability and expected fiscal 2002 year-end results. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. FIRSTBANK CORPORATION CONSOLIDATED BALANCE SHEETS (Dollars in thousands) UNAUDITED June 30 March 31 Dec 31 June 30 2002 2002 2001 2001 __________ _________ _________ _________ ASSETS Cash and cash equivalents: Cash and due from banks $24,942 $19,786 $27,187 $20,687 Short term investments 11,906 28,743 18,627 6,149 _________ _________ _________ _________ Total cash and cash equivalents 36,848 48,529 45,814 26,836 Securities available for sale 71,753 71,093 71,978 71,373 Loans: Loans held for sale 1,930 2,942 5,722 2,511 Portfolio loans: Commercial 312,187 304,364 299,412 291,717 Real estate mortgage 210,794 211,062 228,349 229,288 Consumer 74,738 71,002 72,593 78,760 _________ _________ _________ _________ Total loans 599,649 589,370 606,076 602,276 Less allowance for loan losses (11,279) (11,107) (11,038) (10,164) _________ _________ _________ _________ Net loans 588,370 578,263 595,038 592,112 Premises and equipment, net 17,463 17,618 17,624 15,853 Accrued interest receivable 3,546 3,762 3,595 4,043 Acquisition goodwill 5,049 5,105 5,161 5,093 Other intangibles 3,133 3,208 3,282 3,741 Other assets 10,130 9,821 9,498 9,414 _________ _________ _________ _________ TOTAL ASSETS $736,292 $737,399 $751,990 $728,465 ========= ========= ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Deposits: Noninterest bearing accounts 86,033 79,471 86,736 78,127 Interest bearing accounts: Demand 171,774 166,474 159,572 144,660 Savings 79,004 76,482 73,218 70,953 Time 216,661 232,036 241,613 253,252 _________ _________ _________ _________ Total deposits 553,472 554,463 561,139 546,992 Securities sold under agreements to repurchase and overnight borrowings 28,692 28,812 32,223 25,058 Notes payable 66,119 69,389 75,615 77,254 Accrued interest and other liabilities 10,591 10,368 10,587 11,223 _________ _________ _________ _________ Total liabilities 658,874 663,032 679,564 660,527 SHAREHOLDERS' EQUITY Preferred stock; no par value, 300,000 shares authorized, none issued Common stock; 10,000,000 shares authorized * 64,341 63,536 63,100 57,481 Retained earnings 11,781 10,004 8,260 9,641 Accumulated other comprehensive income 1,296 827 1,066 816 _________ _________ _________ _________ Total shareholders' equity 77,418 74,367 72,426 67,938 _________ _________ _________ _________ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $736,292 $737,399 $751,990 $728,465 ========= ========= ========= ========= * Common stock shares issued and outstanding 5,182,468 5,141,372 5,119,153 5,069,041 Asset Quality Ratios: Non-Performing Loans / Loans^ 0.24% 0.30% 0.44% 0.29% Non-Perf. Loans + OREO / Loans^ + OREO 0.33% 0.37% 0.53% 0.43% Non-Performing Assets / Total Assets 0.27% 0.29% 0.42% 0.36% Allowance for Loan Loss as a % of Loans^ 1.89% 1.89% 1.84% 1.69% Allowance / Non-Performing Loans 769% 627% 415% 578% Quarterly Average Balances: Total Loans^ $590,624 $589,433 $601,194 $604,609 Total Earning Assets $683,824 $701,513 $700,604 $682,132 Total Shareholders' Equity $75,295 $74,158 $72,229 $66,904 Total Assets $732,978 $751,197 $748,184 $732,203 Diluted Shares Outstanding ######## ######## ######## ######## ^ Total Loans less loans held for sale
FIRSTBANK CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands except per share data) UNAUDITED Three months Ended: Six months Ended: _____________________________________ _______________________ June 30 March 31 June 30 June 30 June 30 2002 2002 2001 2002 2001 __________ __________ __________ __________ __________ Interest income: Interest and fees on loans ###### $11,631 ###### ###### ###### Investment securities Taxable 586 607 675 1,193 1,387 Exempt from federal income tax 291 300 325 591 660 Short term investments 78 131 47 209 143 __________ __________ __________ __________ __________ Total interest income 12,328 12,669 14,277 24,997 28,643 Interest expense: Deposits 3,029 3,263 5,069 6,292 10,389 Notes payable and other 1,019 1,113 1,483 2,132 3,217 __________ __________ __________ __________ __________ Total interest expense 4,048 4,376 6,552 8,424 13,606 Net interest income 8,280 8,293 7,725 16,573 15,037 Provision for loan losses 223 372 228 595 431 __________ __________ __________ __________ __________ Net interest income after provision for loan losses 8,057 7,921 7,497 15,978 14,606 Noninterest income: Gain on sale of mortgage loans 580 1,002 622 1,582 957 Service charges on deposit accounts 585 543 494 1,128 918 Trust fees 35 71 83 106 172 Gain on sale of securities 16 (7) 0 9 25 Mortgage servicing (102) (60) (39) (162) 2 Other 957 1,030 1,023 1,987 1,984 __________ __________ __________ __________ __________ Total noninterest income 2,071 2,579 2,183 4,650 4,058 Noninterest expense: Salaries and employee benefits 3,279 3,546 3,320 6,825 6,574 Occupancy 849 935 768 1,784 1,657 Amortization of intangibles 131 130 194 261 394 FDIC insurance premium 25 24 27 49 52 Michigan single business tax 37 24 124 61 256 Other 1,717 1,844 1,708 3,561 3,850 __________ __________ __________ __________ __________ Total noninterest expense 6,038 6,503 6,141 12,541 12,783 Income before federal income taxes 4,090 3,997 3,539 8,087 5,881 Federal income taxes 1,333 1,330 1,121 2,663 1,851 Net Income $2,757 $2,667 $2,418 $5,424 $4,030 ========== ========== ========== ========== ========== Per Share Data: Basic Earnings $0.53 $0.52 $0.48 $1.06 $0.80 Diluted Earnings $0.52 $0.51 $0.47 $1.03 $0.79 Dividends Paid $0.19 $0.18 $0.17 $0.37 $0.33
FIRSTBANK CORPORATION CONSOLIDATED STATEMENTS OF INCOME EXCLUDING NONRECURRING ITEMS (Dollars in thousands except per share data) UNAUDITED Three months Ended: Six months Ended: _________________________________ ____________________ June 30 March 31 June 30 June 30 June 30 2002 2002 2001 2002 2001 _______ ________ _______ _______ _______ Interest income: Interest and fees on loans ###### $11,631 ###### $23,004 ###### Investment securities Taxable 586 607 675 1,193 1,387 Exempt from federal income tax 291 300 325 591 660 Short term investments 78 131 47 209 143 _______ ________ _______ _______ ______ Total interest income 12,328 12,669 14,277 24,997 28,643 Interest expense: Deposits 3,029 3,263 5,069 6,292 10,389 Notes payable and other 1,019 1,113 1,483 2,132 3,217 _______ ________ _______ _______ ______ Total interest expense 4,048 4,376 6,552 8,424 13,606 Net interest income 8,280 8,293 7,725 16,573 15,037 Provision for loan losses 223 372 228 595 431 _______ ________ _______ _______ ______ Net interest income after provision for loan losses 8,057 7,921 7,497 15,978 14,606 Noninterest income: Gain on sale of mortgage loans 580 1,002 622 1,582 957 Service charges on deposit accounts 585 543 494 1,128 918 Trust fees 35 71 83 106 172 Gain on sale of securities 16 (7) 0 9 25 Mortgage servicing (102) (60) (39) (162) 2 Other 957 1,030 1,023 1,987 1,984 _______ ________ _______ _______ ______ Total noninterest income 2,071 2,579 2,183 4,650 4,058 Noninterest expense: Salaries and employee benefits 3,279 3,546 3,320 6,825 6,574 Occupancy 849 935 768 1,784 1,657 Amortization of intangibles 131 130 194 261 394 FDIC insurance premium 25 24 27 49 52 Michigan single business tax 37 24 124 61 267 Other 1,717 1,844 1,708 3,561 3,163 _______ ________ _______ _______ ______ Total noninterest expense 6,038 6,503 6,141 12,541 12,107 Income before federal income taxes 4,090 3,997 3,539 8,087 6,557 Federal income taxes 1,333 1,330 1,121 2,663 2,081 _______ ________ _______ _______ ______ Income Excluding Nonrecurring Items $2,757 $2,667 $2,418 $5,424 $4,476 Nonrecurring items net of tax 0 0 0 0 446 Net Income $2,757 $2,667 $2,418 $5,424 $4,030 ======= ======== ======== ======= ====== Per Share Data Excluding Nonrecurring Items: Basic Earnings $0.53 $0.52 $0.48 $1.06 $0.90 Diluted Earnings $0.52 $0.51 $0.47 $1.03 $0.88 Dividends Paid $0.19 $0.18 $0.17 $0.37 $0.33 Performance Ratios Excluding Nonrecurring Items: Return on Average Assets* 1.51% 1.45% 1.32% 1.48% 1.23% Return on Average Equity* 14.7% 14.7% 14.5% 14.7% 13.6% Net Interest Margin (FTE) * 4.95% 4.87% 4.66% 4.91% 4.56% Book Value Per Share+ $14.94 $14.48 $13.40 $14.94 $13.40 Average Equity/Average Assets 10.3% 9.8% 9.1% 10.1% 9.0% Net Charge-offs 109 354 124 51 303 Net Charge-offs as a % of Average Loans^* 0.03% 0.21% 0.07% 0.12% 0.04% * Annualized + Period End ^ Total loans less loans held for sale
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