Farmers Capital Bank Corporation Announces Second Quarter Earnings
FRANKFORT, Ky., July 20, 2010 (GLOBE NEWSWIRE) -- Farmers Capital Bank Corporation (Nasdaq:FFKT) (the "Company") reported net income of $2.8 million or $.32 per common share for the quarter ended June 30, 2010 compared to net income of $1.9 million or $.20 per common share for the quarter ended March 31, 2010 and a net loss of $801 thousand or $.17 per common share for the quarter ended June 30, 2009. Net income for the six months ended June 30, 2010 was $4.8 million or $.52 per common share compared to $2.5 million or $.22 per common share for the same six month period of 2009.
Net interest income has increased in each of the comparable periods mainly as a result of lower overall interest paid on deposit accounts. Noninterest income is up in each of the comparable periods due mainly to an increase in net gains on the sale of investment securities. The sale of investment securities was strategically made to lock in some of the increase in value and bolster capital after an analysis of multiple reinvestment scenarios that would minimize the impact on the net interest margin on a go forward basis. Net gains on the sale of investment securities were $3.4 million and $5.0 million for the three and six-month periods ended June 30, 2010. This represents increases of $1.8 million or 109% in the current quarter compared to the linked quarter, $2.1 million or 158% in the current quarter compared to the same quarter a year ago, and $2.9 million or 142% in the first six months of 2010 compared to the same six-month period a year ago.
The provision for loan losses increased $3.6 million or 185% in the linked quarter, but decreased $450 thousand or 7.6% in the current quarter compared to the same quarter a year ago and decreased $200 thousand or 2.6% in the six-month comparison. Noninterest expenses decreased $1.3 million or 7.8% in the linked quarter comparison and $958 thousand or 5.9% in the year-to-year quarterly comparison as overall cost containment and reduction efforts are being realized. For the six-month comparison, overall net noninterest expenses increased $427 thousand or 1.4% which was driven by higher expenses associated with repossessed real estate of $2.2 million. The increase in repossessed real estate expenses is mainly attributed to writing down these properties to their estimated fair value less costs to sell and not the result of deeply discounted sales.
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