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Termination of Regulatory Agreement at Bank Subsidiary
FRANKFORT, Ky., Jan. 23, 2013 (GLOBE NEWSWIRE) -- Farmers Capital Bank Corporation (Nasdaq:FFKT) (the "Company") reported net income of $2.6 million or $.28 per common share for the quarter ended December 31, 2012. This represents a decrease of $489 thousand or $.07 per common share compared to the linked quarter and an improvement of $1.4 million or $.18 per common share compared to the fourth quarter a year ago. Net income was $12.1 million or $1.37 per common share for the twelve months ended December 31, 2012, an increase of $9.4 million and $1.26, respectively, compared to the year ended December 31, 2011.
"We continue to make strides improving the Company's overall financial condition and profitability", says Lloyd C. Hillard, Jr., President and Chief Executive Officer of the Company. "Nonperforming loans, while still elevated, are down 23% for the quarter and are now at their lowest point since the third quarter of 2009. Nonaccrual loans decreased 36% during the quarter. Our holding of repossessed real estate has increased, but we are also experiencing favorable selling opportunities for many of these properties," Mr. Hillard continues. "Net interest income improved in the quarter as certain components of higher rate debt matured or have repriced to a lower rate. Quality loan demand remains an issue, but the credit quality of our loan portfolio continues to improve."
Today the Company received written notification from the Federal Reserve Bank of St. Louis and the Kentucky Department of Financial Institutions that, as a result of their recent examination, the Memorandum of Understanding entered into with its largest bank subsidiary (Farmers Bank and Capital Trust Company) in November of 2009 has been terminated effective immediately. "Termination of the Memorandum of Understanding at Farmers Bank further illustrates progress toward our goal of improving the financial condition of the Company", states Mr. Hillard. "We are pleased to receive this notification, but are not satisfied. Our focus remains on continual improvement and the eventual removal of the remaining regulatory agreements at other entities within our Company."