Fentura Financial, Inc. Announces Third Quarter 2016 Results

  • Net Income exceeded prior year and prior quarter levels
  • Net interest income increased from balance sheet growth and loan trends compared to prior quarter and prior year
  • Book value increased 12.4% to $13.78 per share over prior year
  • Total assets continued to grow, crossing the $500 million threshold
  • Non-performing assets and loans fall to record low levels

FENTON, Mich., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Fentura Financial, Inc. reported net income for the three months ended September 30, 2016 of $1.3 million compared to earnings of $1.0 million reported for the second quarter of 2016 and $970,000 reported for the three months ended September 30, 2015. On a pre-tax, pre-provision basis net income was $1.9 million in the current quarter compared to $1.5 million in the prior quarter and $0.0 million for the quarter ended September 30, 2015.  For the nine months ended September 30, 2016 the Company reported net income of $3.2 million compared to earnings of $2.9 million for the same period in 2015.

Ronald L. Justice, President and CEO said, "Our asset quality results are simply outstanding. We have literally no non-performing loans and in fact have no delinquencies. Additionally, we continue to move through the approval process with our regulatory agencies regarding our acquisition of Community Bancorp, Inc. and their subsidiary, Community State Bank and we intend  to close on the transaction in the 4 th quarter. In conjunction with the acquisition and in an effort to bolster our Tangible Common Equity Ratio at the Holding Company level, we have commitments to raise $15 million in common equity primarily to a small number of institutional investors at just above book value. All in all, we are very excited about our continued balance sheet growth and the prospects for the remainder of this year and beyond."

Balance Sheet

Total assets increased $26.9 million or 5.7% at September 30, 2016 compared to June 30, 2016, ending the quarter at $500.6 million.  When compared to December 31, 2015, assets at September 30, 2016 increased $55.5 million or 12.5%.  Cash and due from banks increased 34.8%, to $47.2 million at September 30, 2016 compared to the $35.0 million reported at June 30, 2016.  Increases in liquid assets during the quarter were funded almost exclusively by growth in deposit portfolios. Loan balances increased $17.1 million or 4.3% during the same period.  Loans increased from continued efforts to grow the Bank's client base. During the quarter, the Bank experienced growth principally in its commercial and mortgage portfolios. Loans totaled $413.6 million at September 30, 2016.  Year over year, loans increased $55.5 million or 15.5%.  The increase in loans resulted from the Company's efforts to grow it's loan portfolio with new and existing clients.  Additionally, the Company has continued to have success in offering customers new and innovative products that fill their financial needs, such as variable rate loans and single-note close construction loans.