Dollars in thousands except per share amounts. Certain items in the prior period financial statements have been reclassified to conform with the September 30, 2024 presentation.
FENTON, Mich., Oct. 25, 2024 (GLOBE NEWSWIRE) -- Fentura Financial, Inc. (OTCQX: FETM) announces quarterly net income results of $867 and $5,637 for the three and nine months ended September 30, 2024, respectively.
Ronald L. Justice, President and CEO, stated, "We ended the 2024 third quarter with record total assets, deposits, and shareholders' equity. These results are a testament to the continued hard work of our team members, and the local value we provide our Michigan communities. During the third quarter, we announced a merger with ChoiceOne Financial Services, Inc., pursuant to which ChoiceOne and Fentura will merge in an all-stock transaction. Once completed, the combination will create the third largest publicly traded bank in Michigan with approximately $4.3 billion in consolidated total assets and 56 offices in Western, Central and Southeastern Michigan. We continue to expect to close the transaction in the first quarter of 2025, subject to the satisfaction of customary closing conditions and regulatory approvals.”
Following is a discussion of our financial performance as of, and for the three and nine months ended September 30, 2024. At the end of this document is a list of abbreviations and acronyms.
Results of Operations (unaudited)
The following table outlines our QTD results of operations and provides certain performance measures as of, and for the three months ended:
| 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | ||||||||||||||||
| INCOME STATEMENT DATA | ||||||||||||||||||||
| Interest income | $ | 22,194 | $ | 21,487 | $ | 21,541 | $ | 21,033 | $ | 20,416 | ||||||||||
| Interest expense | 10,202 | 9,650 | 9,315 | 8,526 | 7,757 | |||||||||||||||
| Net interest income | 11,992 | 11,837 | 12,226 | 12,507 | 12,659 | |||||||||||||||
| Credit loss expense (reversal) | 1,203 | 796 | (43 | ) | (190 | ) | (309 | ) | ||||||||||||
| Noninterest income | 2,210 | 2,314 | 2,355 | 2,145 | 2,338 | |||||||||||||||
| Noninterest expenses | 11,974 | 10,921 | 11,166 | 10,121 | 10,594 | |||||||||||||||
| Federal income tax expense | 158 | 454 | 668 | 937 | 937 | |||||||||||||||
| Net income | $ | 867 | $ | 1,980 | $ | 2,790 | $ | 3,784 | $ | 3,775 | ||||||||||
| PER SHARE | ||||||||||||||||||||
| Earnings | $ | 0.19 | $ | 0.44 | $ | 0.63 | $ | 0.85 | $ | 0.85 | ||||||||||
| Dividends | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.10 | $ | 0.10 | ||||||||||
| Tangible book value(1) | $ | 30.51 | $ | 29.84 | $ | 29.38 | $ | 28.92 | $ | 27.64 | ||||||||||
| Quoted market value | ||||||||||||||||||||
| High | $ | 40.00 | $ | 24.39 | $ | 27.20 | $ | 27.20 | $ | 23.74 | ||||||||||
| Low | $ | 22.16 | $ | 22.33 | $ | 24.00 | $ | 22.26 | $ | 19.10 | ||||||||||
| Close(1) | $ | 39.07 | $ | 22.50 | $ | 24.40 | $ | 27.20 | $ | 23.74 | ||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||
| Return on average assets | 0.19 | % | 0.45 | % | 0.63 | % | 0.86 | % | 0.86 | % | ||||||||||
| Return on average shareholders' equity | 2.37 | % | 5.59 | % | 7.98 | % | 11.11 | % | 11.27 | % | ||||||||||
| Return on average tangible shareholders' equity | 2.54 | % | 5.98 | % | 8.55 | % | 11.94 | % | 12.14 | % | ||||||||||
| Efficiency ratio | 84.31 | % | 77.17 | % | 76.58 | % | 69.08 | % | 70.64 | % | ||||||||||
| Yield on average earning assets (FTE) | 5.17 | % | 5.18 | % | 5.15 | % | 5.06 | % | 4.92 | % | ||||||||||
| Rate on interest bearing liabilities | 3.28 | % | 3.22 | % | 3.11 | % | 2.90 | % | 2.66 | % | ||||||||||
| Net interest margin to average earning assets (FTE) | 2.80 | % | 2.85 | % | 2.92 | % | 3.01 | % | 3.05 | % | ||||||||||
| BALANCE SHEET DATA(1) | ||||||||||||||||||||
| Total investment securities | $ | 99,724 | $ | 100,167 | $ | 103,210 | $ | 107,615 | $ | 109,543 | ||||||||||
| Gross loans | $ | 1,442,389 | $ | 1,459,929 | $ | 1,461,465 | $ | 1,473,471 | $ | 1,483,720 | ||||||||||
| Allowance for credit losses | $ | 14,700 | $ | 15,300 | $ | 15,300 | $ | 15,400 | $ | 15,400 | ||||||||||
| Total assets | $ | 1,807,370 | $ | 1,756,629 | $ | 1,764,629 | $ | 1,738,952 | $ | 1,744,939 | ||||||||||
| Total deposits | $ | 1,470,586 | $ | 1,427,059 | $ | 1,438,408 | $ | 1,394,182 | $ | 1,401,797 | ||||||||||
| Borrowed funds | $ | 179,970 | $ | 178,397 | $ | 178,500 | $ |
| ||||||||||||