Dollars in thousands except per share amounts. Certain items in the prior period financial statements have been reclassified to conform with the December 31, 2024 presentation.
FENTON, Mich., Jan. 23, 2025 (GLOBE NEWSWIRE) -- Fentura Financial, Inc. (OTCQX: FETM) announces net income of $3,730 and $9,367 for the quarter and year ended December 31, 2024, respectively. During the quarter, gross loans declined by $5,487. The moderation of the loan portfolio can be contributed to management's continued focus on enhancing the Corporation's liquidity and capital positions. Despite the modest decline in gross loans, net interest income increased by $382 on a fully tax equivalent basis during the quarter. This increase was a direct result of the 0.02% expansion of net interest margins during the quarter as interest rates paid on deposit accounts were reduced more than those on loans. Excluding the impact of merger related expenses and other nonrecurring items, adjusted net income for the quarter and year ended December 31, 2024 was $4,104 and $10,572, respectively compared to $3,759 and $15,064 in the same periods in 2023.
Ronald L. Justice, President and CEO, stated, "We experienced a strong improvement in net income during the 2024 fourth quarter, compared to the 2024 third quarter reflecting strong asset quality, a stable net interest margin, and reduced operating expenses. We continue to work on completing the all-stock merger with ChoiceOne Financial Services, Inc., which is expected to close during the 2025 first quarter. As a result, Fentura shareholders should expect to receive their first quarter dividend payment as part of ChoiceOne, when ChoiceOne declares its first quarter dividend in late March. Once completed, the combination of Fentura and ChoiceOne will create the third largest publicly traded bank in Michigan with over $4 billion in consolidated total assets and 56 offices in Western, Central and Southeastern Michigan.”
Following is a summary of our financial performance as of, and for the quarter and year ended December 31, 2024.
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:
12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | ||||||||||||||||
INCOME STATEMENT DATA | ||||||||||||||||||||
Interest income | $ | 22,500 | $ | 22,194 | $ | 21,487 | $ | 21,541 | $ | 21,033 | ||||||||||
Interest expense | 10,126 | 10,202 | 9,650 | 9,315 | 8,526 | |||||||||||||||
Net interest income | 12,374 | 11,992 | 11,837 | 12,226 | 12,507 | |||||||||||||||
Credit loss expense (reversal) | (302 | ) | 1,203 | 796 | (43 | ) | (190 | ) | ||||||||||||
Noninterest income | 2,124 | 2,210 | 2,314 | 2,355 | 2,145 | |||||||||||||||
Noninterest expenses | 10,155 | 11,974 | 10,921 | 11,166 | 10,121 | |||||||||||||||
Federal income tax expense | 915 | 158 | 454 | 668 | 937 | |||||||||||||||
Net income | $ | 3,730 | $ | 867 | $ | 1,980 | $ | 2,790 | $ | 3,784 | ||||||||||
PER SHARE | ||||||||||||||||||||
Earnings | $ | 0.83 | $ | 0.19 | $ | 0.44 | $ | 0.63 | $ | 0.85 | ||||||||||
Dividends | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.10 | ||||||||||
Tangible book value(1) | $ | 31.03 | $ | 30.51 | $ | 29.84 | $ | 29.38 | $ | 28.92 | ||||||||||
Quoted market value | ||||||||||||||||||||
High | $ | 48.00 | $ | 40.00 | $ | 24.39 | $ | 27.20 | $ | 27.20 | ||||||||||
Low | $ | 37.01 | $ | 22.16 | $ | 22.33 | $ | 24.00 | $ | 22.26 | ||||||||||
Close(1) | $ | 45.00 | $ | 39.07 | $ | 22.50 | $ | 24.40 | $ | 27.20 | ||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average assets | 0.81 | % | 0.19 | % | 0.45 | % | 0.63 | % | 0.86 | % | ||||||||||
Return on average shareholders' equity | 10.04 | % | 2.37 | % | 5.59 | % | 7.98 | % | 11.11 | % | ||||||||||
Return on average tangible shareholders' equity | 10.71 | % | 2.54 | % | 5.98 | % | 8.55 | % | 11.94 | % | ||||||||||
Efficiency ratio | 70.04 | % | 84.31 | % | 77.17 | % | 76.58 | % | 69.08 | % | ||||||||||
Yield on average earning assets (FTE) | 5.12 | % | 5.17 | % | 5.18 | % | 5.15 | % | 5.06 | % | ||||||||||
Rate on interest bearing liabilities | 3.20 | % | 3.28 | % | 3.22 | % | 3.11 | % | 2.90 | % | ||||||||||
Net interest margin to average earning assets (FTE) | 2.82 | % | 2.80 | % | 2.85 | % | 2.92 | % | 3.01 | % | ||||||||||
BALANCE SHEET DATA(1) | ||||||||||||||||||||
Total investment securities | $ | 93,999 | $ | 99,724 | $ | 100,167 | $ | 103,210 | $ | 107,615 | ||||||||||
Gross loans | $ | 1,436,902 | $ | 1,442,389 | $ | 1,459,929 | $ | 1,461,465 | $ | 1,473,471 | ||||||||||
Allowance for credit losses | $ | 14,400 | $ | 14,700 | $ | 15,300 | $ | 15,300 | $ | 15,400 | ||||||||||
Total assets | $ | 1,807,618 | $ | 1,807,370 | $ | 1,756,629 | $ | 1,764,629 | $ | 1,738,952 | ||||||||||
Total deposits | $ | 1,469,496 | $ | 1,470,586 | $ | 1,427,059 | $ | 1,438,408 | $ | 1,394,182 | ||||||||||
Borrowed funds | $ | 179,634 | $ | 179,970 |
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