Federal Trust Corporation Announces Year-End Results for 2006
02 Fevereiro 2007 - 8:12PM
PR Newswire (US)
SANFORD, Fla., Feb. 2 /PRNewswire-FirstCall/ -- James V.
Suskiewich, Chief Executive Officer and President of Federal Trust
Corporation reported today that earnings for the quarter ended
December 31, 2006 were $741,000 or $.08 per basic and fully diluted
share, compared to $1,166,000 or $.14 per basic and diluted share
for the fourth quarter of 2005. For the full year, earnings
decreased 23% to $3,410,000 for 2006, from $4,436,000 for 2005. On
a per share basis, 2006 earnings were $.38 per basic and $.37 fully
diluted per share compared to $.54 basic and $.53 per fully diluted
share for 2005. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990513/FDTRLOGO ) At December
31, 2006, Federal Trust's total assets were $723.0 million, a
decrease of $12.4 million, or 2% from December 31, 2005. Total
non-performing assets at December 31, 2006 were $12.0 million, up
from $2.7 million at the end of 2005. As a result, the allowance
for loan losses was increased to .84% of total loans, up from .71%
at the end of 2005. Stockholders' equity at the end of 2006 was
$54.6 million, and the book value per share was $5.86. Mr.
Suskiewich stated, "The fourth quarter saw certain changes in
management, but more importantly in our banking philosophy. We have
begun to place more focus and emphasis on the generation of core
deposits and the development of small business relationships. We
opened our ninth office in Eustis in October, our third new office
in 2006. Our reception in the community, especially in the demand
deposit account area, has been very positive. Needless to say,
building branches is a slow and expensive process, but one that
will add significant franchise value to the Company. We are still
on target for the opening of two additional branch offices in 2007.
With the completion of our branch expansion plan, our full focus
will be on maximizing earnings. In the meantime, let me assure you
that we will be working tirelessly in 2007 to improve our net
interest margin, with less emphasis on borrowed funds and more
emphasis on core deposits to fully utilize our branch network. New
products are also being rolled out, with incentives for employees
to further enhance core products and earnings." "Recognizing that
the Company would experience a decrease in earnings until we
complete the branch expansion, the Board of Directors elected not
to make an allocation to the Employee Stock Ownership Plan for
2006. In addition, Federal Trust Corporation has further
diversified its Board of Directors in recent months with the
addition of Robert Cox and Charles Webb. Both new directors have a
depth of financial institution experience and a commitment to build
value for the shareholders," concluded Mr. Suskiewich. Federal
Trust Corporation's common stock is traded on the American Stock
Exchange under the symbol "FDT." At February 1, 2007, the closing
price was $10.30 per share. Federal Trust Corporation is a unitary
thrift holding company and is the parent company of Federal Trust
Bank, a $716 million federally-chartered, FDIC-insured savings
bank, and Federal Trust Mortgage Company, a Florida corporation,
which originates fixed and adjustable rate mortgage loans for sale
in the secondary market. Federal Trust Bank operates from nine
full- service offices in Seminole, Orange, Volusia and Lake
Counties, Florida. The Company's Executive and Administrative
Offices and the headquarters for Federal Trust Mortgage Company are
located in Sanford, in Seminole County, Florida. The following
information is in thousands except per share data. At Quarter End
Dec. 31, Dec. 31, 2006 2005 % Change Total assets $722,964 $735,416
-2 % Investment securities 65,558 50,080 31 % Loans 603,917 630,827
-4 % Deposits 472,794 471,062 0 % Shareholders' equity 54,620
44,141 24 % Book value per share $5.86 $5.33 10 % Non-performing
assets 12,007 2,655 352 % Allowance for loan loss 5,098 4,477 14 %
Allowance for loan loss as a percent of total loans, net of LIP
0.84 % 0.71 % 19 % Three Months Ended Dec. 31, Dec. 31, 2006 2005 %
Change Interest Income $11,125 $10,095 10 % Interest Expense 7,409
5,999 24 % Net interest income 3,716 4,096 -9 % Provision for Loan
Loss 345 150 130 % Non-interest income 455 454 0 % Non-interest
expense 2,893 2,700 7 % Provision for income taxes 192 534 -64 %
Net earnings 741 1,166 -36 % Earnings per share - basic 0.08 0.14
-43 % Earnings per share - fully diluted 0.08 0.14 -43 % Average
common shares Outstanding - basic 9,320 8,422 11 % Average common
shares Outstanding - fully diluted 9,461 8,563 10 % Return on
average assets 0.41 % 0.64 % -36 % Return on average equity 5.59 %
10.73 % -48 % Net Interest Margin 2.23 % 2.43 % -8 % Twelve Months
Ended Ended Dec. 31, Dec. 31, 2006 2005 % Change Interest Income
$43,842 $33,977 29 % Interest Expense 28,114 19,336 45 % Net
interest income 15,728 14,641 7 % Provision for Loan Loss 639 650
-2 % Non-interest income 2,226 2,533 -12 % Non-interest expense
12,461 9,791 27 % Provision for income taxes 1,444 2,297 -37 % Net
earnings 3,410 4,436 -23 % Earnings per share - basic 0.38 0.54 -30
% Earnings per share - fully diluted 0.37 0.53 -30 % Average common
shares Outstanding - basic 8,995 8,269 9 % Average common shares
Outstanding - fully diluted 9,135 8,396 9 % Return on average
assets 0.46 % 0.66 % -30 % Return on average equity 6.70 % 10.70 %
-37 % Net Interest Margin 2.33 % 2.34 % 0 % Safe Harbor Statement
under the Private Securities Litigation Reform Act of 1995 Certain
statements in this press release may contain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, which statements generally can be identified by
the use of forward- looking terminology, such as "may," "will,"
"expect," "estimate," "anticipate," "believe," "target," "plan,"
"project," or "continue" or the negatives thereof or other
variations thereon or similar terminology, and are made on the
basis of management's plans and current analyses of Federal Trust
Corporation, its business and the industry as a whole. These
forward-looking statements are subject to risks and uncertainties,
including, but not limited to, economic conditions, competition,
interest rate sensitivity and exposure to regulatory and
legislative changes. The above factors, in some cases, have
affected, and in the future could affect Federal Trust
Corporation's financial performance and could cause actual results
for fiscal 2006 and beyond to differ materially from those
expressed or implied in such forward-looking statements. Federal
Trust Corporation does not undertake to publicly update or revise
its forward-looking statements even if experience or future changes
make it clear that any projected results expressed or implied
therein will not be realized. For further information regarding
Federal Trust Corporation, please read the Federal Trust
Corporation reports filed with the SEC and available at
http://www.sec.gov/. Press Releases and other information about
Federal Trust Corporation can be found on PR Newswire at
http://www.prnewswire.com/ or at Federal Trust's website at
http://www.federaltrust.com/. For more information, contact: Marcia
Zdanys, Corporate Secretary/Investor Relations (407) 323-1833
http://www.newscom.com/cgi-bin/prnh/19990513/FDTRLOGO
http://photoarchive.ap.org/ DATASOURCE: Federal Trust Corporation
CONTACT: Marcia Zdanys, Corporate Secretary-Investor Relations of
Federal Trust Corporation, +1-407-323-1833 Web site:
http://www.federaltrust.com/
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