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 | $ | 178,397 | $ | 178,500 | $ | 198,500 | ||||||||||
| Total shareholders' equity | $ | 148,768 | $ | 146,398 | $ | 143,301 | $ | 141,074 | $ | 138,702 | ||||||||||
| Net loans to total deposits | 96.80 | % | 97.08 | % | 101.23 | % | 100.54 | % | 104.58 | % | ||||||||||
| Common shares outstanding | 4,497,879 | 4,495,005 | 4,490,087 | 4,484,447 | 4,470,871 | |||||||||||||||
| QTD BALANCE SHEET AVERAGES | ||||||||||||||||||||
| Total assets | $ | 1,837,353 | $ | 1,797,307 | $ | 1,762,651 | $ | 1,771,614 | $ | 1,740,526 | ||||||||||
| Earning assets | $ | 1,749,341 | $ | 1,708,177 | $ | 1,669,862 | $ | 1,683,708 | $ | 1,649,091 | ||||||||||
| Interest bearing liabilities | $ | 1,260,401 | $ | 1,237,665 | $ | 1,204,370 | $ | 1,205,162 | $ | 1,165,064 | ||||||||||
| Total shareholders' equity | $ | 147,755 | $ | 145,240 | $ | 142,577 | $ | 140,574 | $ | 135,157 | ||||||||||
| Total tangible shareholders' equity | $ | 138,519 | $ | 135,959 | $ | 133,252 | $ | 131,204 | $ | 125,723 | ||||||||||
| Earned common shares outstanding | 4,473,592 | 4,466,951 | 4,461,580 | 4,449,376 | 4,443,463 | |||||||||||||||
| Unvested stock grants | 23,516 | 26,500 | 26,500 | 31,821 | 26,018 | |||||||||||||||
| Total common shares outstanding | 4,497,108 | 4,493,451 | 4,488,080 | 4,481,197 | 4,469,481 | |||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||
| Nonperforming loans to gross loans (1) | 0.75 | % | 0.71 | % | 0.66 | % | 0.39 | % | 0.38 | % | ||||||||||
| Nonperforming assets to total assets (1) | 0.62 | % | 0.58 | % | 0.56 | % | 0.34 | % | 0.35 | % | ||||||||||
| Allowance for credit losses to gross loans (1) | 1.00 | % | 1.02 | % | 1.05 | % | 1.05 | % | 1.05 | % | ||||||||||
| Net charge-offs (recoveries) to QTD average gross loans | - | % | 0.12 | % | 0.05 | % | - | % | (0.01 | )% | ||||||||||
| Credit loss expense (reversal) to QTD average gross loans | (0.02 | )% | 0.08 | % | 0.05 | % | - | % | (0.01 | )% | ||||||||||
| CAPITAL RATIOS(1) | ||||||||||||||||||||
| Total capital to risk weighted assets | 12.87 | % | 12.48 | % | 12.38 | % | 12.27 | % | 11.91 | % | ||||||||||
| Tier 1 capital to risk weighted assets | 11.82 | % | 11.42 | % | 11.28 | % | 11.17 | % | 10.82 | % | ||||||||||
| CET1 capital to risk weighted assets | 10.80 | % | 10.40 | % | 10.28 | % | 10.17 | % | 9.83 | % | ||||||||||
| Tier 1 leverage ratio | 8.81 | % | 8.78 | % | 8.92 | % | 8.78 | % | 8.77 | % | ||||||||||
| (1)At end of period | ||||||||||||||||||||
The following table outlines our YTD results of operations and provides certain performance measures as of, and for the twelve months ended (unaudited):
| 12/31/2024 | 12/31/2023 | 12/31/2022 | 12/31/2021 | 12/31/2020 | ||||||||||||||||
| INCOME STATEMENT DATA | ||||||||||||||||||||
| Interest income | $ | 87,722 | $ | 79,681 | $ | 59,220 | $ | 46,910 | $ | 45,979 | ||||||||||
| Interest expense | 39,293 | 28,087 | 6,767 | 2,736 | 5,924 | |||||||||||||||
| Net interest income | 48,429 | 51,594 | 52,453 | 44,174 | 40,055 | |||||||||||||||
| Credit loss expense (reversal) | 1,654 | (58 | ) | 3,105 | (180 | ) | 5,634 | |||||||||||||
| Noninterest income | 9,003 | 9,271 | 9,880 | 14,080 | 19,640 | |||||||||||||||
| Noninterest expenses | 44,216 | 42,668 | 40,585 | 37,663 | 34,684 | |||||||||||||||
| Federal income tax expense | 2,195 | 3,626 | 3,710 | 4,192 | 3,913 | |||||||||||||||
| Net income | $ | 9,367 | $ | 14,629 | $ | 14,933 | $ | 16,579 | $ | 15,464 | ||||||||||
| PER SHARE | ||||||||||||||||||||
| Earnings | $ | 2.10 | $ | 3.30 | $ | 3.38 | $ | 3.60 | $ | 3.31 | ||||||||||
| Dividends | $ | 0.44 | $ | 0.40 | $ | 0.36 | $ | 0.32 | $ | 0.30 | ||||||||||
| Tangible book value(1) | $ | 31.03 | $ | 28.92 | $ | 26.22 | $ | 25.43 | $ | 23.88 | ||||||||||
| Quoted market value | ||||||||||||||||||||
| High | $ | 48.00 | $ | 27.20 | $ | 29.25 | $ | 28.28 | $ | 26.00 | ||||||||||
| Low | $ | 22.16 | $ | 18.70 | $ | 21.60 | $ | 21.90 | $ | 12.55 | ||||||||||
| Close(1) | $ | 45.00 | $ | 27.20 | $ | 22.20 | $ | 28.28 | $ | 22.00 | ||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||
| Return on average assets | 0.55 | % | 0.85 | % | 0.98 | % | 1.26 | % | 1.29 | % | ||||||||||
| Return on average shareholders' equity | 6.50 | % | 11.14 | % | 12.30 | % | 13.52 | % | 14.05 | % | ||||||||||
| Return on average tangible shareholders' equity | 6.95 | % | 12.01 | % | 13.39 | % | 13.93 | % | 14.57 | % | ||||||||||
| Efficiency ratio | 76.99 | % | 70.10 | % | 65.11 | % | 64.65 | % | 58.10 | % | ||||||||||
| Yield on average earning assets (FTE) | 5.15 | % | 4.90 | % | 4.15 | % | 3.80 | % | 4.01 | % | ||||||||||
| Rate on interest bearing liabilities | 3.20 | % | 2.50 | % | 0.75 | % | 0.36 | % | 0.82 | % | ||||||||||
| Net interest margin to average earning assets (FTE) | 2.85 | % | 3.17 | % | 3.67 | % | 3.58 | % | 3.50 | % | ||||||||||
| BALANCE SHEET DATA(1) | ||||||||||||||||||||
| Total investment securities | $ | 93,999 | $ | 107,615 | $ | 125,049 | $ | 164,942 | $ | 76,111 | ||||||||||
| Gross loans | $ | 1,436,902 | $ | 1,473,471 | $ | 1,436,166 | $ | 1,100,092 | $ | 1,066,562 | ||||||||||
| Allowance for credit losses | $ | 14,400 | $ | 15,400 | $ | 13,000 | $ | 10,500 | $ | 10,900 | ||||||||||
| Total assets | $ | 1,807,618 | $ | 1,738,952 | $ | 1,688,863 | $ | 1,417,785 | $ | 1,251,446 | ||||||||||
| Total deposits | $ | 1,469,496 | $ | 1,394,182 | $ | 1,332,883 | $ | 1,228,298 | $ | 1,071,976 | ||||||||||
| Borrowed funds | $ | 179,634 | $ | 198,500 | $ | 222,350 | $ | 50,000 | $ | 49,000 | ||||||||||
| Total shareholders' equity | $ | 148,768 | $ | 138,702 | $ | 126,087 | $ | 124,455 | $ | 115,868 | ||||||||||
| Net loans to total deposits | 96.80 | % | 104.58 | % | 106.77 | % | 88.71 | % | 98.48 | % | ||||||||||
| Common shares outstanding | 4,497,879 | 4,470,871 | 4,439,725 | 4,496,701 | 4,694,275 | |||||||||||||||
| YTD BALANCE SHEET AVERAGES | ||||||||||||||||||||
| Total assets | $ | 1,792,233 | $ | 1,718,339 | $ | 1,523,419 | $ | 1,311,673 | $ | 1,200,605 | ||||||||||
| Earning assets | $ | 1,702,772 | $ | 1,627,284 | $ | 1,429,605 | $ | 1,237,755 | $ | 1,147,570 | ||||||||||
| Interest bearing liabilities | $ | 1,226,899 | $ | 1,125,032 | $ | 898,170 | $ | 754,622 | $ | 726,869 | ||||||||||
| Total shareholders' equity | $ | 144,039 | $ | 131,341 | $ | 121,422 | $ | 122,629 | $ | 110,094 | ||||||||||
| Total tangible shareholders' equity | $ | 134,736 | $ | 121,793 | $ | 111,548 | $ | 118,986 | $ | 106,140 | ||||||||||
| Earned common shares outstanding | 4,462,875 | 4,433,318 | 4,422,791 | 4,603,259 | 4,669,979 | |||||||||||||||
| Unvested stock grants | 27,084 | 27,172 | 25,212 | 20,984 | 14,027 | |||||||||||||||
| Total common shares outstanding | 4,489,959 | 4,460,490 | 4,448,003 | 4,624,243 | 4,684,006 | |||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||
| Nonperforming loans to gross loans (1) | 0.75 | % | 0.38 | % | 0.16 | % | 0.18 | % | 0.75 | % | ||||||||||
| Nonperforming assets to total assets (1) | 0.62 | % | 0.35 | % | 0.15 | % | 0.17 | % | 0.64 | % | ||||||||||
| Allowance for credit losses to gross loans (1) | 1.00 | % | 1.05 | % | 0.91 | % | 0.95 | % | 1.02 | % | ||||||||||
| Net charge-offs (recoveries) to YTD average gross loans | 0.18 | % | (0.04 | )% | 0.05 | % | 0.02 | % | 0.05 | % | ||||||||||
| Credit loss expense (reversal) to YTD average gross loans | 0.11 | % | - | % | 0.25 | % | (0.02 | )% | 0.56 | % | ||||||||||
| CAPITAL RATIOS(1) | ||||||||||||||||||||
| Total capital to risk weighted assets | 12.87 | % | 11.91 | % | 10.87 | % | 12.22 | % | 15.14 | % | ||||||||||
| Tier 1 capital to risk weighted assets | 11.82 | % | 10.82 | % | 9.95 | % | 11.30 | % | 13.93 | % | ||||||||||
| CET1 capital to risk weighted assets | 10.80 | % | 9.83 | % | 8.96 | % | 10.07 | % | 12.38 | % | ||||||||||
| Tier 1 leverage ratio | 8.81 | % | 8.77 | % | 8.58 | % | 9.13 | % | 9.80 | % | ||||||||||
| (1)At end of period | ||||||||||||||||||||
Income Statement Breakdown
| Quarter to Date | ||||||||||||||||||||
| 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | ||||||||||||||||
| Net income | $ | 3,730 | $ | 867 | $ | 1,980 | $ | 2,790 | $ | 3,784 | ||||||||||
| Acquisition related items (net of tax) | ||||||||||||||||||||
| Other acquisition related expenses | 414 | 848 | - | - | - | |||||||||||||||
| Amortization of core deposit intangibles | 36 | 35 | 34 | 36 | 60 | |||||||||||||||
| Total acquisition related items (net of tax) | 450 | 883 | 34 | 36 | 60 | |||||||||||||||
| Other nonrecurring items (net of tax) | ||||||||||||||||||||
| Proxy contest related expenses | - | - | - | - | - | |||||||||||||||
| Prepayment penalties collected | (76 | ) | (24 | ) | (40 | ) | (58 | ) | (85 | ) | ||||||||||
| Total other nonrecurring items (net of tax) | (76 | ) | (24 | ) | (40 | ) | (58 | ) | (85 | ) | ||||||||||
| Adjusted net income from operations | $ | 4,104 | $ | 1,726 | $ | 1,974 | $ | 2,768 | $ | 3,759 | ||||||||||
| Net interest income | $ | 12,374 | $ | 11,992 | $ | 11,837 | $ | 12,226 | $ | 12,507 | ||||||||||
| Prepayment penalties collected | (96 | ) | (31 | ) | (51 | ) | (73 | ) | (107 | ) | ||||||||||
| Adjusted net interest income | $ | 12,278 | $ | 11,961 | $ | 11,786 | $ | 12,153 | $ | 12,400 | ||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||
| Based on adjusted net income from operations | ||||||||||||||||||||
| Earnings per share | $ | 0.92 | $ | 0.39 | $ | 0.44 | $ | 0.62 | $ | 0.85 | ||||||||||
| Return on average assets | 0.89 | % | 0.38 | % | 0.45 | % | 0.63 | % | 0.86 | % | ||||||||||
| Return on average shareholders' equity | 11.05 | % | 4.73 | % | 5.57 | % | 7.92 | % | 11.03 | % | ||||||||||
| Return on average tangible shareholders' equity | 11.79 | % | 5.05 | % | 5.96 | % | 8.49 | % | 11.86 | % | ||||||||||
| Efficiency ratio | 66.56 | % | 76.61 | % | 77.15 | % | 76.65 | % | 69.06 | % | ||||||||||
| Based on adjusted net interest income | ||||||||||||||||||||
| Yield on average earning assets (FTE) | 5.10 | % | 5.16 | % | 5.17 | % | 5.13 | % | 5.03 | % | ||||||||||
| Rate on interest bearing liabilities | 3.20 | % | 3.28 | % | 3.22 | % | 3.11 | % | 2.90 | % | ||||||||||
| Net interest margin to average earning assets (FTE) | 2.80 | % | 2.79 | % | 2.84 | % | 2.90 | % | 2.98 | % | ||||||||||
| Year to Date December 31 | Variance | ||||||||||||||
| 2024 | 2023 | Amount | % | ||||||||||||
| Net income | $ | 9,367 | $ | 14,629 | $ | (5,262 | ) | (35.97 | )% | ||||||
| Acquisition related items (net of tax) | |||||||||||||||
| Other acquisition related expenses | 1,262 | - | 1,262 | N/M | |||||||||||
| Amortization of core deposit intangibles | 141 | 240 | (99 | ) | (41.25 | )% | |||||||||
| Total acquisition related items (net of tax) | 1,403 | 240 | 1,163 | 484.58 | % | ||||||||||
| Other nonrecurring items (net of tax) | |||||||||||||||
| Proxy contest related expenses | - | 413 | (413 | ) | (100.00 | )% | |||||||||
| Prepayment penalties collected | (198 | ) | (218 | ) | 20 | (9.17 | )% | ||||||||
| Total other nonrecurring items (net of tax) | (198 | ) | 195 | (393 | ) | (201.54 | )% | ||||||||
| Adjusted net income from operations | $ | 10,572 | $ | 15,064 | $ | (4,492 | ) | (29.82 | )% | ||||||
| Net interest income | $ | 48,429 | $ | 51,594 | $ | (3,165 | ) | (6.13 | )% | ||||||
| Prepayment penalties collected | (251 | ) | (276 | ) | 25 | (9.06 | )% | ||||||||
| Adjusted net interest income | $ | 48,178 | $ | 51,318 | $ | (3,140 | ) | (6.12 | )% | ||||||
| PERFORMANCE RATIOS | |||||||||||||||
| Based on adjusted net income from operations | |||||||||||||||
| Earnings per share | $ | 2.37 | $ | 3.40 | $ | (1.03 | ) | (30.29 | )% | ||||||
| Return on average assets | 0.59 | % | 0.88 | % | (0.29 | )% | |||||||||
| Return on average shareholders' equity | 7.34 | % | 11.47 | % | (4.13 | )% | |||||||||
| Return on average tangible shareholders' equity | 7.85 | % | 12.37 | % | (4.52 | )% | |||||||||
| Efficiency ratio | 74.22 | % | 69.06 | % | 5.16 | % | |||||||||
| Based on adjusted net interest income | |||||||||||||||
| Yield on average earning assets (FTE) | 5.14 | % | 4.88 | % | 0.26 | % | |||||||||
| Rate on interest bearing liabilities | 3.20 | % | 2.50 | % | 0.70 | % | |||||||||
| Net interest margin to average earning assets (FTE) | 2.84 | % | 3.15 | % | (0.31 | )% | |||||||||
Noninterest Income
| Three Months Ended | ||||||||||||||||||||
| 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | ||||||||||||||||
| Service charges and fees | ||||||||||||||||||||
| Trust and investment services | 641 | 619 | 607 | 641 | 433 | |||||||||||||||
| ATM and debit card | 532 | 541 | 545 | 512 | 549 | |||||||||||||||
| Service charges on deposit accounts | 170 | 163 | 162 | 140 | 211 | |||||||||||||||
| Total | 1,343 | 1,323 | 1,314 | 1,293 | 1,193 | |||||||||||||||
| Net gain on sales of residential mortgage loans | 143 | 211 | 177 | 143 | 96 | |||||||||||||||
| Net gain on sales of commercial loans | 85 | 133 | 98 | 296 | 226 | |||||||||||||||
| Change in fair value of equity investments | (27 | ) | 33 | (3 | ) | (10 | ) | 42 | ||||||||||||
| Changes in the fair value of MSR | (160 | ) | (175 | ) | (44 | ) | (96 | ) | (108 | ) | ||||||||||
| Other | ||||||||||||||||||||
| Mortgage servicing fees | 386 | 389 | 386 | 394 | 398 | |||||||||||||||
| Change in cash surrender value of corporate owned life insurance | 215 | 206 | 207 | 204 | 192 | |||||||||||||||
| Other | 139 | 90 | 179 | 131 | 106 | |||||||||||||||
| Total | 740 | 685 | 772 | 729 | 696 | |||||||||||||||
| Total noninterest income | $ | 2,124 | $ | 2,210 | $ | 2,314 | $ | 2,355 | $ | 2,145 | ||||||||||
| Memo items: | ||||||||||||||||||||
| Residential mortgage operations | $ | 369 | $ | 425 | $ | 519 | $ | 441 | $ | 386 | ||||||||||
| Twelve Months Ended December 31 | Variance | |||||||||||||
| 2024 | 2023 | Amount | % | |||||||||||
| Service charges and fees | ||||||||||||||
| Trust and investment services | $ | 2,508 | $ | 2,137 | $ | 371 | 17.36 | % | ||||||
| ATM and debit card | 2,130 | 2,218 | (88 | ) | (3.97 | )% | ||||||||
| Service charges on deposit accounts | 635 | 897 | (262 | ) | (29.21 | )% | ||||||||
| Total | 5,273 | 5,252 | 21 | 0.40 | % | |||||||||
| Net gain on sales of residential mortgage loans | 674 | 619 | 55 | 8.89 | % | |||||||||
| Net gain on sales of commercial loans | 612 | 321 | 291 | 90.65 | % | |||||||||
| Change in fair value of equity investments | (7 | ) | 13 | (20 | ) | (153.85 | )% | |||||||
| Changes in the fair value of MSR | (475 | ) | 110 | (585 | ) | (531.82 | )% | |||||||
| Other | ||||||||||||||
| Mortgage servicing fees | 1,555 | 1,608 | (53 | ) | (3.30 | )% | ||||||||
| Change in cash surrender value of corporate owned life insurance | 832 | 723 | 109 | 15.08 | % | |||||||||
| Other | 539 | 625 | (86 | ) | (13.76 | )% | ||||||||
| Total | 2,926 | 2,956 | (30 | ) | (1.01 | )% | ||||||||
| Total noninterest income | $ | 9,003 | $ | 9,271 | $ | (268 | ) | (2.89 | )% | |||||
| Memo items: | ||||||||||||||
| Residential mortgage operations | $ | 1,754 | $ | 2,337 | $ | (583 | ) | (24.95 | )% | |||||
Noninterest Expenses
| Three Months Ended | |||||||||||||||
| 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | |||||||||||
| Compensation and benefits | $ | 5,083 | $ | 5,839 | $ | 5,842 | $ | 6,066 | $ | 5,521 | |||||
| Professional services | 594 | 799 | 963 | 894 | 695 | ||||||||||
| Furniture and equipment | 661 | 668 | 689 | 727 | 696 | ||||||||||
| Data processing | 817 | 751 | 490 | 547 | 505 | ||||||||||
| Occupancy | 626 | 622 | 605 | 623 | 610 | ||||||||||
| Loan and collection | 261 | 349 | 425 | 322 | 301 | ||||||||||
| Advertising and promotional | 240 | 312 | 337 | 348 | 139 | ||||||||||
| Other | |||||||||||||||
| Acquisition related expenses | 275 | 953 | - | - | - | ||||||||||
| FDIC insurance premiums | 280 | 275 | 327 | 299 | 270 | ||||||||||
| ATM and debit card | 216 | 214 | 188 | 171 | 158 | ||||||||||
| Telephone and communication | 173 | 95 | 86 | 109 | 103 | ||||||||||
| Amortization of core deposit intangibles | 45 | 44 | 44 | 45 | 76 | ||||||||||
| Other general and administrative | 884 | 1,053 | 925 | 1,015 | 1,047 | ||||||||||
| Total | 1,873 | 2,634 | 1,570 | 1,639 | 1,654 | ||||||||||
| Total noninterest expenses | $ | 10,155 | $ | 11,974 | $ | 10,921 | $ | 11,166 | $ | 10,121 | |||||
| Twelve Months Ended December 31 | Variance | ||||||||||||
| 2024 | 2023 | Amount | % | ||||||||||
| Compensation and benefits | $ | 22,830 | $ | 22,397 | $ | 433 | 1.93 | % | |||||
| Professional services | 3,250 | 3,424 | (174 | ) | (5.08 | )% | |||||||
| Furniture and equipment | 2,745 | 2,775 | (30 | ) | (1.08 | )% | |||||||
| Data processing | 2,605 | 2,159 | 446 | 20.66 | % | ||||||||
| Occupancy | 2,476 | 2,425 | 51 | 2.10 | % | ||||||||
| Loan and collection | 1,357 | 1,230 | 127 | 10.33 | % | ||||||||
| Advertising and promotional | 1,237 | 1,605 | (368 | ) | (22.93 | )% | |||||||
| Other | |||||||||||||
| Acquisition related expenses | 1,228 | - | 1,228 | N/M | |||||||||
| FDIC insurance premiums | 1,181 | 1,131 | 50 | 4.42 | % | ||||||||
| ATM and debit card | 789 | 651 | 138 | 21.20 | % | ||||||||
| Telephone and communication | 463 | 437 | 26 | 5.95 | % | ||||||||
| Amortization of core deposit intangibles | 178 | 303 | (125 | ) | (41.25 | )% | |||||||
| Other general and administrative | 3,877 | 4,131 | (254 | ) | (6.15 | )% | |||||||
| Total | 7,716 | 6,653 | 1,063 | 15.98 | % | ||||||||
| Total noninterest expenses | $ | 44,216 | $ | 42,668 | $ | 1,548 | 3.63 | % | |||||
Balance Sheet Breakdown
| 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | |||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 212,136 | $ | 199,717 | $ | 128,590 | $ | 132,349 | $ | 90,661 | |||||
| Total investment securities | 93,999 | 99,724 | 100,167 | 103,210 | 107,615 | ||||||||||
| Residential mortgage loans held-for-sale, at fair value | 1,090 | 1,861 | 2,440 | 1,067 | 747 | ||||||||||
| Gross loans | 1,436,902 | 1,442,389 | 1,459,929 | 1,461,465 | 1,473,471 | ||||||||||
| Less allowance for credit losses | 14,400 | 14,700 | 15,300 | 15,300 | 15,400 | ||||||||||
| Net loans | 1,422,502 | 1,427,689 | 1,444,629 | 1,446,165 | 1,458,071 | ||||||||||
| All other assets | 77,891 | 78,379 | 80,803 | 81,838 | 81,858 | ||||||||||
| Total assets | $ | 1,807,618 | $ | 1,807,370 | $ | 1,756,629 | $ | 1,764,629 | $ | 1,738,952 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
| Total deposits | $ | 1,469,496 | $ | 1,470,586 | $ | 1,427,059 | $ | 1,438,408 | $ | 1,394,182 | |||||
| Total borrowed funds | 179,634 | 179,970 | 178,397 | 178,500 | 198,500 | ||||||||||
| Accrued interest payable and other liabilities | 9,720 | 10,416 | 7,872 | 6,647 | 7,568 | ||||||||||
| Total liabilities | 1,658,850 | 1,660,972 | 1,613,328 | 1,623,555 | 1,600,250 | ||||||||||
| Total shareholders' equity | 148,768 | 146,398 | 143,301 | 141,074 | 138,702 | ||||||||||
| Total liabilities and shareholders' equity | $ | 1,807,618 | $ | 1,807,370 | $ | 1,756,629 | $ | 1,764,629 | $ | 1,738,952 | |||||
| 12/31/2024 vs 9/30/2024 | 12/31/2024 vs 12/31/2023 | |||||||||||||
| Variance | Variance | |||||||||||||
| Amount | % | Amount | % | |||||||||||
| ASSETS | ||||||||||||||
| Cash and due from banks | $ | 12,419 | 6.22 | % | $ | 121,475 | 133.99 | % | ||||||
| Total investment securities | (5,725 | ) | (5.74 | )% | (13,616 | ) | (12.65 | )% | ||||||
| Residential mortgage loans held-for-sale, at fair value | (771 | ) | (41.43 | )% | 343 | 45.92 | % | |||||||
| Gross loans | (5,487 | ) | (0.38 | )% | (36,569 | ) | (2.48 | )% | ||||||
| Less allowance for credit losses | (300 | ) | (2.04 | )% | (1,000 | ) | (6.49 | )% | ||||||
| Net loans | (5,187 | ) | (0.36 | )% | (35,569 | ) | (2.44 | )% | ||||||
| All other assets | (488 | ) | (0.62 | )% | (3,967 | ) | (4.85 | )% | ||||||
| Total assets | $ | 248 | 0.01 | % | $ | 68,666 | 3.95 | % | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Total deposits | $ | (1,090 | ) | (0.07 | )% | $ | 75,314 | 5.40 | % | |||||
| Total borrowed funds | (336 | ) | (0.19 | )% | (18,866 | ) | (9.50 | )% | ||||||
| Accrued interest payable and other liabilities | (696 | ) | (6.68 | )% | 2,152 | 28.44 | % | |||||||
| Total liabilities | (2,122 | ) | (0.13 | )% | 58,600 | 3.66 | % | |||||||
| Total shareholders' equity | 2,370 | 1.62 | % | 10,066 | 7.26 | % | ||||||||
| Total liabilities and shareholders' equity | $ | 248 | 0.01 | % | $ | 68,666 | 3.95 | % | ||||||
About Fentura Financial, Inc. and The State Bank
Fentura Financial, Inc. is the holding company for The State Bank. It was formed in 1987 and is traded on the OTCQX exchange under the symbol FETM, and has been recognized as one of the Top 50 performing stocks on that exchange.
The State Bank is a 5-Star Bauer Financial rated commercial, retail and trust bank headquartered in Fenton, Michigan. It currently operates 20 full-service offices and one loan production center serving Bay, Genesee, Ingham, Jackson, Livingston, Oakland, Saginaw, and Shiawassee counties. The State Bank believes in the potential of banking to help create better lives, better businesses, and better communities, and works to achieve this through its full array of consumer, mortgage, SBA, commercial and wealth management banking and advisory services, together with philanthropic and volunteer support to organizations and groups within the communities it serves. More information can be found at www.thestatebank.com or www.fentura.com.
Cautionary Statement: This press release contains certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning future growth in earning assets and net income. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
| Contacts: | Ronald L. Justice | Aaron D. Wirsing |
| President & CEO | Chief Financial Officer | |
| Fentura Financial, Inc. | Fentura Financial, Inc. | |
| 810.714.3902 | 810.714.3925 | |
| ron.justice@thestatebank.com | aaron.wirsing@thestatebank.com |
