Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): April 18, 2003
FENTURA FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
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Michigan (State or other jurisdiction of incorporation) |
000-23550 (Commission File Number) |
38-2806518 (IRS Employer Identification no.) |
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175 North Leroy Street P.O. Box 725 Fenton, Michigan (Address of principal executive office) |
48430-0725 (Zip Code) |
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Registrant's telephone number, including area code: (810) 629-2263 |
Exhibit
99.1 Press release dated
April 17, 2003.
99.2 Quarterly Report To Shareholders.
On April 18, 2003, Fentura Financial, Inc. issued a press release announcing a dividend and results for the first fiscal quarter. A copy of the press release is attached as Exhibit 99.1.
On April 18, 2003, Fentura Financial, Inc. distributed a quarterly report to its shareholders. A copy of the quarterly report to shareholders is attached as Exhibit 99.2.
This information furnished under “Item 9. Regulation FD Disclosure” is intended to be furnished under “Item 12. Results of Operations and Financial Condition” in accordance with SEC Release No. 33-8216.
The information in this Form 8-K and the attached Exhibit shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Dated: April 18, 2003 | FENTURA FINANCIAL, INC. (Registrant) |
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| By: |
/s/ Donald L. Grill
Donald L. Grill President |
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Exhibit 99.1 Exhibit 99.2 |
Press Release Dated April 18, 2003. Quarterly Report to Shareholders. |
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| Contact: | Donald L. Grill (810) 714-3985 April 18, 2003 |
Fentura Financial, Inc. reported first quarter net income of $821,000 or $0.48 per share; an increase of $228,000 over the first quarter of 2002 when net income totaled $593,000 or $0.34 per share.
The year-to-year improvement in net income was principally a result of a substantial increase in noninterest related revenue. Gains on the sale of residential mortgage loans, services charges on deposit accounts and other operating income all registered substantial increases over the prior year. Net interest income also increased 9.5% over the first quarter of 2002.
Total assets reached $348 million at March 31, 2003, compared to $298 million at March 31, 2002. Total deposits increased 18.6% led by a 25% increase in noninterest bearing deposits. Net loans increased 7.8% with commercial loans reflecting a 12.2% year-to-year increase.
Fentura Financial, Inc. is the financial services holding company for The State Bank headquartered in Fenton, Michigan, with offices serving Fenton, Linden, Holly and Grand Blanc, as well as Davison State Bank with two offices serving the Davison area.
# # #
To Our Shareholders:
I am pleased to report a substantial increase in first quarter earnings for 2003. As you will recall, the first quarter of 2002 was a difficult quarter for our company as the net interest margin was negatively impacted by the external interest rate environment. While the net interest margin remains under pressure, we have been successful in increasing our overall growth rate thus creating added net interest income opportunity. Additionally, we have achieved substantial increases in various noninterest income categories.
Fentura Financial, Inc. achieved first quarter earnings of $821,000 or $0.48 per share; an increase of $228,000 over the first quarter of 2002 when net income totaled $593,000 or $0.34 per share.
The year-to-year improvement in net income was principally a result of a substantial increase in noninterest related revenue. Gains on the sale of residential mortgage loans, service charges on deposit accounts and other operating income all registered substantial increases over the prior year. Net interest income was also up 9.5% over the first quarter of 2002.
Total assets reached $348 million at March 31, 2003, compared to $298 million at March 31, 2002. Total deposits increased 18.6% led by a 25% increase in noninterest bearing deposits. Net loans increased 7.8% with commercial loans reflecting a 12.2% year-to-year increase.
I trust that many of you will be able to attend the Annual Shareholder’s Meeting scheduled for 7:00 p.m., April 30, 2003. The meeting will be held at the St. John Community Center in Fenton.
As always, we appreciate your continued support of The State Bank, Davison State Bank and Fentura Financial, Inc.
| Sincerely, /s/ Donald L. Grill Donald L. Grill President & CEO |
(000‘s omitted)
INTEREST INCOME 2003 2002
Interest and fees on loans $ 3,923 $ 3,899
Interest and dividends on
securities:
Taxable 341 281
Tax-exempt 156 165
Interest on Short-term securities 26 71
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Total interest income 4,446 4,416
INTEREST EXPENSE
Deposits 1,297 1,532
Borrowings 22 27
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Total interest expense 1,319 1,559
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NET INTEREST INCOME 3,127 2,857
Provision for loan losses 296 33
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Net interest income after
provision for loan losses 2,831 2,824
NONINTEREST INCOME
Service charges on
deposit accounts 808 554
Trust income 112 134
Gain on sale of loans 355 142
Other operating income 288 226
Investment gains 12 -
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1,575 1,056
NONINTEREST EXPENSE
Salaries and benefits 1,836 1,707
Occupancy of bank premises 293 257
Equipment expense 359 368
Other operating expenses 814 702
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Total non interest expense 3,302 3,034
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NET INCOME BEFORE TAXES
1,104 846
Applicable income taxes 283 253
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NET INCOME $ 821 $ 593
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Per share amounts:
Net income - basic $ 0.48 $ 0.34
Net income - diluted $ 0.48 $ 0.34
(000‘s omitted)
ASSETS 2003 2002
Cash and due from banks $ 18,950 $ 13,285
Federal Funds Sold 1,650 12,850
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Total cash and cash equivalents 20,600 26,135
Securities available for sale,
at fair value 59,294 28,781
Securities held to maturity
(fair value of $13,084 at in
2003 and $12,474 in 2002) 12,717 12,371
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Total securities 72,011 41,152
Loans held for sale 4,530 2,538
Commercial loans 164,380 146,474
Consumer loans 54,053 58,079
Real estate loans 13,380 10,558
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Total loans 231,813 215,111
Less: Allowance for loan losses (3,219) (3,103)
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Net loans 228,594 212,008
Bank premises and equipment 9,631 9,454
Accrued interest receivable 1,907 1,578
Other assets 10,270 5,587
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Total assets $ 347,543 $ 298,452
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LIABILITIES
NonInterest bearing deposits $ 48,334 $ 38,742
Interest bearing deposits 255,167 217,261
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Total deposits 303,501 256,003
Short-term borrowings - -
Other borrowings 1,728 1,667
Accrued taxes, interest and other
liabilities 2,692 2,232
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Total liabilities 307,921 259,902
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STOCKHOLDERS' EQUITY
Common stock - 1,713,430 issued
(1,734,624 in 2002) 29,949 30,649
Retained earnings 9,424 7,871
Accumulated other comprehensive
income 249 30
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Total stockholders' equity 39,622 38,550
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Total liabilities and
stockholder's equity $ 347,543 $ 298,452
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Annual Shareholder’s Meeting
(000‘s omitted)
2003 2002 %Change
Net Income $ 821 $ 593 38.45%
Return on average
total equity 8.36% 6.23% 34.19%
Return on average assets 0.97% 0.79% 22.78%
Net interest margin 4.26% 4.32% -1.39%
Efficiency ratio 70.49% 75.60% -6.76%
Per common share:
Net Income-basic $0.48 $0.34 41.18%
Net Income-diluted $0.48 $0.34 41.18%
Book value $23.12 $22.45 2.98%
Market price:
(last trade) $34.75 $28.75 20.87%