Converse-based First Farmers Financial Corporation, the parent company of First Farmers Bank & Trust, recently distributed its 2008 annual report and audited financial statements to shareholders, also making copies available to the general public throughout its 17 branch locations in North Central Indiana.
“The dramatic and unprecedented economic and regulatory developments during 2008 presented a significant challenge to much of the banking industry,” said Gene Miles, President and CEO. “We were proud of the fact that First Farmers determined it could serve the credit needs of our communities without public assistance. The Company evaluated the Troubled Asset Relief Program (TARP) and saw no benefit in accepting bailout funds. We were confident that we had the earnings base and ample capital to support our lending activities and capitalize on growth opportunities.”
The Company’s assets grew 8.5% for the year to $658 million, while loan balances increased 12.1% and record earnings of $7.3 million were reported. Shareholder dividends increased for the 18th consecutive year as total dividends of $1.11 per share were declared in 2009. The Bank’s equity ended the year at $72 million, a level that significantly exceeded the FDIC’s guidelines to qualify as “well capitalized.”
Most recently, the Company reported its results for the quarter ended March 31, 2009. The quarter was notable for a surge in mortgage lending volumes with origination activity nearly tripling the first quarter of 2008. A stable net interest margin, disciplined operating expense management and the growth in mortgage banking revenues were sufficient to overcome higher credit costs and a slight decline in various non-interest revenue sources. Overall earnings improved 13.4%, to $1.9 million, for the quarter and dividends of $0.28 per share were declared. The Company’s lending activities continue to benefit from a favorable marketplace with portfolio loans having grown 13.8% over the past 12 months.
“Our responsiveness and hands-on approach to lending has provided the opportunity to attract many quality clients that have been disenfranchised in recent months by policies and practices being instituted at other organizations,” said Miles.
“We have many reasons to be optimistic about the future,” he continued. “That confidence in the future is grounded in our past performance. Our investment philosophy emphasizes liquidity, simplicity, and safety rather than stretching for excess earnings; these principles served us well in a very challenging period for the industry. In addition, prudent management and lending standards have paid exceptional dividends, while our adherence to the old-fashioned standards of traditional community banking in our area of expertise has produced uncommon results.“
First Farmers Bank & Trust Company is a $663 million community bank headquartered in Converse, Indiana with 17 branches serving Cass, Hamilton, Howard, Huntington, Madison, Marshall, Miami, Starke, Tipton, and Wabash counties, with its newest branch scheduled to open in May in Marion, Indiana. First Farmers also conducts trust, investment and brokerage activities through First Farmers Wealth Management Division and leasing activities through SCI Leasing Group.
