UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report
July 18, 2003
FARMERS CAPITAL BANK CORPORATION
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(Exact name of registrant as specified in its charter)
Kentucky
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State or other jurisdiction of incorporation
0-14412 61-1017851
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(Commission File Number) (I.R.S. Employer Identification No.)
P.O. Box 309
Frankfort, Kentucky 40602
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(Address of principle executive offices) (Zip Code)
Registrant's telephone number, including area code:
(502) 227-1600
Not Applicable
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(Former name or former address, if changed since last report)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit 99.1 - Press Release Dated July 18, 2003.
Item 9. Regulation FD Disclosures
The following information is being furnished under Item 12 - Results of
Operations and Financial Condition, of this Form 8-K in accordance with interim
guidance issued by the SEC in release No. 33-8216.
On July 18, 2003 Farmers Capital Bank Corporation issued a press release
announcing its earnings for the six months ended June 30, 2003. A copy of the
press release is attached hereto as Exhibit 99.1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused the report to be signed on its behalf by the
undersigned hereunto duly authorized.
Farmers Capital Bank Corporation
July 18, 2003 By: /s/ G. Anthony Busseni
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G. Anthony Busseni
President and Chief Executive Officer
Exhibit 99.1
Press Release Dated July 18, 2003
NEWS RELEASE
July 18, 2003
Farmers Capital Bank Corporation Announces Six Months Earnings
Frankfort, Kentucky - Farmers Capital Bank Corporation reported net income of
$6,619,000 for the six months ended June 30, 2003, a decrease of $479,000 or
6.7% compared to $7,098,000 reported for the six months ended June 30, 2002.
Basic and diluted net income per share were $0.98 for the current six months, a
decrease of $.05 or 4.9% and $.04 or 3.9%, respectively. For the three months
ended June 30, 2003, net income was $3,026,000, a decrease of $290,000 or 8.7%
compared to $3,316,000 for the same period in 2002. On a basic and diluted per
share basis, net income was $0.45 for the current three months ended June 30,
2003, a decrease of $.03 or 6.3% compared to the prior year.
The decrease in net income for the three and six months ended June 30, 2003 is
primarily attributed to a decrease in net interest income. Net interest income
decreased $695,000 or 7.0% and $798,000 or 4.0% in the current three and six
months, respectively, compared to the same periods in 2002. Net interest income
for the current quarter and six month periods declined mainly as a result of
continued declines in the overall market interest rate environment. Interest
rates earned on earning assets have declined more rapidly than the interest
rates paid on interest paying liabilities since many of the Company's funding
sources, particularly deposits, have approached their repricing floors.
The provision for loan losses decreased $637,000 or 64.5% and $373,000 or 33.6%
in the three and six month comparisons. Higher provisions in the second quarter
of 2002 related to a group of nonperforming constructions loans secured by
residential real estate led to the decrease.
Total noninterest income increased $337,000 or 8.1% and $382,000 or 4.6% in the
three and six month comparisons despite lower gains reported on the sale of
investment securities of $399,000 and $849,000 in the current three and six
month reporting periods. Income from the purchase of company-owned life
insurance, instituted in the first quarter of 2003 to offset the rising costs of
the Company's employee benefits plans, totaled $408,000 and $673,000 for the
current three and six months. Gains on the sale of mortgage loans also increased
$233,000 and $327,000 in the comparisons as the low interest rate environment
continues to fuel the Company's secondary market mortgage loan originations.
Offsetting the increase in noninterest income were increases in noninterest
expenses totaling $777,000 or 8.9% for the current three months and $879,000 or
5.0% for the current six months. Noninterest expense increased primarily due to
an increase in salaries and employee benefits of $412,000 or 8.6% for the
current three months and $330,000 or 3.3% for the current six months. These
increases relate primarily to employee benefits and normal salary increases. An
increase in correspondent banking fees totaling $187,000 and $301,000 for the
three and six month comparison, respectively, also contributed to the increase
in noninterest expenses. The effective income tax rate declined 220 basis points
to 22.4% for the three months ended June 30, 2003 and 243 basis points to 23.0%
for the six months ended June 30, 2003 compared to the same periods a year
earlier.
Farmers Capital Bank Corporation is a financial holding company headquartered in
Frankfort, Kentucky. The Company operates 23 banking locations in 13 communities
throughout Kentucky, a leasing company, a data processing company, and an
insurance company. Its stock is publicly traded on the National Association of
Securities Dealers Automated Quotation System (NASDAQ) SmallCap Market tier,
under the symbol: FFKT.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(In thousands except per share data)
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Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
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Interest income $ 14,357 $ 16,555 $ 29,865 $ 33,503
Interest expense 5,116 6,619 10,572 13,412
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Net interest income 9,241 9,936 19,293 20,091
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Provision for loan losses 351 988 736 1,109
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Net interest income after provision for loan losses 8,890 8,948 18,557 18,982
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Noninterest income 4,478 4,141 8,644 8,262
Noninterest expenses 9,468 8,691 18,607 17,728
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Income before income tax expense 3,900 4,398 8,594 9,516
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Income tax expense 874 1,082 1,975 2,418
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Net income $ 3,026 $ 3,316 $ 6,619 $ 7,098
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Per common share:
Net income - basic $ 0.45 $ 0.48 $ 0.98 $ 1.03
Net income - diluted 0.45 0.48 0.98 1.02
Cash dividend declared 0.32 0.31 0.64 0.62
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Cash and cash equivalents $ 138,303 $ 244,591
Investment securities 326,989 299,132
Loans, net of allowance of $11,155 (2003) and $11,026 (2002) 731,757 684,200
Other assets 62,957 38,175
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Total assets $ 1,260,006 $ 1,266,098
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Deposits $ 980,361 $ 940,743
Federal funds purchased and securities sold under
agreements to repurchase 73,639 145,443
Other borrowings 68,547 45,840
Other liabilities 11,268 9,235
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Total liabilities 1,133,815 1,141,261
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Shareholders' equity 126,191 124,837
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Total liabilities and shareholders' equity $ 1,260,006 $ 1,266,098
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End of period book value per share1 $ 18.79 $ 18.19
End of period share value 31.96 35.25
End of period dividend yield2 4.01% 3.52%
AVERAGES FOR THE SIX MONTHS ENDED JUNE 30, 2003 2002
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Assets $ 1,242,051 $ 1,203,254
Deposits 967,259 931,291
Loans, net of unearned interest 739,127 690,242
Shareholders' equity 124,969 124,139
Weighted average shares outstanding - basic 6,743 6,895
Weighted average shares outstanding - diluted 6,781 6,943
Return on average assets 1.07% 1.19%
Return on average equity 10.68% 11.53%
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1Represents total equity divided by the number of shares outstanding at the end of the period.
2Represents current annualized dividend declared divided by the end of period share value.