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First Bank Reports Second Quarter 2022 Net Income of $8.8 Million

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First Bank
First Bank

Quarterly Results Reflect Strong Organic Loan Growth, Improving Net Interest Margin, and Solid Asset Quality Metrics

HAMILTON, N.J., July 26, 2022 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) today announced results for the second quarter of 2022, accentuated by net income of $8.8 million, or $0.45 per diluted share. Return on average assets, return on average equity, and return on average tangible equityi for the second quarter of 2022 were 1.38%, 12.92% and 13.93%, respectively. In the second quarter of 2021, First Bank reported net income of $8.9 million, or $0.45 per diluted share, and return on average assets, return on average equity, and return on average tangible equityi of 1.48%, 14.26% and 15.37%, respectively.

Second Quarter 2022 Highlights:

  • Total loans of $2.22 billion on June 30, 2022, reflected growth of $68.5 million, or 3.2%, from the end of the first quarter of 2022 and were up $108.2 million, or 5.1%, from December 31, 2021. Loan growth, excluding the decline in Paycheck Protection Program (PPP) loans, totaled $84.0 million in the second quarter of 2022, representing a 15.8% annualized increase.

  • Total deposits of $2.17 billion on June 30, 2022, were down $12.7 million, or 0.6%, from the end of the linked first quarter and up $50.6 million, or 2.4%, from December 31, 2021.

  • Asset quality metrics remained solid during the quarter, with annualized net charge offs to average loans of 0.07% and nonperforming loans to total loans of 0.57% as of June 30, 2022, compared to 0.62% on December 31, 2021, and 0.59% on March 31, 2022.

  • Continued focus on managing expenses resulted in the sixth consecutive quarter of an efficiency ratioii below 50%, at 46.81% for the second quarter of 2022.

President and Chief Executive Officer, Patrick L. Ryan, said, “We are pleased with our performance during the second quarter. Our continued focus on developing new and existing customer relationships facilitated another quarter of robust loan growth. Total deposits remained relatively stable as we continued to shift our deposit mix with non-interest bearing deposits representing 27.7% of total deposits at quarter-end. Loan growth, improving asset yields and managing deposit costs contributed to a 19 basis point improvement in our net interest margin which was 3.76% for the second quarter of 2022 compared to 3.57% for the first quarter of 2022. We remain focused on driving organic growth as we continue to manage expenses to achieve greater profitability.”

“Asset quality metrics also remain strong, reflected by our eighth consecutive quarter end with our nonperforming loans to total loans ratio under 65 basis points. Annualized net charge offs were only 0.07% of average loans for the quarter ended June 30, 2022, and primarily related to one small business loan.”

“In our continuous effort to drive long-term shareholder value, we are pleased to announce another $0.06 quarterly dividend, reflecting an annualized yield of 1.69% based on our July 22, 2022, closing price of $14.18. We also have an active share repurchase program and from January 1, 2022, through July 22, 2022, we have repurchased 241,284 shares of our common stock at an aggregate cost of $3.4 million, or an average price of $13.99 per share.”

“Overall, we are very pleased with our performance through the first half of the year and our financial performance provides us with the confidence that we are well positioned to continue to generate strong results during the second half of 2022.”

Income Statement

First Bank’s (the “Bank’s”) net interest income for the second quarter of 2022 was $22.9 million, an increase of $2.5 million, or 12.2%, compared to $20.4 million in the second quarter of 2021 and an increase of $1.8 million, or 8.3%, compared to $21.1 million in the first quarter of 2022. The increase from the comparable prior year quarter was due to an increase in interest and dividend income of $2.0 million coupled with a decline of $444,000 in total interest expense. The increase from the linked first quarter of 2022 was due to an increase in interest and dividend income of $2.0 million offset somewhat by an increase in total interest expense of $216,000.

The increase in interest income during the second quarter of 2022 compared to the second quarter of 2021 and the first quarter of 2022 was primarily due to an increase in average loans combined with a 7 basis point and 18 basis point increase, respectively, in the average rate on loans. Interest income increased compared to the year-ago quarter and the linked first quarter despite a decrease in PPP loan fees, as loan growth and the rising rate environment led to improved interest income. Interest income from loans included $493,000 in PPP loan fees in the second quarter of 2022 compared to $1.3 million in the second quarter of 2021 and $860,000 in the linked first quarter of 2022. Also impacting loan interest income in the second quarter of 2022 was loan prepayment income of $682,000, compared to $730,000 for the quarter ended June 30, 2021, and $459,000 for the quarter ended March 31, 2022. As a result of the Bank’s concerted effort to control deposit costs, the average rate on interest bearing deposits was lower during the quarter ended June 30, 2022, compared to the quarter ended June 30, 2021, and increased only 6 basis points compared to the first quarter of 2022, despite the rising rate environment during the second quarter of 2022.

Net interest income for the six months ended June 30, 2022, totaled $44.1 million, an increase of $3.6 million, or 8.9%, compared to $40.5 million for the same period in 2021. The increase in the 2022 year to date net interest income was also driven by solid growth in average loans, which increased by $115.2 million, or 5.6%, from the prior year period, along with a 16 basis point decrease in the average rate on interest-bearing deposits.

The second quarter 2022 tax equivalent net interest margin was 3.76%, an increase of 19 basis points compared to the comparable prior year quarter and from the first quarter of 2022. The Bank’s margin continues to benefit from the increase in average non-interest bearing deposits, improving asset yields and actively managing the cost of funds. The year-to-date tax equivalent net interest margin was 3.67%, an increase of 9 basis points compared to the prior year period. The increase in the six-month net interest margin was principally a result of the lower cost of interest bearing deposits, partially offset by lower earning asset yields.

The Bank’s provision for loan losses was $1.3 million for the second quarter of 2022, compared to a $162,000 credit to the provision for loan losses in the second quarter of 2021 and a provision for loan losses of $642,000 for the linked first quarter 2022. The Bank’s provision for loan losses was $1.9 million for the six months ended June 30, 2022, compared to a credit to the provision for loan losses of $1.2 million for the same period in 2021. The provision for loan losses for the three and six months ended June 30, 2022, reflects consistent organic loan growth and continued strong asset quality. The credit to the provision for loan losses for the three and six months ended June 30, 2021, reflected a reduction in qualitative factors that were increased significantly in 2020 due to the economic uncertainties created by the COVID-19 pandemic.

Second quarter 2022 non-interest income of $1.5 million compares to $1.3 million during the second quarter of 2021. The increase between the periods was primarily the result of higher income from service fees from deposit accounts and higher gains on recovery of acquired loans. Non-interest income totaled $2.7 million for the six months ended June 30, 2022, compared to $3.6 million for the same period in 2021. This decrease in non-interest income for the first six months of 2022 was a result of lower gains on sale of loans, lower loan fees and lower gains on recovery of acquired loans. The decrease was primarily the result of a reduction in Small Business Administration loan sales and a decline in loan swap activity, primarily due to the current market conditions.

Non-interest expense for second quarter 2022 of $11.4 million, increased $1.3 million, or 12.3%, compared to $10.2 million for the prior year quarter. The higher non-interest expense compared to second quarter 2021 was primarily a result of a $768,000, or 13.0%, increase in salaries and employee benefits, along with lesser increases in other professional fees, travel and entertainment, and other expense. These increases were partially offset by lower legal fees, directors’ fees, and marginal declines in certain other non-interest expense categories. The increase in salaries and employee benefits was due primarily to salary increases and an increase in the number of employees, partially due to the employees added from our acquisition of two branches during the fourth quarter of 2021.

On a linked quarter basis, second quarter 2022 non-interest expense of $11.4 million, increased $287,000, or 2.6%, compared to $11.1 million for the first quarter of 2022. This increase was also primarily due to salary and employee benefits increases which was primarily due to annual salary increases that occurred at the end of the first quarter of 2022.

Non-interest expense for the first six months of 2022 totaled $22.5 million, an increase of $1.7 million, or 8.3%, compared to $20.8 million for the same period in 2021. The increase was primarily a result of higher salaries and employee benefits and higher other professional fees, offset somewhat by lower occupancy and equipment expenses.

Income tax expense for the three months ended June 30, 2022, was $2.8 million with an effective tax rate of 24.4%, compared to $2.9 million with an effective tax rate of 24.4% for the second quarter of 2021 and $2.5 million with an effective tax rate of 23.4% for the first quarter of 2022. Income tax expense for the six months ended June 30, 2022, was $5.3 million with an effective tax rate of 23.9%, compared to $6.0 million for the first six months of 2021 with an effective tax rate of 24.3%.

Balance Sheet

Total assets at June 30, 2022, were $2.57 billion, an increase of $57.8 million, or 2.3%, from December 31, 2021. Total loans increased $108.2 million, or 5.1%, to $2.22 billion at June 30, 2022, compared to $2.11 billion at December 31, 2021. The increase in loans during the six-month period ended June 30, 2022, reflects net non-PPP organic loan growth of $149.3 million, offset somewhat by a decline in PPP loans of $41.0 million, as such loans continue to be forgiven. Total loans as of June 30, 2022, increased $68.5 million, or 3.2%, from $2.15 billion on March 31, 2022, reflecting organic, net non-PPP loan growth of $84.0 million, offset somewhat by a decline in PPP loans of $15.5 million. PPP loans outstanding on June 30, 2022, were $10.0 million.

Total deposits were $2.17 billion on June 30, 2022, an increase of $50.6 million, or 2.4%, from $2.11 billion at December 31, 2021. Non-interest-bearing deposits totaled $600.4 million on June 30, 2022, an increase of $41.6 million, or 7.4%, from December 31, 2021. The Bank continues to focus on enhancing its deposit mix and, as of June 30, 2022, had grown non-interest bearing deposits to 27.7% and lowered time deposits to 14.7% of total deposits. Total deposits declined by $12.7 million, or 0.6%, from March 31, 2022, with interest bearing deposits declining $15.8 million, offset somewhat by a $3.1 million increase in non-interest bearing deposits.

Stockholders’ equity was $274.7 million on June 30, 2022, compared to $266.7 million on December 31, 2021. The growth of $8.0 million, or 3.0%, was primarily a result of year-to-date net income of $17.0 million, partially offset by a $5.1 million increase in accumulated other comprehensive loss, $2.7 million in treasury stock purchases and cash dividends paid of $2.3 million during the six months ended June 30, 2022. The increase in accumulated other comprehensive loss was due to an increase in unrealized losses on the Bank’s available for sale investment securities, primarily resulting from the current interest rate environment.

As of June 30, 2022, the Bank continued to exceed all regulatory capital requirements to be considered well capitalized, with a Tier 1 Leverage ratio of 10.19%, a Tier 1 Risk-Based capital ratio of 10.28%, a Common Equity Tier 1 Capital ratio of 10.28%, and a Total Risk-Based capital ratio of 12.46%.

Asset Quality

First Bank’s asset quality metrics remained stable and favorable during the three and six months ended June 30, 2022. Net charge offs of $404,000 for the second quarter of 2022 were 0.07% of average loans on an annualized basis. This compares to net charge offs of $116,000, or an annualized 0.02% of average loans, for the second quarter of 2021 and net charge offs of $247,000, or an annualized 0.05%, for the first quarter of 2022. Nonperforming loans were $12.7 million on June 30, 2022, down from $13.0 million on December 31, 2021. Nonperforming loans as a percentage of total loans on June 30, 2022, were 0.57%, compared with 0.62% at December 31, 2021, and 0.59% at March 31, 2022. The allowance for loan losses to nonperforming loans was 197.06% on June 30, 2022, compared with 182.65% at December 31, 2021, and 191.72% on March 31, 2022.

COVID-19 Response

First Bank participated in the PPP, established by the Coronavirus Aid, Relief, and Economic Securities Act (CARES Act), during 2020 and 2021. The PPP was a specialized low-interest loan program funded by the U.S. Treasury Department and administered by the Small Business Administration. The PPP provided borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilized the loan proceeds to cover compensation and other business-related operating costs. The PPP ended on May 31, 2021, but the PPP loan forgiveness process is ongoing. As of June 30, 2022, First Bank had 99 PPP loans with outstanding balances of $10.0 million. During the quarter ended June 30, 2022, PPP loans totaling $15.5 million were forgiven and the Bank realized $493,000 in loan fees on these loans as any deferred fees remaining on the forgiven loans were accelerated. As of June 30, 2022, the Bank had $336,000 in remaining unamortized fees associated with outstanding balances of PPP loans.

Cash Dividend Declared

On July 19, 2022, First Bank’s Board of Directors declared a quarterly cash dividend of $0.06 per share to common stockholders of record at the close of business on August 12, 2022, payable on August 26, 2022.

Conference Call

First Bank will host its earnings call on Wednesday, July 27, 2022, at 9:00 AM eastern time. The direct dial toll free number for the live call is 1-844-200-6205 and the access code is 212059. For those unable to participate in the call, a replay will be available by dialing 1-866-813-9403 (access code 861313) from one hour after the end of the conference call until October 24, 2022. Replay information will also be available on First Bank’s website at www.firstbanknj.com under the “About Us” tab. Click on “Investor Relations” to access the replay of the conference call.

About First Bank

First Bank is a New Jersey state-chartered bank with 18 full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington (2), Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset and Williamstown, New Jersey; and Doylestown, Trevose, Warminster and West Chester, Pennsylvania. With $2.6 billion in assets as of June 30, 2022, First Bank offers a full range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia corridor. First Bank's common stock is listed on the Nasdaq Global Market under the symbol “FRBA.”

Forward Looking Statements

This press release contains certain forward-looking statements, either express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding First Bank’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about First Bank, any of which may change over time and some of which may be beyond First Bank’s control. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: whether First Bank can successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions, sustain its internal growth rate, and provide competitive products and services that appeal to its customers and target markets; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Bank operates and in which its loans are concentrated, including the effects of inflation and declines in housing market values; the impact of disease pandemics, including COVID-19, on First Bank’s operations, customers and employees; an increase in unemployment levels and slowdowns in economic growth; First Bank's level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; changes in market interest rates may increase funding costs and reduce earning asset yields thus reducing margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of First Bank's investment securities portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank's operations, including changes in regulations affecting financial institutions and expenses associated with complying with such regulations; uncertainties in tax estimates and valuations, including due to changes in state and federal tax law; First Bank's ability to comply with applicable capital and liquidity requirements, including First Bank’s ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; and possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Forward-Looking Statements” and “Risk Factors” in First Bank’s Annual Report on Form 10-K and any updates to those risk factors set forth in First Bank’s proxy statement, subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if First Bank’s underlying assumptions prove to be incorrect, actual results may differ materially from what First Bank anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and First Bank does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that First Bank or persons acting on First Bank’s behalf may issue.

CONTACT: Andrew Hibshman, Chief Financial Officer
(609) 643-0058, andrew.hibshman@firstbanknj.com

_______________
i Return on average tangible equity is a non-U.S. GAAP financial measure and is calculated by dividing net income by average tangible equity (average equity minus average goodwill and other intangible assets). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

ii The efficiency ratio is a non-U.S. GAAP financial measure and is calculated by dividing non-interest expense less merger-related expenses by adjusted total revenue (net interest income plus non-interest income). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

FIRST BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(in thousands, except for share data, unaudited)

 

 

 

 

 

 

June 30, 2022

 

December 31, 2021

Assets

 

 

 

Cash and due from banks

$

27,392

 

 

$

25,076

 

Interest bearing deposits with banks

 

61,186

 

 

 

129,431

 

Cash and cash equivalents

 

88,578

 

 

 

154,507

 

Interest bearing time deposits with banks

 

1,542

 

 

 

2,170

 

Investment securities available for sale, at fair value

 

97,152

 

 

 

94,584

 

Investment securities held to maturity (fair value of $41,003 at June 30, 2022 and $39,718 at December 31, 2021)

 

43,426

 

 

 

39,547

 

Restricted investment in bank stocks

 

5,705

 

 

 

5,856

 

Other investments

 

8,095

 

 

 

8,062

 

Loans, net of deferred fees and costs

 

2,220,223

 

 

 

2,111,991

 

Less: Allowance for loan losses

 

25,034

 

 

 

23,746

 

Net loans

 

2,195,189

 

 

 

2,088,245

 

Premises and equipment, net

 

10,067

 

 

 

9,883

 

Other real estate owned, net

 

293

 

 

 

772

 

Accrued interest receivable

 

6,028

 

 

 

5,681

 

Bank-owned life insurance

 

57,376

 

 

 

56,633

 

Goodwill

 

17,826

 

 

 

17,826

 

Other intangible assets, net

 

1,942

 

 

 

2,145

 

Deferred income taxes

 

12,680

 

 

 

11,081

 

Other assets

 

22,238

 

 

 

13,306

 

Total assets

$

2,568,137

 

 

$

2,510,298

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Liabilities:

 

 

 

Non-interest bearing deposits

$

600,402

 

 

$

558,775

 

Interest bearing deposits

 

1,564,761

 

 

 

1,555,827

 

Total deposits

 

2,165,163

 

 

 

2,114,602

 

Borrowings

 

74,479

 

 

 

81,835

 

Subordinated debentures

 

29,675

 

 

 

29,620

 

Accrued interest payable

 

308

 

 

 

399

 

Other liabilities

 

23,810

 

 

 

17,176

 

Total liabilities

 

2,293,435

 

 

 

2,243,632

 

Stockholders' Equity:

 

 

 

Preferred stock, par value $2 per share; 10,000,000 shares authorized; no shares issued and outstanding

 

-

 

 

 

-

 

Common stock, par value $5 per share; 40,000,000 shares authorized; 21,050,594 shares issued and 19,483,415 shares outstanding at June 30, 2022 and 20,851,506 shares issued and 19,472,364 shares outstanding at December 31, 2021

 

104,390

 

 

 

103,704

 

Additional paid-in capital

 

80,039

 

 

 

79,563

 

Retained earnings

 

110,559

 

 

 

95,924

 

Accumulated other comprehensive loss

 

(5,280

)

 

 

(206

)

Treasury stock, 1,571,179 shares at June 30, 2022 and 1,379,142 shares at December 31, 2021

 

(15,006

)

 

 

(12,319

)

Total stockholders' equity

 

274,702

 

 

 

266,666

 

Total liabilities and stockholders' equity

$

2,568,137

 

 

$

2,510,298

 

 

 

 

 


FIRST BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except for share data, unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Interest and Dividend Income

 

 

 

 

 

 

 

Investment securities—taxable

$

689

 

 

$

550

 

 

$

1,265

 

 

$

1,025

 

Investment securities—tax-exempt

 

33

 

 

 

45

 

 

 

70

 

 

 

93

 

Interest bearing deposits with banks,

 

 

 

 

 

 

 

Federal funds sold and other

 

260

 

 

 

185

 

 

 

390

 

 

 

356

 

Loans, including fees

 

23,881

 

 

 

22,038

 

 

 

46,024

 

 

 

44,195

 

Total interest and dividend income

 

24,863

 

 

 

22,818

 

 

 

47,749

 

 

 

45,669

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

Deposits

 

1,262

 

 

 

1,463

 

 

 

2,271

 

 

 

3,313

 

Borrowings

 

250

 

 

 

493

 

 

 

538

 

 

 

1,007

 

Subordinated debentures

 

441

 

 

 

441

 

 

 

881

 

 

 

881

 

Total interest expense

 

1,953

 

 

 

2,397

 

 

 

3,690

 

 

 

5,201

 

Net interest income

 

22,910

 

 

 

20,421

 

 

 

44,059

 

 

 

40,468

 

Provision for loan losses

 

1,298

 

 

 

(162

)

 

 

1,940

 

 

 

(1,215

)

Net interest income after provision for loan losses

 

21,612

 

 

 

20,583

 

 

 

42,119

 

 

 

41,683

 

 

 

 

 

 

 

 

 

Non-Interest Income

 

 

 

 

 

 

 

Service fees on deposit accounts

 

243

 

 

 

165

 

 

 

495

 

 

 

341

 

Loan fees

 

102

 

 

 

134

 

 

 

347

 

 

 

815

 

Income from bank-owned life insurance

 

370

 

 

 

343

 

 

 

743

 

 

 

672

 

Gains on sale of loans

 

253

 

 

 

315

 

 

 

290

 

 

 

849

 

Gains on recovery of acquired loans

 

210

 

 

 

141

 

 

 

334

 

 

 

511

 

Other non-interest income

 

285

 

 

 

244

 

 

 

521

 

 

 

454

 

Total non-interest income

 

1,463

 

 

 

1,342

 

 

 

2,730

 

 

 

3,642

 

 

 

 

 

 

 

 

 

Non-Interest Expense

 

 

 

 

 

 

 

Salaries and employee benefits

 

6,698

 

 

 

5,930

 

 

 

13,242

 

 

 

11,698

 

Occupancy and equipment

 

1,381

 

 

 

1,299

 

 

 

2,805

 

 

 

3,237

 

Legal fees

 

172

 

 

 

253

 

 

 

314

 

 

 

500

 

Other professional fees

 

692

 

 

 

528

 

 

 

1,379

 

 

 

1,059

 

Regulatory fees

 

233

 

 

 

228

 

 

 

426

 

 

 

496

 

Directors' fees

 

180

 

 

 

219

 

 

 

398

 

 

 

435

 

Data processing

 

589

 

 

 

608

 

 

 

1,185

 

 

 

1,143

 

Marketing and advertising

 

177

 

 

 

187

 

 

 

341

 

 

 

375

 

Travel and entertainment

 

111

 

 

 

24

 

 

 

199

 

 

 

39

 

Insurance

 

186

 

 

 

138

 

 

 

351

 

 

 

292

 

Other real estate owned expense, net

 

114

 

 

 

30

 

 

 

197

 

 

 

81

 

Other expense

 

876

 

 

 

711

 

 

 

1,694

 

 

 

1,450

 

Total non-interest expense

 

11,409

 

 

 

10,155

 

 

 

22,531

 

 

 

20,805

 

Income Before Income Taxes

 

11,666

 

 

 

11,770

 

 

 

22,318

 

 

 

24,520

 

Income tax expense

 

2,843

 

 

 

2,877

 

 

 

5,337

 

 

 

5,966

 

Net Income

$

8,823

 

 

$

8,893

 

 

$

16,981

 

 

$

18,554

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.45

 

 

$

0.45

 

 

$

0.87

 

 

$

0.94

 

Diluted earnings per common share

$

0.45

 

 

$

0.45

 

 

$

0.86

 

 

$

0.93

 

Cash dividends per common share

$

0.06

 

 

$

0.03

 

 

$

0.12

 

 

$

0.06

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

19,586,103

 

 

 

19,677,002

 

 

 

19,559,605

 

 

 

19,674,523

 

Diluted weighted average common shares outstanding

 

19,794,657

 

 

 

19,883,076

 

 

 

19,780,953

 

 

 

19,859,091

 

 

 

 

 

 

 

 

 


FIRST BANK AND SUBSIDIARIES

AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES

(dollars in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

Average

 

 

 

Average

Average

 

 

 

Average

 

Balance

 

Interest

 

Rate (5)

 

Balance

 

Interest

 

Rate (5)

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1) (2)

$

141,412

 

 

$

729

 

 

2.07

%

 

$

120,238

 

 

$

605

 

 

2.02

%

Loans (3)

 

2,181,197

 

 

 

23,881

 

 

4.39

%

 

 

2,044,789

 

 

 

22,038

 

 

4.32

%

Interest bearing deposits with banks,

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and other

 

107,903

 

 

 

171

 

 

0.64

%

 

 

117,787

 

 

 

71

 

 

0.24

%

Restricted investment in bank stocks

 

5,424

 

 

 

65

 

 

4.81

%

 

 

8,089

 

 

 

98

 

 

4.86

%

Other investments

 

8,090

 

 

 

24

 

 

1.19

%

 

 

6,525

 

 

 

16

 

 

0.98

%

Total interest earning assets (2)

 

2,444,026

 

 

 

24,870

 

 

4.08

%

 

 

2,297,428

 

 

 

22,828

 

 

3.99

%

Allowance for loan losses

 

(24,469

)

 

 

 

 

 

 

(23,512

)

 

 

 

 

Non-interest earning assets

 

148,886

 

 

 

 

 

 

 

136,437

 

 

 

 

 

Total assets

$

2,568,443

 

 

 

 

 

 

$

2,410,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

$

329,702

 

 

$

137

 

 

0.17

%

 

$

210,494

 

 

$

49

 

 

0.09

%

Money market deposits

 

737,041

 

 

 

642

 

 

0.35

%

 

 

602,221

 

 

 

424

 

 

0.28

%

Savings deposits

 

181,390

 

 

 

180

 

 

0.40

%

 

 

183,289

 

 

 

192

 

 

0.42

%

Time deposits

 

321,378

 

 

 

303

 

 

0.38

%

 

 

482,657

 

 

 

798

 

 

0.66

%

Total interest bearing deposits

 

1,569,511

 

 

 

1,262

 

 

0.32

%

 

 

1,478,661

 

 

 

1,463

 

 

0.40

%

Borrowings

 

68,024

 

 

 

250

 

 

1.47

%

 

 

130,441

 

 

 

493

 

 

1.52

%

Subordinated debentures

 

29,658

 

 

 

441

 

 

5.95

%

 

 

29,547

 

 

 

441

 

 

5.97

%

Total interest bearing liabilities

 

1,667,193

 

 

 

1,953

 

 

0.47

%

 

 

1,638,649

 

 

 

2,397

 

 

0.59

%

Non-interest bearing deposits

 

606,874

 

 

 

 

 

 

 

505,912

 

 

 

 

 

Other liabilities

 

20,547

 

 

 

 

 

 

 

15,649

 

 

 

 

 

Stockholders' equity

 

273,829

 

 

 

 

 

 

 

250,143

 

 

 

 

 

Total liabilities and stockholders' equity

$

2,568,443

 

 

 

 

 

 

$

2,410,353

 

 

 

 

 

Net interest income/interest rate spread (2)

 

 

 

22,917

 

 

3.61

%

 

 

 

 

20,431

 

 

3.40

%

Net interest margin (2) (4)

 

 

 

 

3.76

%

 

 

 

 

 

3.57

%

Tax equivalent adjustment (2)

 

 

 

(7

)

 

 

 

 

 

 

(10

)

 

 

Net interest income

 

 

$

22,910

 

 

 

 

 

 

$

20,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Average balance of investment securities available for sale is based on amortized cost.

 

 

 

 

 

 

(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.

 

 

 

 

(3) Average balances of loans include loans on nonaccrual status.

 

 

 

 

 

 

 

 

 

 

(4) Net interest income divided by average total interest earning assets.

 

 

 

 

 

 

 

 

(5) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


FIRST BANK AND SUBSIDIARIES

AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES

(dollars in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

Average

 

 

 

Average

Average

 

 

 

Average

 

Balance

 

Interest

 

Rate (5)

 

Balance

 

Interest

 

Rate (5)

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1) (2)

$

137,742

 

 

$

1,350

 

 

1.98

%

 

$

109,058

 

 

$

1,138

 

 

2.10

%

Loans (3)

 

2,156,244

 

 

 

46,024

 

 

4.30

%

 

 

2,041,074

 

 

 

44,195

 

 

4.37

%

Interest bearing deposits with banks,

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and other

 

114,626

 

 

 

221

 

 

0.39

%

 

 

113,315

 

 

 

140

 

 

0.25

%

Restricted investment in bank stocks

 

5,519

 

 

 

128

 

 

4.68

%

 

 

8,267

 

 

 

185

 

 

4.51

%

Other investments

 

8,081

 

 

 

41

 

 

1.02

%

 

 

6,518

 

 

 

31

 

 

0.96

%

Total interest earning assets (2)

 

2,422,212

 

 

 

47,764

 

 

3.98

%

 

 

2,278,232

 

 

 

45,689

 

 

4.04

%

Allowance for loan losses

 

(24,265

)

 

 

 

 

 

 

(24,053

)

 

 

 

 

Non-interest earning assets

 

147,788

 

 

 

 

 

 

 

134,326

 

 

 

 

 

Total assets

$

2,545,735

 

 

 

 

 

 

$

2,388,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

$

314,074

 

 

$

198

 

 

0.13

%

 

$

205,896

 

 

$

114

 

 

0.11

%

Money market deposits

 

721,790

 

 

 

1,090

 

 

0.30

%

 

 

597,015

 

 

 

944

 

 

0.32

%

Savings deposits

 

185,782

 

 

 

344

 

 

0.37

%

 

 

176,180

 

 

 

396

 

 

0.45

%

Time deposits

 

335,721

 

 

 

639

 

 

0.38

%

 

 

495,234

 

 

 

1,859

 

 

0.76

%

Total interest bearing deposits

 

1,557,367

 

 

 

2,271

 

 

0.29

%

 

 

1,474,325

 

 

 

3,313

 

 

0.45

%

Borrowings

 

72,234

 

 

 

538

 

 

1.50

%

 

 

137,995

 

 

 

1,007

 

 

1.47

%

Subordinated debentures

 

29,645

 

 

 

881

 

 

5.94

%

 

 

29,533

 

 

 

881

 

 

5.97

%

Total interest bearing liabilities

 

1,659,246

 

 

 

3,690

 

 

0.45

%

 

 

1,641,853

 

 

 

5,201

 

 

0.64

%

Non-interest bearing deposits

 

595,273

 

 

 

 

 

 

 

485,149

 

 

 

 

 

Other liabilities

 

19,218

 

 

 

 

 

 

 

15,571

 

 

 

 

 

Stockholders' equity

 

271,998

 

 

 

 

 

 

 

245,932

 

 

 

 

 

Total liabilities and stockholders' equity

$

2,545,735

 

 

 

 

 

 

$

2,388,505

 

 

 

 

 

Net interest income/interest rate spread (2)

 

 

 

44,074

 

 

3.53

%

 

 

 

 

40,488

 

 

3.40

%

Net interest margin (2) (4)

 

 

 

 

3.67

%

 

 

 

 

 

3.58

%

Tax equivalent adjustment (2)

 

 

 

(15

)

 

 

 

 

 

 

(20

)

 

 

Net interest income

 

 

$

44,059

 

 

 

 

 

 

$

40,468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Average balance of investment securities available for sale is based on amortized cost.

 

 

 

 

 

 

(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.

 

 

 

 

(3) Average balances of loans include loans on nonaccrual status.

 

 

 

 

 

 

 

 

 

 

(4) Net interest income divided by average total interest earning assets.

 

 

 

 

 

 

 

 

(5) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


FIRST BANK AND SUBSIDIARIES

QUARTERLY FINANCIAL HIGHLIGHTS

(in thousands, except for share and employee data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of or For the Quarter Ended

 

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

EARNINGS

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

22,910

 

 

$

21,149

 

 

$

20,641

 

 

$

20,781

 

 

$

20,421

 

Provision for loan losses

 

 

1,298

 

 

 

642

 

 

 

825

 

 

 

158

 

 

 

(162

)

Non-interest income

 

 

1,463

 

 

 

1,267

 

 

 

2,211

 

 

 

1,901

 

 

 

1,342

 

Non-interest expense

 

 

11,409

 

 

 

11,122

 

 

 

11,825

 

 

 

10,522

 

 

 

10,155

 

Income tax expense

 

 

2,843

 

 

 

2,494

 

 

 

2,363

 

 

 

2,966

 

 

 

2,877

 

Net income

 

 

8,823

 

 

 

8,158

 

 

 

7,839

 

 

 

9,036

 

 

 

8,893

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

 

1.38

%

 

 

1.31

%

 

 

1.27

%