First Bank Announces Second Quarter Net Income of $6.8 Million and EPS of $0.35

Quarterly Results reflect stable net income, strong deposit growth, favorable credit metrics and continued shareholder value creation with increased Book Value per Share


HAMILTON, N.J., July 26, 2023 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) (the Bank) today announced its second quarter 2023 financial results, achieving net income of $6.8 million, or $0.35 per diluted share, and maintaining solid returns on average assets, equity, and tangible equityi of 0.97%, 9.23%, and 9.87%, respectively. Excluding merger-related expenses, First Bank’s second quarter 2023 adjusted diluted earnings per shareii were $0.36, adjusted return on average assetsii was 0.99% and adjusted return on average tangible equityii was 10.13%.

Compared to the same period last year, the Bank's net income and returns on assets, equity, and tangible equity were lower, reflecting broader industry headwinds, primarily due to increased market interest rates and deposit costs. However, the Bank remains confident in its ability to navigate the current economic landscape and achieve sustainable growth in earnings and book value over the long term.

Second Quarter 2023 Performance Highlights:

  • Total loans reached $2.44 billion at June 30, 2023, marking a 1.8% increase from the end of the linked quarter at March 31, 2023.
  • Total deposits ended the quarter at $2.40 billion at June 30, 2023, a 7.1% increase from the end of the linked quarter at March 31, 2023.
  • Continued favorable asset quality throughout the quarter, with net recoveries of $109,000 during the second quarter of 2023, and nonperforming loans remained constant at 0.33% at June 30, 2023, compared to 0.33% at March 31, 2023.
  • Steady growth in book value per share to $15.45 and tangible book value per shareiii to $14.44 at June 30, 2023. Tangible book value per share increased $0.39 from the end of the linked quarter at March 31, 2023, and $1.36, or 10.4%, from June 30, 2022, supporting continued value creation for shareholders.

Patrick L. Ryan, President and CEO of First Bank, reflected on the quarterly results, stating, “Despite the difficult rate environment which continues to impact our margin, and the short-term headwinds from recent strategic initiatives, I am satisfied with our current results. We continue to earn acceptable returns even as the yield curve remains inverted and we reinvest in the franchise. Those strategic investments, coupled with our Malvern Bank acquisition, position us for strong financial results as we move into 2024. During the second quarter we generated a return on average assets just below one percent, grew deposits by $158.1 million and maintained favorable asset quality metrics.”

Mr. Ryan acknowledged that funding costs could continue to increase if the yield curve remains inverted, however, he noted that the Malvern Bank acquisition will provide significant balance sheet management flexibility which should assist in managing margin pressures and will provide numerous opportunities for continued efficiency gains.

Mr. Ryan also stated that, “I am pleased that we were able to execute some treasury share repurchases during the second quarter of 2023 which did not significantly impact capital levels negatively but assisted in increasing our tangible book value per share by nearly 40 cents during the second quarter.”

Mr. Ryan added, “the recent strategic investments we have made, continue to pay dividends. Our Fairfield branch and regional headquarters is off to a strong start with branch deposits already surpassing $25 million. Our small business lending, private equity/fund banking and asset-based lending teams are helping to drive our year-to-date loan portfolio diversification, with overall net loan growth in-line with our annual plan.”

Mr. Ryan concluded that, “I am excited about the opportunities that lie ahead of us. The completion of the Malvern acquisition provides us a unique opportunity to reshape our balance sheet to optimize our liquidity and interest rate risk positions while also enhancing earnings. We have work to do to integrate Malvern’s customer base and our newest employees, but our previous experience has provided us a clear roadmap to execute. Our new locations and new C&I business units are performing well, and we are continuing to push forward some key technology initiatives. Navigating the current rate environment will continue to be a challenge but we have positioned ourselves well to execute our strategic vision of evolution to a highly efficient middle market commercial institution.”

Malvern Acquisition

First Bank acquired Malvern Bancorp, Inc. (Nasdaq Global Market: MLVF) and its wholly owned subsidiary Malvern Bank, National Association on July 17, 2023. The combined stock and cash transaction was valued at approximately $129.7 million and will expand First Bank’s footprint in the highly desirable New York City to Philadelphia corridor. The consolidated assets of the combined company equal approximately $3.8 billion. Effective upon the closing of the merger, First Bank expanded its Board of Directors by appointing three former Malvern Bancorp directors to the First Bank Board.

Income Statement

In the second quarter of 2023, the Bank’s net interest income decreased to $22.1 million, representing a reduction of $782,000, or 3.4%, compared to the same period in 2022. The decrease was primarily driven by the $11.4 million increase in deposit interest expense which outpaced the $9.9 million increase in interest income on loans in the second quarter of 2023 compared to the same quarter in 2022.

The Bank’s tax equivalent net interest margin decreased by 48 basis points to 3.28% compared to the prior year quarter and by 24 basis points from the first quarter of 2023. The decrease was primarily driven by the increase in deposit costs which was partially offset by the increase in average loan yields. The inverted yield curve, deposit pricing pressures and the focus on maintaining excess on-balance sheet liquidity all had a negative impact on the margin during the second quarter of 2023.

The Bank's provision for credit losses was $449,000 in the second quarter of 2023, compared to $1.3 million in the same period of the previous year and $1.1 million in the preceding quarter of 2023. The decline in provision for credit losses during the current quarter was primarily due to the benefit of net recoveries during the second quarter of 2023 and slightly lower net loan growth compared to the second quarter of 2022 and the first quarter of 2023.

In the second quarter of 2023, non-interest income was $1.1 million, compared to $1.5 million during the same period in 2022. The decrease was primarily due to a $196,000 decline in gains on recovery of acquired loans, a decrease of $84,000 in loan fees, primarily loan swap fees, and a decrease of $83,000 in gains on sale of loans, primarily Small Business Administration (SBA) loans. Gains on recovery of acquired loans have declined due to a reduction in collection of payments on acquired loans that were valued at $0 at the time of past acquisitions. Loan swap activity continues to be slow which resulted in the reduced loan swap income, but SBA loan sale activity has accelerated somewhat. Although down from the same period in the prior year, gains on sale of loans increased $29,000 during the second quarter of 2023 compared to the first quarter of 2023.       

Non-interest expense for the second quarter of 2023 was $13.8 million, an increase of $2.4 million, or 21.1%, compared to $11.4 million for the prior year quarter. The higher non-interest expense was largely due to a $1.4 million, or 21.3%, increase in salary and benefits costs in the second quarter of 2023, and to a lesser extent, a $283,000, or 121.5%, increase in regulatory fees, a $232,000 increase in occupancy and equipment expense, and $221,000 in merger-related costs during the second quarter of 2023. The increase in salaries and employee benefits was due to merit adjustments, inflationary market adjustments, and increased headcount, primarily due to new locations and growth initiatives, and increases in employee benefit costs. The increase in regulatory fees was due to the recent increase in FDIC fee assessments and the increase in occupancy and equipment was primarily due to the recently added new locations.

On a linked quarter basis, second quarter 2023 non-interest expense of $13.8 million increased $319,000, or 2.4%, compared to $13.5 million for the first quarter of 2023. The increase was primarily attributable to increased regulatory fees and increased salaries and employee benefits, and was offset somewhat by decreased merger-related expenses. The rise in regulatory fees and the increase in salaries and employee benefits were due to the same factors as noted above.  

The Bank's income tax expense for the second quarter of 2023 was $2.2 million with an effective tax rate of 24.3%, compared to $2.2 million with an effective tax rate of 23.7% for the first quarter of 2023 and $2.8 million with an effective tax rate of 24.4% for the second quarter of 2022.

Balance Sheet

The Bank reported total assets of $2.87 billion as of June 30, 2023, an increase of $57.5 million, or 2.0%, from $2.82 billion at March 31, 2023. The Bank’s assets grew $141.5 million, or 5.2%, for the six months ended June 30, 2023.

The Bank's increase in loans during the three and six month periods ended June 30, 2023 was $44.1 million and $98.9 million, respectively. The net loan growth was in-line with plan and driven primarily by owner-occupied commercial real estate and commercial and industrial loans.

As of June 30, 2023, the Bank's total deposits were $2.40 billion, an increase of $105.9 million, or 4.6%, from $2.29 billion at December 31, 2022. After a decline in deposits during the first quarter of 2023, deposits increased $158.1 million, or 7.1%, from $2.24 billion at March 31, 2023. Non-interest-bearing deposits totaled $476.7 million at June 30, 2023, which represents an increase of $12.8 million, or 2.8%, from March 31, 2023.

As of June 30, 2023, the Bank's stockholders' equity totaled $294.2 million, an increase of $4.6 million, or 1.6%, compared to $289.6 million at December 31, 2022 and a decline of $60,000 compared to March 31, 2023. During the quarter-ended June 30, 2023, the Bank repurchased 550,000 treasury shares for a total purchase price of $5.5 million, or an average price of $10.06 per share.

As of June 30, 2023, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized with a Tier 1 Leverage ratio of 10.03%, a Tier 1 Risk-Based capital ratio of 10.20%, a Common Equity Tier 1 Capital ratio of 10.20%, and a Total Risk-Based capital ratio of 12.39%. The Bank's strong capital position provides a cushion against potential losses and supports its ability to pursue growth opportunities. The tangible stockholders' equity to tangible assets ratioiv was 9.63% as of June 30, 2023, indicating that the Bank has a sufficient cushion to absorb potential losses.

Asset Quality

First Bank's asset quality metrics for the second quarter of 2023 remained favorable, with net recoveries of $109,000 compared to a net charge-off of $315,000 in the previous quarter and net charge-offs of $404,000 in the second quarter of 2022. Nonperforming loans increased slightly from $7.8 million at March 31, 2023, to $8.0 million at June 30, 2023, but decreased from $11.9 million at the end of the second quarter of 2022. Nonperforming loans as a percentage of total loans were 0.33% at June 30, 2023, compared to 0.33% at March 31, 2023, and down from 0.53% at the end of the second quarter of 2022. The allowance for loan credit losses to nonperforming loans remains healthy at 379.55% at June 30, 2023, compared to 210.58% at June 30, 2022, and 382.26% at the end of the first quarter of 2023. The allowance for loan credit losses as a percentage of total loans remained at 1.25% at June 30, 2023 compared to the same level at March 31, 2023.

Liquidity and Borrowings

The Bank enhanced its liquidity position in the second quarter of 2023. Total cash and cash equivalents increased $21.3 million during the second quarter to $182.4 million at June 30, 2023. The Bank’s increase in deposits during the second quarter contributed to the increased cash balances and allowed for a reduction of $100.0 million in borrowings during the second quarter of 2023. The reduction in outstanding borrowings has also increased the Bank’s available borrowing capacity. This enhanced liquidity position coupled with the balance sheet flexibility gained after the Malvern Bancorp acquisition, provides the Bank with a strong liquidity base and a diverse source of funding options.   

Overall, the Bank has a strong capital, liquidity, and asset quality position, which provides a solid foundation to navigate future challenges that may arise. The Bank is committed to managing risk prudently while pursuing growth opportunities and delivering value to its shareholders.

Cash Dividend Declared

On July 18, 2023, the 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 11, 2023, payable on August 25, 2023.

Conference Call and Earnings Release Supplement

Additional details on the quarterly results and the Bank are included in the attached earnings release supplement. 
http://ml.globenewswire.com/Resource/Download/8b1d11f5-35da-404b-9d40-76b955b58884

First Bank will host its earnings call on Thursday, July 27, 2023 at 9:00 AM eastern time. The direct dial toll free number for the live call is 1-888-330-3273 and the access code is 7660423. For those unable to participate in the call, a replay will be available by dialing 1-800-770-2030 (access code 7660423) from one hour after the end of the conference call until August 27, 2023. 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

After acquiring Malvern Bank on 7/17/2023, First Bank is a New Jersey state-chartered bank with 26 full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington (2), Hamilton, Lawrence, Monroe, Morristown, Pennington, Randolph, Somerset and Williamstown, New Jersey; and Coventry, Devon, Doylestown, Glenn Mills, Lionville, Malvern, Paoli, Trevose, Warminster and West Chester, Pennsylvania; and Palm Beach, Florida. With $2.87 billion in assets as of June 30, 2023, 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 declines in housing market values; the effects of the recent turmoil in the banking industry (including the failures of two financial institutions); the impact of disease pandemics, including COVID-19, on First Bank, its operations and its 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


FIRST BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data, unaudited)
 
    June 30, 2023 December 31, 2022
Assets    
Cash and due from banks$24,439  $17,577 
Restricted cash 12,870   13,580 
Interest bearing deposits with banks 145,045   94,759 
 Cash and cash equivalents 182,354   125,916 
Interest bearing time deposits with banks 747   1,293 
Investment securities available for sale, at fair value 86,108   98,956 
Investment securities held to maturity, net of allowance for   
 credit losses of $227 at June 30, 2023 (fair value of $39,396 at   
 June 30, 2023 and $42,465 at December 31, 2022) 45,368   47,193 
Restricted investment in bank stocks 7,986   6,214 
Other investments 8,967   8,372 
Loans, net of deferred fees and costs 2,436,708   2,337,814 
 Less: Allowance for credit losses 30,451   25,474 
 Net loans 2,406,257   2,312,340 
Premises and equipment, net 11,603   10,550 
Other real estate owned, net -   - 
Accrued interest receivable 8,657   8,164 
Bank-owned life insurance 58,854   58,107 
Goodwill 17,826   17,826 
Other intangible assets, net 1,463   1,579 
Deferred income taxes, net 13,863   13,155 
Other assets 24,372   23,275 
 Total assets$2,874,425  $2,732,940 
       
Liabilities and Stockholders' Equity   
Liabilities:   
Non-interest bearing deposits$476,733  $503,856 
Interest bearing deposits 1,923,167   1,790,096 
 Total deposits 2,399,900   2,293,952 
Borrowings 123,378   90,932 
Subordinated debentures 29,787   29,731 
Accrued interest payable 1,605   1,218 
Other liabilities 25,594   27,545 
 Total liabilities 2,580,264   2,443,378 
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; 21,222,407  
 shares issued and 19,041,343 shares outstanding at June 30, 2023 and   
 21,082,819 shares issued and 19,451,755 shares outstanding at December 31, 2022   104,939   104,512 
Additional paid-in capital 81,053   80,695 
Retained earnings 136,446   127,532 
Accumulated other comprehensive loss (6,899)  (7,334)
Treasury stock, 2,181,064 shares at June 30, 2023 and 1,631,064 shares at   
 December 31, 2022 (21,378)  (15,843)
 Total stockholders' equity 294,161   289,562 
 Total liabilities and stockholders' equity$2,874,425  $2,732,940 
       


FIRST BANK
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share data, unaudited)
 
    Three Months Ended Six Months Ended
    June 30,  June 30,
     2023  2022  2023   2022
Interest and Dividend Income       
Investment securities—taxable$955 $689 $1,977  $1,265
Investment securities—tax-exempt 34  33  72   70
Interest bearing deposits with banks,       
  Federal funds sold and other 2,184  260  3,436   390
Loans, including fees 33,748  23,881  65,448   46,024
 Total interest and dividend income 36,921  24,863  70,933   47,749
           
Interest Expense       
Deposits  12,691  1,262  22,104   2,271
Borrowings 1,661  250  3,025   538
Subordinated debentures 441  441  881   881
 Total interest expense 14,793  1,953  26,010   3,690
Net interest income 22,128  22,910  44,923   44,059
Credit loss expense 449  1,298  1,540   1,940
 Net interest income after credit loss expense 21,679  21,612  43,383   42,119
           
Non-Interest Income       
Service fees on deposit accounts 233  243  461   495
Loan fees  18  102  107   347
Income from bank-owned life insurance 378  370  747   743
Losses on sale of investment securities, net -  -  (207)  -
Gains on sale of loans 170  253  311   290
Gains on recovery of acquired loans 14  210  71   334
Other non-interest income 315  285  602   521
 Total non-interest income 1,128  1,463  2,092   2,730
           
Non-Interest Expense       
Salaries and employee benefits 8,122  6,698  15,994   13,242
Occupancy and equipment 1,613  1,381  3,192   2,805
Legal fees 198  172  401   314
Other professional fees 598  692  1,249   1,379
Regulatory fees 516  233  750   426
Directors' fees 193  180  407   398
Data processing 681  589  1,299   1,185
Marketing and advertising 233  177  473   341
Travel and entertainment 160  111  379   199
Insurance  179  186  352   351
Other real estate owned expense, net 20  114  38   197
Merger-related expenses 221  -  682   -
Other expense 1,088  876  2,109   1,694
 Total non-interest expense 13,822  11,409  27,325   22,531
Income Before Income Taxes 8,985  11,666  18,150   22,318
Income tax expense 2,186  2,843  4,362   5,337
Net Income$6,799 $8,823 $13,788  $16,981
           
Basic earnings per common share$0.35 $0.45 $0.71  $0.87
Diluted earnings per common share$0.35 $0.45 $0.71  $0.86
Cash dividends per common share$0.06 $0.06 $0.12  $0.12
           
Basic weighted average common shares outstanding 19,332,703  19,586,103  19,417,388   19,559,605
Diluted weighted average common shares outstanding 19,434,522  19,794,657  19,546,949   19,780,953
           


FIRST BANK
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)
            
            
 Three Months Ended June 30,
  2023   2022 
 Average    AverageAverage    Average
 Balance Interest Rate (5) Balance Interest Rate (5)
Interest earning assets           
Investment securities (1) (2)$142,209  $996  2.81% $141,412  $729  2.07%
Loans (3) 2,397,121   33,748  5.65%  2,181,197   23,881  4.39%
Interest bearing deposits with banks,           
   Federal funds sold and other 152,623   1,924  5.06%  107,903   171  0.64%
Restricted investment in bank stocks 9,418   157  6.69%  5,424   65  4.81%
Other investments 8,898   103  4.64%  8,090   24  1.19%
Total interest earning assets (2) 2,710,269   36,928  5.47%  2,444,026   24,870  4.08%
Allowance for loan losses (30,315)      (24,469)    
Non-interest earning assets 145,259       148,886     
     Total assets$2,825,213      $2,568,443     
            
Interest bearing liabilities           
Interest bearing demand deposits$338,392  $1,475  1.75% $329,702  $137  0.17%
Money market deposits 811,385   6,804  3.36%  737,041   642  0.35%
Savings deposits 137,830   366  1.07%  181,390   180  0.40%
Time deposits 570,850   4,046  2.84%  321,378   303  0.38%
       Total interest bearing deposits 1,858,457   12,691  2.74%  1,569,511   1,262  0.32%
Borrowings 151,810   1,661  4.39%  68,024   250  1.47%
Subordinated debentures 29,769   441  5.93%  29,658   441  5.95%
      Total interest bearing liabilities 2,040,036   14,793  2.91%  1,667,193   1,953  0.47%
Non-interest bearing deposits 462,692       606,874     
Other liabilities 26,925       20,547     
Stockholders' equity 295,560       273,829     
     Total liabilities and stockholders' equity$2,825,213      $2,568,443     
Net interest income/interest rate spread (2)   22,135  2.56%    22,917  3.61%
Net interest margin (2) (4)    3.28%     3.76%
Tax equivalent adjustment (2)   (7)      (7)  
Net interest income  $22,128      $22,910   
            
(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,
  2023   2022 
 Average    AverageAverage    Average
 Balance Interest Rate (5) Balance Interest Rate (5)
Interest earning assets           
Investment securities (1) (2)$147,953  $2,064  2.81% $137,742  $1,350  1.98%
Loans (3) 2,380,336   65,448  5.54%  2,156,244   46,024  4.30%
Interest bearing deposits with banks,           
   Federal funds sold and other 124,503   3,008  4.87%  114,626   221  0.39%
Restricted investment in bank stocks 8,841   258  5.88%  5,519   128  4.68%
Other investments 8,770   170  3.91%  8,081   41  1.02%
Total interest earning assets (2) 2,670,403   70,948  5.36%  2,422,212   47,764  3.98%
Allowance for loan losses (29,826)      (24,265)    
Non-interest earning assets 144,867       147,788     
     Total assets$2,785,444      $2,545,735     
            
Interest bearing liabilities           
Interest bearing demand deposits$328,870  $2,454  1.50% $314,074  $198  0.13%
Money market deposits 784,089   11,791  3.03%  721,790   1,090  0.30%
Savings deposits 145,691   712  0.99%  185,782   344  0.37%
Time deposits 552,028   7,147  2.61%  335,721   639  0.38%
       Total interest bearing deposits 1,810,678   22,104  2.46%  1,557,367   2,271  0.29%
Borrowings 141,567   3,025  4.31%  72,234   538  1.50%
Subordinated debentures 29,756   881  5.92%  29,645   881  5.94%
      Total interest bearing liabilities 1,982,001   26,010  2.65%  1,659,246   3,690  0.45%
Non-interest bearing deposits 481,237       595,273     
Other liabilities 28,330       19,218     
Stockholders' equity 293,876       271,998     
     Total liabilities and stockholders' equity$2,785,444      $2,545,735     
Net interest income/interest rate spread (2)   44,938  2.71%    44,074  3.53%
Net interest margin (2) (4)    3.39%     3.67%
Tax equivalent adjustment (2)   (15)      (15)  
Net interest income  $44,923      $44,059   
            
(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
QUARTERLY FINANCIAL HIGHLIGHTS
(in thousands, except for share and employee data, unaudited)
           
  As of or For the Quarter Ended
  6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022
EARNINGS          
Net interest income $22,128  $22,795  $23,751  $24,563  $22,910 
Credit loss expense / Provision for loan losses  449   1,091   716   216   1,298 
Non-interest income  1,128   964   1,446   944   1,463 
Non-interest expense  13,822   13,503   12,465   11,737   11,409 
Income tax expense  2,186   2,176   2,916   3,348   2,843 
Net income  6,799   6,989   9,100   10,206   8,823 
           
PERFORMANCE RATIOS          
Return on average assets (1)  0.97%  1.03%  1.35%  1.57%  1.38%
Adjusted return on average assets (1) (2)  0.99%  1.11%  1.40%  1.57%  1.38%
Return on average equity (1)  9.23%  9.70%  12.61%  14.46%  12.92%
Adjusted return on average equity (1) (2)  9.46%  10.43%  13.11%  14.46%  12.92%
Return on average tangible equity (1) (2)  9.87%  10.39%  13.53%  15.55%  13.93%
Adjusted return on average tangible equity (1) (2)  10.13%  11.17%  14.07%  15.55%  13.93%
Net interest margin (1) (3)  3.28%  3.52%  3.69%  3.97%  3.76%
Total cost of deposits (1)  2.19%  1.69%  1.21%  0.50%  0.23%
Efficiency ratio (2)  58.48%  54.42%  47.68%  46.01%  46.81%
           
SHARE DATA          
Common shares outstanding  19,041,343   19,569,334   19,451,755   19,447,206   19,483,415 
Basic earnings per share $0.35  $0.36  $0.47  $0.52  $0.45 
Diluted earnings per share  0.35   0.36   0.46   0.52   0.45 
Adjusted diluted earnings per share (2)  0.36   0.38   0.48   0.52   0.45 
Book value per share  15.45   15.03   14.89   14.44   14.10 
Tangible book value per share (2)  14.44   14.05   13.89   13.43   13.08 
           
MARKET DATA          
Market value per share $10.38  $10.10  $13.76  $13.67  $13.98 
Market value / Tangible book value  71.91%  71.90%  99.07%  101.80%  106.84%
Market capitalization $197,649  $197,650  $267,656  $265,843  $272,378 
           
CAPITAL & LIQUIDITY          
Stockholders' equity / assets  10.23%  10.44%  10.60%  10.64%  10.64%
Tangible stockholders' equity / tangible assets (2)  9.63%  9.83%  9.96%  9.97%  9.95%
Loans / deposits  101.53%  106.73%  101.91%  103.34%  103.15%
           
ASSET QUALITY          
Net (recoveries) charge-offs $(109) $315  $(213) $705  $404 
Nonperforming loans  8,023   7,820   6,250   5,107   11,888 
Nonperforming assets  8,023   7,820   6,250   5,400   12,181 
Net charge offs (recoveries) / average loans (1)  (0.02%)  0.05%  (0.04%)  0.13%  0.07%
Nonperforming loans / total loans  0.33%  0.33%  0.27%  0.23%  0.53%
Nonperforming assets / total assets  0.28%  0.28%  0.23%  0.20%  0.47%
Allowance for credit losses on loans / total loans  1.25%  1.25%  1.09%  1.08%  1.12%
Allowance for credit losses on loans / nonperforming loans  379.55%  382.26%  407.58%  480.61%  210.58%
           
OTHER DATA          
Total assets $2,874,425  $2,816,897  $2,732,940  $2,638,060  $2,581,192 
Total loans  2,436,708   2,392,583   2,337,814   2,263,377   2,233,278 
Total deposits  2,399,900   2,241,804   2,293,952   2,190,192   2,165,163 
Total stockholders' equity  294,161   294,221   289,562   280,749   274,702 
Number of full-time equivalent employees (4)  261   252   238   228   233 
           
(1) Annualized.          
(2) Non-U.S. GAAP financial measure that we believe provides management and investors with information that is useful in understanding our 
     financial performance and condition. See accompanying table, "Non-U.S. GAAP Financial Measures," for calculation and reconciliation.  
(3) Tax equivalent using a federal income tax rate of 21%.          
(4) Includes 5 and 8 full-time equivalent seasonal interns as of June 30, 2023 and 2022,respectively.      
           


FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)
            
   As of the Quarter Ended
   6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022
LOAN COMPOSITION          
Commercial and industrial $419,836  $394,734  $354,203  $323,984  $321,205 
Commercial real estate:          
 Owner-occupied  560,878   539,112   533,426   517,448   523,108 
 Investor  965,339   958,574   951,115   942,151   925,643 
 Construction and development  136,615   143,955   142,876   126,206   117,011 
 Multi-family  223,784   220,101   215,990   214,819   201,269 
     Total commercial real estate  1,886,616   1,861,742   1,843,407   1,800,624   1,767,031 
Residential real estate:          
 Residential mortgage and first lien home equity loans  91,260   94,060   93,847   96,194   98,841 
 Home equity–second lien loans and revolving lines of credit  29,983   29,316   33,551   31,670   30,491 
     Total residential real estate  121,243   123,376   127,398   127,864   129,332 
Consumer and other  12,514   16,413   16,318   14,654   19,694 
     Total loans prior to deferred loan fees and costs  2,440,209   2,396,265   2,341,326   2,267,126   2,237,262 
Net deferred loan fees and costs  (3,501)  (3,682)  (3,512)  (3,749)  (3,984)
     Total loans $2,436,708  $2,392,583  $2,337,814  $2,263,377  $2,233,278 
            
LOAN MIX          
Commercial and industrial  17.2%  16.5%  15.2%  14.3%  14.4%
Commercial real estate:          
 Owner-occupied  23.0%  22.5%  22.8%  22.9%  23.4%
 Investor  39.6%  40.1%  40.7%  41.6%  41.5%
 Construction and development  5.6%  6.0%  6.1%  5.6%  5.2%
 Multi-family  9.2%  9.2%  9.2%  9.5%  9.0%
     Total commercial real estate  77.4%  77.8%  78.8%  79.6%  79.1%
Residential real estate:          
 Residential mortgage and first lien home equity loans  3.8%  3.9%  4.0%  4.3%  4.4%
 Home equity–second lien loans and revolving lines of credit  1.2%  1.2%  1.4%  1.4%  1.4%
     Total residential real estate  5.0%  5.1%  5.4%  5.7%  5.8%
Consumer and other  0.5%  0.7%  0.7%  0.6%  0.9%
Net deferred loan fees and costs  (0.1%)  (0.1%)  (0.1%)  (0.2%)  (0.2%)
     Total loans  100.0%  100.0%  100.0%  100.0%  100.0%
            


FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)
            
   As of the Quarter Ended
   6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022
DEPOSIT COMPOSITION          
Non-interest bearing demand deposits $476,733  $463,926  $503,856  $584,025  $600,402 
Interest bearing demand deposits  376,948   310,140   322,944   343,042   318,687 
Money market and savings deposits  979,524   914,063   935,311   860,577   929,075 
Time deposits  566,695   553,675   531,841   402,549   316,999 
 Total Deposits $2,399,900  $2,241,804  $2,293,952  $2,190,193  $2,165,163 
            
DEPOSIT MIX          
Non-interest bearing demand deposits  19.9%  20.7%  22.0%  26.7%  27.7%
Interest bearing demand deposits  15.7%  13.8%  14.1%  15.7%  14.7%
Money market and savings deposits  40.8%  40.8%  40.8%  39.3%  42.9%
Time deposits  23.6%  24.7%  23.1%  18.3%  14.7%
 Total Deposits  100.0%  100.0%  100.0%  100.0%  100.0%
            


FIRST BANK
NON-U.S. GAAP FINANCIAL MEASURES
(in thousands, except for share data, unaudited)
          
 As of or For the Quarter Ended
 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022
Return on Average Tangible Equity         
Net income (numerator)$6,799  $6,989  $9,100  $10,206  $8,823 
          
Average stockholders' equity$295,560  $292,174  $286,283  $280,093  $273,829 
Less: Average Goodwill and other intangible assets, net 19,324   19,379   19,533   19,669   19,823 
Average Tangible stockholders' equity (denominator)$276,236  $272,795  $266,750  $260,424  $254,006 
          
Return on Average Tangible equity (1) 9.87%  10.39%  13.53%  15.55%  13.93%
          
Tangible Book Value Per Share         
Stockholders' equity$294,161  $294,221  $289,562  $280,749  $274,702 
Less: Goodwill and other intangible assets, net 19,289   19,322   19,405   19,599   19,768 
Tangible stockholders' equity (numerator)$274,872  $274,899  $270,157  $261,150  $254,934 
          
Common shares outstanding (denominator) 19,041,343   19,569,334   19,451,755   19,447,206   19,483,415 
          
Tangible book value per share$14.44  $14.05  $13.89  $13.43  $13.08 
          
Tangible Equity / Assets         
Stockholders' equity$294,161  $294,221  $289,562  $280,749  $274,702 
Less: Goodwill and other intangible assets, net 19,289   19,322   19,405   19,599   19,768 
Tangible stockholders' equity (numerator)$274,872  $274,899  $270,157  $261,150  $254,934 
          
Total assets$2,874,425  $2,816,897  $2,732,940  $2,638,060  $2,581,192 
Less: Goodwill and other intangible assets, net 19,289   19,322   19,405   19,599   19,768 
Tangible total assets (denominator)$2,855,136  $2,797,575  $2,713,535  $2,618,461  $2,561,424 
          
Tangible stockholders' equity / tangible assets 9.63%  9.83%  9.96%  9.97%  9.95%
          
Efficiency Ratio         
Non-interest expense$13,822  $13,503  $12,465  $11,737  $11,409 
Less: Merger-related expenses 221   461   452   -   - 
Adjusted non-interest expense (numerator)$13,601  $13,042  $12,013  $11,737  $11,409 
          
Net interest income$22,128  $22,795  $23,751  $24,563  $22,910 
Non-interest income 1,128   964   1,446   944   1,463 
Total revenue 23,256   23,759   25,197   25,507   24,373 
Add: Losses on sale of investment securities, net -   207   -   -   - 
Adjusted total revenue (denominator)$23,256  $23,966  $25,197  $25,507  $24,373 
          
Efficiency ratio 58.48%  54.42%  47.68%  46.01%  46.81%
          
(1) Annualized.         
          


FIRST BANK
NON-U.S. GAAP FINANCIAL MEASURES
(dollars in thousands, except for share data, unaudited)
          
          
 For the Quarter Ended
 6/30/2022 3/31/2023 12/31/2022 9/30/2022 6/30/2022
          
Adjusted diluted earnings per share,         
    Adjusted return on average assets, and         
        Adjusted return on average equity         
          
Net income$6,799  $6,989  $9,100  $10,206  $8,823 
Add: Merger-related expenses(1) 175   364   357   -   - 
Add: Losses on sale of investment securities, net(1) -   164   -   -   - 
Adjusted net income$6,974  $7,517  $9,457  $10,206  $8,823 
          
Diluted weighted average common shares outstanding 19,434,522   19,667,194   19,649,282   19,668,133   19,794,657 
Average assets$2,825,213  $2,745,235  $2,680,807  $2,575,742  $2,568,443 
Average equity$295,560  $292,174  $286,283  $280,093  $273,829 
Average Tangible Equity$276,236  $272,795  $266,750  $260,424  $254,006 
          
Adjusted diluted earnings per share$0.36  $0.38  $0.48  $0.52  $0.45 
Adjusted return on average assets (2) 0.99%  1.11%  1.40%  1.57%  1.38%
Adjusted return on average equity (2) 9.46%  10.43%  13.11%  14.46%  12.92%
Adjusted return on average tangible equity (2) 10.13%  11.17%  14.07%  15.55%  13.93%
          
(1) Items are tax-effected using a federal income tax rate of 21%.        
(2) Annualized.         
          

 


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 Adjusted diluted earnings per share, adjusted return on average assets and adjusted return on average tangible equity are non-U.S. GAAP financial measures and are calculated by dividing net income adjusted for certain merger-related expenses and other one-time gains or expenses by diluted weighted average shares, average assets and average tangible equity, respectively. For a reconciliation of these non-U.S. GAAP financial measures, 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.

iii Tangible book value per share is a non-U.S. GAAP financial measure and is calculated by dividing common shares outstanding by tangible equity (equity minus 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.

iv Tangible stockholders' equity to tangible assets ratio is a non-U.S. GAAP financial measure and is calculated by dividing tangible equity (equity minus goodwill and other intangible assets) by tangible assets (total assets minus 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.



Pièces jointes

Quarterly Earnings Presentation VF