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First Bank Reports Second Quarter 2017 Net Income of $2.0 Million, an Increase of 38% From 2016

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Year-To-Date Net Income up 40% to $3.9 Million

For the 2nd Quarter and Six Months: Continued Strong Loan Growth, Efficiency Improvement, Stable and Favorable Asset Quality Metrics, Strong Period End Capital Levels

HAMILTON, N.J., July 24, 2017 (GLOBE NEWSWIRE) -- First Bank (NASDAQ:FRBA) today announced improved second quarter and six month 2017 results.  Net income for the quarter was $2.0 million or $0.15 per diluted share, compared to $1.4 million or $0.15 per diluted share for the second quarter of 2016. Diluted earnings per share equaled the prior year quarter despite a 3.4 million share increase in weighted average diluted shares outstanding from second quarter 2016. The increase in second quarter net income was driven by net interest income growth of 25.8%, which reflected continued strong loan generation, along with effective management of the Bank's non-interest expense despite continued growth.  Net income for the first six months of 2017 was $3.9 million, an increase of $1.1 million, or 40.4%, compared to 2016. Diluted earnings per share for the first six months of 2017 were $0.32, an increase of $0.03, or 10.3%, over the prior year period. The increase in net income for the six month period was also driven by strong net interest income growth coupled with managed expense growth.

2017 Performance Highlights:

  • Total net revenue (net interest income + non-interest income) for the quarter increased by 26.1%, or $1.9 million, to $9.1 million, compared to the prior year quarter
  • Total loans of $993.4 million at June 30, 2017 were up $95.0 million, or 10.6%, from December 31, 2016, and up $192.0 million, or 24.0% from June 30, 2016
  • Total deposits of $946.2 million at June 30, 2017 were up $51.2 million, or 5.7%, compared to the 2016 year end, and up $93.9 million, or 11.0% from June 30, 2016
  • Continued strong asset quality metrics with annualized net loan charge-offs to average loans of just 0.01% for second quarter 2017 compared to 0.03% for second quarter 2016. Nonperforming loans to total loans of 0.49% at June 30, 2017 decreased by 21 basis points compared to 0.70% at June 30, 2016, and improved by eight basis points compared to 0.57% on March 31, 2017 
  • Continued improvement in the Bank's efficiency ratio1 of 58.21% for the second quarter, down from 62.43% for second quarter 2016, and from 61.32% for first quarter 2017.

1 The efficiency ratio is a non-GAAP financial measure.  For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see page 11 of this press release.

"The First Bank team produced another highly productive effort during the second quarter of 2017, characterized by double-digit earnings growth, a successful follow-on stock offering, measurable progress toward the completion of our Bucks County Bank acquisition and operational successes that should contribute to future performance," said Patrick L. Ryan, President and Chief Executive Officer. "During the second quarter we continued to productively invest our funding with loan growth of $78.1 million, and we established a new "commercial deposit division" to elevate the services provided to our commercial customers and deepen business relationships with this important segment of our client base. The effect of the effort can be seen in our non-interest bearing deposits, which grew 4.2% from March 31, 2017. Business lending, a focus area, was active during the first six months of 2017 as we grew our C&I loan portfolio by 11.7% annualized compared to 2016 year end. Importantly, even with the strong lending activity we have demonstrated over the last two years, our asset quality metrics have remained very solid. We made significant progress in closing of our planned acquisition of Bucks County Bank, gaining regulatory approval for the transaction to proceed to a scheduled vote by our shareholders and Bucks County shareholders, which is expected to occur in the third quarter. We finished the second quarter with very strong capital levels reflecting our successful stock offering of approximately $40 million in gross proceeds. We believe that this significant progress achieved during the second quarter has us well positioned for the remainder of 2017."

Income Statement

The Bank's net interest income for second quarter 2017 was $8.7 million, an increase of $1.8 million, or 25.8%, compared to $6.9 million in the second quarter of 2016. This growth was driven by a $2.1 million, or 22.4%, increase in interest and dividend income primarily a result of a $154.9 million increase in average loan balances compared with the second quarter of 2016. This was modestly offset by increased interest expense of $297,000 for the comparative quarter, which reflected average balance increases for both transaction accounts and borrowings.

Six month net interest income totaled $16.8 million, an increase of $3.1 million, or 22.7%, compared to $13.6 million for 2016. The increase in 2017 net interest income was also driven by the same strong growth in average loans which increased by $161.8 million from the same prior year period.

The second quarter 2017 net interest margin was 3.23%, an increase of 19 basis points compared to the prior year quarter, and an increase of seven basis points compared to the linked first quarter of 2017. The increase compared to second quarter 2016 was primarily the result of higher average interest-earning assets (primarily loans) and a 14 basis point improvement in the rate paid on interest-earning assets. This increase was driven by Federal Reserve rate increases which helped to increase our yield on interest earnings assets, particularly our variable rate loans, and our ability to shift our deposit mix slightly out of time deposits while maintaining stable rates on our other deposit products.

The provision for loan losses for the second quarter of 2017 totaled $806,000, an increase of $167,000 compared to the second quarter of 2016, and an increase of $368,000 compared to $438,000 for the linked first quarter of 2017. The increase in the provision compared to second quarter 2016, reflected continued growth to the Bank's commercial loan portfolio. The provision for loan losses for the first six months of 2017 totaled $1.2 million compared to $1.5 million for the same period in 2016. The six month provision is reflective of the Bank's continued strong loan growth in 2017, as well as its stable asset quality metrics.

Second quarter 2017 non-interest income increased $106,000, to $422,000, compared to $316,000 in second quarter 2016, primarily a result of higher income from bank owned life insurance and higher loan fees due to loan growth, compared to second quarter 2016. Six month non-interest income totaled $881,000 for 2017 compared to $676,000 in 2016. The increase in 2017 six-month non-interest income was a result of higher income from gains on sale of loans and bank owned life insurance, partially offset by lower gains on recovery of acquired loans.

Non-interest expense for second quarter 2017 totaled $5.4 million, an increase of $916,000, compared to $4.5 million for the prior year quarter. The higher non-interest expense compared to second quarter 2016 was primarily a result of increased salaries and employee benefits and merger-related expenses. Non-interest expense for the first six months of 2017 totaled $10.7 million, an increase of $1.8 million or 20.8% compared to $8.8 million for the same period in 2016. The increase was primarily a result of increased salaries and employee benefits, merger-related expenses and other professional fees. The increase in salaries and employee benefits cost reflects the Bank's significant loan and revenue growth which occurred in 2016 and the first six months of 2017. The Bank's revenue growth rate outpaced the rate of growth for non-interest expense during the second quarter and for the first six months of 2017 resulting in positive operating leverage and an improved efficiency ratio.

Pre-provision net revenue2 for the second quarter of 2017 was $3.8 million, an increase of $1.1 million, or 40.3%, compared to the second quarter of 2016, and an increase of $517,000, or 15.9%, compared to $3.2 million in the linked first quarter of 2017. Pre-provision net revenue for the first six months of 2017 was $7.0 million, an increase of $1.7 million, or 32.1%, compared to the first six months of 2016.

Income tax expense for the second quarter of 2017 was $914,000, an increase of $253,000 compared to $661,000 for second quarter 2016. The increase was driven by higher pre-tax income as the Bank's second quarter 2017 effective income tax rate remained stable at 31.5% compared to 31.4% for second quarter 2016.  

2 Pre-provision net revenue is a non-GAAP financial measure.  For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see page 11 of this press release.

Balance Sheet

Total assets at June 30, 2017 were $1.2 billion, an increase of $187.9 million, or 19.4%, compared to $970.7 million at June 30, 2016, due primarily to loan growth during the second quarter 2017. Total loans were $993.4 million at June 30, 2017, an increase of $192.0 million, or 24.0%, compared to June 30, 2016, and an increase of $95.0 million, or 10.6%, from the 2016 year end. Total loans increased $78.1 million compared to the linked first quarter of 2017. The growth during the second quarter was broadly distributed across the Bank's commercial and consumer loan segments.   

Total deposits were $946.2 million at June 30, 2017, an increase of $93.9 million, or 11.0%, compared to June 30, 2016, and were up $51.2 million from December 31, 2016. Non-interest bearing deposits totaled $133.1 million at June 30, 2017, an increase of $14.5 million, or 12.2%, from December 31, 2016, reflective of expanded commercial lending relationships and the Bank's recently created Commercial Deposit Division.

Stockholders' equity increased to $131.0 million at June 30, 2017, up $42.2 million or 47.5% compared to December 31, 2016, primarily a result of the capital offering completed in June 2017 which raised $37.5 million in net new capital, as well as a $3.7 million increase in retained earnings.

Asset Quality

First Bank's asset quality metrics remained stable during the second quarter, reflective of disciplined risk management and underwriting standards. Net charge-offs were $22,000 for the second quarter of 2017, compared to $63,000 for second quarter 2016 and $146,000 for the first quarter of 2017. Net charge-offs as an annualized percentage of average loans were 0.01% in second quarter 2017, compared to 0.06% in the linked first quarter and 0.03% in second quarter 2016. Nonperforming loans as a percentage of total loans at June 30, 2017 were 0.49%, compared with 0.70% on June 30, 2016 and 0.57% at March 31, 2017. The allowance for loan losses to nonperforming loans was 221.77% at June 30, 2017, compared with 161.48% at the end of second quarter 2016, and 193.35% at March 31, 2017.

As of June 30, 2017, the Bank exceeded all regulatory capital requirements to be considered well capitalized with a Tier 1 Leverage ratio of 11.74% a Tier 1 Risk-Based capital ratio of 11.83%, a Common Equity Tier 1 Capital ("CET1") ratio of 11.83%, and a Total Risk-Based capital ratio of 14.80%.

Follow-On Offering Completed in Second Quarter

The Bank announced during the second quarter that it had completed its public offering of approximately 3.5 million shares of its common stock, including an underwriters' over-allotment of approximately 219,000 shares, which raised $37.5 million in additional capital, net of expenses. The Company expects to continue to use the net proceeds from the offering for general corporate purposes, including the support of additional growth.

Commercial Deposit Division Added

In June, the Bank announced the establishment of a new commercial deposit division focused on deposits and cash management services for commercial clients. First Bank's new division targets mid- to large-size companies with more sophisticated deposit and cash management needs and provides a proactive consultative approach to addressing client needs.

Cash Dividend Declared

On July 18, 2017 the Board of Directors declared a quarterly cash dividend of $0.02 per share to common shareholders of record at the close of business on August 10, 2017, and payable on August 24, 2017. The First Bank Board believes that this dividend provides shareholders an added tangible benefit, and that it is appropriate given the Company's current financial performance, momentum and near-term prospects.

Conference Call

First Bank will host an earnings call on Tuesday, July 25, 2017 at 9:00 AM eastern time.  The direct dial toll free number for the call is 1-844-825-9784.  For those unable to participate in the call, a replay will be available by dialing 1-877-344-7529 (access code 10110137) from one hour after the end of the conference call until November 24, 2017.  Replay information will also be available on our 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 (www.firstbanknj.com) is a New Jersey state-chartered bank with ten full-service branches in Cranbury, Denville, Ewing, Flemington, Hamilton, Lawrence, Randolph, Somerset and Williamstown, New Jersey, and Trevose, Pennsylvania. With $1.2 billion in assets as of June 30, 2017, First Bank offers a traditional range of deposit and loan products to individuals and mid- to large-size 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". 

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond First Bank's control and could impede its ability to achieve these goals. These factors include those listed in our Annual Report on Form 10-K under the caption "Item 1A-Risk Factors", and general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, the ability to obtain required shareholder approvals of the Bucks County Bank merger, the ability to complete such merger as expected and within the expected timeframe, the possibility that one or more of the conditions to the completion of such merger may not be satisfied, and results of regulatory exams, among other factors. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein.  Readers are cautioned against placing undue reliance on such forward-looking statements.  Past results are not necessarily indicative of future performance.

FIRST BANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data, unaudited)
 
           
      June 30,   December 31,
        2017       2016  
Assets      
Cash and due from banks $ 7,543     $ 6,078  
Federal funds sold   -       5,000  
Interest bearing deposits in other banks   18,680       19,211  
Cash and cash equivalents   26,223       30,289  
Interest bearing time deposits in other banks   6,057       7,440  
Investment securities available for sale   44,586       47,077  
Investment securities held to maturity (fair value of $52,516    
at June 30, 2017 and $53,358 at December 31, 2016)   52,149       53,473  
Restricted investment in bank stocks   3,777       3,890  
Other investments   5,000       5,000  
Loans, net of deferred fees and costs   993,426       898,429  
Less: Allowance for loan losses   10,902       9,826  
Net loans   982,524       888,603  
Premises and equipment, net   3,214       3,338  
Other real estate owned, net   1,217       1,292  
Accrued interest receivable   2,722       2,573  
Bank-owned life insurance   21,375       21,067  
Intangible assets, net   196       224  
Deferred income taxes   8,622       8,350  
Other assets   884       678  
Total assets $ 1,158,546     $ 1,073,294  
       
Liabilities and Stockholders' Equity      
Deposits:      
Non-interest bearing $ 133,068     $ 118,569  
Interest bearing   813,084       776,365  
Total deposits   946,152       894,934  
Borrowings   57,107       64,510  
Subordinated debentures   21,694       21,641  
Accrued interest payable   604       636  
Other liabilities   2,020       2,767  
Total liabilities   1,027,577       984,488  
Stockholders' Equity:      
Preferred stock, par value $2 per share; 5,000,000 shares authorized;              
no shares issued and outstanding   -       -  
Common stock, par value $5 per share; 20,000,000 shares authorized;    
issued and outstanding 15,015,778 shares at June 30, 2017            
and 11,410,274 shares at December 31, 2016   74,866       56,885  
Additional paid-in capital   39,136       18,779  
Retained earnings   17,312       13,611  
Accumulated other comprehensive loss   (345 )     (469 )
Total stockholders' equity   130,969       88,806  
Total liabilities and stockholders' equity $ 1,158,546     $ 1,073,294  
 

 

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, 
            2017     2016     2017     2016
Interest and Dividend Income                
Investment securities—taxable   $ 387
  $ 279   $ 763   $ 635
Investment securities—tax-exempt     125
    125     248     251
Interest bearing deposits in other banks,              
Fed funds sold, and other   150
    95     275     177
Loans, including fees       10,670
    8,762     20,699     17,234
Total interest and dividend income   11,332     9,261     21,985     18,297
                       
Interest Expense                  
Deposits           2,090
    1,937     4,086     3,725
Borrowings       190
    46     349     127
Subordinated debentures     398
    398     796     796
Total interest expense   2,678
    2,381     5,231     4,648
Net interest income       8,654
    6,880     16,754     13,649
Provision for loan losses     806
    639     1,244     1,452
Net interest income after provision for loan losses   7,848
    6,241     15,510     12,197
                       
Non-Interest Income                  
Service fees on deposit accounts     43
    46     84     81
Loan fees           48
    20     60     35
Income from bank-owned life insurance   155
    105     308     208
Gains on sale of investment securities, net   -     -     -     25
Gains on sale of loans       -
    -     136     -
Gains on recovery of acquired loans   76
    63     113     174
Other non-interest income     100
    82     180     153
Total non-interest income   422
    316     881     676
                       
Non-Interest Expense                  
Salaries and employee benefits     2,828     2,287     5,578     4,501
Occupancy and equipment     719
    638     1,404     1,325
Legal fees           49
    78     149     152
Other professional fees     330
    295     680     569
Regulatory fees       182
    153     401     325
Directors' fees       132
    120     250     233
Data processing       256
    231     511     458
Marketing and advertising     145
    125     270     250
Travel and entertainment     62
    57     121     105
Insurance           56
    53     123     110
Other real estate owned expense, net   191
    123     314     242
Merger-related expenses     130
    -     280     -
Other expense       289
    293     580     552
Total non-interest expense   5,369
    4,453     10,661     8,822
Income Before Income Taxes
  2,901
    2,104     5,730     4,051
Income tax expense       914
    661     1,800     1,252
Net Income     $ 1,987
  $ 1,443   $ 3,930   $ 2,799
                       
Basic earnings per share
$ 0.16   $ 0.15   $ 0.33   $ 0.30
Diluted earnings per share
$ 0.15   $ 0.15   $ 0.32   $ 0.29
                       
Basic weighted average common shares outstanding   12,651,518     9,486,450     12,022,524     9,467,438
Diluted weighted average common shares outstanding           12,998,615     9,596,407     12,377,440     9,568,510

 

FIRST BANK AND SUBSIDIARIES
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(unaudited)
                       
                       
  Three Months Ended June 30,
    2017       2016  
  Average        Average   Average        Average
  Balance   Interest   Rate (5)   Balance   Interest   Rate (5)
  (dollars in thousands)
Interest earning assets                      
Investment securities (1) (2) $ 98,570     $ 555     2.26 %   $ 82,197     $ 447     2.19 %
Loans (3)   937,232       10,670     4.57 %     782,357       8,762     4.50 %
Interest bearing deposits in other banks and                      
Federal funds sold   34,075       86     1.01 %     43,744       57     0.52 %
Restricted investment in bank stocks   3,605       42     4.67 %     1,788       23     5.17 %
Other investments   5,000       22     1.76 %     5,000       15     1.21 %
  Total interest earning assets (2)   1,078,482       11,375     4.23 %     915,086       9,304     4.09 %
Allowance for loan losses   (10,383 )             (8,725 )        
Non-interest earning assets   43,595               36,092          
  Total assets $ 1,111,694             $ 942,453          
                       
Interest bearing liabilities                      
Interest bearing demand deposits $ 116,813     $ 176     0.60 %   $ 87,354     $ 146     0.67 %
Money market deposits   163,734       290     0.71 %     115,927       200     0.69 %
Savings deposits   70,688       87     0.49 %     72,276       91     0.51 %
Time deposits   449,316       1,537     1.37 %     447,584       1,500     1.35 %
Total interest bearing deposits   800,551       2,090     1.05 %     723,141       1,937     1.08 %
Borrowings   53,594       190     1.42 %     17,791       46     1.04 %
Subordinated debentures   21,680       398     7.34 %     21,572       398     7.38 %
  Total interest bearing liabilities   875,825       2,678     1.23 %     762,504       2,381     1.26 %
Non-interest bearing deposits   127,554               106,067          
Other liabilities   2,568               2,113          
Stockholders' equity   105,747               71,769          
  Total liabilities and stockholders' equity $ 1,111,694             $ 942,453          
Net interest income/interest rate spread (2)       8,697     3.00 %         6,923     2.83 %
Net interest margin (2) (4)         3.23 %           3.04 %
Tax-equivalent adjustment (2)       (43 )             (43 )    
Net interest income     $ 8,654             $ 6,880      
                       
                       
(1) Average balances of investment securities available for sale are based on amortized cost.                  
(2) Interest and average rates are tax equivalent using a federal income tax rate of 34 percent.                  
(3) Average balances of loans include loans on nonaccrual status.                      
(4) Net interest income divided by average total interest earning assets.                    
(5) Average rates are annualized.                      

 

FIRST BANK AND SUBSIDIARIES
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(unaudited)
                       
                       
  Six Months Ended June 30,
    2017       2016  
  Average        Average   Average        Average
  Balance   Interest   Rate   Balance   Interest   Rate
  (dollars in thousands)
Interest earning assets                    
Investment securities (1) (2) $ 99,404     $ 1,096     2.22 %   $ 88,570     $ 971     2.20 %
Loans (3)   919,128       20,699     4.54 %     757,352       17,234     4.58 %
Interest bearing deposits in other banks and                
Federal funds sold   34,510       160     0.93 %     41,212       107     0.52 %
Restricted investment in bank stocks   3,548       74     4.21 %     1,973       39     3.98 %
Other investments   5,000       41     1.65 %     5,000       31     1.25 %
  Total interest earning assets (2)   1,061,590       22,070     4.19 %     894,107       18,382     4.13 %
Allowance for loan losses   (10,245 )             (8,439 )        
Non-interest earning assets   43,391               36,580          
  Total assets $ 1,094,736             $ 922,248          
                       
Interest bearing liabilities                  
Interest bearing demand deposits $ 116,693     $ 344     0.59 %   $ 82,255     $ 280     0.68 %
Money market deposits   159,951       543     0.68 %     120,350       429     0.72 %
Savings deposits   70,088       171     0.49 %     74,999       187     0.50 %
Time deposits   446,235       3,028     1.37 %     420,903       2,829     1.35 %
Total interest bearing deposits   792,967       4,086     1.04 %     698,507       3,725     1.07 %
Borrowings   54,704       349     1.29 %     24,192       127     1.06 %
Subordinated debentures   21,665       796     7.35 %     21,558       796     7.38 %
  Total interest bearing liabilities   869,336       5,231     1.21 %     744,257       4,648     1.26 %
Non-interest bearing deposits   124,248               105,043          
Other liabilities   3,128               2,217          
Stockholders' equity   98,024               70,731          
  Total liabilities and stockholders' equity $ 1,094,736             $ 922,248          
Net interest income/interest rate spread (2)   16,839     2.98 %         13,734     2.87 %
Net interest margin (2) (4)     3.20 %           3.09 %
Tax-equivalent adjustment (2)   (85 )             (85 )    
Net interest income   $ 16,754             $ 13,649      
                       
                       
(1) Average balances of investment securities available for sale are based on amortized cost.          
(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 34 percent.      
(3) Average balances of loans include loans on nonaccrual status.              
(4) Net interest income divided by average total interest earning assets.            
(5) Average rates are annualized.                  

 

FIRST BANK AND SUBSIDIARIES          
QUARTERLY FINANCIAL HIGHLIGHTS  
(in thousands, except share and employee data, unaudited)  
             
  2Q2017 1Q2017 4Q2016 3Q2016 2Q2016  
EARNINGS          
Net interest income $ 8,654   $ 8,100   $ 7,798   $ 7,456   $ 6,880    
Provision for loan losses   806     438     954     291     639    
Non-interest income   422     459     570     384     316    
Non-interest expense   5,369     5,292     4,717     4,793     4,453    
Income tax expense   914     886     891     955     661    
Net income   1,987     1,943     1,806     1,801     1,443    
             
PER SHARE DATA          
Basic earnings per share $ 0.16   $ 0.17   $ 0.16   $ 0.16   $ 0.15    
Diluted earnings per share   0.15     0.17     0.16     0.16     0.15    
Tangible book value (1)   8.71     7.94     7.76     7.66     7.49    
Book value   8.72     7.95     7.78     7.68     7.51    
Cash dividend declared        
             
PERFORMANCE RATIOS         
Return on average assets (2)   0.72 %   0.73 %   0.70 %   0.74 %   0.62 %  
Return on average equity (2)   7.54 %   8.73 %   8.10 %   8.25 %   8.09 %  
Net interest margin, tax equivalent basis (2)   3.23 %   3.16 %   3.12 %   3.16 %   3.04 %  
Efficiency ratio (1)   58.21 %   61.32 %   58.23 %   62.04 %   62.43 %  
Pre-provision net revenue (1) $ 3,761   $ 3,244   $ 3,383   $ 2,933   $ 2,680    
             
MARKET DATA (period-end)        
Market value per share $ 11.65   $ 11.95   $ 11.60   $ 8.38   $ 6.94    
Market value / book value   133.57 %   150.25 %   149.04 %   109.16 %   92.43 %  
Common shares outstanding   15,015,778     11,447,259     11,410,274     11,393,609     11,392,776    
Market capitalization $ 174,934   $ 136,795   $ 132,359   $ 95,478   $ 79,066    
             
CAPITAL & LIQUIDITY        
Tangible equity / assets (1)   11.29 %   8.28 %   8.25 %   8.66 %   8.79 %  
Equity / assets   11.30 %   8.30 %   8.27 %   8.68 %   8.81 %  
Loans / deposits   105.00 %   97.96 %   100.39 %   94.62 %   94.04 %  
             
ASSET QUALITY          
Net charge offs (recoveries) $ 22   $ 146   $ 424   $ 30   $ 63    
Nonperforming loans   4,916     5,233     5,967     3,683     5,595    
Nonperforming assets   6,133     6,371     7,289     4,895     7,270    
Net charge offs / average loans (2)   0.01 %   0.06 %   0.20 %   0.01 %   0.03 %  
Nonperforming loans / total loans   0.49 %   0.57 %   0.66 %   0.45 %   0.70 %  
Nonperforming assets / total assets   0.53 %   0.58 %   0.68 %   0.49 %   0.75 %  
Allowance for loan losses / total loans   1.10 %   1.11 %   1.09 %   1.12 %   1.13 %  
Allowance for loan losses / nonperforming loans   221.77 %   193.35 %   164.67 %   252.40 %   161.48 %  
             
PERIOD-END DATA          
Total assets $ 1,158,546   $ 1.096,395   $ 1,073,294   $ 1,007,685   $ 970,689    
Total loans   993,426     915,280     898,429     827,161     801,421    
Total deposits   946,152     934,326     894,934     874,149     852,230    
Total stockholders' equity   130,969     91,045     88,806     87,463     85,540    
Full-time equivalent employees (3)   116     104     108     104     107    
___________________________      
             
(1) 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.      
(2) Annualized.          
(3) The full-time equivalent totals include 8 and 4 seasonal interns as of 2Q2017 and 2Q2016, respectively.  

 

FIRST BANK AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
(unaudited)
                 
                 
Efficiency Ratio              
    Three Months Ended June 30,   Six Months Ended June 30,
      2017       2016       2017       2016  
    (dollars in thousands)
                 
Non-interest expense $ 5,369     $ 4,453     $ 10,661     $ 8,822  
Less:  Merger-related expenses   130       -       280       -  
Adjusted non-interest expense (numerator) $ 5,239     $ 4,453     $ 10,381     $ 8,822  
                 
Net interest income $ 8,654     $ 6,880     $ 16,754     $ 13,649  
Non-interest income   422       316       881       676  
Total revenue   9,076       7,196       17,635       14,325  
Less:                
Less:  Gains on sale of investment securities, net   -       -       -       25  
Less:  Gain on sale of loans   -       -       136       -  
Less:  Gains on recovery of acquired loans   76       63       113       174  
Adjusted total revenue (denominator) $ 9,000     $ 7,133     $ 17,386     $ 14,126  
                 
Efficiency ratio   58.21 %     62.43 %     59.71 %     62.45 %
                 
Pre-provision net revenue            
                 
    Three Months Ended June 30,   Six Months Ended June 30,
      2017       2016       2017       2016  
    (dollars in thousands)
                 
Net interest income $ 8,654     $ 6,880     $ 16,754     $ 13,649  
Non-interest income   422       316       881       676  
Less:                
  Non-interest expense   5,369       4,453       10,661       8,822  
  Gains on sale of investment securities, net   -       -       -       25  
  Gains on sale of loans   -       -       136       -  
  Gains on recovery of acquired loans   76       63       113       174  
Add:                
  Merger-related expenses   130       -       280       -  
Pre-provision net revenue $ 3,761     $ 2,680     $ 7,005     $ 5,304  
 

 

 

 

CONTACT:  Patrick L. Ryan, President and CEO
(609) 643-0168, patrick.ryan@firstbanknj.com

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