First Bank (Nasdaq Global Market: FRBA) (the Bank) today announced
results for the third quarter of 2024. Net income for the third
quarter of 2024 was $8.2 million, or $0.32 per diluted share.
Return on average assets, return on average equity and return on
average tangible equity[i] for the third quarter of 2024 were
0.88%, 8.15% and 9.42%, respectively. The Bank recorded a net loss
of $1.3 million, or a loss of $0.05 per diluted share, and losses
on average assets, equity, and tangible equityi of 0.14%, 1.43%,
and 1.66%, respectively, for the third quarter of
2023. Financial results for the third quarter of 2023 were
negatively impacted by the Malvern Bancorp acquisition, completed
in July 2023, primarily due to the merger-related expenses and the
initial credit loss expense on acquired loans.
Third Quarter 2024 Performance Highlights:
- Total loans of $3.09 billion at September 30, 2024 grew
$89.5 million, or 11.9%, annualized, from the linked quarter ended
June 30, 2024. Loan growth occurred late in the quarter, which is
reflected in average loan balance increase of only $12.2 million
during the quarter ended September 30, 2024. The growth was
primarily driven by $56.9 million expansion within the Commercial
and Industrial and Owner-occupied commercial real estate loan
categories.
- Total deposits of $3.05 billion at September 30, 2024 grew
$82.4 million, or 11.1%, annualized, from the linked quarter.
Growth occurred across all deposit categories, as non-interest
bearing demand, interest bearing demand, money market and savings,
and time deposits increased $19.3 million, $23.3 million, $36.3
million, and $3.6 million, respectively, from the second quarter of
2024.
- Tangible book value per share[ii] grew to $13.84 at
September 30, 2024, increasing 11.2%, annualized, from
$13.46 at June 30, 2024.
- The Bank continued to prioritize balance sheet efficiency,
selling approximately $11.7 million of investment securities during
the quarter ended September 30, 2024 which resulted in a $555,000
net loss on the sale of investments during the quarter. The
Bank also completed a restructuring of its bank-owned life
insurance (BOLI) portfolio during the quarter which resulted in
approximately $24 million in terminated policies and the
acquisition of approximately $20 million in new policies. As a
result of the restructure, the Bank recorded a $1.1 million
enhancement to the cash surrender value and recognized
additional income tax expense totaling $1.2 million.
- Strong asset quality continued, with nonperforming assets
decreasing by 9 basis points to 0.47% of total assets at September
30, 2024 from 0.56% at June 30, 2024.
Patrick L. Ryan, President and CEO of First
Bank, reflected on the Bank’s performance, stating, “First Bank’s
outstanding third quarter growth is an outcome of a well-executed
long-term strategy. We have worked to build teams, products, and
operating structures that promote quality growth over the long
term, and the results are evident. Our teams added high-quality
loans and deposits across all categories. We also continued to
optimize the Bank’s efficiency as our efficiency ratio[iii]
remained below 60% for the 21st consecutive quarter. We continued
to enact strategies to enhance future profitability and complement
our organic growth efforts including ongoing balance
sheet restructuring through the sale of certain lower-yielding
investment securities, and we opportunistically restructured our
BOLI policies during the quarter, an initiative that will be
accretive to future earnings. The current quarter highlighted our
efforts to build our core community banking customer base while we
expand our specialty banking teams and continued investment in
technology to improve the customer experience.”
Mr. Ryan added, “We are pleased with our ability
to generate solid returns for our shareholders, including this
quarter’s 11% annualized growth in tangible book value per share.
We continue to explore a variety of opportunities to drive future
earnings. Our recent receipt of regulatory approval to initiate
stock repurchases also adds to our toolkit of options to support
continued and growing returns for our shareholders.”
Income Statement
In the third quarter of 2024, the Bank’s net
interest income increased to $30.1 million, growing $1.5 million,
or 5.2%, compared to the same period in 2023. The increase was
primarily due to net interest margin expansion in the third quarter
of 2024 compared to the third quarter of 2023. Net interest income
decreased $446,000, or 1.5%, from the linked second quarter of
2024. The modest decrease was primarily due to net interest margin
compression and the timing of our loan growth, which
occurred late in the third quarter, limiting interest
income received during the quarter. During the third quarter, a
$606,000 increase in interest income compared to the second quarter
of 2024 was primarily related to higher earning asset balances,
which was offset by a $1.1 million increase in interest
expense, resulting from increased deposit costs and a
higher level of average borrowings.
The Bank’s tax equivalent net interest margin of
3.49% for the third quarter of 2024 represented an increase of
13 basis points from the quarter ended September 30, 2023 and
a decrease of 13 basis points from the linked quarter ended June
30, 2024. The Bank’s tax equivalent net interest margin includes
the impact of amortization and accretion of premiums and discounts
from fair value measurements of assets acquired and liabilities
assumed in acquisitions. Amortization of premiums and accretion of
discounts from fair value measurements of assets acquired and
liabilities assumed in acquisitions totaled $3.4 million during the
third quarter of 2024, compared to $2.7 million for the
quarter ended September 30, 2023 and $3.6 million for the quarter
ended June 30, 2024. The Bank’s net interest margin declined
compared to the linked second quarter due to lower acquisition
accounting accretion income, increased levels of average
borrowings, lower average loan yields, and higher interest bearing
deposit costs.
The Bank recorded a credit loss expense totaling
$1.6 million during the third quarter of 2024, compared to $63,000
recorded during the second quarter of 2024 and $6.7 million
recorded for the third quarter of 2023. The Bank’s credit loss
expense for the third quarter of 2024 was commensurate with robust
organic loan growth during the quarter and continued to reflect
strong and stable asset quality. Credit loss expense for the third
quarter of 2023 included a $5.5 million credit loss recorded to
establish the allowance for credit losses on the acquired Malvern
loan portfolio.
In the third quarter of 2024, the Bank recorded
non-interest income of $2.5 million, compared to $193,000 during
the same period in 2023 and $689,000 in the second quarter of 2024.
The increase in non-interest income was primarily related to
approximately $1.1 million in one-time enhancement to the cash
surrender value of BOLI that resulted from the aforementioned
BOLI restructuring transaction during the quarter, as well as
higher yields earned on the new BOLI policies purchased during the
quarter. Additionally, the Bank recorded $135,000 in net gains on
the sale of loans during third quarter 2024, compared to net losses
on the sale of loans totaling $900,000 and $704,000 in the linked
and prior year quarters, respectively. This was partially offset by
$555,000 in net losses on the sale of investment securities during
third quarter 2024, while no investment securities sales were
executed in the linked quarter, and $527,000 in net losses were
recognized during the third quarter of 2023.
Non-interest expense for the third quarter of
2024 was $18.6 million, a decrease of $4.8 million, or 20.6%,
compared to $23.4 million for the prior year quarter. Lower
non-interest expense was largely due to $7.0 million in
merger-related expenses recorded during the third quarter of 2023.
Excluding merger-related expenses, non-interest expense grew $2.2
million, or 13.3%, including an increase of $849,000 in salaries
and employee benefits due to merit increases and a larger employee
base. Other real estate owned (OREO) expense totaled $662,000
during third quarter 2024, with no similar expense recorded in
third quarter 2023. The increase reflects a $363,000 impairment of
an OREO asset along with other legal and real estate tax expenses
recorded during the quarter. Additionally, other professional fees
increased $312,000 primarily related to increases in personnel
placement costs, consulting fees, and tax services.
On a linked quarter basis, non-interest expense
increased $691,000, or 3.8%, from $18.0 million for the second
quarter of 2024. The largest impact on expenses compared to the
linked quarter is the aforementioned $363,000 OREO impairment
expense during third quarter 2024. Salaries and employee
benefits expense increased by $207,000 primarily due to a larger
employee base. These were partially offset by modest decreases in
marketing and advertising costs, as well as travel and
entertainment expenses.
Income tax expense for the three months ended
September 30, 2024 was $4.2 million with an effective tax rate of
33.9%, compared to an income tax benefit of $78,000 for the third
quarter of 2023 and an income tax expense of $2.1 million with an
effective tax rate of 16.2% for the second quarter of 2024. The
effective tax rate for the third quarter of 2024 included
approximately $1.2 million of tax expense recorded related to the
BOLI restructuring. Excluding this impact, the effective tax rate
would have been approximately 24% for the third quarter of 2024.
The effective tax rate for the second quarter of 2024 was lower
compared to the first quarter due to the recently enacted New
Jersey Corporate Transit Fee, which resulted in a change in tax
rate and a revaluation of the Bank’s deferred tax assets. A
tax benefit of $1.1 million was booked as a discrete item in the
second quarter for this change in tax rate. With the expected
negative ongoing impact of the New Jersey Corporate Transit Fee, we
anticipate our future effective tax rate will range between 24% and
25%.
Balance Sheet
Total assets increased $148.3 million, or 4.1%,
from December 31, 2023 to September 30, 2024. Total loans increased
$66.0 million, or 2.2%, from December 31, 2023 to September 30,
2024. Growth totaling $116.3 million across the owner-occupied
commercial real estate and commercial and industrial loan
portfolios was partially offset by a decline of commercial investor
real estate loans totaling $47.8 million, including multi-family
and construction and development, during the first nine months of
2024. The Bank continues to prioritize relationship-based
commercial and industrial lending while actively managing our
exposure in investor real estate lending.
Total assets grew $141.9 million, or 15.6%
annualized, during the quarter ended September 30, 2024. Growth
included an increase of $71.5 million in cash and cash equivalents
related to the opportunistic addition of FHLB advances when
interest rates declined during the quarter. Total loans increased
by $89.5 million, or 11.9%, annualized, during the quarter ended
September 30, 2024. Growth across the owner-occupied commercial
real estate and commercial and industrial loan portfolios totaled
$56.9 million, while commercial investor real estate loans,
including multi-family and construction and development, grew $27.5
million, and consumer and residential real estate loans grew $5.2
million.
Total deposits increased by $82.4 million,
or 11.1% annualized, during the quarter ended September 30, 2024.
Growth occurred across all categories, with non-interest bearing
demand, interest bearing demand, money market and savings, and time
deposits increasing $19.3 million, $23.3 million, $36.3 million,
and $3.6 million, respectively, from the second quarter of 2024.
Our team continued to focus on attracting new deposit relationships
while maintaining existing core balances.
Nearly all of the Bank’s deposit growth for the
first nine months of 2024 occurred during the quarter ended
September 30, 2024. We also experienced a slight shift in the mix
of customer balances over the nine-month period. The Bank grew
non-interest bearing demand deposits by $17.3 million in a
challenging interest rate environment, while total interest-bearing
deposits experienced a shift toward higher-costing deposits. During
the first nine months of 2024, increases in money market and
savings deposits and time deposits totaled $64.2 million and
$32.3 million, respectively, partially offset by a decline in
interest bearing demand deposits totaling $31.3 million.
During the nine months ended September 30, 2024,
stockholders’ equity increased by $31.2 million, primarily due to
net income, partially offset by dividends.
As of September 30, 2024, the Bank continued to
exceed all regulatory capital requirements to be considered
well-capitalized, with a Tier 1 Leverage ratio of 9.53%, a Tier 1
Risk-Based capital ratio of 9.65%, a Common Equity Tier 1 Capital
ratio of 9.65%, and a Total Risk-Based capital ratio of 11.55%. The
tangible stockholders' equity to tangible assets ratio[IV]
increased to 9.41% as of September 30, 2024 compared to 8.89% at
December 31, 2023.
Asset Quality
First Bank's asset quality metrics for the third
quarter of 2024 remained favorable. Total nonperforming loans
declined from $25.0 million at December 31, 2023 to $12.0 million
at September 30, 2024, while total nonperforming assets declined
from $25.0 million to $17.7 million during the same
period.
The Bank recorded net charge-offs of $386,000
during the third quarter of 2024, compared to net charge-offs of
$175,000 during the second quarter of 2024 and net charge-offs of
$1.1 million in the third quarter of 2023. The allowance for credit
losses on loans as a percentage of total loans measured 1.21% at
September 30, 2024, compared to 1.21% at June 30, 2024 and 1.40% at
December 31, 2023. The decline from December 31, 2023 to
September 30, 2024 reflected the $5.5 million charge-off and
elimination of the Bank’s reserves on a purchase credit
deteriorated loan transferred to OREO during the first quarter
of 2024.
Liquidity and Borrowings
The Bank increased its liquidity position in the
third quarter of 2024. Total cash and cash equivalents increased by
$71.5 million to $312.3 million at September 30, 2024. Borrowings
increased by $49.9 million compared to June 30, 2024, as the Bank
increased its FHLB borrowings.
Management believes the Bank’s current liquidity position,
coupled with our various contingent funding sources, provides us
with a strong liquidity base and a diverse source of funding
options.
Cash Dividend Declared
On October 15, 2024, 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 November
8, 2024, payable on November 22, 2024.
Share Repurchase Program
The Board of Directors has authorized and the
Bank has received regulatory approvals for a new share repurchase
program. The program provides for the repurchase of up to 1.0
million shares of First Bank common stock for an aggregate
repurchase amount of up to $16.0 million. The timing, price and
volume of repurchases will be based on market conditions, relevant
securities laws and other factors. The stock repurchases may be
made from time to time on the open market or in privately
negotiated transactions. The stock repurchase program does not
require First Bank to repurchase any specific number of shares, and
First Bank may terminate the repurchase program at any time. The
share repurchase program will expire on September 30, 2025.
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/8c344bfa-6975-4f79-872b-2307433b1520
First Bank will host its earnings call on
Thursday, October 24, 2024 at 9:00 AM Eastern Time. The direct dial
toll free number for the live call is 1-800-715-9871 and the access
code is 1578641. For those unable to participate in the call, a
replay will be available by dialing 1-800-770-2030 (access code
8550862) from one hour after the end of the conference call until
January 22, 2025. 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 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 $3.76 billion in assets as of
September 30, 2024, 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: changes in market interest rates on funding costs,
yield on interest earning assets, credit quality and strength of
underlying collateral and the effect of such changes on the market
value of First Bank's investment securities portfolio; whether
First Bank can: successfully implement its growth strategy,
including identifying acquisition targets and consummating suitable
acquisitions, integrate acquired entities and realize anticipated
efficiencies, 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 in early 2023); the impact of public health
emergencies, such as 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; 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.
_____________
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 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.
iii 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.
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.
|
FIRST BANK |
|
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION |
|
(in thousands, except for share data,
unaudited) |
| |
| |
September 30, 2024 |
|
December 31, 2023 |
| Assets |
|
|
|
|
|
|
Cash and due from banks |
$ |
35,456 |
|
|
$ |
25,652 |
|
| Restricted cash |
|
9,200 |
|
|
|
13,770 |
|
| Interest bearing deposits with
banks |
|
267,643 |
|
|
|
188,529 |
|
|
Cash and cash equivalents |
|
312,299 |
|
|
|
227,951 |
|
| Interest bearing time deposits
with banks |
|
743 |
|
|
|
996 |
|
| Investment securities
available for sale, at fair value |
|
74,549 |
|
|
|
94,142 |
|
|
Investment securities held to maturity, net of allowance for credit
losses of $206 at September 30, 2024 and $200 at December 31, 2023
(fair value of $39,049 and $38,486 at September 30, 2024 and
December 31, 2023, respectively) |
|
43,659 |
|
|
|
44,059 |
|
| Equity securities, at fair
value |
|
1,860 |
|
|
|
1,888 |
|
| Restricted investment in bank
stocks |
|
13,845 |
|
|
|
10,469 |
|
| Other investments |
|
11,141 |
|
|
|
9,841 |
|
| Loans, net of deferred fees
and costs |
|
3,087,488 |
|
|
|
3,021,501 |
|
|
Less: Allowance for credit losses |
|
(37,434 |
) |
|
|
(42,397 |
) |
|
Net loans |
|
3,050,054 |
|
|
|
2,979,104 |
|
| Premises and equipment,
net |
|
20,331 |
|
|
|
21,627 |
|
| Other real estate owned,
net |
|
5,637 |
|
|
|
- |
|
| Accrued interest
receivable |
|
13,502 |
|
|
|
14,763 |
|
| Bank-owned life insurance |
|
84,727 |
|
|
|
86,435 |
|
| Goodwill |
|
44,166 |
|
|
|
44,166 |
|
| Other intangible assets,
net |
|
9,318 |
|
|
|
10,812 |
|
| Deferred income taxes,
net |
|
31,448 |
|
|
|
30,875 |
|
| Other assets |
|
40,374 |
|
|
|
32,199 |
|
|
Total assets |
$ |
3,757,653 |
|
|
$ |
3,609,327 |
|
| |
|
|
|
|
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
| Non-interest bearing
deposits |
$ |
519,079 |
|
|
$ |
501,763 |
|
| Interest bearing deposits |
|
2,530,991 |
|
|
|
2,465,806 |
|
|
Total deposits |
|
3,050,070 |
|
|
|
2,967,569 |
|
| Borrowings |
|
236,999 |
|
|
|
179,140 |
|
| Subordinated debentures |
|
29,926 |
|
|
|
55,261 |
|
| Accrued interest payable |
|
5,078 |
|
|
|
2,813 |
|
| Other liabilities |
|
33,510 |
|
|
|
33,644 |
|
|
Total liabilities |
|
3,355,583 |
|
|
|
3,238,427 |
|
| 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; 27,367,984 shares issued and
25,186,920 shares outstanding at September 30, 2024 and 27,149,186
shares issued and 24,968,122 shares outstanding at December 31,
2023 |
|
135,415 |
|
|
|
134,552 |
|
| Additional paid-in
capital |
|
124,014 |
|
|
|
122,881 |
|
| Retained earnings |
|
167,792 |
|
|
|
140,563 |
|
| Accumulated other
comprehensive loss |
|
(3,773 |
) |
|
|
(5,718 |
) |
| Treasury stock, 2,181,064
shares at September 30, 2024 and December 31, 2023 |
|
(21,378 |
) |
|
|
(21,378 |
) |
|
Total stockholders' equity |
|
402,070 |
|
|
|
370,900 |
|
|
Total liabilities and stockholders' equity |
$ |
3,757,653 |
|
|
$ |
3,609,327 |
|
| |
|
|
|
|
|
|
|
|
FIRST BANK |
|
CONSOLIDATED STATEMENTS OF INCOME (LOSS) |
|
(in thousands, except for share data,
unaudited) |
| |
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
| Interest and Dividend
Income |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities—taxable |
$ |
1,201 |
|
|
$ |
1,151 |
|
|
$ |
3,661 |
|
|
$ |
3,128 |
|
| Investment
securities—tax-exempt |
|
35 |
|
|
|
86 |
|
|
|
109 |
|
|
|
158 |
|
| Interest bearing deposits with
banks, Federal funds sold and other |
|
3,972 |
|
|
|
2,593 |
|
|
|
10,479 |
|
|
|
6,029 |
|
| Loans, including fees |
|
50,957 |
|
|
|
46,088 |
|
|
|
151,039 |
|
|
|
111,536 |
|
|
Total interest and dividend income |
|
56,165 |
|
|
|
49,918 |
|
|
|
165,288 |
|
|
|
120,851 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest
Expense |
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
23,081 |
|
|
|
18,470 |
|
|
|
66,253 |
|
|
|
40,574 |
|
| Borrowings |
|
2,550 |
|
|
|
1,914 |
|
|
|
6,859 |
|
|
|
4,939 |
|
| Subordinated debentures |
|
440 |
|
|
|
940 |
|
|
|
1,224 |
|
|
|
1,821 |
|
|
Total interest expense |
|
26,071 |
|
|
|
21,324 |
|
|
|
74,336 |
|
|
|
47,334 |
|
| Net interest income |
|
30,094 |
|
|
|
28,594 |
|
|
|
90,952 |
|
|
|
73,517 |
|
| Credit loss expense |
|
1,579 |
|
|
|
6,650 |
|
|
|
944 |
|
|
|
8,237 |
|
|
Net interest income after credit loss expense |
|
28,515 |
|
|
|
21,944 |
|
|
|
90,008 |
|
|
|
65,280 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-Interest
Income |
|
|
|
|
|
|
|
|
|
|
|
| Service fees on deposit
accounts |
|
362 |
|
|
|
280 |
|
|
|
1,056 |
|
|
|
741 |
|
| Loan fees |
|
218 |
|
|
|
152 |
|
|
|
437 |
|
|
|
259 |
|
| Income from bank-owned life
insurance |
|
1,819 |
|
|
|
544 |
|
|
|
3,213 |
|
|
|
1,291 |
|
| Losses on sale of investment
securities, net |
|
(555 |
) |
|
|
(527 |
) |
|
|
(555 |
) |
|
|
(734 |
) |
| Gains (losses) on sale of
loans, net |
|
135 |
|
|
|
(704 |
) |
|
|
(536 |
) |
|
|
(393 |
) |
| Gains on recovery of acquired
loans |
|
35 |
|
|
|
24 |
|
|
|
209 |
|
|
|
95 |
|
| Other non-interest income |
|
465 |
|
|
|
424 |
|
|
|
1,308 |
|
|
|
1,026 |
|
|
Total non-interest income |
|
2,479 |
|
|
|
193 |
|
|
|
5,132 |
|
|
|
2,285 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-Interest
Expense |
|
|
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
10,175 |
|
|
|
9,326 |
|
|
|
30,181 |
|
|
|
25,320 |
|
| Occupancy and equipment |
|
2,080 |
|
|
|
1,915 |
|
|
|
6,188 |
|
|
|
5,107 |
|
| Legal fees |
|
245 |
|
|
|
270 |
|
|
|
801 |
|
|
|
671 |
|
| Other professional fees |
|
943 |
|
|
|
631 |
|
|
|
2,628 |
|
|
|
1,880 |
|
| Regulatory fees |
|
728 |
|
|
|
595 |
|
|
|
1,970 |
|
|
|
1,345 |
|
| Directors' fees |
|
272 |
|
|
|
224 |
|
|
|
784 |
|
|
|
631 |
|
| Data processing |
|
800 |
|
|
|
907 |
|
|
|
2,355 |
|
|
|
2,206 |
|
| Marketing and advertising |
|
310 |
|
|
|
220 |
|
|
|
983 |
|
|
|
693 |
|
| Travel and entertainment |
|
233 |
|
|
|
140 |
|
|
|
762 |
|
|
|
519 |
|
| Insurance |
|
245 |
|
|
|
272 |
|
|
|
740 |
|
|
|
624 |
|
| Other real estate owned
expense, net |
|
662 |
|
|
|
- |
|
|
|
879 |
|
|
|
38 |
|
| Merger-related expenses |
|
- |
|
|
|
7,028 |
|
|
|
- |
|
|
|
7,710 |
|
| Other expense |
|
1,951 |
|
|
|
1,958 |
|
|
|
6,136 |
|
|
|
4,020 |
|
|
Total non-interest expense |
|
18,644 |
|
|
|
23,486 |
|
|
|
54,407 |
|
|
|
50,764 |
|
| Income Before Income
Taxes |
|
12,350 |
|
|
|
(1,349 |
) |
|
|
40,733 |
|
|
|
16,801 |
|
| Income tax expense |
|
4,188 |
|
|
|
(78 |
) |
|
|
8,986 |
|
|
|
4,284 |
|
| Net Income
(loss) |
$ |
8,162 |
|
|
$ |
(1,271 |
) |
|
$ |
31,747 |
|
|
$ |
12,517 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings (loss) per
common share |
$ |
0.32 |
|
|
$ |
(0.05 |
) |
|
$ |
1.26 |
|
|
$ |
0.60 |
|
| Diluted earnings (loss) per
common share |
$ |
0.32 |
|
|
$ |
(0.05 |
) |
|
$ |
1.26 |
|
|
$ |
0.59 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Basic weighted average common
shares outstanding |
|
25,172,927 |
|
|
|
23,902,478 |
|
|
|
25,114,685 |
|
|
|
20,928,847 |
|
| Diluted weighted average
common shares outstanding |
|
25,342,462 |
|
|
|
23,902,478 |
|
|
|
25,265,250 |
|
|
|
21,057,655 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST BANK |
|
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE
RATES |
|
(dollars in thousands, unaudited) |
| |
| |
Three Months Ended September 30, |
| |
2024 |
|
2023 |
| |
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
| |
Balance |
|
Interest |
|
Rate(5) |
|
Balance |
|
Interest |
|
Rate(5) |
| Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (1) (2) |
$ |
137,216 |
|
|
$ |
1,244 |
|
|
3.61 |
% |
|
$ |
169,244 |
|
|
$ |
1,255 |
|
|
|
2.94 |
% |
| Loans (3) |
|
3,010,116 |
|
|
|
50,957 |
|
|
6.73 |
% |
|
|
3,003,703 |
|
|
|
46,088 |
|
|
|
6.09 |
% |
| Interest bearing deposits with
banks, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal funds sold and
other |
|
265,474 |
|
|
|
3,593 |
|
|
5.38 |
% |
|
|
182,128 |
|
|
|
2,395 |
|
|
|
5.22 |
% |
| Restricted investment in bank
stocks |
|
12,768 |
|
|
|
257 |
|
|
8.01 |
% |
|
|
10,284 |
|
|
|
196 |
|
|
|
7.56 |
% |
| Other investments |
|
12,776 |
|
|
|
122 |
|
|
3.80 |
% |
|
|
9,162 |
|
|
|
2 |
|
|
|
0.09 |
% |
|
Total interest earning
assets (2) |
|
3,438,350 |
|
|
|
56,173 |
|
|
6.50 |
% |
|
|
3,374,521 |
|
|
|
49,936 |
|
|
|
5.87 |
% |
| Allowance for credit
losses |
|
(36,612 |
) |
|
|
|
|
|
|
|
(41,216 |
) |
|
|
|
|
|
|
| Non-interest earning
assets |
|
271,105 |
|
|
|
|
|
|
|
|
232,045 |
|
|
|
|
|
|
|
|
Total assets |
$ |
3,672,843 |
|
|
|
|
|
|
|
$ |
3,565,350 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing demand
deposits |
$ |
587,045 |
|
|
$ |
3,974 |
|
|
2.69 |
% |
|
$ |
674,417 |
|
|
$ |
4,038 |
|
|
|
2.38 |
% |
| Money market deposits |
|
1,064,045 |
|
|
|
10,573 |
|
|
3.95 |
% |
|
|
952,042 |
|
|
|
8,386 |
|
|
|
3.49 |
% |
| Savings deposits |
|
149,057 |
|
|
|
563 |
|
|
1.50 |
% |
|
|
174,412 |
|
|
|
490 |
|
|
|
1.11 |
% |
| Time deposits |
|
690,723 |
|
|
|
7,902 |
|
|
4.55 |
% |
|
|
655,288 |
|
|
|
5,556 |
|
|
|
3.36 |
% |
|
Total interest bearing deposits |
|
2,490,870 |
|
|
|
23,012 |
|
|
3.68 |
% |
|
|
2,456,159 |
|
|
|
18,470 |
|
|
|
2.98 |
% |
| Borrowings |
|
206,588 |
|
|
|
2,550 |
|
|
4.91 |
% |
|
|
163,746 |
|
|
|
1,914 |
|
|
|
4.64 |
% |
| Subordinated debentures |
|
29,908 |
|
|
|
440 |
|
|
5.88 |
% |
|
|
51,101 |
|
|
|
940 |
|
|
|
7.36 |
% |
|
Total interest bearing liabilities |
|
2,727,366 |
|
|
|
26,002 |
|
|
3.79 |
% |
|
|
2,671,006 |
|
|
|
21,324 |
|
|
|
3.17 |
% |
| Non-interest bearing
deposits |
|
506,084 |
|
|
|
|
|
|
|
|
507,866 |
|
|
|
|
|
|
|
| Other liabilities |
|
40,858 |
|
|
|
|
|
|
|
|
33,106 |
|
|
|
|
|
|
|
| Stockholders' equity |
|
398,535 |
|
|
|
|
|
|
|
|
353,372 |
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,672,843 |
|
|
|
|
|
|
|
$ |
3,565,350 |
|
|
|
|
|
|
|
| Net interest income/interest
rate spread (2) |
|
|
|
|
30,171 |
|
|
2.71 |
% |
|
|
|
|
|
28,612 |
|
|
|
2.70 |
% |
| Net interest margin (2)
(4) |
|
|
|
|
|
|
3.49 |
% |
|
|
|
|
|
|
|
|
3.36 |
% |
| Tax equivalent
adjustment (2) |
|
|
|
|
(8 |
) |
|
|
|
|
|
|
|
(18 |
) |
|
|
|
| Net interest income |
|
|
|
$ |
30,163 |
|
|
|
|
|
|
|
$ |
28,594 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE
RATES |
|
(dollars in thousands, unaudited) |
| |
| |
Nine Months Ended September 30, |
| |
2024 |
|
2023 |
| |
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
| |
Balance |
|
Interest |
|
Rate(5) |
|
Balance |
|
Interest |
|
Rate(5) |
| Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (1) (2) |
$ |
143,528 |
|
|
$ |
3,793 |
|
|
3.53 |
% |
|
$ |
155,128 |
|
|
$ |
3,319 |
|
|
2.86 |
% |
| Loans (3) |
|
2,995,895 |
|
|
|
151,039 |
|
|
6.73 |
% |
|
|
2,590,409 |
|
|
|
111,536 |
|
|
5.76 |
% |
| Interest bearing deposits with
banks, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal funds sold and
other |
|
231,171 |
|
|
|
9,404 |
|
|
5.43 |
% |
|
|
143,922 |
|
|
|
5,403 |
|
|
5.02 |
% |
| Restricted investment in bank
stocks |
|
11,461 |
|
|
|
699 |
|
|
8.15 |
% |
|
|
9,327 |
|
|
|
454 |
|
|
6.51 |
% |
| Other investments |
|
12,262 |
|
|
|
376 |
|
|
4.10 |
% |
|
|
8,902 |
|
|
|
172 |
|
|
2.58 |
% |
|
Total interest earning
assets (2) |
|
3,394,317 |
|
|
|
165,311 |
|
|
6.51 |
% |
|
|
2,907,688 |
|
|
|
120,884 |
|
|
5.56 |
% |
| Allowance for credit
losses |
|
(37,000 |
) |
|
|
|
|
|
|
|
(33,664 |
) |
|
|
|
|
|
| Non-interest earning
assets |
|
265,368 |
|
|
|
|
|
|
|
|
174,246 |
|
|
|
|
|
|
|
Total assets |
$ |
3,622,685 |
|
|
|
|
|
|
|
$ |
3,048,270 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing demand
deposits |
$ |
599,025 |
|
|
$ |
11,453 |
|
|
2.55 |
% |
|
$ |
445,318 |
|
|
$ |
6,492 |
|
|
1.95 |
% |
| Money market deposits |
|
1,046,911 |
|
|
|
30,921 |
|
|
3.95 |
% |
|
|
840,688 |
|
|
|
20,177 |
|
|
3.21 |
% |
| Savings deposits |
|
156,416 |
|
|
|
1,756 |
|
|
1.50 |
% |
|
|
155,370 |
|
|
|
1,202 |
|
|
1.03 |
% |
| Time deposits |
|
680,194 |
|
|
|
22,054 |
|
|
4.33 |
% |
|
|
586,827 |
|
|
|
12,703 |
|
|
2.89 |
% |
|
Total interest bearing deposits |
|
2,482,546 |
|
|
|
66,184 |
|
|
3.56 |
% |
|
|
2,028,203 |
|
|
|
40,574 |
|
|
2.67 |
% |
| Borrowings |
|
181,844 |
|
|
|
6,859 |
|
|
5.04 |
% |
|
|
149,042 |
|
|
|
4,939 |
|
|
4.43 |
% |
| Subordinated debentures |
|
34,071 |
|
|
|
1,224 |
|
|
4.79 |
% |
|
|
36,949 |
|
|
|
1,821 |
|
|
6.57 |
% |
|
Total interest bearing liabilities |
|
2,698,461 |
|
|
|
74,267 |
|
|
3.68 |
% |
|
|
2,214,194 |
|
|
|
47,334 |
|
|
2.86 |
% |
| Non-interest bearing
deposits |
|
494,971 |
|
|
|
|
|
|
|
|
490,211 |
|
|
|
|
|
|
| Other liabilities |
|
41,971 |
|
|
|
|
|
|
|
|
29,939 |
|
|
|
|
|
|
| Stockholders' equity |
|
387,282 |
|
|
|
|
|
|
|
|
313,926 |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,622,685 |
|
|
|
|
|
|
|
$ |
3,048,270 |
|
|
|
|
|
|
| Net interest income/interest
rate spread (2) |
|
|
|
|
91,044 |
|
|
2.83 |
% |
|
|
|
|
|
73,550 |
|
|
2.70 |
% |
| Net interest margin (2)
(4) |
|
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
|
|
3.38 |
% |
| Tax equivalent
adjustment (2) |
|
|
|
|
(23 |
) |
|
|
|
|
|
|
|
(33 |
) |
|
|
| Net interest income |
|
|
|
$ |
91,021 |
|
|
|
|
|
|
|
$ |
73,517 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
| |
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
| EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
30,094 |
|
|
$ |
30,540 |
|
|
$ |
30,318 |
|
|
$ |
30,999 |
|
|
$ |
28,594 |
|
|
Credit loss (benefit) expense |
|
1,579 |
|
|
|
63 |
|
|
|
(698 |
) |
|
|
(294 |
) |
|
|
6,650 |
|
|
Non-interest income |
|
2,479 |
|
|
|
689 |
|
|
|
1,964 |
|
|
|
(3,000 |
) |
|
|
193 |
|
|
Non-interest expense |
|
18,644 |
|
|
|
17,953 |
|
|
|
17,810 |
|
|
|
17,936 |
|
|
|
23,486 |
|
|
Income tax expense |
|
4,188 |
|
|
|
2,140 |
|
|
|
2,658 |
|
|
|
1,977 |
|
|
|
(78 |
) |
|
Net income |
|
8,162 |
|
|
|
11,073 |
|
|
|
12,512 |
|
|
|
8,380 |
|
|
|
(1,271 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PERFORMANCE
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
0.88 |
% |
|
|
1.23 |
% |
|
|
1.41 |
% |
|
|
0.93 |
% |
|
|
(0.14 |
%) |
|
Adjusted return on average assets (1) (2) |
|
0.93 |
% |
|
|
1.31 |
% |
|
|
1.39 |
% |
|
|
1.38 |
% |
|
|
1.07 |
% |
|
Return on average equity (1) |
|
8.15 |
% |
|
|
11.52 |
% |
|
|
13.36 |
% |
|
|
9.06 |
% |
|
|
(1.43 |
%) |
|
Adjusted return on average equity (1) (2) |
|
8.56 |
% |
|
|
12.26 |
% |
|
|
13.17 |
% |
|
|
13.38 |
% |
|
|
10.75 |
% |
|
Return on average tangible equity (1) (2) |
|
9.42 |
% |
|
|
13.40 |
% |
|
|
15.64 |
% |
|
|
10.67 |
% |
|
|
(1.66 |
%) |
|
Adjusted return on average tangible equity (1) (2) |
|
9.89 |
% |
|
|
14.26 |
% |
|
|
15.41 |
% |
|
|
15.75 |
% |
|
|
12.50 |
% |
|
Net interest margin (1) (3) |
|
3.49 |
% |
|
|
3.62 |
% |
|
|
3.64 |
% |
|
|
3.68 |
% |
|
|
3.36 |
% |
|
Yield on loans (1) |
|
6.73 |
% |
|
|
6.81 |
% |
|
|
6.66 |
% |
|
|
6.49 |
% |
|
|
6.09 |
% |
|
Total cost of deposits (1) |
|
3.05 |
% |
|
|
3.01 |
% |
|
|
2.83 |
% |
|
|
2.63 |
% |
|
|
2.47 |
% |
|
Efficiency ratio (2) |
|
58.49 |
% |
|
|
55.88 |
% |
|
|
55.56 |
% |
|
|
53.79 |
% |
|
|
54.83 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SHARE
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
25,186,920 |
|
|
|
25,144,983 |
|
|
|
25,096,449 |
|
|
|
24,968,122 |
|
|
|
24,926,919 |
|
|
Basic earnings per share |
$ |
0.32 |
|
|
$ |
0.44 |
|
|
$ |
0.50 |
|
|
$ |
0.34 |
|
|
$ |
(0.05 |
) |
|
Diluted earnings per share |
|
0.32 |
|
|
|
0.44 |
|
|
|
0.50 |
|
|
|
0.33 |
|
|
|
(0.05 |
) |
|
Adjusted diluted earnings per share (2) |
|
0.34 |
|
|
|
0.47 |
|
|
|
0.49 |
|
|
|
0.49 |
|
|
|
0.40 |
|
|
Book value per share |
|
15.96 |
|
|
|
15.61 |
|
|
|
15.23 |
|
|
|
14.85 |
|
|
|
14.48 |
|
|
Tangible book value per share (2) |
|
13.84 |
|
|
|
13.46 |
|
|
|
13.06 |
|
|
|
12.65 |
|
|
|
12.26 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MARKET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value per share |
$ |
15.20 |
|
|
$ |
12.74 |
|
|
$ |
13.74 |
|
|
$ |
14.70 |
|
|
$ |
10.78 |
|
|
Market value / Tangible book value |
|
109.83 |
% |
|
|
94.65 |
% |
|
|
105.20 |
% |
|
|
116.18 |
% |
|
|
87.96 |
% |
|
Market capitalization |
$ |
382,841 |
|
|
$ |
320,347 |
|
|
$ |
344,825 |
|
|
$ |
367,031 |
|
|
$ |
268,712 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CAPITAL &
LIQUIDITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity / assets |
|
10.70 |
% |
|
|
10.86 |
% |
|
|
10.64 |
% |
|
|
10.28 |
% |
|
|
10.15 |
% |
|
Tangible stockholders' equity / tangible assets (2) |
|
9.41 |
% |
|
|
9.50 |
% |
|
|
9.27 |
% |
|
|
8.89 |
% |
|
|
8.72 |
% |
|
Loans / deposits |
|
101.23 |
% |
|
|
101.02 |
% |
|
|
100.75 |
% |
|
|
101.82 |
% |
|
|
101.80 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs |
$ |
386 |
|
|
$ |
175 |
|
|
$ |
5,293 |
|
|
$ |
209 |
|
|
$ |
1,122 |
|
|
Net charge-offs (recoveries), excluding PCD loan
charge-off (4) |
|
386 |
|
|
|
175 |
|
|
|
(201 |
) |
|
|
209 |
|
|
|
1,122 |
|
|
Nonperforming loans |
|
12,014 |
|
|
|
14,227 |
|
|
|
17,054 |
|
|
|
24,989 |
|
|
|
24,158 |
|
|
Nonperforming assets |
|
17,651 |
|
|
|
20,226 |
|
|
|
23,053 |
|
|
|
24,989 |
|
|
|
24,158 |
|
|
Net charge offs / average loans (1) |
|
0.05 |
% |
|
|
0.02 |
% |
|
|
0.72 |
% |
|
|
0.03 |
% |
|
|
0.15 |
% |
|
Net charge offs (recoveries), excluding PCD loan charge-off /
average loans (1) (4) |
|
0.05 |
% |
|
|
0.02 |
% |
|
|
(0.03 |
%) |
|
|
0.03 |
% |
|
|
0.15 |
% |
|
Nonperforming loans / total loans |
|
0.39 |
% |
|
|
0.47 |
% |
|
|
0.57 |
% |
|
|
0.83 |
% |
|
|
0.80 |
% |
|
Nonperforming assets / total assets |
|
0.47 |
% |
|
|
0.56 |
% |
|
|
0.64 |
% |
|
|
0.69 |
% |
|
|
0.68 |
% |
|
Allowance for credit losses on loans / total loans |
|
1.21 |
% |
|
|
1.21 |
% |
|
|
1.22 |
% |
|
|
1.40 |
% |
|
|
1.42 |
% |
|
Allowance for credit losses on loans / nonperforming loans |
|
311.59 |
% |
|
|
254.81 |
% |
|
|
213.42 |
% |
|
|
169.66 |
% |
|
|
177.50 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
3,757,653 |
|
|
$ |
3,615,731 |
|
|
$ |
3,591,398 |
|
|
$ |
3,609,327 |
|
|
$ |
3,558,426 |
|
|
Total loans |
|
3,087,488 |
|
|
|
2,998,029 |
|
|
|
2,992,423 |
|
|
|
3,021,501 |
|
|
|
3,020,778 |
|
|
Total deposits |
|
3,050,070 |
|
|
|
2,967,634 |
|
|
|
2,970,262 |
|
|
|
2,967,569 |
|
|
|
2,967,455 |
|
|
Total stockholders' equity |
|
402,070 |
|
|
|
392,489 |
|
|
|
382,254 |
|
|
|
370,900 |
|
|
|
361,037 |
|
|
Number of full-time equivalent employees |
|
313 |
|
|
|
294 |
|
|
|
288 |
|
|
|
286 |
|
|
|
286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) Excludes
$5.5 million in a PCD loan charge-off in first quarter of 2024,
which was reserved for through purchase accounting marks at the
time of the Malvern acquisition.
|
FIRST BANK |
|
QUARTERLY FINANCIAL HIGHLIGHTS |
|
(dollars in thousands, unaudited) |
| |
| |
As of the Quarter Ended |
| |
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
| LOAN
COMPOSITION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
546,541 |
|
|
$ |
530,996 |
|
|
$ |
508,911 |
|
|
$ |
506,849 |
|
|
$ |
478,120 |
|
| Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
|
688,988 |
|
|
|
647,625 |
|
|
|
625,643 |
|
|
|
612,352 |
|
|
|
607,888 |
|
|
Investor |
|
1,170,508 |
|
|
|
1,143,954 |
|
|
|
1,172,311 |
|
|
|
1,221,702 |
|
|
|
1,269,134 |
|
|
Construction and development |
|
193,460 |
|
|
|
190,108 |
|
|
|
184,816 |
|
|
|
186,829 |
|
|
|
168,192 |
|
|
Multi-family |
|
267,861 |
|
|
|
270,238 |
|
|
|
279,668 |
|
|
|
271,058 |
|
|
|
275,825 |
|
|
Total commercial real estate |
|
2,320,817 |
|
|
|
2,251,925 |
|
|
|
2,262,438 |
|
|
|
2,291,941 |
|
|
|
2,321,039 |
|
| Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage and first lien home equity loans |
|
143,953 |
|
|
|
144,978 |
|
|
|
154,704 |
|
|
|
156,024 |
|
|
|
158,487 |
|
|
Home equity–second lien loans and revolving lines of credit |
|
49,891 |
|
|
|
46,882 |
|
|
|
45,869 |
|
|
|
44,698 |
|
|
|
46,239 |
|
|
Total residential real estate |
|
193,844 |
|
|
|
191,860 |
|
|
|
200,573 |
|
|
|
200,722 |
|
|
|
204,726 |
|
| Consumer and other |
|
29,518 |
|
|
|
26,321 |
|
|
|
23,702 |
|
|
|
25,343 |
|
|
|
20,208 |
|
|
Total loans prior to deferred loan fees and costs |
|
3,090,720 |
|
|
|
3,001,102 |
|
|
|
2,995,624 |
|
|
|
3,024,855 |
|
|
|
3,024,093 |
|
| Net deferred loan fees and
costs |
|
(3,232 |
) |
|
|
(3,073 |
) |
|
|
(3,201 |
) |
|
|
(3,354 |
) |
|
|
(3,315 |
) |
|
Total loans |
$ |
3,087,488 |
|
|
$ |
2,998,029 |
|
|
$ |
2,992,423 |
|
|
$ |
3,021,501 |
|
|
$ |
3,020,778 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOAN MIX |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
|
17.7 |
% |
|
|
17.7 |
% |
|
|
17.0 |
% |
|
|
16.8 |
% |
|
|
15.8 |
% |
| Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
|
22.3 |
% |
|
|
21.6 |
% |
|
|
20.9 |
% |
|
|
20.3 |
% |
|
|
20.1 |
% |
|
Investor |
|
37.9 |
% |
|
|
38.2 |
% |
|
|
39.2 |
% |
|
|
40.4 |
% |
|
|
42.0 |
% |
|
Construction and development |
|
6.3 |
% |
|
|
6.3 |
% |
|
|
6.2 |
% |
|
|
6.2 |
% |
|
|
5.6 |
% |
|
Multi-family |
|
8.7 |
% |
|
|
9.0 |
% |
|
|
9.3 |
% |
|
|
9.0 |
% |
|
|
9.1 |
% |
|
Total commercial real estate |
|
75.2 |
% |
|
|
75.1 |
% |
|
|
75.6 |
% |
|
|
75.9 |
% |
|
|
76.8 |
% |
| Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage and first lien home equity loans |
|
4.7 |
% |
|
|
4.8 |
% |
|
|
5.2 |
% |
|
|
5.1 |
% |
|
|
5.3 |
% |
|
Home equity–second lien loans and revolving lines of credit |
|
1.6 |
% |
|
|
1.6 |
% |
|
|
1.5 |
% |
|
|
1.5 |
% |
|
|
1.5 |
% |
|
Total residential real estate |
|
6.3 |
% |
|
|
6.4 |
% |
|
|
6.7 |
% |
|
|
6.6 |
% |
|
|
6.8 |
% |
| Consumer and other |
|
0.9 |
% |
|
|
0.9 |
% |
|
|
0.8 |
% |
|
|
0.8 |
% |
|
|
0.7 |
% |
| Net deferred loan fees and
costs |
|
(0.1 |
%) |
|
|
(0.1 |
%) |
|
|
(0.1 |
%) |
|
|
(0.1 |
%) |
|
|
(0.1 |
%) |
|
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 |
| |
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
| DEPOSIT
COMPOSITION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand deposits |
$ |
519,079 |
|
|
$ |
499,765 |
|
|
$ |
470,749 |
|
|
$ |
501,763 |
|
|
$ |
493,703 |
|
| Interest bearing demand
deposits |
|
597,802 |
|
|
|
574,515 |
|
|
|
580,864 |
|
|
|
629,110 |
|
|
|
623,338 |
|
| Money market and savings
deposits |
|
1,235,637 |
|
|
|
1,199,382 |
|
|
|
1,219,634 |
|
|
|
1,171,440 |
|
|
|
1,228,832 |
|
| Time deposits |
|
697,552 |
|
|
|
693,972 |
|
|
|
699,015 |
|
|
|
665,256 |
|
|
|
621,582 |
|
|
Total Deposits |
$ |
3,050,070 |
|
|
$ |
2,967,634 |
|
|
$ |
2,970,262 |
|
|
$ |
2,967,569 |
|
|
$ |
2,967,455 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DEPOSIT
MIX |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest bearing demand
deposits |
|
17.0 |
% |
|
|
16.8 |
% |
|
|
15.8 |
% |
|
|
16.9 |
% |
|
|
16.6 |
% |
| Interest bearing demand
deposits |
|
19.6 |
% |
|
|
19.4 |
% |
|
|
19.6 |
% |
|
|
21.2 |
% |
|
|
21.0 |
% |
| Money market and savings
deposits |
|
40.5 |
% |
|
|
40.4 |
% |
|
|
41.1 |
% |
|
|
39.5 |
% |
|
|
41.4 |
% |
| Time deposits |
|
22.9 |
% |
|
|
23.4 |
% |
|
|
23.5 |
% |
|
|
22.4 |
% |
|
|
21.0 |
% |
|
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 |
| |
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
| Return on Average
Tangible Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (numerator) |
$ |
8,162 |
|
|
$ |
11,073 |
|
|
$ |
12,512 |
|
|
$ |
8,380 |
|
|
$ |
(1,271 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average stockholders'
equity |
$ |
398,535 |
|
|
$ |
386,644 |
|
|
$ |
376,542 |
|
|
$ |
366,950 |
|
|
$ |
353,372 |
|
| Less: Average Goodwill and
other intangible assets, net |
|
53,823 |
|
|
|
54,347 |
|
|
|
54,790 |
|
|
|
55,324 |
|
|
|
49,491 |
|
| Average Tangible stockholders'
equity (denominator) |
$ |
344,712 |
|
|
$ |
332,297 |
|
|
$ |
321,752 |
|
|
$ |
311,626 |
|
|
$ |
303,881 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on Average Tangible
equity (1) |
|
9.42 |
% |
|
|
13.40 |
% |
|
|
15.64 |
% |
|
|
10.67 |
% |
|
|
-1.66 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Book Value
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' equity |
$ |
402,070 |
|
|
$ |
392,489 |
|
|
$ |
382,254 |
|
|
$ |
370,900 |
|
|
$ |
361,037 |
|
| Less: Goodwill and other
intangible assets, net |
|
53,484 |
|
|
|
54,026 |
|
|
|
54,483 |
|
|
|
54,978 |
|
|
|
55,554 |
|
| Tangible stockholders' equity
(numerator) |
$ |
348,586 |
|
|
$ |
338,463 |
|
|
$ |
327,771 |
|
|
$ |
315,922 |
|
|
$ |
305,483 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding
(denominator) |
|
25,186,920 |
|
|
|
25,144,983 |
|
|
|
25,096,449 |
|
|
|
24,968,122 |
|
|
|
24,926,919 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible book value per
share |
$ |
13.84 |
|
|
$ |
13.46 |
|
|
$ |
13.06 |
|
|
$ |
12.65 |
|
|
$ |
12.26 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Equity /
Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' equity |
$ |
402,070 |
|
|
$ |
392,489 |
|
|
$ |
382,254 |
|
|
$ |
370,900 |
|
|
$ |
361,037 |
|
| Less: Goodwill and other
intangible assets, net |
|
53,484 |
|
|
|
54,026 |
|
|
|
54,483 |
|
|
|
54,978 |
|
|
|
55,554 |
|
| Tangible stockholders' equity
(numerator) |
$ |
348,586 |
|
|
$ |
338,463 |
|
|
$ |
327,771 |
|
|
$ |
315,922 |
|
|
$ |
305,483 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
3,757,653 |
|
|
$ |
3,615,731 |
|
|
$ |
3,591,398 |
|
|
$ |
3,609,327 |
|
|
$ |
3,558,426 |
|
| Less: Goodwill and other
intangible assets, net |
|
53,484 |
|
|
|
54,026 |
|
|
|
54,483 |
|
|
|
54,978 |
|
|
|
55,554 |
|
| Tangible total assets
(denominator) |
$ |
3,704,169 |
|
|
$ |
3,561,705 |
|
|
$ |
3,536,915 |
|
|
$ |
3,554,349 |
|
|
$ |
3,502,872 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible stockholders' equity
/ tangible assets |
|
9.41 |
% |
|
|
9.50 |
% |
|
|
9.27 |
% |
|
|
8.89 |
% |
|
|
8.72 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency
Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest expense |
$ |
18,644 |
|
|
$ |
17,953 |
|
|
$ |
17,810 |
|
|
$ |
17,936 |
|
|
$ |
23,486 |
|
| Less: Merger-related
expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
338 |
|
|
|
7,028 |
|
| Adjusted non-interest expense
(numerator) |
$ |
18,644 |
|
|
$ |
17,953 |
|
|
$ |
17,810 |
|
|
$ |
17,598 |
|
|
$ |
16,458 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
$ |
30,094 |
|
|
$ |
30,540 |
|
|
$ |
30,318 |
|
|
$ |
30,999 |
|
|
$ |
28,594 |
|
| Non-interest income |
|
2,479 |
|
|
|
689 |
|
|
|
1,964 |
|
|
|
(3,000 |
) |
|
|
193 |
|
| Total revenue |
|
32,573 |
|
|
|
31,229 |
|
|
|
32,282 |
|
|
|
27,999 |
|
|
|
28,787 |
|
| Add: Losses on sale of
investment securities, net |
|
555 |
|
|
|
- |
|
|
|
- |
|
|
|
916 |
|
|
|
527 |
|
| (Subtract) Add: (Gains) losses
on sale of loans, net |
|
(135 |
) |
|
|
900 |
|
|
|
(229 |
) |
|
|
3,799 |
|
|
|
704 |
|
| Less: Bank Owned Life
Insurance Enhancement |
|
(1,116 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Adjusted total revenue
(denominator) |
$ |
31,877 |
|
|
$ |
32,129 |
|
|
$ |
32,053 |
|
|
$ |
32,714 |
|
|
$ |
30,018 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio |
|
58.49 |
% |
|
|
55.88 |
% |
|
|
55.56 |
% |
|
|
53.79 |
% |
|
|
54.83 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized.
|
FIRST BANK |
|
NON-U.S. GAAP FINANCIAL MEASURES |
|
(dollars in thousands, except for share data,
unaudited) |
| |
| |
For the Quarter Ended |
| |
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted diluted
earnings per share, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted return on average assets, and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted return on average equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
8,162 |
|
|
$ |
11,073 |
|
|
$ |
12,512 |
|
|
$ |
8,380 |
|
|
$ |
(1,271 |
) |
| Add: Merger-related
expenses(1) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
267 |
|
|
|
5,552 |
|
| Add: Credit loss expense on
acquired loan portfolio(1) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,323 |
|
| Add (subtract): Losses (gains)
on sale of loans, net(1) |
|
(107 |
) |
|
|
711 |
|
|
|
(181 |
) |
|
|
3,001 |
|
|
|
556 |
|
| Add: Losses on sale of
investment securities, net(1) |
|
438 |
|
|
|
- |
|
|
|
- |
|
|
|
724 |
|
|
|
416 |
|
| Add: Net Impact of Bank Owned
Life Insurance Restructuring(2) |
|
79 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Adjusted net income |
$ |
8,572 |
|
|
$ |
11,784 |
|
|
$ |
12,331 |
|
|
$ |
12,372 |
|
|
$ |
9,576 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted weighted average
common shares outstanding |
|
25,342,462 |
|
|
|
25,258,785 |
|
|
|
25,199,381 |
|
|
|
25,089,495 |
|
|
|
24,029,910 |
|
| Average assets |
$ |
3,672,843 |
|
|
$ |
3,618,912 |
|
|
$ |
3,575,748 |
|
|
$ |
3,561,261 |
|
|
$ |
3,565,350 |
|
| Average equity |
$ |
398,535 |
|
|
$ |
386,644 |
|
|
$ |
376,542 |
|
|
$ |
366,950 |
|
|
$ |
353,372 |
|
| Average Tangible Equity |
$ |
344,712 |
|
|
$ |
332,297 |
|
|
$ |
321,752 |
|
|
$ |
311,626 |
|
|
$ |
303,881 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted diluted earnings per
share |
$ |
0.34 |
|
|
$ |
0.47 |
|
|
$ |
0.49 |
|
|
$ |
0.49 |
|
|
$ |
0.40 |
|
| Adjusted return on average
assets(3) |
|
0.93 |
% |
|
|
1.31 |
% |
|
|
1.39 |
% |
|
|
1.38 |
% |
|
|
1.07 |
% |
| Adjusted return on average
equity(3) |
|
8.56 |
% |
|
|
12.26 |
% |
|
|
13.17 |
% |
|
|
13.38 |
% |
|
|
10.75 |
% |
| Adjusted return on average
tangible equity(3) |
|
9.89 |
% |
|
|
14.26 |
% |
|
|
15.41 |
% |
|
|
15.75 |
% |
|
|
12.50 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Items are tax-effected using a federal income tax rate of
21%.(2) Includes the net impact of the new Bank Owned Life
Insurance enhancement and the increased tax expense on the
terminated policies.(3) Annualized.
|
CONTACT: Andrew Hibshman, Chief Financial
Officer |
|
(609) 643-0058, andrew.hibshman@firstbanknj.com |
First Bank (NASDAQ:FRBA)
Historical Stock Chart
From Dec 2024 to Jan 2025
First Bank (NASDAQ:FRBA)
Historical Stock Chart
From Jan 2024 to Jan 2025
