First Bank Third Quarter 2016 Net Income of $1.8 million, up 148.8% from 2015
/EINPresswire.com/ -- Total Assets Surpass $1 Billion Threshold; Continued Strong Loan and Deposit Growth, Non-Interest Expenses Well Managed and Highly Favorable Asset Quality Metrics
HAMILTON, NJ--(Marketwired - October 25, 2016) - First Bank (NASDAQ: FRBA) today announced strong improvement to third quarter and year-to-date 2016 results. Net income for the quarter was $1.8 million or $0.16 per diluted share, compared to $724,000 or $0.08 per diluted share for the third quarter of 2015. Diluted earnings per share increased by 100%, despite a 2.0 million share increase in weighted average diluted shares outstanding from September 30, 2015. Third quarter net income growth was driven by higher net interest income reflecting continued strong loan growth, along with effective management of the Bank's non-interest expense. Net income for the first nine months of 2016 was $4.6 million, an increase of $1.4 million, or 43.7%, compared to the first nine months of 2015. Year-to-date net income improvement was also driven by net interest income growth coupled with managed expense growth.
2016 Performance Highlights:
- Total net revenue (net interest income + non-interest income) for the quarter increased by 28.5%, or $1.7 million, to $7.8 million, compared to the prior year quarter
- Total loans of $827.2 million at September 30, 2016 were up $218.4 million, or 35.9%, from September 30, 2015
- Total deposits of $874.1 million at quarter end were up $171.8 million, or 24.5%, compared to third quarter 2015
- Continued strong asset quality metrics with annualized net loan charge-offs to average loans of just 0.01% for the quarter, and nonperforming loans to total loans of 0.45% at September 30, 2016, down from 0.78% at September 30, 2015
- Continued improvement in the Bank's efficiency ratio of 62.04% for the third quarter, down from 71.49% for third quarter 2015, and from 62.43% for second quarter 2016.
"Our team executed another highly productive and successful quarter where we continued to deploy the capital raised in the second quarter," said Patrick L. Ryan, President and Chief Executive Officer. "We continued the Bank's strong growth trajectory in the third quarter with year-to-date total loan and deposit growth of 19.9% and 18.3%, respectively, and with a 43.7% improvement in net income for the nine month period. Our respectable growth rates did not come at the expense of our prudent risk management, as our total nonperforming loans of $3.7 million were the lowest level we have experienced in nine quarters, and our efficiency ratio of 62.04% continued its downward trend over the last several quarters. Our strong loan generation and deposit gathering enabled us to eclipse an important growth threshold as we surpassed $1 billion in total assets for the first time in our history. Our active expense management has enabled the Bank to realize considerable operating leverage during 2016 with revenue growth well in excess of the increase in our non-interest expense. We believe that we are well positioned to continue our current growth trends in the fourth quarter of 2016 and into 2017, as we leverage our elevated brand awareness and strong capital position to compete for customers dislocated by the recent industry consolidation which is affecting our Central New Jersey markets."
Income Statement
The Bank's net interest income for third quarter 2016 was $7.5 million, an increase of $1.6 million, or 27.7%, compared to the third quarter of 2015. This growth was driven by a 27.0% increase in interest income primarily a result of a $217.1 million increase in average loan balances compared with third quarter 2015. This was somewhat offset by increased interest expense of $471,000 for the comparative quarters, which reflected average balance increases for both time deposits and transaction accounts.
Year-to-date net interest income totaled $21.1 million, an increase of $3.4 million, or 19.1%, compared to $17.7 million for the same period in 2015. The increase in net interest income for the nine months ended September 30, 2016 was driven by the same strong growth in average loans which increased by $206.5 million from the prior year period.
The third quarter 2016 net interest margin was 3.16%, an increase of twelve basis points compared to the linked second quarter of 2016, and an increase of two basis points compared to the prior year quarter.
The increase compared to second quarter 2016 was the result of a six basis point improvement in the yield on interest-earning assets, primarily loans, and a five basis-point drop in the rate paid on interest-bearing liabilities.
The provision for loan losses for the third quarter of 2016 totaled $291,000, a decrease of $740,000 or 71.8% compared to the third quarter of 2015, and a decrease of $348,000, or 54.5%, compared to $639,000 for the linked second quarter of 2016. The reduction in the provision, despite the loan growth for the quarter, is primarily the result of minimal net charge offs and strong asset quality. The provision for loan losses for the nine months ended September 30, 2016 totaled $1.74 million, an increase of $24,000 or 1.4% compared to $1.72 million for the same period in 2015. The provision level for the year-to-date period is reflective of the Bank's strong loan growth in 2016, as well as the improvement in asset quality metrics.
Third quarter 2016 non-interest income increased $120,000 to $384,000 compared to third quarter 2015, primarily a result of gains on recovery of acquired loans of $114,000, compared to $34,000 for third quarter 2015. Year-to-date non-interest income totaled $1.1 million, a decrease of $301,000, or 22.1%, compared to $1.4 million for the same period in 2015. This decrease was a result of a $400,000 decrease in gains on recovery of acquired loans in 2016, compared to the prior year period.
Non-interest expense for third quarter 2016 totaled $4.8 million, an increase of $462,000, or 10.7%, compared to $4.3 million for the prior year quarter. The increase in non-interest expense compared to third quarter 2015 was primarily a result of 18.6% increase in salaries and employee benefits which reflected the Bank's continued growth, as well as an employee incentive bonus accrual adjustment of $240,000 during the quarter. Year-to-date non-interest expense totaled $13.6 million, an increase of $555,000 or 4.2% compared to $13.1 million for the same period in 2015. The increase was primarily a result of increased salaries and employee benefits and higher occupancy and equipment costs in comparison to the nine month period of 2015.
Pre-provision net revenue[1] for the third quarter of 2016 was $2.9 million, an increase of $1.2 million, or 69.8%, compared to the third quarter of 2015, and an increase of $253,000, or 9.4%, compared to $2.7 million in the linked second quarter of 2016.
Income tax expense for the third quarter of 2016 was $955,000, compared to $661,000 for second quarter 2016. The increase, in comparison to second quarter 2016, resulted from higher pre-tax income and an additional $102,000 in tax expense that was recorded as a discrete item for changes in estimates relating to our prior year tax provision. The third quarter effective income tax rate was 34.7%, compared to 31.4% for second quarter 2016.
Balance Sheet
Total assets at September 30, 2016 were $1.0 billion, an increase of $152.2 million or 17.8% compared to December 31, 2015, and an increase of $199.7 million or 24.7% compared to September 30, 2015. Total loans were $827.2 million at September 30, 2016, an increase of $137.3 million or 19.9% compared to December 31, 2015, and an increase of $218.4 million or 35.9% compared to September 30, 2015. Total loans increased $25.7 million compared to the linked second quarter of 2016, net of $23.3 million in loan paydowns that occurred in the quarter.
Total deposits were $874.1 million at September 30, 2016, an increase of $135.1 million or 18.3% compared to December 31, 2015 and an increase of $171.8 million or 24.5% compared to September 30, 2015. Non-interest bearing deposits totaled $113.9 million at September 30, 2016, an increase of $13.9 million, or 13.9% from December 31, 2015, and an increase of $16.2 million, or 16.6% from September 30, 2015.
Stockholders' equity increased to $87.5 million at September 30, 2016, up $18.7 million or 27.2% compared to December 31, 2015 and an increase of $19.1 million, or 28.0%, from September 30, 2015.
Asset Quality
First Bank's asset quality metrics continued to improve during the third quarter and compare favorably to current peer and industry averages, reflective of disciplined risk management and underwriting standards. Net charge-offs were $30,000 for the third quarter of 2016, compared to $63,000 for the second quarter of 2016 and $626,000 for the third quarter of 2015. Net charge-offs as an annualized percentage of average loans were 0.01% in third quarter 2016, compared to 0.03% in the linked second quarter and 0.42% in third quarter 2015. Nonperforming loans as a percentage of total loans at September 30, 2016 were 0.45%, improved from 0.70% in the linked second quarter and 0.78% at September 30, 2015. The allowance for loan losses to nonperforming loans was 252.4% at September 30, 2016, compared with 161.5% at the end of the second quarter of 2016, and 151.4% at September 30, 2015.
As of September 30, 2016, the Bank exceeded all regulatory capital requirements to be considered well capitalized with a Tier 1 Leverage ratio of 8.88%, a Tier 1 Risk-Based capital ratio of 9.33%, a Common Equity Tier 1 Capital ("CET1") ratio of 9.33%, and a Total Risk-Based capital ratio of 12.66%.
1 A non-U.S. GAAP metric defined by SNL Financial as net interest income before provision for loan losses plus non-interest income excluding non-ordinary items (e.g. gains on sale of investment securities, gains on recovery of acquired loans, and bargain purchase gains) minus non-interest expense excluding non-ordinary items (e.g. merger related expenses and other one-time, non-ordinary costs).
Conference Call
First Bank will host an earnings call on Wednesday, October 26, 2016 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 from one hour after the end of the conference call until January 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 $1.0 billion in assets as of September 30, 2016, First Bank offers a traditional 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".
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 10K under the caption "Item 1A-Risk Factors", and general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, and results of regulatory exams, among other factors.
| FIRST BANK AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||
| (in thousands, except share data, unaudited) | ||||||||||
| September 30, | December 31, | |||||||||
| 2016 | 2015 | |||||||||
| Assets | ||||||||||
| Cash and due from banks | $ | 6,396 | $ | 10,032 | ||||||
| Interest bearing deposits in other banks | 51,391 | 23,299 | ||||||||
| Cash and cash equivalents | 57,787 | 33,331 | ||||||||
| Interest bearing time deposits in other banks | 7,943 | 4,125 | ||||||||
| Investment securities available for sale | 28,375 | 45,341 | ||||||||
| Investment securities held to maturity (fair value of $53,796 at September 30, 2016 and $53,793 at December 31, 2015) | 52,663 | 53,262 | ||||||||
| Restricted investment in bank stocks | 1,958 | 1,862 | ||||||||
| Other investments | 5,000 | 5,000 | ||||||||
| Loans, net of deferred fees and costs | 827,161 | 689,887 | ||||||||
| Less: Allowance for loan losses | 9,296 | 7,940 | ||||||||
| Net loans | 817,865 | 681,947 | ||||||||
| Premises and equipment, net | 3,420 | 3,449 | ||||||||
| Other real estate owned, net | 1,182 | 1,557 | ||||||||
| Accrued interest receivable | 2,200 | 2,056 | ||||||||
| Bank-owned life insurance | 20,909 | 14,572 | ||||||||
| Intangible assets, net | 239 | 286 | ||||||||
| Deferred income taxes | 7,559 | 7,935 | ||||||||
| Other assets | 585 | 778 | ||||||||
| Total assets | $ | 1,007,685 | $ | 855,501 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||
| Deposits: | ||||||||||
| Non-interest bearing | $ | 113,854 | $ | 99,966 | ||||||
| Interest bearing | 760,295 | 639,055 | ||||||||
| Total deposits | 874,149 | 739,021 | ||||||||
| Borrowings | 21,573 | 24,000 | ||||||||
| Subordinated debentures | 21,614 | 21,533 | ||||||||
| Accrued interest payable | 944 | 612 | ||||||||
| Other liabilities | 1,942 | 1,572 | ||||||||
| Total liabilities | 920,222 | 786,738 | ||||||||
| Stockholders' Equity: | ||||||||||
| Preferred stock, par value $2 per share; authorized 5,000,000 shares; no shares outstanding | - | - | ||||||||
| Common stock, par value $5 per share; authorized 20,000,000 shares; issued and outstanding 11,393,609 shares at September 30, 2016 and 9,470,157 shares at December 31, 2015 | 56,800 | 47,218 | ||||||||
| Additional paid-in capital | 18,677 | 14,510 | ||||||||
| Retained earnings | 12,033 | 7,433 | ||||||||
| Accumulated other comprehensive loss | (47 | ) | (398 | ) | ||||||
| Total stockholders' equity | 87,463 | 68,763 | ||||||||
| Total liabilities and stockholders' equity | $ | 1,007,685 | $ | 855,501 | ||||||
| FIRST BANK AND SUBSIDIARIES | |||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| (in thousands, except share data, unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| Interest and Dividend Income | |||||||||||||
| Investment securities-taxable | $ | 247 | $ | 396 | $ | 882 | $ | 1,048 | |||||
| Investment securities-tax-exempt | 125 | 127 | 376 | 325 | |||||||||
| Interest bearing deposits in other banks and other | 102 | 53 | 279 | 178 | |||||||||
| Loans, including fees | 9,340 | 7,150 | 26,574 | 21,036 | |||||||||
| Total interest and dividend income | 9,814 | 7,726 | 28,111 | 22,587 | |||||||||
| Interest Expense | |||||||||||||
| Deposits | 1,941 | 1,434 | 5,666 | 4,030 | |||||||||
| Borrowings | 18 | 55 | 145 | 163 | |||||||||
| Subordinated debentures | 399 | 398 | 1,195 | 667 | |||||||||
| Total interest expense | 2,358 | 1,887 | 7,006 | 4,860 | |||||||||
| Net interest income | 7,456 | 5,839 | 21,105 | 17,727 | |||||||||
| Provision for loan losses | 291 | 1,031 | 1,743 | 1,719 | |||||||||
| Net interest income after provision for loan losses | 7,165 | 4,808 | 19,362 | 16,008 | |||||||||
| Non-Interest Income | |||||||||||||
| Service fees on deposit accounts | 38 | 30 | 119 | 95 | |||||||||
| Loan fees | 21 | 8 | 56 | 31 | |||||||||
| Income from bank-owned life insurance | 129 | 105 | 337 | 319 | |||||||||
| Gains on sale of investment securities, net | - | 11 | 25 | 11 | |||||||||
| Gains on recovery of acquired loans | 114 | 34 | 288 | 688 | |||||||||
| Other non-interest income | 82 | 76 | 235 | 217 | |||||||||
| Total non-interest income | 384 | 264 | 1,060 | 1,361 | |||||||||
| Non-Interest Expense | |||||||||||||
| Salaries and employee benefits | 2,684 | 2,263 | 7,185 | 6,772 | |||||||||
| Occupancy and equipment | 671 | 632 | 1,996 | 1,787 | |||||||||
| Legal fees | 63 | 58 | 215 | 241 | |||||||||
| Other professional fees | 287 | 219 | 856 | 905 | |||||||||
| Regulatory fees | 139 | 91 | 464 | 381 | |||||||||
| Directors' fees | 107 | 101 | 340 | 329 | |||||||||
| Data processing | 236 | 205 | 694 | 597 | |||||||||
| Marketing and advertising | 125 | 143 | 375 | 380 | |||||||||
| Travel and entertainment | 49 | 63 | 154 | 180 | |||||||||
| Insurance | 50 | 43 | 160 | 146 | |||||||||
| Other real estate owned expense, net | 118 | 251 | 360 | 581 | |||||||||
| Other expense | 264 | 262 | 816 | 761 | |||||||||
| Total non-interest expense | 4,793 | 4,331 | 13,615 | 13,060 | |||||||||
| Income Before Income Taxes | 2,756 | 741 | 6,807 | 4,309 | |||||||||
| Income tax expense | 955 | 17 | 2,207 | 1,108 | |||||||||
| Net Income | $ | 1,801 | $ | 724 | $ | 4,600 | $ | 3,201 | |||||
| Basic earnings per share | $ | 0.16 | $ | 0.08 | $ | 0.46 | $ | 0.34 | |||||
| Diluted earnings per share | $ | 0.16 | $ | 0.08 | $ | 0.45 | $ | 0.34 | |||||
| Basic weighted average common shares outstanding | 11,359,613 | 9,431,043 | 10,102,767 | 9,416,091 | |||||||||
| Diluted weighted average common shares outstanding | 11,520,646 | 9,493,900 | 10,224,537 | 9,478,893 |
|||||||||
| FIRST BANK AND SUBSIDIARIES | |||||||||||||||||||||||
| AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES | |||||||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2016 | 2015 | ||||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||||
| Balance | Interest | Rate (5) | Balance | Interest | Rate (5) | ||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Interest earning assets | |||||||||||||||||||||||
| Investment securities (1) (2) | $ | 79,685 | $ | 415 | 2.07 | % | $ | 106,963 | $ | 566 | 2.10 | % | |||||||||||
| Loans (3) | 812,254 | 9,340 | 4.57 | % | 595,171 | 7,150 | 4.77 | % | |||||||||||||||
| Interest bearing deposits in other banks | 46,772 | 64 | 0.54 | % | 35,084 | 23 | 0.26 | % | |||||||||||||||
| Restricted investment in bank stocks | 1,294 | 20 | 6.15 | % | 1,412 | 14 | 3.93 | % | |||||||||||||||
| Other investments | 5,000 | 18 | 1.43 | % | 5,000 | 16 | 1.27 | % | |||||||||||||||
| Total interest earning assets (2) | 945,005 | 9,857 | 4.15 | % | 743,630 | 7,769 | 4.14 | % | |||||||||||||||
| Allowance for loan losses | (9,300 | ) | (6,961 | ) | |||||||||||||||||||
| Non-interest earning assets | 38,927 | 38,726 | |||||||||||||||||||||
| Total assets | $ | 974,632 | $ | 775,395 | |||||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||||||
| Interest bearing demand deposits | $ | 97,924 | $ | 136 | 0.55 | % | $ | 62,464 | 110 | 0.70 | % | ||||||||||||
| Money market deposits | 127,669 | 201 | 0.63 | % | 108,754 | 186 | 0.68 | % | |||||||||||||||
| Savings deposits | 70,365 | 88 | 0.50 | % | 84,821 | 107 | 0.50 | % | |||||||||||||||
| Time deposits | 448,590 | 1,516 | 1.34 | % | 315,832 | 1,031 | 1.30 | % | |||||||||||||||
| Total interest bearing deposits | 744,548 | 1,941 | 1.04 | % | 571,871 | 1,434 | 0.99 | % | |||||||||||||||
| Borrowings | 6,790 | 18 | 1.05 | % | 14,000 | 55 | 1.56 | % | |||||||||||||||
| Subordinated debentures | 21,600 | 399 | 7.39 | % | 21,496 | 398 | 7.41 | % | |||||||||||||||
| Total interest bearing liabilities | 772,938 | 2,358 | 1.21 | % | 607,367 | 1,887 | 1.23 | % | |||||||||||||||
| Non-interest bearing deposits | 112,260 | 97,794 | |||||||||||||||||||||
| Other liabilities | 2,586 | 2,051 | |||||||||||||||||||||
| Stockholders' equity | 86,848 | 68,183 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 974,632 | $ | 775,395 | |||||||||||||||||||
| Net interest income/interest rate spread (2) | 7,499 | 2.94 | % | 5,882 | 2.91 | % | |||||||||||||||||
| Net interest margin (2) (4) | 3.16 | % | 3.14 | % | |||||||||||||||||||
| Tax-equivalent adjustment (2) | (43 | ) | (43 | ) | |||||||||||||||||||
| Net interest income | $ | 7,456 | $ | 5,839 | |||||||||||||||||||
| (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 | |||||||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||
| 2016 | 2015 | ||||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||||
| Balance | Interest | Rate (5) | Balance | Interest | Rate (5) | ||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Interest earning assets | |||||||||||||||||||||||
| Investment securities (1) (2) | $ | 85,586 | $ | 1,386 | 2.16 | % | $ | 92,856 | $ | 1,484 | 2.14 | % | |||||||||||
| Loans (3) | 775,786 | 26,574 | 4.58 | % | 569,310 | 21,036 | 4.94 | % | |||||||||||||||
| Interest bearing deposits in other banks | 43,079 | 171 | 0.53 | % | 41,853 | 90 | 0.29 | % | |||||||||||||||
| Restricted investment in bank stocks | 1,745 | 59 | 4.52 | % | 1,375 | 41 | 3.99 | % | |||||||||||||||
| Other investments | 5,000 | 49 | 1.31 | % | 5,000 | 47 | 1.26 | % | |||||||||||||||
| Total interest earning assets (2) | 911,196 | 28,239 | 4.14 | % | 710,394 | 22,698 | 4.27 | % | |||||||||||||||
| Allowance for loan losses | (8,728 | ) | (6,621 | ) | |||||||||||||||||||
| Non-interest earning assets | 37,369 | 38,320 | |||||||||||||||||||||
| Total assets | $ | 939,837 | $ | 742,093 | |||||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||||||
| Interest bearing demand deposits | $ | 87,516 | $ | 416 | 0.63 | % | $ | 47,745 | $ | 253 | 0.71 | % | |||||||||||
| Money market deposits | 122,807 | 630 | 0.69 | % | 108,701 | 538 | 0.66 | % | |||||||||||||||
| Savings deposits | 73,443 | 275 | 0.50 | % | 92,849 | 374 | 0.54 | % | |||||||||||||||
| Time deposits | 430,200 | 4,345 | 1.35 | % | 304,775 | 2,865 | 1.26 | % | |||||||||||||||
| Total interest bearing deposits | 713,966 | 5,666 | 1.06 | % | 554,070 | 4,030 | 0.97 | % | |||||||||||||||
| Borrowings | 18,349 | 145 | 1.06 | % | 14,015 | 163 | 1.55 | % | |||||||||||||||
| Subordinated debentures | 21,572 | 1,195 | 7.39 | % | 12,143 | 667 | 7.32 | % | |||||||||||||||
| Total interest bearing liabilities | 753,887 | 7,006 | 1.24 | % | 580,228 | 4,860 | 1.12 | % | |||||||||||||||
| Non-interest bearing deposits | 107,466 | 92,719 | |||||||||||||||||||||
| Other liabilities | 2,342 | 1,905 | |||||||||||||||||||||
| Stockholders' equity | 76,142 | 67,241 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 939,837 | $ | 742,093 | |||||||||||||||||||
| Net interest income/interest rate spread (2) | 21,233 | 2.90 | % | 17,838 | 3.15 | % | |||||||||||||||||
| Net interest margin (2) (4) | 3.11 | % | 3.36 | % | |||||||||||||||||||
| Tax-equivalent adjustment (2) | (128 | ) | (111 | ) | |||||||||||||||||||
| Net interest income | $ | 21,105 | $ | 17,727 | |||||||||||||||||||
| (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 | |||||||||||||||||
| QUARTERLY FINANCIAL HIGHLIGHTS | |||||||||||||||||
| (in thousands, except share and employee data, unaudited) | |||||||||||||||||
| 3Q2016 | 2Q2016 | 1Q2016 | 4Q2015 | 3Q2015 | |||||||||||||
| EARNINGS | |||||||||||||||||
| Net interest income | $ | 7,456 | $ | 6,880 | $ | 6,769 | $ | 6,096 | $ | 5,839 | |||||||
| Provision for loan losses | 291 | 639 | 813 | 950 | 1,031 | ||||||||||||
| Non-interest income | 384 | 316 | 360 | 282 | 264 | ||||||||||||
| Non-interest expense | 4,793 | 4,453 | 4,369 | 4,665 | 4,331 | ||||||||||||
| Income tax expense | 955 | 661 | 591 | 77 | 17 | ||||||||||||
| Net income | 1,801 | 1,443 | 1,356 | 686 | 724 | ||||||||||||
| PER SHARE DATA | |||||||||||||||||
| Basic earnings per share | $ | 0.16 | $ | 0.15 | $ | 0.14 | $ | 0.07 | $ | 0.08 | |||||||
| Diluted earnings per share | 0.16 | 0.15 | 0.14 | 0.07 | 0.08 | ||||||||||||
| Tangible book value (1) | 7.66 | 7.49 | 7.39 | 7.23 | 7.18 | ||||||||||||
| Book value | 7.68 | 7.51 | 7.42 | 7.26 | 7.21 | ||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||
| Return on average assets (2) | 0.74 | % | 0.62 | % | 0.60 | % | 0.33 | % | 0.37 | % | |||||||
| Return on average equity (2) | 8.25 | % | 8.09 | % | 7.83 | % | 3.97 | % | 4.21 | % | |||||||
| Net interest margin, tax equivalent basis (2) | 3.16 | % | 3.04 | % | 3.14 | % | 3.05 | % | 3.14 | % | |||||||
| Efficiency ratio (1) | 62.04 | % | 62.43 | % | 62.48 | % | 73.79 | % | 71.49 | % | |||||||
| Pre-provision net revenue (1) | 2,933 | $ | 2,680 | $ | 2,624 | $ | 2,006 | $ | 1,727 | ||||||||
| MARKET DATA (period-end) | |||||||||||||||||
| Market value per share | $ | 8.38 | $ | 6.94 | $ | 6.94 | $ | 6.61 | $ | 6.21 | |||||||
| Market value / book value | 109.16 | % | 92.43 | % | 93.37 | % | 91.03 | % | 86.07 | % | |||||||
| Common shares outstanding | 11,393,609 | 11,392,776 | 9,497,776 | 9,470,157 | 9,470,407 | ||||||||||||
| Market capitalization | $ | 95,478 | $ | 79,066 | $ | 65,805 | $ | 62,597 | $ | 58,809 | |||||||
| CAPITAL & LIQUIDITY | |||||||||||||||||
| Tangible equity / assets (1) | 8.66 | % | 8.79 | % | 7.65 | % | 8.00 | % | 8.42 | % | |||||||
| Equity / assets | 8.68 | % | 8.81 | % | 7.68 | % | 8.04 | % | 8.46 | % | |||||||
| Loans / deposits | 94.62 | % | 94.04 | % | 94.89 | % | 93.35 | % | 86.68 | % | |||||||
| ASSET QUALITY | |||||||||||||||||
| Net charge offs (recoveries) | $ | 30 | $ | 63 | $ | 294 | $ | 170 | $ | 626 | |||||||
| Nonperforming loans | 3,683 | 5,595 | 4,094 | 3,903 | 4,729 | ||||||||||||
| Nonperforming assets | 4,895 | 7,270 | 5,793 | 5,489 | 6,567 | ||||||||||||
| Net charge offs (recoveries) / average loans (2) | 0.01 | % | 0.03 | % | 0.16 | % | 0.11 | % | 0.42 | % | |||||||
| Nonperforming loans / total loans | 0.45 | % | 0.70 | % | 0.54 | % | 0.57 | % | 0.78 | % | |||||||
| Nonperforming assets / total assets | 0.49 | % | 0.75 | % | 0.63 | % | 0.64 | % | 0.81 | % | |||||||
| Allowance for loan losses / total loans | 1.12 | % | 1.13 | % | 1.12 | % | 1.15 | % | 1.18 | % | |||||||
| Allowance for loan losses / nonperforming loans | 252.40 | % | 161.48 | % | 206.62 | % | 203.43 | % | 151.41 | % | |||||||
| PERIOD-END DATA | |||||||||||||||||
| Total assets | $ | 1,007,685 | $ | 970,689 | $ | 917,441 | $ | 855,501 | $ | 808,031 | |||||||
| Total loans | 827,161 | 801,421 | 758,131 | 689,887 | 608,794 | ||||||||||||
| Total deposits | 874,149 | 852,230 | 798,985 | 739,021 | 702,325 | ||||||||||||
| Total stockholders' equity | 87,463 | 85,540 | 70,474 | 68,763 | 68,323 | ||||||||||||
| Full-time equivalent employees | 104 | 107 | 102 | 99 | 103 | ||||||||||||
| (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. |
CONTACT:
Patrick L. Ryan
President and CEO
(609) 643-0168
patrick.ryan@firstbanknj.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
