First Bank Announces Fourth Quarter 2023 Net Income of $8.4 Million and Full Year Net Income of $20.9 Million
- Net income for Q4 was $8.4 million, or $0.33 per diluted share, compared to $9.1 million, or $0.46 per diluted share, for the same period in 2022.
- Total net revenue for Q4 was $28.0 million, an 11.1% increase from the prior year quarter.
- Total loans increased by 29.2% to $3.02 billion at December 31, 2023.
- Nonperforming assets increased slightly to 0.69% of total assets at December 31, 2023.
- The Bank increased its liquidity position, with total cash and cash equivalents reaching $228.0 million at December 31, 2023.
- The Bank received regulatory approvals to retire $25 million of subordinated notes inherited from Malvern as part of its balance sheet repositioning initiative.
- Full year 2023 net income was $20.9 million, compared to $36.3 million for 2022.
- Return on average assets, return on average equity, and return on average tangible equity decreased for Q4 and full year 2023 compared to the same periods in 2022.
- Non-interest income for the full year ended December 31, 2023, decreased to $(715,000), compared to $5.1 million in 2022.
Insights
The fourth quarter and full year 2023 results reported by First Bank depict a nuanced financial landscape. The bank's net income has seen a year-over-year decline for both the quarter and the full year, which could be indicative of macroeconomic pressures or specific operational challenges. Notably, the return on average assets (ROAA), return on average equity (ROAE) and return on average tangible equity (ROATE) have all decreased compared to the previous year, which may raise concerns among investors about the bank's profitability and capital efficiency.
However, the adjusted figures, which exclude merger-related expenses and losses on sales of loans and investments, present a more favorable picture. This adjustment shows a higher ROAA and ROATE, suggesting that the core operations remain robust despite the headline figures. The bank's strategic decisions, such as the acquisition of Malvern Bancorp and Malvern Bank, have contributed to a significant increase in adjusted revenue, though investors may question the sustainability of growth driven by acquisitions versus organic growth.
The bank's asset quality metrics are strong, with nonperforming assets slightly up but still at a modest level. The net charge-offs are low and the bank recorded a credit loss benefit, which could be seen as a sign of a healthy loan portfolio. The balance sheet repositioning, including the sale of commercial loans, is a strategic move that may improve profitability but also needs to be monitored for its impact on the bank's growth trajectory.
First Bank's performance in the context of the banking industry reveals several strategic initiatives aimed at growth and risk diversification. The focus on geographic diversification and balance sheet repositioning aligns with industry trends where banks are seeking to optimize their asset portfolios and mitigate risk. The emphasis on strong asset quality and the decision to prioritize profit growth over balance sheet expansion is a conservative approach that could resonate well with investors who are risk-averse, especially in a volatile rate environment.
The bank's approach to core deposit generation as a driver for loan and asset growth is a fundamental banking strategy that relies on stable funding sources. However, the competitive interest rate environment may challenge deposit growth and margins. The affirmation of investment grade credit ratings by KBRA is a positive signal to the market, potentially contributing to investor confidence.
The bank's liquidity management appears prudent, with an increase in cash and cash equivalents to ensure adequate liquidity. The pending redemption of subordinated debt with a high-interest rate could improve interest expense and overall cost of capital. The declared dividend, though modest, indicates a commitment to shareholder returns, which is a positive signal for investors.
The reported figures from First Bank must be contextualized within the broader economic environment, characterized by fluctuating interest rates and a competitive banking sector. The bank's net interest margin (NIM) has decreased year-over-year, which could be reflective of the rising cost of deposits amid a higher interest rate environment. This trend is common across the industry as banks grapple with the Federal Reserve's tightening monetary policy.
The bank's strategic focus on asset quality and conservative growth amidst these conditions suggests a cautious approach to navigating economic uncertainties. The bank's effective tax rate is projected to return to historical norms, which may reflect a stable fiscal environment for the bank. However, the bank's future profitability will likely be influenced by its ability to manage interest rate risk and maintain its strong asset quality in a potentially slowing economy.
Overall, the bank's performance highlights the delicate balance between growth strategies, such as mergers and acquisitions and the need for risk management in a challenging economic climate. The bank's strategic decisions in 2023 will likely have a significant impact on its financial stability and performance in the coming year.
Results highlighted by improved geographic diversification, continued balance sheet repositioning, and strong asset quality
HAMILTON, N.J., Jan. 24, 2024 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) (the Bank) today announced results for the fourth quarter and full year 2023. Net income for the fourth quarter of 2023 was
Full year 2023 net income was
Fourth Quarter and Full Year 2023 Performance Highlights:
- Total net revenue (net interest income plus non-interest income) of
$28.0 million for the fourth quarter of 2023 increased$2.8 million , or11.1% , compared to the prior year quarter, while full year total net revenue was$103.8 million , an increase of$6.3 million , or6.5% , compared to 2022. Excluding the net impact of loan and investment securities sales, total net revenue was$32.7 million for the fourth quarter of 2023, a29.8% increase from the prior year quarter, and$109.6 million for 2023, a12.8% increase from 2022. - Total loans were
$3.02 billion at December 31, 2023, in line with the linked quarter. Excluding the impact of loan sales totaling$35.6 million during the quarter, total loans grew an adjusted$36.3 million , or4.8% , annualized, from September 30, 2023. - Total deposits were
$2.97 billion at December 31, 2023, in line with balances for the linked quarter ended September 30, 2023. Non-interest bearing deposits increased$8.1 million during the fourth quarter of 2023 while interest bearing deposits decreased$7.9 million . - Strong asset quality continued, with nonperforming assets increasing slightly to
0.69% of total assets at December 31, 2023 compared to0.68% at September 30, 2023, net charge-offs as a percentage of average loans measuring0.03% for fourth quarter 2023, and a credit loss benefit measuring$294,000 recorded for the quarter.
Patrick L. Ryan, President and CEO of First Bank, reflected on the Bank’s performance, stating, “Results for the fourth quarter display the outstanding momentum First Bank has achieved from solid execution of our strategic priorities in 2023. The completed acquisition of Malvern Bancorp and Malvern Bank added meaningfully to our earnings profile, contributing to a
Mr. Ryan added, “In 2024, we will continue to prioritize strong profit growth above overall balance sheet growth. We will continue to focus on core deposit generation which will drive our loan and asset growth in 2024. While the current rate environment continues to be a challenge, our strong team of bankers is focused on adding quality deposit relationships, diversifying our lending profile through growth in our new specialty banking businesses, and maintaining our excellent asset quality. With continued success, we expect to produce strong profitability metrics in 2024.”
Mr. Ryan concluded, “In December, the Kroll Bond Rating Agency (KBRA) again affirmed our investment grade credit ratings. Their report cited our successful execution of strategy in recent years, including a well-thought-out approach to M&A and a demonstrated ability to effectively integrate acquisitions. KRBA notes the Bank now reflects a vastly improved earnings profile that compares favorably to peers. We believe KBRA’s report is another validation of our approach to building franchise value for our shareholders.”
Income Statement
In the fourth quarter of 2023, the Bank’s net interest income increased to
Full year 2023 net interest income totaled
The Bank’s tax equivalent net interest margin measured
The full year 2023 tax equivalent net interest margin was
The Bank recorded a credit loss benefit totaling
For the full year 2023, the Bank reported a credit loss expense of
In the fourth quarter of 2023, the Bank recorded non-interest income totaling
For the full year ended December 31, 2023, the Bank recorded non-interest income totaling
Non-interest expense for the fourth quarter of 2023 was
On a linked quarter basis, non-interest expense declined
Non-interest expense for the full year 2023 totaled
Income tax expense for the three months ended December 31, 2023 was
Balance Sheet
The Bank reported total assets of
Total assets increased
The Bank's increase in loans during the three and twelve month periods ended December 31, 2023 were
As of December 31, 2023, the Bank's total deposits were
As of December 31, 2023, the Bank's stockholders' equity totaled
As of December 31, 2023, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of
Asset Quality
First Bank's asset quality metrics for the fourth quarter of 2023 remained favorable and continue to reflect the inclusion of
Liquidity and Borrowings
The Bank increased its liquidity position in the fourth quarter of 2023 as total cash and cash equivalents increased by
Pending Redemption of Subordinated Debt
The Bank has received the regulatory approvals required to retire
Cash Dividend Declared
On January 16, 2024, the Bank’s Board of Directors declared a quarterly cash dividend of
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/da24d66e-2436-456b-a1c5-13fffc470852
First Bank will host its earnings call on Thursday, January 25, 2024 at 9:00 AM Eastern Time. The direct dial toll free number for the live call is 1-888-330-3273 and the access code is 7660423. For those unable to participate in the call, a replay will be available by dialing 1-888-330-3273 (access code 7660423) from one hour after the end of the conference call until April 24, 2024. 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
Forward Looking Statements
This press release contains certain forward-looking statements, either express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding First Bank’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about First Bank, any of which may change over time and some of which may be beyond First Bank’s control. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: whether First Bank can: successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions, 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; changes in market interest rates may increase funding costs and reduce earning asset yields thus reducing margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of First Bank's investment securities portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank's operations, including changes in regulations affecting financial institutions and expenses associated with complying with such regulations; uncertainties in tax estimates and valuations, including due to changes in state and federal tax law; First Bank's ability to comply with applicable capital and liquidity requirements, including First Bank’s ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; and possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Forward-Looking Statements” and “Risk Factors” in First Bank’s Annual Report on Form 10-K and any updates to those risk factors set forth in First Bank’s proxy statement, subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if First Bank’s underlying assumptions prove to be incorrect, actual results may differ materially from what First Bank anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and First Bank does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that First Bank or persons acting on First Bank’s behalf may issue.
________________________
i Return on average tangible equity is a non-U.S. GAAP financial measure and is calculated by dividing net income by average tangible equity (average equity minus average goodwill and other intangible assets). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release
ii Adjusted diluted earnings per share, adjusted return on average assets and adjusted return on average tangible equity are non-U.S. GAAP financial measures and are calculated by dividing net income adjusted for certain merger-related expenses and other one-time gains or expenses by diluted weighted average shares, average assets and average tangible equity, respectively. For a reconciliation of these non-U.S. GAAP financial measures, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.
iii Tangible 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.
CONTACT: Andrew Hibshman, Chief Financial Officer
(609) 643-0058, andrew.hibshman@firstbanknj.com
| FIRST BANK | ||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
| (in thousands, except for share data, unaudited) | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 25,652 | $ | 17,577 | ||||
| Restricted cash | 13,770 | 13,580 | ||||||
| Interest bearing deposits with banks | 188,529 | 94,759 | ||||||
| Cash and cash equivalents | 227,951 | 125,916 | ||||||
| Interest bearing time deposits with banks | 996 | 1,293 | ||||||
| Investment securities available for sale, at fair value | 94,142 | 98,956 | ||||||
| Equity Securities, at fair value | 1,888 | - | ||||||
| Investment securities held to maturity, net of allowance for credit losses of | 44,059 | 47,193 | ||||||
| Restricted investment in bank stocks | 10,469 | 6,214 | ||||||
| Other investments | 9,841 | 8,372 | ||||||
| Loans, net of deferred fees and costs | 3,021,501 | 2,337,814 | ||||||
| Less: Allowance for credit losses | 42,397 | 25,474 | ||||||
| Net loans | 2,979,104 | 2,312,340 | ||||||
| Premises and equipment, net | 21,627 | 10,550 | ||||||
| Other real estate owned, net | - | - | ||||||
| Accrued interest receivable | 14,763 | 8,164 | ||||||
| Bank-owned life insurance | 86,435 | 58,107 | ||||||
| Goodwill | 44,166 | 17,826 | ||||||
| Other intangible assets, net | 10,812 | 1,579 | ||||||
| Deferred income taxes, net | 24,869 | 13,155 | ||||||
| Other assets | 38,204 | 23,275 | ||||||
| Total assets | $ | 3,609,326 | $ | 2,732,940 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Liabilities: | ||||||||
| Non-interest bearing deposits | $ | 501,763 | $ | 503,856 | ||||
| Interest bearing deposits | 2,465,806 | 1,790,096 | ||||||
| Total deposits | 2,967,569 | 2,293,952 | ||||||
| Borrowings | 179,140 | 90,932 | ||||||
| Subordinated debentures | 55,261 | 29,731 | ||||||
| Accrued interest payable | 2,813 | 1,218 | ||||||
| Other liabilities | 33,644 | 27,545 | ||||||
| Total liabilities | 3,238,427 | 2,443,378 | ||||||
| Stockholders' Equity: | ||||||||
| Preferred stock, par value | - | - | ||||||
| Common stock, par value | 134,552 | 104,512 | ||||||
| Additional paid-in capital | 122,881 | 80,695 | ||||||
| Retained earnings | 140,563 | 127,532 | ||||||
| Accumulated other comprehensive loss | (5,719 | ) | (7,334 | ) | ||||
| Treasury stock, 2,181,064 shares at December 31, 2023 and 1,631,064 shares at December 31, 2022 | (21,378 | ) | (15,843 | ) | ||||
| Total stockholders' equity | 370,899 | 289,562 | ||||||
| Total liabilities and stockholders' equity | $ | 3,609,326 | $ | 2,732,940 | ||||
| FIRST BANK | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (in thousands, except for share data, unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Interest and Dividend Income | ||||||||||||||||
| Investment securities—taxable | $ | 989 | $ | 945 | $ | 4,117 | $ | 2,998 | ||||||||
| Investment securities—tax-exempt | 36 | 40 | 194 | 149 | ||||||||||||
| Interest bearing deposits with banks, | ||||||||||||||||
| Federal funds sold and other | 2,831 | 1,205 | 8,860 | 2,093 | ||||||||||||
| Loans, including fees | 49,310 | 29,324 | 160,846 | 102,021 | ||||||||||||
| Total interest and dividend income | 53,166 | 31,514 | 174,017 | 107,261 | ||||||||||||
| Interest Expense | ||||||||||||||||
| Deposits | 19,707 | 6,875 | 60,281 | 11,883 | ||||||||||||
| Borrowings | 1,439 | 448 | 6,378 | 1,244 | ||||||||||||
| Subordinated debentures | 1,021 | 440 | 2,842 | 1,761 | ||||||||||||
| Total interest expense | 22,167 | 7,763 | 69,501 | 14,888 | ||||||||||||
| Net interest income | 30,999 | 23,751 | 104,516 | 92,373 | ||||||||||||
| Credit loss (benefit) expense | (294 | ) | 716 | 7,943 | 2,872 | |||||||||||
| Net interest income after credit loss expense | 31,293 | 23,035 | 96,573 | 89,501 | ||||||||||||
| Non-Interest Income | ||||||||||||||||
| Service fees on deposit accounts | 337 | 210 | 1,078 | 941 | ||||||||||||
| Loan fees | 150 | 369 | 409 | 683 | ||||||||||||
| Income from bank-owned life insurance | 591 | 362 | 1,882 | 1,474 | ||||||||||||
| Losses on sale of investment securities, net | (916 | ) | - | (1,650 | ) | - | ||||||||||
| (Losses) gains on sale of loans, net | (3,799 | ) | 4 | (4,192 | ) | 296 | ||||||||||
| Gains on recovery of acquired loans | 127 | 216 | 222 | 672 | ||||||||||||
| Other non-interest income | 510 | 285 | 1,536 | 1,054 | ||||||||||||
| Total non-interest income | (3,000 | ) | 1,446 | (715 | ) | 5,120 | ||||||||||
| Non-Interest Expense | ||||||||||||||||
| Salaries and employee benefits | 9,019 | 7,261 | 34,339 | 27,383 | ||||||||||||
| Occupancy and equipment | 1,997 | 1,407 | 7,104 | 5,689 | ||||||||||||
| Legal fees | 271 | 193 | 942 | 695 | ||||||||||||
| Other professional fees | 992 | 651 | 2,872 | 2,649 | ||||||||||||
| Regulatory fees | 843 | 173 | 2,188 | 851 | ||||||||||||
| Directors' fees | 246 | 173 | 877 | 743 | ||||||||||||
| Data processing | 887 | 617 | 3,093 | 2,476 | ||||||||||||
| Marketing and advertising | 468 | 177 | 1,161 | 682 | ||||||||||||
| Travel and entertainment | 224 | 189 | 743 | 479 | ||||||||||||
| Insurance | 259 | 189 | 883 | 727 | ||||||||||||
| Other real estate owned expense, net | 27 | 26 | 65 | 295 | ||||||||||||
| Merger-related expenses | 338 | 452 | 8,048 | 452 | ||||||||||||
| Other expense | 2,365 | 957 | 6,385 | 3,612 | ||||||||||||
| Total non-interest expense | 17,936 | 12,465 | 68,700 | 46,733 | ||||||||||||
| Income Before Income Taxes | 10,357 | 12,016 | 27,158 | 47,888 | ||||||||||||
| Income tax expense | 1,977 | 2,916 | 6,261 | 11,601 | ||||||||||||
| Net Income | $ | 8,380 | $ | 9,100 | $ | 20,897 | $ | 36,287 | ||||||||
| Basic earnings per common share | $ | 0.34 | $ | 0.47 | $ | 0.95 | $ | 1.86 | ||||||||
| Diluted earnings per common share | $ | 0.33 | $ | 0.46 | $ | 0.95 | $ | 1.84 | ||||||||
| Cash dividends per common share | $ | 0.06 | $ | 0.06 | $ | 0.24 | $ | 0.24 | ||||||||
| Basic weighted average common shares outstanding | 24,949,114 | 19,446,770 | 21,942,174 | 19,503,837 | ||||||||||||
| Diluted weighted average common shares outstanding | 25,089,495 | 19,649,282 | 22,072,616 | 19,716,684 | ||||||||||||
| FIRST BANK | |||||||||||||||||||||
| AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES | |||||||||||||||||||||
| (dollars in thousands, unaudited) | |||||||||||||||||||||
| Three Months Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||
| Balance | Interest | Rate (5) | Balance | Interest | Rate (5) | ||||||||||||||||
| Interest earning assets | |||||||||||||||||||||
| Investment securities (1) (2) | $ | 140,620 | $ | 1,033 | 2.91 | % | $ | 152,386 | $ | 993 | 2.59 | % | |||||||||
| Loans (3) | 3,013,393 | 49,310 | 6.49 | % | 2,277,238 | 29,324 | 5.11 | % | |||||||||||||
| Interest bearing deposits with banks, | |||||||||||||||||||||
| Federal funds sold and other | 170,021 | 2,353 | 5.49 | % | 112,829 | 1,067 | 3.75 | % | |||||||||||||
| Restricted investment in bank stocks | 8,362 | 252 | 11.96 | % | 5,545 | 85 | 6.08 | % | |||||||||||||
| Other investments | 10,554 | 226 | 8.50 | % | 8,381 | 53 | 2.51 | % | |||||||||||||
| Total interest earning assets (2) | 3,342,950 | 53,174 | 6.31 | % | 2,556,379 | 31,522 | 4.89 | % | |||||||||||||
| Allowance for credit losses | (43,247 | ) | (24,981 | ) | |||||||||||||||||
| Non-interest earning assets | 261,558 | 149,409 | |||||||||||||||||||
| Total assets | $ | 3,561,261 | $ | 2,680,807 | |||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||||
| Interest bearing demand deposits | $ | 654,623 | $ | 4,251 | 2.58 | % | $ | 328,191 | $ | 800 | 0.97 | % | |||||||||
| Money market deposits | 1,024,388 | 9,205 | 3.57 | % | 721,866 | 3,375 | 1.85 | % | |||||||||||||
| Savings deposits | 176,001 | 541 | 1.22 | % | 183,746 | 417 | 0.90 | % | |||||||||||||
| Time deposits | 614,486 | 5,710 | 3.69 | % | 489,478 | 2,283 | 1.85 | % | |||||||||||||
| Total interest bearing deposits | 2,469,498 | 19,707 | 3.17 | % | 1,723,281 | 6,875 | 1.58 | % | |||||||||||||
| Borrowings | 122,912 | 1,439 | 4.64 | % | 70,941 | 448 | 2.51 | % | |||||||||||||
| Subordinated debentures | 55,261 | 1,021 | 7.39 | % | 29,713 | 440 | 5.92 | % | |||||||||||||
| Total interest bearing liabilities | 2,647,671 | 22,167 | 3.32 | % | 1,823,935 | 7,763 | 1.69 | % | |||||||||||||
| Non-interest bearing deposits | 500,024 | 538,304 | |||||||||||||||||||
| Other liabilities | 46,616 | 32,285 | |||||||||||||||||||
| Stockholders' equity | 366,950 | 286,283 | |||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,561,261 | $ | 2,680,807 | |||||||||||||||||
| Net interest income/interest rate spread (2) | 31,007 | 2.99 | % | 23,759 | 3.20 | % | |||||||||||||||
| Net interest margin (2) (4) | 3.68 | % | 3.69 | % | |||||||||||||||||
| Tax equivalent adjustment (2) | (8 | ) | (8 | ) | |||||||||||||||||
| Net interest income | $ | 30,999 | $ | 23,751 | |||||||||||||||||
| (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 | |||||||||||||||||||||
| (3) Average balances of loans include loans on nonaccrual status. | |||||||||||||||||||||
| (4) Net interest income divided by average total interest earning assets. | |||||||||||||||||||||
| (5) Annualized. | |||||||||||||||||||||
| FIRST BANK AND SUBSIDIARIES | |||||||||||||||||||||
| AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES | |||||||||||||||||||||
| (dollars in thousands, unaudited) | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
| Interest earning assets | |||||||||||||||||||||
| Investment securities (1) (2) | $ | 151,471 | $ | 4,352 | 2.87 | % | $ | 143,460 | $ | 3,178 | 2.22 | % | |||||||||
| Loans (3) | 2,697,024 | 160,846 | 5.96 | % | 2,204,028 | 102,021 | 4.63 | % | |||||||||||||
| Interest bearing deposits with banks, | |||||||||||||||||||||
| Federal funds sold and other | 150,500 | 7,756 | 5.15 | % | 104,057 | 1,694 | 1.63 | % | |||||||||||||
| Restricted investment in bank stocks | 9,084 | 706 | 7.77 | % | 5,457 | 285 | 5.22 | % | |||||||||||||
| Other investments | 9,319 | 398 | 4.27 | % | 8,193 | 114 | 1.39 | % | |||||||||||||
| Total interest earning assets (2) | 3,017,398 | 174,058 | 5.77 | % | 2,465,195 | 107,292 | 4.35 | % | |||||||||||||
| Allowance for credit losses | (36,080 | ) | (24,702 | ) | |||||||||||||||||
| Non-interest earning assets | 196,253 | 146,851 | |||||||||||||||||||
| Total assets | $ | 3,177,571 | $ | 2,587,344 | |||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||||
| Interest bearing demand deposits | $ | 498,075 | $ | 10,743 | 2.16 | % | $ | 323,824 | $ | 1,395 | 0.43 | % | |||||||||
| Money market deposits | 886,991 | 29,382 | 3.31 | % | 719,743 | 5,923 | 0.82 | % | |||||||||||||
| Savings deposits | 160,570 | 1,743 | 1.09 | % | 184,510 | 989 | 0.54 | % | |||||||||||||
| Time deposits | 593,798 | 18,413 | 3.10 | % | 378,292 | 3,576 | 0.95 | % | |||||||||||||
| Total interest bearing deposits | 2,139,434 | 60,281 | 2.82 | % | 1,606,369 | 11,883 | 0.74 | % | |||||||||||||
| Borrowings | 142,456 | 6,378 | 4.48 | % | 69,916 | 1,244 | 1.78 | % | |||||||||||||
| Subordinated debentures | 41,565 | 2,842 | 6.84 | % | 29,672 | 1,761 | 5.93 | % | |||||||||||||
| Total interest bearing liabilities | 2,323,455 | 69,501 | 2.99 | % | 1,705,957 | 14,888 | 0.87 | % | |||||||||||||
| Non-interest bearing deposits | 492,683 | 579,691 | |||||||||||||||||||
| Other liabilities | 34,142 | 24,057 | |||||||||||||||||||
| Stockholders' equity | 327,291 | 277,639 | |||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,177,571 | $ | 2,587,344 | |||||||||||||||||
| Net interest income/interest rate spread (2) | 104,557 | 2.78 | % | 92,404 | 3.48 | % | |||||||||||||||
| Net interest margin (2) (4) | 3.47 | % | 3.75 | % | |||||||||||||||||
| Tax equivalent adjustment (2) | (41 | ) | (31 | ) | |||||||||||||||||
| Net interest income | $ | 104,516 | $ | 92,373 | |||||||||||||||||
| (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 | |||||||||||||||||||||
| (3) Average balances of loans include loans on nonaccrual status. | |||||||||||||||||||||
| (4) Net interest income divided by average total interest earning assets. | |||||||||||||||||||||
| FIRST BANK | ||||||||||||||||||||
| QUARTERLY FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (in thousands, except for share and employee data, unaudited) | ||||||||||||||||||||
| As of or For the Quarter Ended | ||||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||||
| EARNINGS | ||||||||||||||||||||
| Net interest income | $ | 30,999 | $ | 28,594 | $ | 22,128 | $ | 22,795 | $ | 23,751 | ||||||||||
| Credit loss expense / Provision for loan losses | (294 | ) | 6,650 | 496 | 1,091 | 716 | ||||||||||||||
| Non-interest income | (3,000 | ) | 193 | 1,128 | 964 | 1,446 | ||||||||||||||
| Non-interest expense | 17,936 | 23,486 | 13,775 | 13,503 | 12,465 | |||||||||||||||
| Income tax expense | 1,977 | (78 | ) | 2,186 | 2,176 | 2,916 | ||||||||||||||
| Net income | 8,380 | (1,271 | ) | 6,799 | 6,989 | 9,100 | ||||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||
| Return on average assets (1) | ( | ) | ||||||||||||||||||
| Adjusted return on average assets (1) (2) | ||||||||||||||||||||
| Return on average equity (1) | ( | ) | ||||||||||||||||||
| Adjusted return on average equity (1) (2) | ||||||||||||||||||||
| Return on average tangible equity (1) (2) | ( | ) | ||||||||||||||||||
| Adjusted return on average tangible equity (1) (2) | ||||||||||||||||||||
| Net interest margin (1) (3) | ||||||||||||||||||||
| Total cost of deposits (1) | ||||||||||||||||||||
| Efficiency ratio (2) | ||||||||||||||||||||
| SHARE DATA | ||||||||||||||||||||
| Common shares outstanding | 24,968,122 | 24,926,919 | 19,041,343 | 19,569,334 | 19,451,755 | |||||||||||||||
| Basic earnings per share | $ | 0.34 | $ | (0.05 | ) | $ | 0.35 | $ | 0.36 | $ | 0.47 | |||||||||
| Diluted earnings per share | 0.33 | (0.05 | ) | 0.35 | 0.36 | 0.46 | ||||||||||||||
| Adjusted diluted earnings per share (2) | 0.49 | 0.40 | 0.35 | 0.38 | 0.48 | |||||||||||||||
| Book value per share | 14.85 | 14.48 | 15.45 | 15.03 | 14.89 | |||||||||||||||
| Tangible book value per share (2) | 12.65 | 12.26 | 14.44 | 14.05 | 13.89 | |||||||||||||||
| MARKET DATA | ||||||||||||||||||||
| Market value per share | $ | 14.70 | $ | 10.78 | $ | 10.38 | $ | 10.10 | $ | 13.76 | ||||||||||
| Market value / Tangible book value | ||||||||||||||||||||
| Market capitalization | $ | 367,031 | $ | 268,712 | $ | 197,649 | $ | 197,650 | $ | 267,656 | ||||||||||
| CAPITAL & LIQUIDITY | ||||||||||||||||||||
| Stockholders' equity / assets | ||||||||||||||||||||
| Tangible stockholders' equity / tangible assets (2) | ||||||||||||||||||||
| Loans / deposits | ||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||
| Net charge-offs (recoveries) | $ | 209 | $ | 1,122 | $ | (109 | ) | $ | 315 | $ | (213 | ) | ||||||||
| Nonperforming loans | 24,864 | 24,158 | 8,023 | 7,820 | 6,250 | |||||||||||||||
| Nonperforming assets | 24,864 | 24,158 | 8,023 | 7,820 | 6,250 | |||||||||||||||
| Net charge offs (recoveries) / average loans (1) | ( | ) | ( | ) | ||||||||||||||||
| Nonperforming loans / total loans | ||||||||||||||||||||
| Nonperforming assets / total assets | ||||||||||||||||||||
| Allowance for credit losses on loans / total loans | ||||||||||||||||||||
| Allowance for credit losses on loans / nonperforming loans | ||||||||||||||||||||
| OTHER DATA | ||||||||||||||||||||
| Total assets | $ | 3,609,326 | $ | 3,558,426 | $ | 2,874,425 | $ | 2,816,897 | $ | 2,732,940 | ||||||||||
| Total loans | 3,021,501 | 3,020,778 | 2,436,708 | 2,392,583 | 2,337,814 | |||||||||||||||
| Total deposits | 2,967,569 | 2,967,455 | 2,399,900 | 2,241,804 | 2,293,952 | |||||||||||||||
| Total stockholders' equity | 370,899 | 361,037 | 294,161 | 294,221 | 289,562 | |||||||||||||||
| Number of full-time equivalent employees | 286 | 286 | 261 | 252 | 238 | |||||||||||||||
| (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 | ||||||||||||||||||||
| FIRST BANK | ||||||||||||||||||||
| QUARTERLY FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (dollars in thousands, unaudited) | ||||||||||||||||||||
| As of the Quarter Ended | ||||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||||
| LOAN COMPOSITION | ||||||||||||||||||||
| Commercial and industrial | $ | 506,849 | $ | 478,120 | $ | 419,836 | $ | 394,734 | $ | 354,203 | ||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Owner-occupied | 612,352 | 607,888 | 560,878 | 539,112 | 533,426 | |||||||||||||||
| Investor | 1,221,702 | 1,269,134 | 965,339 | 958,574 | 951,115 | |||||||||||||||
| Construction and development | 186,829 | 168,192 | 136,615 | 143,955 | 142,876 | |||||||||||||||
| Multi-family | 271,058 | 275,825 | 223,784 | 220,101 | 215,990 | |||||||||||||||
| Total commercial real estate | 2,291,941 | 2,321,039 | 1,886,616 | 1,861,742 | 1,843,407 | |||||||||||||||
| Residential real estate: | ||||||||||||||||||||
| Residential mortgage and first lien home equity loans | 156,024 | 158,487 | 91,260 | 94,060 | 93,847 | |||||||||||||||
| Home equity–second lien loans and revolving lines of credit | 44,698 | 46,239 | 29,983 | 29,316 | 33,551 | |||||||||||||||
| Total residential real estate | 200,722 | 204,726 | 121,243 | 123,376 | 127,398 | |||||||||||||||
| Consumer and other | 25,343 | 20,208 | 12,514 | 16,413 | 16,318 | |||||||||||||||
| Total loans prior to deferred loan fees and costs | 3,024,855 | 3,024,093 | 2,440,209 | 2,396,265 | 2,341,326 | |||||||||||||||
| Net deferred loan fees and costs | (3,354 | ) | (3,315 | ) | (3,501 | ) | (3,682 | ) | (3,512 | ) | ||||||||||
| Total loans | $ | 3,021,501 | $ | 3,020,778 | $ | 2,436,708 | $ | 2,392,583 | $ | 2,337,814 | ||||||||||
| LOAN MIX | ||||||||||||||||||||
| Commercial and industrial | ||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Owner-occupied | ||||||||||||||||||||
| Investor | ||||||||||||||||||||
| Construction and development | ||||||||||||||||||||
| Multi-family | ||||||||||||||||||||
| Total commercial real estate | ||||||||||||||||||||
| Residential real estate: | ||||||||||||||||||||
| Residential mortgage and first lien home equity loans | ||||||||||||||||||||
| Home equity–second lien loans and revolving lines of credit | ||||||||||||||||||||
| Total residential real estate | ||||||||||||||||||||
| Consumer and other | ||||||||||||||||||||
| Net deferred loan fees and costs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
| Total loans | ||||||||||||||||||||
| FIRST BANK | ||||||||||||||||||||
| QUARTERLY FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (dollars in thousands, unaudited) | ||||||||||||||||||||
| As of the Quarter Ended | ||||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||||
| DEPOSIT COMPOSITION | ||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 501,763 | $ | 493,703 | $ | 476,733 | $ | 463,926 | $ | 503,856 | ||||||||||
| Interest bearing demand deposits | 629,110 | 623,338 | 376,948 | 310,140 | 322,944 | |||||||||||||||
| Money market and savings deposits | 1,171,440 | 1,228,832 | 979,524 | 914,063 | 935,311 | |||||||||||||||
| Time deposits | 665,256 | 621,582 | 566,695 | 553,675 | 531,841 | |||||||||||||||
| Total Deposits | $ | 2,967,569 | $ | 2,967,455 | $ | 2,399,900 | $ | 2,241,804 | $ | 2,293,952 | ||||||||||
| DEPOSIT MIX | ||||||||||||||||||||
| Non-interest bearing demand deposits | ||||||||||||||||||||
| Interest bearing demand deposits | ||||||||||||||||||||
| Money market and savings deposits | ||||||||||||||||||||
| Time deposits | ||||||||||||||||||||
| Total Deposits | ||||||||||||||||||||
| FIRST BANK | ||||||||||||||||||||
| NON-U.S. GAAP FINANCIAL MEASURES | ||||||||||||||||||||
| (in thousands, except for share data, unaudited) | ||||||||||||||||||||
| As of or For the Quarter Ended | ||||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||||
| Return on Average Tangible Equity | ||||||||||||||||||||
| Net income (numerator) | $ | 8,380 | $ | (1,271 | ) | $ | 6,799 | $ | 6,989 | $ | 9,100 | |||||||||
| Average stockholders' equity | $ | 366,950 | $ | 353,372 | $ | 295,560 | $ | 292,174 | $ | 286,283 | ||||||||||
| Less: Average Goodwill and other intangible assets, net | 55,324 | 49,491 | 19,324 | 19,379 | 19,533 | |||||||||||||||
| Average Tangible stockholders' equity (denominator) | $ | 311,626 | $ | 303,881 | $ | 276,236 | $ | 272,795 | $ | 266,750 | ||||||||||
| Return on Average Tangible equity (1) | - | |||||||||||||||||||
| Tangible Book Value Per Share | ||||||||||||||||||||
| Stockholders' equity | $ | 370,899 | $ | 361,037 | $ | 294,161 | $ | 294,221 | $ | 289,562 | ||||||||||
| Less: Goodwill and other intangible assets, net | 54,978 | 55,554 | 19,289 | 19,322 | 19,405 | |||||||||||||||
| Tangible stockholders' equity (numerator) | $ | 315,921 | $ | 305,483 | $ | 274,872 | $ | 274,899 | $ | 270,157 | ||||||||||
| Common shares outstanding (denominator) | 24,968,122 | 24,926,919 | 19,041,343 | 19,569,334 | 19,451,755 | |||||||||||||||
| Tangible book value per share | $ | 12.65 | $ | 12.26 | $ | 14.44 | $ | 14.05 | $ | 13.89 | ||||||||||
| Tangible Equity / Assets | ||||||||||||||||||||
| Stockholders' equity | $ | 370,899 | $ | 361,037 | $ | 294,161 | $ | 294,221 | $ | 289,562 | ||||||||||
| Less: Goodwill and other intangible assets, net | 54,978 | 55,554 | 19,289 | 19,322 | 19,405 | |||||||||||||||
| Tangible stockholders' equity (numerator) | $ | 315,921 | $ | 305,483 | $ | 274,872 | $ | 274,899 | $ | 270,157 | ||||||||||
| Total assets | $ | 3,609,326 | $ | 3,558,426 | $ | 2,874,425 | $ | 2,816,897 | $ | 2,732,940 | ||||||||||
| Less: Goodwill and other intangible assets, net | 54,978 | 55,554 | 19,289 | 19,322 | 19,405 | |||||||||||||||
| Tangible total assets (denominator) | $ | 3,554,348 | $ | 3,502,872 | $ | 2,855,136 | $ | 2,797,575 | $ | 2,713,535 | ||||||||||
| Tangible stockholders' equity / tangible assets | ||||||||||||||||||||
| Efficiency Ratio | ||||||||||||||||||||
| Non-interest expense | $ | 17,936 | $ | 23,486 | $ | 13,775 | $ | 13,503 | $ | 12,465 | ||||||||||
| Less: Merger-related expenses | 338 | 7,028 | 221 | 461 | 452 | |||||||||||||||
| Adjusted non-interest expense (numerator) | $ | 17,598 | $ | 16,458 | $ | 13,554 | $ | 13,042 | $ | 12,013 | ||||||||||
| Net interest income | $ | 30,999 | $ | 28,594 | $ | 22,128 | $ | 22,795 | $ | 23,751 | ||||||||||
| Non-interest income | (3,000 | ) | 193 | 1,128 | 964 | 1,446 | ||||||||||||||
| Total revenue | 27,999 | 28,787 | 23,256 | 23,759 | 25,197 | |||||||||||||||
| Add: Losses on sale of investment securities, net | 916 | 527 | - | 207 | - | |||||||||||||||
| Add (subtract): Losses (gains) on sale of loans, net | 3,799 | 704 | (170 | ) | (141 | ) | (4 | ) | ||||||||||||
| Adjusted total revenue (denominator) | $ | 32,714 | $ | 30,018 | $ | 23,086 | $ | 23,825 | $ | 25,193 | ||||||||||
| Efficiency ratio | ||||||||||||||||||||
| (1) Annualized. | ||||||||||||||||||||
| FIRST BANK | ||||||||||||||||||||
| NON-U.S. GAAP FINANCIAL MEASURES | ||||||||||||||||||||
| (dollars in thousands, except for share data, unaudited) | ||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||||
| Adjusted diluted earnings per share, | ||||||||||||||||||||
| Adjusted return on average assets, and | ||||||||||||||||||||
| Adjusted return on average equity | ||||||||||||||||||||
| Net income | $ | 8,380 | $ | (1,271 | ) | $ | 6,799 | $ | 6,989 | $ | 9,100 | |||||||||
| Add: Merger-related expenses(1) | 267 | 5,552 | 175 | 364 | 357 | |||||||||||||||
| Add: Credit loss expense on acquired loan portfolio(1) | - | 4,323 | - | - | - | |||||||||||||||
| Add (subtract): Losses (gains) on sale of loans, net(1) | 3,001 | 556 | (134 | ) | (111 | ) | (3 | ) | ||||||||||||
| Add: Losses on sale of investment securities, net(1) | 724 | 416 | - | 164 | - | |||||||||||||||
| Adjusted net income | $ | 12,372 | $ | 9,576 | $ | 6,839 | $ | 7,405 | $ | 9,454 | ||||||||||
| Diluted weighted average common shares outstanding | 25,089,495 | 24,029,910 | 19,434,522 | 19,667,194 | 19,649,282 | |||||||||||||||
| Average assets | $ | 3,561,261 | $ | 3,565,350 | $ | 2,825,213 | $ | 2,745,235 | $ | 2,680,807 | ||||||||||
| Average equity | $ | 366,950 | $ | 353,372 | $ | 295,560 | $ | 292,174 | $ | 286,283 | ||||||||||
| Average Tangible Equity | $ | 311,626 | $ | 303,881 | $ | 276,236 | $ | 272,795 | $ | 266,750 | ||||||||||
| Adjusted diluted earnings per share | $ | 0.49 | $ | 0.40 | $ | 0.35 | $ | 0.38 | $ | 0.48 | ||||||||||
| Adjusted return on average assets (2) | ||||||||||||||||||||
| Adjusted return on average equity (2) | ||||||||||||||||||||
| Adjusted return on average tangible equity (2) | ||||||||||||||||||||
| (1) Items are tax-effected using a federal income tax rate of | ||||||||||||||||||||
| (2) Annualized. | ||||||||||||||||||||
| FIRST BANK AND SUBSIDIARIES | |||||||
| NON-U.S. GAAP FINANCIAL MEASURES | |||||||
| (dollars in thousands, except for share data, unaudited) | |||||||
| Year Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Adjusted diluted earnings per share, | |||||||
| Adjusted return on average assets, and | |||||||
| Adjusted return on average equity | |||||||
| Net income | $ | 20,897 | $ | 36,287 | |||
| Add: Merger-related expenses(1) | 6,358 | 357 | |||||
| Add: Credit loss expense on acquired loan portfolio(1) | 4,323 | - | |||||
| Add (subtract): Losses (gains) on sale of loans, net(1) | 3,312 | (234 | ) | ||||
| Add: Losses on sale of investment securities, net(1) | 1,303 | - | |||||
| Adjusted net income | $ | 36,193 | $ | 36,410 | |||
| Diluted weighted average common shares outstanding | 22,072,616 | 19,716,684 | |||||
| Average assets | $ | 3,177,571 | $ | 2,587,344 | |||
| Average equity | $ | 327,291 | $ | 277,639 | |||
| Average Tangible Equity | $ | 291,276 | $ | 257,905 | |||
| Adjusted diluted earnings per share | $ | 1.64 | $ | 1.85 | |||
| Adjusted return on average assets | |||||||
| Adjusted return on average equity | |||||||
| Adjusted return on average tangible equity | |||||||
| (1) Tax-effected using a federal income tax rate of | |||||||
FAQ
What was First Bank's (FRBA) net income for Q4 2023?
What was the total net revenue for Q4 2023?
How much did the total loans increase by at December 31, 2023?
What was the percentage of nonperforming assets at December 31, 2023?
What was the total cash and cash equivalents at December 31, 2023?
Did First Bank receive regulatory approvals for any financial actions?
