First Bank Announces Increase to Quarterly Cash Dividend

Rhea-AI Summary

First Bank (Nasdaq: FRBA) announced a quarterly cash dividend of $0.06 per share, representing a 100% increase from the previous $0.03. The dividend is payable on November 19, 2021, to stockholders of record by November 5, 2021. This increase corresponds to an annualized yield of 1.57% based on the stock’s closing price of $15.25 on October 19, 2021. First Bank aims to drive long-term value for shareholders through this dividend, reflecting its strong financial position.

Positive

• Quarterly cash dividend increased by 100% to $0.06 per share.
• Annualized yield of 1.57% based on October 19, 2021, closing price.
• Dividend payout ratio of over 13%, indicating sustainable payout.

Negative

• None.

HAMILTON, N.J., Oct. 25, 2021 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) today announced that, on October 19, 2021, its 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 5, 2021, payable on November 19, 2021.

“First Bank is deeply committed to driving long-term value for our shareholders through our quarterly cash dividend,” said Patrick L. Ryan, President and Chief Executive Officer. “In recognition of our strong financial position and confidence in our strategy to continue to grow, the Board of Directors has approved an increase to the quarterly dividend to $0.06, representing an annualized yield of 1.57% based on our stock’s $15.25 closing price on October 19, 2021.”

The $0.06 dividend reflects a 100% increase from the cash dividend of $0.03 per share declared during the linked and prior year quarters and equates to a dividend payout ratio of just over 13% utilizing June 30, 2021 quarterly results.

About First Bank

First Bank is a New Jersey state-chartered bank with 16 full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington, Hamilton, Lawrence, Pennington, Randolph, Somerset and Williamstown, New Jersey and Doylestown, Trevose, Warminster and West Chester, Pennsylvania. With $2.4 billion in assets as of June 30, 2021, First Bank offers a full range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia corridor. First Bank's common stock is listed on the Nasdaq Global Market under the symbol “FRBA.”

Forward Looking Statements

This press release contains certain forward-looking statements, either express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding First Bank’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about First Bank, any of which may change over time and some of which may be beyond First Bank’s control. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: whether First Bank can: successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions; continue to sustain its internal growth rate; 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 impact of disease pandemics, including COVID-19, on First Bank, its operations and its customers and employees; an increase in unemployment levels and slowdowns in economic growth; First Bank's level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; changes in market interest rates may increase funding costs and reduce earning asset yields thus reducing margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of First Bank's investment securities portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank's operations including changes in regulations affecting financial institutions, and expenses associated with complying with such regulations; uncertainties in tax estimates and valuations, including due to changes in state and federal tax law; First Bank's ability to comply with applicable capital and liquidity requirements, including First Bank’s ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Forward-Looking Statements” and “Risk Factors” in First Bank’s Annual Report on Form 10-K and any updates to those risk factors set forth in First Bank’s proxy statement, subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if First Bank’s underlying assumptions prove to be incorrect, actual results may differ materially from what First Bank anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and First Bank does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that First Bank or persons acting on First Bank’s behalf may issue.

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

FAQ

What is the dividend amount declared by First Bank on October 25, 2021?

First Bank declared a quarterly cash dividend of $0.06 per share.

When is the dividend payable to shareholders?

The dividend is payable on November 19, 2021.

What is the record date for the dividend payment?

The record date for the dividend payment is November 5, 2021.

How does the new dividend compare to previous dividends?

The new dividend of $0.06 reflects a 100% increase from the previous dividend of $0.03.

What is the annualized yield of the dividend based on the stock price?

The annualized yield is 1.57% based on the stock's closing price of $15.25 on October 19, 2021.