First Bank Reports First Quarter 2022 Net Income of $8.2 Million

Rhea-AI Summary

First Bank (FRBA) reported first-quarter 2022 net income of $8.2 million, or $0.41 per diluted share, marking a decline from $9.7 million in Q1 2021. Total loans reached $2.15 billion, with strong organic growth excluding PPP loans. Deposits also grew by 3% to $2.18 billion, enhancing the bank's deposit mix. Asset quality metrics remained solid, with nonperforming loans at 0.59%. The bank declared a $0.06 quarterly dividend, reflecting a 1.68% yield. The efficiency ratio stood at 49.62%, and net interest income increased by 5.5% year-over-year, emphasizing financial stability despite challenges.

Positive

• Net income of $8.2 million, showing strong earnings despite a year-over-year decline.
• Total loans increased by $39.8 million (1.9%) from December 2021, excluding PPP loans.
• Deposits rose by $63.3 million (3.0%), with a shift towards non-interest bearing deposits.
• Net interest income grew by $1.1 million (5.5%) compared to Q1 2021.
• Efficiency ratio improved to 49.62%, marking the fifth consecutive quarter below 50%.
• Solid asset quality, with nonperforming loans at 0.59% and low net charge-offs of 0.05%.

Negative

• Net income decreased from $9.7 million in Q1 2021 to $8.2 million in Q1 2022.
• Non-interest income dropped to $1.3 million from $2.3 million in the prior year due to reduced loan sale activity.

Quarterly Results Highlighted by Strong Organic Loan Growth, Continued Enhancement of the Bank’s Deposit Mix, and Solid Asset Quality Metrics

HAMILTON, N.J., April 25, 2022 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) (the Bank) today announced results for the first quarter of 2022, including net income of $8.2 million, or $0.41 per diluted share. Return on average assets, return on average equity and return on average tangible equityⁱ for the first quarter of 2022 were 1.31%, 12.25% and 13.22%, respectively. In the first quarter of 2021, the Bank reported net income of $9.7 million, or $0.49 per diluted share, and return on average assets, return on average equity and return on average tangible equityⁱ of 1.66%, 16.21% and 17.52%, respectively.

First Quarter 2022 Performance Highlights:

• Total loans of $2.15 billion at March 31, 2022 reflected growth of $39.8 million, or 1.9%, from December 31, 2021. Loan growth, excluding the decline in Paycheck Protection Program (PPP) loans, totaled $65.3 million in the first quarter of 2022, representing a 12.8% annualized increase.
• Total deposits of $2.18 billion at March 31, 2022 were up $63.3 million, or 3.0%, from December 31, 2021. Non-interest bearing demand deposits increased to 27.4% of total deposits at March 31, 2022, compared to 26.4% at December 31, 2021, while time deposits decreased to 15.1% at March 31, 2022 from 18.5% at December 31, 2021.
• Asset quality metrics remained solid during the quarter, with net charge offs making up 0.05% of average loans on an annualized basis and nonperforming loans declining to 0.59% of total loans at March 31, 2022 from 0.62% at December 31, 2021.
• Continued focus on managing expenses resulted in the fifth consecutive quarter of an efficiency ratioⁱⁱ below 50%, at 49.62% for the first quarter of 2022.
• Tangible book value per shareⁱⁱⁱ of $12.79, up $0.12 from the end of the linked fourth quarter of 2021 and up $1.20 from March 31, 2021.

“Our first quarter performance was highlighted by strong earnings, continued organic loan growth, further enhancement of our deposit mix and solid asset quality metrics,” said Patrick L. Ryan, President and Chief Executive Officer. “Our team’s focus on expanding relationships with new and existing customers supported solid balance sheet expansion, with non-PPP loans up an annualized 12.8% and deposits up an annualized 12.1% from the linked fourth quarter. Organic loan growth was led by investor and owner-occupied commercial real estate lending, while our deposit mix continued to shift toward lower cost, non-time deposits.”

Mr. Ryan continued, “As expected, PPP loans and associated fees declined in the first quarter of 2022 as customers’ loans through this federal program continue to be forgiven. Offsetting this decline was strong organic loan growth in the fourth quarter of 2021 and first quarter of 2022, creating a larger average earning asset base. This loan growth, combined with our continued low funding costs, led to net interest income expansion for the quarter. We also saw an improvement in our net interest margin which was 3.43%, excluding PPP fees, in the first quarter of 2022 compared to 3.34% in the fourth quarter of 2021 and we see opportunity to improve the margin through rising asset yields. While non-interest revenues were softer in the first three months of the year, we believe this was partially a timing issue and remain optimistic about opportunities to expand U.S. Small Business Administration loan sale activity and continue to generate loan swap fee income. As we seek to drive continued revenue growth, we remain focused on effectively managing expenses, even as we respond to inflationary and competitive pressures to retain and recruit top talent in our markets.”

“Loan growth continues to come from high-quality customers and, accordingly, our asset quality metrics remain strong. Our nonperforming loans to total loans ratio improved during the quarter to 0.59%. Net charge-offs remain relatively low as annualized charge offs were 0.05% of average loans during the quarter ended March 31, 2022 and primarily related to one loan.”

“We are very pleased with our performance so far in 2022 and the opportunities we see ahead for continued growth. Our two newest branches, acquired in late 2021, continue to perform well and have led to some expanded customer relationships and with our robust lending pipelines, we believe we can continue to drive organic commercial loan growth. Our confidence is due in large part to the exceptional talent we have and continue to attract. We have been able to capitalize on market disruption, adding a number of relationship managers over the last several quarters from larger institutions that have already hit the ground running.”

“Our entire team is focused on maintaining our earnings and profitability strength as we seek to drive long-term shareholder value. As such, we were pleased to again announce a $0.06 quarterly dividend, reflecting an annualized yield of 1.68% based on our April 19, 2022 closing price.”

Income Statement

First Bank’s net interest income for the first quarter of 2022 was $21.1 million, an increase of $1.1 million, or 5.5%, compared to $20.0 million in the first quarter of 2021, due primarily to a $1.1 million decrease in total interest expense. The reduction in interest expense was primarily a result of a 46 basis point reduction in the average rate paid on time deposits, along with a decrease of $157.7 million in the average balance of time deposits. As a result of the Bank’s concerted effort to drive down deposit costs in a comparatively much lower interest rate environment, interest expense on all other interest bearing deposits also declined. Interest income was consistent with the year-ago quarter even with a lower level of PPP loan fees, as average loan growth of $93.7 million between the comparative periods was partially offset by a 20 basis point decline in the average loan yields. Impacting interest income from loans in the first quarter of 2022 was $860,000 in PPP loan fees compared to $1.6 million in the first quarter of 2021 and $1.1 million in the linked fourth quarter of 2021. Also impacting loan interest income in the first quarter of 2022 was loan prepayment income of $459,000, compared to $673,000 for the quarter ended March 31, 2021 and $312,000 for the quarter ended December 31, 2021.

The first quarter 2022 tax equivalent net interest margin was 3.57%, a modest decrease of three basis points compared to the prior year quarter and an increase of five basis points from the fourth quarter of 2021. The Bank’s margin continues to benefit from higher average non-interest bearing deposits and an overall lower cost of funds.

The Bank reported a provision for loan losses of $642,000 for the first quarter of 2022, compared to $1.1 million credit to the provision for loan losses in the first quarter of 2021 and a provision of $825,000 for the linked fourth quarter 2021. The provision for the quarter ended March 31, 2022 reflects consistent organic loan growth and continued strong asset quality.

First quarter 2022 non-interest income of $1.3 million compares to $2.3 million during the first quarter 2021. The decrease between the periods was primarily the result of a $497,000 decrease in gains on sale of loans reflecting lower U.S. Small Business Administration (SBA) loan sales, a $436,000 decrease in loan fees primarily reflecting lower loan swap fees in the first quarter 2022, and a $246,000 decrease in gains on the recovery of acquired loans.

Non-interest expense for first quarter 2022 of $11.1 million increased $472,000, or 4.4%, compared to $10.7 million for the prior year quarter. The higher non-interest expense compared to first quarter 2021 was primarily a result of a $776,000, or 13.5%, increase in salaries and employee benefits which was partially offset by reduced occupancy and equipment and legal fees. The increase in salaries and employee benefits was due primarily to merit-based salary compensation, a slightly higher number of total employees and increases in employee benefit costs.

On a linked quarter basis, first quarter 2022 non-interest expense decreased $703,000, or 5.9%, compared to $11.8 million for the fourth quarter of 2021, when the Bank recorded higher performance related compensation and merger-related expenses associated with our acquisition of two branches. Excluding merger-related expenses incurred in the fourth quarter of 2021, adjusted non-interest expense^iv decreased 1.8% between the comparable periods.

Income tax expense for the three months ended March 31, 2022 was $2.5 million with an effective tax rate of 23.4%, compared to $3.1 million with an effective tax rate of 24.2% for the first quarter of 2021 and $2.4 million with an effective tax rate of 23.2% for the fourth quarter of 2021.

Balance Sheet

Total assets at March 31, 2022 were $2.57 billion, an increase of $168.3 million, or 7.0%, compared to $2.41 billion at March 31, 2021 and $63.5 million, or 2.5%, from December 31, 2021, respectively. Total loans increased $129.6 million, or 6.4%, to $2.15 billion at March 31, 2022 compared to $2.02 billion at March 31, 2021. The increase in loans during the twelve month period ended March 31, 2022 reflects net non-PPP organic growth of $286.7 million and approximately $11.3 million in acquired loans, offset by a net decline in PPP loans of $168.4 million, as such loans continue to be forgiven. Total loans as of March 31, 2022 increased $39.8 million, or 1.9%, from $2.11 billion at December 31, 2021, reflecting organic, net non-PPP loan growth of $65.3 million, offset by a net decline in PPP loans of $25.5 million. PPP loans outstanding at March 31, 2022 were $25.5 million.

Total deposits were $2.18 billion at March 31, 2022, an increase of $207.4 million, or 10.5%, from $1.97 billion at March 31, 2021, and an increase of $63.3 million, or 3.0%, compared to $2.11 billion at December 31, 2021, respectively. Non-interest-bearing deposits totaled $597.3 million at March 31, 2022, an increase of $97.3 million, or 19.5%, from March 31, 2021, and an increase of $38.6 million, or 6.9%, from December 31, 2021. The Bank continues to focus on enhancing its deposit mix and, as of March 31, 2022, has grown non-interest bearing deposits to 27.4% and lowered time deposits to 15.1% of total deposits.

Stockholders’ equity was $271.1 million at March 31, 2022, compared to $266.7 million at December 31, 2021. The growth of $4.4 million, or 1.7%, was primarily a result of first quarter 2022 net income of $8.2 million, partially offset by a $3.2 million increase in accumulated other comprehensive loss and cash dividends paid of $1.2 million during the three months ended March 31, 2022. The increase in accumulated other comprehensive loss was due to an increase in unrealized losses on the Bank’s available for sale investment securities.

As of March 31, 2022, the Bank continued to exceed all regulatory capital requirements to be considered well capitalized, with a Tier 1 Leverage ratio of 10.15%, a Tier 1 Risk-Based capital ratio of 10.60%, a Common Equity Tier 1 Capital ratio of 10.60%, and a Total Risk-Based capital ratio of 12.86%.

Asset Quality

First Bank’s asset quality metrics remained stable and favorable during the three months ended March 31, 2022. Net charge offs of $247,000 for the first quarter of 2022 were 0.05% of average loans on an annualized basis. This compares to net recoveries of $5,000, or an annualized 0.00% of average loans, for the first quarter of 2021 and net charge offs of $6,000, or an annualized 0.00%, for the fourth quarter of 2021. Nonperforming loans were $12.6 million at March 31, 2022, up from $10.7 million on March 31, 2021, and down from $13.0 million at December 31, 2021. Nonperforming loans as a percentage of total loans at March 31, 2022 were 0.59%, compared with 0.53% at March 31, 2021 and 0.62% at December 31, 2021, respectively. The allowance for loan losses to nonperforming loans was 191.72% at March 31, 2022, compared with 214.74% at the end of first quarter 2021, and 182.65% at December 31, 2021, respectively.

COVID-19 Response

First Bank participated in the PPP, established by the Coronavirus Aid, Relief, and Economic Securities Act (CARES Act), during 2020 and 2021. The PPP was a specialized low-interest loan program funded by the U.S. Treasury Department and administered by the SBA. The PPP provided borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilized the loan proceeds to cover compensation and other business-related operating costs. The PPP ended on May 31, 2021 but the PPP loan forgiveness process is ongoing. As of March 31, 2022, First Bank had 205 PPP loans with outstanding balances of $25.5 million. During the quarter ended March 31, 2022, PPP loans totaling $25.5 million were forgiven and the Bank realized $860,000 in loan fees on these loans as any deferred fees remaining on the forgiven loans were accelerated. As of March 31, 2022, the Bank had $829,000 in remaining unamortized fees associated with outstanding balances of PPP loans.

First Bank continues to monitor and analyze its COVID-19 related financial hardship payment deferrals (COVID-19 deferrals). As of March 31, 2022, the Bank’s population of COVID-19 deferrals consisted of one loan totaling $222,000, or 0.00% of total loans, down from $1.6 million, or 0.08% of total loans, at December 31, 2021.

Cash Dividend Declared

On April 19, 2022, First 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 May 13, 2022, payable on May 27, 2022.

Conference Call

First Bank will host its earnings call on Tuesday, April 26, 2022 at 9:00 AM eastern time. The direct dial toll free number for the live call is 1-844-200-6205 and the access code is 794535. For those unable to participate in the call, a replay will be available by dialing 1-866-813-9403 (access code 750010) from one hour after the end of the conference call until July 25, 2022. 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 18 full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington (2), Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset and Williamstown, New Jersey; and Doylestown, Trevose, Warminster and West Chester, Pennsylvania. With $2.6 billion in assets as of March 31, 2022, 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, 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 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; 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.

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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 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.

ⁱⁱⁱ 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.

^iv Adjusted non-interest expense is a non-U.S. GAAP financial measure and is calculated by subtracting merger-related expenses from total non-interest expense. 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 AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data, unaudited)
				March 31, 2022				December 31, 2021
Assets
Cash and due from banks				$	32,531			$	25,076
Interest bearing deposits with banks					149,726				129,431
		Cash and cash equivalents			182,257				154,507
Interest bearing time deposits with banks					1,740				2,170
Investment securities available for sale, at fair value					86,622				94,584
Investment securities held to maturity (fair value of $40,112
	at March 31, 2022 and $39,718 at December 31, 2021)				41,468				39,547
Restricted investment in bank stocks					5,517				5,856
Other investments					8,078				8,062
Loans, net of deferred fees and costs					2,151,751				2,111,991
	Less: Allowance for loan losses				24,140				23,746
		Net loans			2,127,611				2,088,245
Premises and equipment, net					9,774				9,883
Other real estate owned, net					293				772
Accrued interest receivable					5,796				5,681
Bank-owned life insurance					57,006				56,633
Goodwill					17,826				17,826
Other intangible assets, net					2,028				2,145
Deferred income taxes					12,106				11,081
Other assets					15,723				13,306
		Total assets		$	2,573,845			$	2,510,298
Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing deposits				$	597,333			$	558,775
Interest bearing deposits					1,580,562				1,555,827
		Total deposits			2,177,895				2,114,602
Borrowings					74,306				81,835
Subordinated debentures					29,647				29,620
Accrued interest payable					799				399
Other liabilities					20,130				17,176
		Total liabilities			2,302,777				2,243,632
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; 21,014,086
	shares issued and 19,634,744 shares outstanding at March 31, 2022 and
	20,851,506 shares issued and 19,472,364 shares outstanding at December 31, 2021				104,138				103,704
Additional paid-in capital					79,757				79,563
Retained earnings					102,914				95,924
Accumulated other comprehensive loss					(3,420	)			(206	)
Treasury stock, 1,379,342 shares at March 31, 2022 and 1,379,142 shares
	at December 31, 2021				(12,321	)			(12,319	)
		Total stockholders' equity			271,068				266,666
		Total liabilities and stockholders' equity		$	2,573,845			$	2,510,298

FIRST BANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share data, unaudited)
				Three Months Ended
				March 31,
					2022			2021
Interest and Dividend Income
Investment securities—taxable				$	576		$	475
Investment securities—tax-exempt					37			48
Interest bearing deposits with banks,
Federal funds sold and other					130			171
Loans, including fees					22,143			22,157
	Total interest and dividend income				22,886			22,851
Interest Expense
Deposits					1,009			1,850
Borrowings					288			514
Subordinated debentures					440			440
	Total interest expense				1,737			2,804
Net interest income					21,149			20,047
Provision for loan losses					642			(1,053	)
	Net interest income after provision for loan losses				20,507			21,100
Non-Interest Income
Service fees on deposit accounts					252			176
Loan fees					245			681
Income from bank-owned life insurance					373			329
Gains on sale of loans					37			534
Gains on recovery of acquired loans					124			370
Other non-interest income					236			210
	Total non-interest income				1,267			2,300
Non-Interest Expense
Salaries and employee benefits					6,544			5,768
Occupancy and equipment					1,424			1,938
Legal fees					142			247
Other professional fees					687			531
Regulatory fees					193			268
Directors' fees					218			216
Data processing					596			535
Marketing and advertising					164			188
Travel and entertainment					88			15
Insurance					165			154
Other real estate owned expense, net					83			51
Other expense					818			739
	Total non-interest expense				11,122			10,650
Income Before Income Taxes					10,652			12,750
Income tax expense					2,494			3,089
Net Income				$	8,158		$	9,661
Basic earnings per common share				$	0.42		$	0.49
Diluted earnings per common share				$	0.41		$	0.49
Cash dividends per common share				$	0.06		$	0.03
Basic weighted average common shares outstanding					19,532,811			19,672,017
Diluted weighted average common shares outstanding					19,768,452			19,834,319

FIRST BANK AND SUBSIDIARIES
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)
	Three Months Ended March 31,
		2022											2021
	Average								Average			Average								Average
	Balance				Interest				Rate (5)			Balance				Interest				Rate (5)
Interest earning assets
Investment securities (1) (2)	$	134,033			$	621			1.88	%		$	97,756			$	533			2.21	%
Loans (3)		2,131,014				22,143			4.21	%			2,037,318				22,157			4.41	%
Interest bearing deposits with banks,
Federal funds sold and other		121,422				50			0.17	%			108,793				69			0.26	%
Restricted investment in bank stocks		5,616				63			4.55	%			8,447				87			4.18	%
Other investments		8,073				17			0.85	%			6,510				15			0.93	%
Total interest earning assets(2)		2,400,158				22,894			3.87	%			2,258,824				22,861			4.10	%
Allowance for loan losses		(24,057	)										(24,600	)
Non-interest earning assets		146,674											132,193
Total assets	$	2,522,775										$	2,366,417
Interest bearing liabilities
Interest bearing demand deposits	$	298,274			$	61			0.08	%		$	201,247			$	65			0.13	%
Money market deposits		706,368				448			0.26	%			591,752				520			0.36	%
Savings deposits		190,222				164			0.35	%			168,993				204			0.49	%
Time deposits		350,223				336			0.39	%			507,949				1,061			0.85	%
Total interest bearing deposits		1,545,087				1,009			0.26	%			1,469,941				1,850			0.51	%
Borrowings		76,492				288			1.53	%			145,632				514			1.43	%
Subordinated debentures		29,632				440			5.94	%			29,519				440			5.96	%
Total interest bearing liabilities		1,651,211				1,737			0.43	%			1,645,092				2,804			0.69	%
Non-interest bearing deposits		583,543											464,157
Other liabilities		17,874											15,494
Stockholders' equity		270,147											241,674
Total liabilities and stockholders' equity	$	2,522,775										$	2,366,417
Net interest income/interest rate spread (2)						21,157			3.44	%							20,057			3.41	%
Net interest margin (2) (4)									3.57	%										3.60	%
Tax equivalent adjustment (2)						(8	)										(10	)
Net interest income					$	21,149										$	20,047
(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 AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS
(in thousands, except for share and employee data, unaudited)
		As of or For the Quarter Ended
		3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
EARNINGS
Net interest income		$	21,149			$	20,641			$	20,781			$	20,421			$	20,047
Provision for loan losses			642				825				158				(162	)			(1,053	)
Non-interest income			1,267				2,211				1,901				1,342				2,300
Non-interest expense			11,122				11,825				10,522				10,155				10,650
Income tax expense			2,494				2,363				2,966				2,877				3,089
Net income			8,158				7,839				9,036				8,893				9,661
PERFORMANCE RATIOS
Return on average assets (1)			1.31	%			1.27	%			1.46	%			1.48	%			1.66	%
Adjusted return on average assets (1) (2)			1.31	%			1.33	%			1.48	%			1.48	%			1.66	%
Return on average equity (1)			12.25	%			11.77	%			13.86	%			14.26	%			16.21	%
Adjusted return on average equity (1) (2)			12.25	%			12.36	%			14.04	%			14.26	%			16.21	%
Return on average tangible equity (1) (2)			13.22	%			12.63	%			14.90	%			15.37	%			17.52	%
Adjusted return on average tangible equity (1) (2)			13.22	%			13.26	%			15.09	%			15.37	%			17.52	%
Net interest margin (1) (3)			3.57	%			3.52	%			3.54	%			3.57	%			3.60	%
Total cost of deposits (1)			0.19	%			0.21	%			0.25	%			0.30	%			0.39	%
Efficiency ratio (2)			49.62	%			49.57	%			45.75	%			46.66	%			47.66	%
SHARE DATA
Common shares outstanding			19,634,744				19,472,364				19,464,388				19,678,528				19,663,065
Basic earnings per share		$	0.42			$	0.40			$	0.46			$	0.45			$	0.49
Diluted earnings per share			0.41				0.40				0.46				0.45				0.49
Adjusted diluted earnings per share (2)			0.41				0.42				0.46				0.45				0.49
Tangible book value per share (2)			12.79				12.67				12.45				12.02				11.59
Book value per share			13.81				13.69				13.37				12.94				12.51
MARKET DATA
Market value per share		$	14.22			$	14.51			$	14.09			$	13.54			$	12.17
Market value / Tangible book value			111.14	%			114.53	%			113.21	%			112.61	%			104.97	%
Market capitalization		$	279,206			$	282,544			$	274,253			$	266,447			$	239,300
CAPITAL & LIQUIDITY
Tangible stockholders' equity / tangible assets (2)			9.84	%			9.91	%			10.01	%			9.76	%			9.55	%
Stockholders' equity / assets			10.53	%			10.62	%			10.67	%			10.42	%			10.23	%
Loans / deposits			98.80	%			99.88	%			97.96	%			100.87	%			102.62	%
ASSET QUALITY
Net charge-offs (recoveries)		$	247			$	6			$	(121	)		$	116			$	(5	)
Nonperforming loans			12,591				13,001				11,488				9,558				10,676
Nonperforming assets			12,884				13,773				11,967				10,038				11,251
Netcharge offs (recoveries) / average loans (1)			0.05	%			0.00	%			(0.02	%)			0.02	%			0.00	%
Nonperforming loans / total loans			0.59	%			0.62	%			0.57	%			0.47	%			0.53	%
Nonperforming assets / total assets			0.50	%			0.55	%			0.49	%			0.41	%			0.47	%
Allowance for loan losses / total loans			1.12	%			1.12	%			1.14	%			1.10	%			1.13	%
Allowance for loan losses / total loans (excluding PPP loans)			1.13	%			1.15	%			1.19	%			1.18	%			1.24	%
Allowance for loan losses / nonperforming loans			191.72	%			182.65	%			199.57	%			236.95	%			214.74	%
OTHER DATA
Total assets		$	2,573,845			$	2,510,298			$	2,438,020			$	2,443,047			$	2,405,576
Total loans			2,151,751				2,111,991				2,004,289				2,053,938				2,022,187
Total deposits			2,177,895				2,114,602				2,045,966				2,036,228				1,970,491
Total stockholders' equity			271,068				266,666				260,179				254,571				245,997
Number of full-time equivalent employees			219				217				209				215				211
(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%.

FIRST BANK AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)
			As of the Quarter Ended
			3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
LOAN COMPOSITION
Commercial and industrial			$	321,979			$	350,103			$	308,991			$	379,916			$	432,869
Commercial real estate:
	Owner-occupied			493,999				470,022				444,635				427,094				399,042
	Investor			888,622				848,021				832,727				814,762				771,599
	Construction and development			96,585				109,292				112,112				127,329				123,930
	Multi-family			193,865				173,728				145,245				142,015				125,493
	Total commercial real estate			1,673,071				1,601,063				1,534,719				1,511,200				1,420,064
Residential real estate:
	Residential mortgage and first lien home equity loans			99,992				106,204				103,890				108,842				117,756
	Home equity–second lien loans and revolving lines of credit			30,485				31,375				29,998				29,422				29,306
	Total residential real estate			130,477				137,579				133,888				138,264				147,062
Consumer and other				30,096				27,762				31,946				31,584				29,213
	Total loans prior to deferred loan fees and costs			2,155,623				2,116,507				2,009,544				2,060,964				2,029,208
Net deferred loan fees and costs				(3,872	)			(4,516	)			(5,255	)			(7,026	)			(7,021	)
	Total loans		$	2,151,751			$	2,111,991			$	2,004,289			$	2,053,938			$	2,022,187
LOAN MIX
Commercial and industrial				15.0	%			16.6	%			15.4	%			18.5	%			21.4	%
Commercial real estate:
	Owner-occupied			23.0	%			22.3	%			22.2	%			20.8	%			19.7	%
	Investor			41.3	%			40.1	%			41.5	%			39.7	%			38.2	%
	Construction and development			4.5	%			5.2	%			5.6	%			6.2	%			6.1	%
	Multi-family			9.0	%			8.2	%			7.2	%			6.9	%			6.2	%
	Total commercial real estate			77.8	%			75.8	%			76.5	%			73.5	%			70.2	%
Residential real estate:
	Residential mortgage and first lien home equity loans			4.6	%			5.0	%			5.2	%			5.3	%			5.8	%
	Home equity–second lien loans and revolving lines of credit			1.4	%			1.5	%			1.5	%			1.4	%			1.4	%
	Total residential real estate			6.1	%			6.5	%			6.7	%			6.7	%			7.2	%
Consumer and other				1.4	%			1.4	%			1.7	%			1.6	%			1.5	%
Net deferred loan fees and costs				(0.2	%)			(0.3	%)			(0.3	%)			(0.3	%)			(0.3	%)
	Total loans			100.0	%			100.0	%			100.0	%			100.0	%			100.0	%

FIRST BANK AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)
			As of the Quarter Ended
			3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
DEPOSIT COMPOSITION
Non-interest bearing demand deposits			$	597,333			$	558,775			$	536,905			$	534,475			$	500,008
Interest bearing demand deposits				314,564				293,647				241,869				211,074				208,443
Money market and savings deposits				936,848				871,074				845,607				817,424				767,603
Time deposits				329,150				391,106				421,585				473,255				494,437
	Total Deposits		$	2,177,895			$	2,114,602			$	2,045,966			$	2,036,228			$	1,970,491
DEPOSIT MIX
Non-interest bearing demand deposits				27.4	%			26.4	%			26.3	%			26.3	%			25.4	%
Interest bearing demand deposits				14.5	%			13.9	%			11.8	%			10.4	%			10.6	%
Money market and savings deposits				43.0	%			41.2	%			41.3	%			40.1	%			38.9	%
Time deposits				15.1	%			18.5	%			20.6	%			23.2	%			25.1	%
	Total Deposits			100.0	%			100.0	%			100.0	%			100.0	%			100.0	%

FIRST BANK AND SUBSIDIARIES
NON-U.S. GAAP FINANCIAL MEASURES
(in thousands, except for share data, unaudited)
	As of or For the Quarter Ended
	3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
Return on Average Tangible Equity
Net income (numerator)	$	8,158			$	7,839			$	9,036			$	8,893			$	9,661
Average stockholders' equity	$	270,147			$	264,216			$	258,596			$	250,143			$	241,674
Less: Average Goodwill and other intangible assets, net		19,916				17,910				17,937				18,001				18,023
Average Tangible stockholders' equity (denominator)	$	250,231			$	246,306			$	240,659			$	232,142			$	223,651
Return on Average Tangible equity (1)		13.22	%			12.63	%			14.90	%			15.37	%			17.52	%
Tangible Book Value Per Share
Stockholders' equity	$	271,068			$	266,666			$	260,179			$	254,571			$	245,997
Less: Goodwill and other intangible assets, net		19,854				19,971				17,920				17,965				18,024
Tangible stockholders' equity (numerator)	$	251,214			$	246,695			$	242,259			$	236,606			$	227,973
Common shares outstanding (denominator)		19,634,744				19,472,364				19,464,388				19,678,528				19,663,065
Tangible book value per share	$	12.79			$	12.67			$	12.45			$	12.02			$	11.59
Tangible Equity / Assets
Stockholders' equity	$	271,068			$	266,666			$	260,179			$	254,571			$	245,997
Less: Goodwill and other intangible assets, net		19,854				19,971				17,920				17,965				18,024
Tangible stockholders' equity (numerator)	$	251,214			$	246,695			$	242,259			$	236,606			$	227,973
Total assets	$	2,573,845			$	2,510,298			$	2,438,020			$	2,443,047			$	2,405,576
Less: Goodwill and other intangible assets, net		19,854				19,971				17,920				17,965				18,024
Tangible total assets (denominator)	$	2,553,991			$	2,490,327			$	2,420,100			$	2,425,082			$	2,387,552
Tangible stockholders' equity / tangible assets		9.84	%			9.91	%			10.01	%			9.76	%			9.55	%
Efficiency Ratio
Non-interest expense	$	11,122			$	11,825			$	10,522			$	10,155			$	10,650
Less: Merger-related expenses		-				498				145				-				-
Adjusted non-interest expense (numerator)	$	11,122			$	11,327			$	10,377			$	10,155			$	10,650
Net interest income	$	21,149			$	20,641			$	20,781			$	20,421			$	20,047
Non-interest income		1,267				2,211				1,901				1,342				2,300
Total revenue	$	22,416			$	22,852			$	22,682			$	21,763			$	22,347
Efficiency ratio		49.62	%			49.57	%			45.75	%			46.66	%			47.66	%
(1) Annualized.

FIRST BANK AND SUBSIDIARIES
NON-U.S. GAAP FINANCIAL MEASURES
(dollars in thousands, except for share data, unaudited)
	For the Quarter Ended
	3/31/2022				12/31/2021				9/30/2021				6/30/2021				3/31/2021
Adjusted diluted earnings per share,
Adjusted return on average assets, and
Adjusted return on average equity
Net income	$	8,158			$	7,839			$	9,036			$	8,893			$	9,661
Add: Merger-related expenses(1)		-				393				115				-				-
Adjusted net income	$	8,158			$	8,232			$	9,151			$	8,893			$	9,661
Diluted weighted average common shares outstanding		19,768,452				19,725,294				19,842,817				19,883,076				19,834,319
Average assets	$	2,522,775			$	2,447,399			$	2,456,617			$	2,410,353			$	2,366,417
Average equity	$	270,147			$	264,216			$	258,596			$	250,143			$	241,674
Average Tangible Equity	$	250,231			$	246,306			$	240,659			$	232,142			$	223,651
Adjusted diluted earnings per share	$	0.41			$	0.42			$	0.46			$	0.45			$	0.49
Adjusted return on average assets(2)		1.31	%			1.33	%			1.48	%			1.48	%			1.66	%
Adjusted return on average equity(2)		12.25	%			12.36	%			14.04	%			14.26	%			16.21	%
Adjusted return on average tangible equity(2)		13.22	%			13.26	%			15.09	%			15.37	%			17.52	%
(1) Items are tax-effected using a federal income tax rate of 21%.
(2) Annualized.

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

FAQ

What were First Bank's (FRBA) financial results for Q1 2022?

First Bank reported net income of $8.2 million, or $0.41 per diluted share, for Q1 2022.

How much did First Bank's total loans increase in Q1 2022?

Total loans increased by $39.8 million, or 1.9%, from December 31, 2021.

What is the dividend amount declared by First Bank (FRBA) for Q1 2022?

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

How did First Bank's asset quality metrics perform in Q1 2022?

Asset quality metrics remained solid, with nonperforming loans at 0.59% and net charge-offs at 0.05%.

What is First Bank's efficiency ratio for Q1 2022?

The efficiency ratio for Q1 2022 was 49.62%, continuing below 50% for five consecutive quarters.