Welcome!

News Feed Item

First Bank Reports Second Quarter 2014 Earnings of $923,000; Total Assets Reach $611 Million

HAMILTON, NJ--(Marketwired - July 29, 2014) - First Bank (NASDAQ: FRBA) today announced second quarter 2014 results. Net income for the quarter was $923,000 or $0.10 per diluted share, compared to net income of $525,000 or $0.11 per diluted share for the second quarter of 2013 and $3.2 million or $0.37 per diluted share for the first quarter of 2014. First quarter 2014 results included $2.6 million in income from a bargain purchase gain on the Heritage Community Bank acquisition.

Second quarter results included $256,000 in merger related expenses and $34,000 in gains on sale of investment securities. Book value per share was $6.68 at the end of the second quarter, an increase of $0.14 compared to book value of $6.54 at the end of the first quarter.

President and Chief Executive Officer Patrick L. Ryan discussed the results: "We had a good second quarter. Overall financial results continue to be impacted by merger-related items, but the core banking platform performed well. As those merger-related costs taper off, we expect the second half of 2014 should give some good visibility into the true, improved earnings profile of the franchise. While growth slowed somewhat in the quarter, we expect deposit and loan growth will return to levels in line with historical performance. Loan growth was impacted by anticipated attrition in the Morris County market. With the deal closed and successful systems integration behind us, we expect our Morris team will become a growth engine. Furthermore, the loan pipeline remains strong throughout all of our markets. 

"On the deposit side, we managed growth by lowering rates as we worked through excess liquidity generated through the Heritage acquisition and the sale of certain investment securities. The securities sale generated a small gain, but our primary focus was protecting book value in a rising rate environment by selling certain securities with greater projected market value risk. We think we effectively achieved that objective. Once excess liquidity is deployed, deposit growth efforts will be reenergized."

Ryan continued, "Importantly, we are starting to see some cost savings generated from the merger. Improved operating leverage will be a key to better financial performance. Actions taken with deposit rates also contributed to an improved net interest margin of 3.81% in the second quarter compared to 3.61% in the first quarter. Nevertheless, we expect continued margin pressure as loan pricing remains very competitive. With continued improvement in asset quality trends, together with new growth coming from our Bucks County, PA and Morris County teams, we are looking forward to a good second half of 2014." 

Second Quarter 2014 Highlights

  • Balance Sheet
    • Total assets at June 30, 2014 were $610.6 million, an increase of $11.4 million or 1.9% compared to March 31, 2014, and an increase of $230.2 million or 60.5% compared to June 30, 2013. 
    • Total loans reached $466.9 million at June 30, 2014, an increase of $16.5 million or 3.7% compared to March 31, 2014 and an increase of $175.2 million or 60.0% compared to June 30, 2013. 
    • Total deposits reached $532.1 million at June 30, 2014, an increase of $10.0 million or 1.9% compared to March 31, 2014 and an increase of $193.9 million or 57.3% compared to June 30, 2013. Non-interest bearing deposits increased to 15.6% of total deposits at June 30, 2014.
    • Book equity increased to $62.8 million at June 30, 2014.
    • Book value per share was $6.68 at June 30, 2014 compared to $6.54 per share at March 31, 2014 and $6.61 per share at June 30, 2013. Tangible book value per share was $6.64 at June 30, 2014, compared to $6.50 per share at March 31, 2014 and $6.61 per share at June 30, 2013. 
  • Income Statement
    • Net interest income for the second quarter of 2014 totaled $5.4 million, an increase of $1.2 million or 28.3% compared to $4.2 million for the first quarter of 2014, and an increase of $2.3 million or 71.7% compared to the second quarter of 2013.
    • Non-interest income for the second quarter of 2014 totaled $317 thousand, an increase of $184 thousand or 138.3% compared to $133 thousand (excluding the bargain purchase gain) for the first quarter of 2014. When compared to the second quarter of 2013, non-interest income increased $99 thousand or 45.4%.
    • Non-interest expense for the second quarter of 2014 totaled $4.1 million, an increase of $899 thousand or 27.9% compared to $3.2 million for the first quarter of 2014, and an increase of $1.8 million or 74.8% compared to $2.4 million in the second quarter of 2013. 
    • Pre-tax income for the second quarter of 2014 totaled $1.3 million, an increase of $320 thousand or 33.5% compared to $956 thousand (excluding the bargain purchase gain) for the first quarter of 2014, and an increase of $442 thousand or 53.0% compared to the second quarter of 2013. When adding back the $256 thousand in merger-related costs and subtracting $34 thousand in gains on sale of investment securities, pre-tax income was $1.5 million for the second quarter of 2014. This compares to adjusted pre-tax income of $1.2 million in the first quarter of 2014 when excluding the bargain purchase gain and adding back in merger-related and other non-recurring expenses.
    • The provision for loan losses in the second quarter of 2014 totaled $336 thousand, an increase of $158 thousand or 88.8% compared to $178 thousand for the first quarter of 2014. 
  • Other items
    • The tax equivalent net interest margin (NIM) for the second quarter of 2014 was 3.81% compared to 3.61% for the first quarter of 2014 and 3.53% for the second quarter of 2013. 
    • Non-performing assets (NPAs) were $5.7 million or 0.94% of total assets at June 30, 2014 compared to $5.5 million or 0.91% of total assets at March 31, 2014. 
      • Non-accrual loans totaled $3.3 million or 0.71% of total loans at June 30, 2014 compared to non-accrual loans of $3.1 million or 0.69% of total loans at March 31, 2014.
      • Loans 30-89 days past due totaled $7.8 million at June 30, 2014 compared to $8.8 million at March 31, 2014. We had 1 loan over 90 days past due and still accruing at June 30, 2014 totaling $88 thousand. 
      • OREO (including other repossessed assets) totaled $2.3 million at June 30, 2014.
      • Note: non-performing, non-accrual, and past due loan data does not include $2.9 million of loans acquired with deteriorated credit quality that were marked to fair value as part of the HCB acquisition at June 30, 2014. In the first quarter earnings release dated May 15, 2014, loans totaling $3.0 million acquired with deteriorated credit quality were included in the non-performing, non-accrual, and past due loan numbers.
    • Regulatory capital ratios at June 30, 2014:
      • Tier 1 Leverage ratio of 10.17%.
      • Tier 1 Risk-Based capital ratio of 12.05%.
      • Total Risk-Based capital ratio of 13.04%.
    • The allowance for loan losses (ALLL) to total loans at June 30, 2014 was 1.08% compared to 1.05% at March 31, 2014. The increase in the ALLL ratio relates primarily to an increase in our organic portfolio and payoffs/reductions in the portfolio acquired in the Heritage transaction that currently carries no loan loss reserve because of the mark to market adjustment on that portfolio at the time of acquisition. 
    • 95 full-time equivalent employees (FTEs) at June 30, 2014, compared to 91 FTEs at March 31, 2014.

About First Bank
First Bank (www.firstbanknj.com) is a New Jersey state-chartered bank with eight full-service branches in Denville, Ewing, Hamilton, Lawrence, Randolph (2), Somerset and Williamstown, New Jersey. With $611 million in assets as of June 30, 2014, First Bank offers a traditional range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia, PA corridor. First Bank's common stock is listed on the Nasdaq Global Market under the symbol "FRBA". 

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond First Bank's control and could impede its ability to achieve these goals. These factors include those listed in our Annual Report on Form 10K under the caption "Item 1A-Risk Factors", and general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, and results of regulatory exams, among other factors.

                                                                            
                                                                            
                        FIRST BANK AND SUBSIDIARIES                         
               CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION               
                     (in thousands, except share data)                      
                                (Unaudited)                                 
                                                                            
                                                   June 30,    December 31, 
                                                     2014          2013     
                                                 ------------  ------------ 
Assets                                                                      
Cash and due from banks                          $     10,709  $      9,787 
Interest bearing deposits with banks                   34,901        13,927 
                                                 ------------  ------------ 
    Cash and cash equivalents                          45,610        23,714 
                                                 ------------  ------------ 
Interest bearing time deposits with banks               5,182         4,903 
Investment securities available for sale               36,599        65,017 
Investment securities held to maturity (fair                                
 value of $30,003 at June 30, 2014 and $15,353                              
 at December 31, 2013)                                 29,835        15,414 
Restricted investment in bank stocks                    1,496         1,131 
Other investments                                       5,000         5,000 
Loans, net of deferred fees and costs                 466,878       339,975 
  Less: Allowance for loan losses                       5,024         4,675 
                                                 ------------  ------------ 
    Net loans                                         461,854       335,300 
Premises and equipment, net                             3,330         1,787 
Other real estate owned, net                            2,335         1,664 
Accrued interest receivable                             1,497         1,232 
Bank-owned life insurance                               8,933         8,805 
Intangible assets, net                                    394             - 
Deferred income taxes                                   7,187         2,352 
Other assets                                            1,393           473 
                                                 ------------  ------------ 
    Total assets                                 $    610,645  $    466,792 
                                                 ============  ============ 
                                                                            
Liabilities and Stockholders' Equity                                        
Deposits:                                                                   
  Non-interest bearing                           $     82,901  $     48,186 
  Interest bearing                                    449,246       350,927 
                                                 ------------  ------------ 
    Total deposits                                    532,147       399,113 
Long-term borrowings                                   14,000        14,000 
Accrued interest payable                                  349           156 
Other liabilities                                       1,302         1,016 
                                                 ------------  ------------ 
    Total liabilities                                 547,798       414,285 
                                                 ------------  ------------ 
Stockholders' Equity:                                                       
Preferred stock, par value $2 per share;                                    
 authorized 5,000,000 shares; no shares issued                              
 and outstanding                                            -             - 
Common stock, par value $5 per share; authorized                            
 20,000,000 shares; issued and outstanding                                  
 9,408,491 shares at June 30, 2014 and 8,520,299                            
 shares at December 31, 2013                           47,042        42,602 
Additional paid-in capital                             14,229        13,052 
Retained earnings (accumulated deficit)                 1,872        (2,290)
Accumulated other comprehensive loss                     (296)         (857)
                                                 ------------  ------------ 
    Total stockholders' equity                         62,847        52,507 
                                                 ------------  ------------ 
    Total liabilities and stockholders' equity   $    610,645  $    466,792 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                         FIRST BANK AND SUBSIDIARIES                        
                      CONSOLIDATED STATEMENTS OF INCOME                     
                    (in thousands, except for share data)                   
                                 (Unaudited)                                
                                                                            
                                   Three Months Ended     Six Months Ended  
                                        June 30,              June 30,      
                                 --------------------- ---------------------
                                    2014       2013       2014       2013   
                                 ---------- ---------- ---------- ----------
Interest and Dividend Income                                                
Investment securities - taxable  $      338 $      225 $      705 $      425
Investment securities - tax-                                                
 exempt                                  66         30        130         52
Federal funds sold                        1          -          2          -
Interest bearing deposits with                                              
 banks and other                         59         37        117         78
Loans, including fees                 5,938      3,670     10,600      7,188
                                 ---------- ---------- ---------- ----------
  Total interest and dividend                                               
   income                             6,402      3,962     11,554      7,743
                                 ---------- ---------- ---------- ----------
                                                                            
Interest Expense                                                            
Deposits                                933        764      1,809      1,524
Borrowings                               54         45        108         91
                                 ---------- ---------- ---------- ----------
  Total interest expense                987        809      1,917      1,615
                                 ---------- ---------- ---------- ----------
Net interest income                   5,415      3,153      9,637      6,128
Provision for loan losses               336        180        514        514
                                 ---------- ---------- ---------- ----------
Net interest income after                                                   
 provision for loan losses            5,079      2,973      9,123      5,614
                                 ---------- ---------- ---------- ----------
                                                                            
Non-Interest Income                                                         
Service fees on deposit accounts         53         19         80         36
Loan fees                                 8         10         10         22
Title insurance fees                      5          3          5         15
Income from bank-owned life                                                 
 insurance                               65         37        128         73
Gains on sale of investment                                                 
 securities, net                         34          -         34         18
Gains on sale of loans held for                                             
 sale                                     -        134         14        134
Gain on acquisition of Heritage                                             
 Community Bank                           -          -      2,606          -
Gain on recovery of acquired                                                
 loans                                   97          -         97          -
Other non-interest income                55         15         82         26
                                 ---------- ---------- ---------- ----------
  Total non-interest income             317        218      3,056        324
                                 ---------- ---------- ---------- ----------
                                                                            
Non-Interest Expense                                                        
Salaries and employee benefits        2,048      1,219      3,565      2,331
Occupancy and equipment                 494        297        906        599
Legal fees                               98         79        169        113
Other professional fees                 315         82        587        156
Regulatory fees                         138         85        224        167
Directors' fees                          75         57        134        117
Data processing                         202        109        347        205
Marketing and advertising                97         54        189        104
Travel and entertainment                 71         35        105         67
Insurance                                41         25         73         61
Other real estate owned expense,                                            
 net                                     74        122        194        268
Merger-related expenses                 256         12        463         12
Other expense                           211        181        385        293
                                 ---------- ---------- ---------- ----------
  Total non-interest expense          4,120      2,357      7,341      4,493
                                 ---------- ---------- ---------- ----------
Income Before Income Taxes            1,276        834      4,838      1,445
Income tax expense                      353        309        677        540
                                 ---------- ---------- ---------- ----------
Net Income                       $      923 $      525 $    4,161 $      905
                                 ========== ========== ========== ==========
                                                                            
Basic earnings per share         $     0.10 $     0.11 $     0.46 $     0.19
Diluted earnings per share       $     0.10 $     0.11 $     0.45 $     0.19
                                                                            
Basic weighted average common                                               
 shares outstanding               9,396,349  4,686,965  9,076,792  4,686,965
Diluted weighted average common                                             
 shares outstanding               9,467,472  4,693,650  9,147,783  4,708,022

CONTACT: 
Patrick L. Ryan
President and CEO
(609) 643-0168
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.