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

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
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Ca...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
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...