First Bank Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2016
January 30, 2017 at 04:38 pm EST
Share
First Bank reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, total interest and dividend income was $10.2 million against $8.2 million last year. Net interest income was $7.8 million against $6.1 million last year. Income before income taxes was $2.7 million against $0.8 million last year. Net income was $1.8 million or $0.16 per basic and diluted share against $0.7 million or $0.07 per basic and diluted share last year. Tangible book value per share was $7.76 against $7.23 at December 31, 2015. Book value per share was $7.78 against $7.26 at December 31, 2015. Return on average assets was 0.70% against 0.33% last year. Return on average equity was 8.10% against 3.97% last year. The increase in fourth quarter net income was driven by net interest income growth of 27.9%, which reflected continued strong loan generation, along with effective management of the bank's non-interest expense. Total net revenue increased by 31.2%, or $2.0 million, to $8.4 million, compared to the prior year quarter. Net interest income growth was driven by a 24.9% increase in interest and dividend income primarily a result of a $212.0 million increase in average loan balances compared with the fourth quarter of 2015. This was somewhat offset by increased interest expense of $337,000 for the comparative quarters, which reflected average balance increases for both time deposits and transaction accounts.
For the year, total interest and dividend income was $38.3 million against $30.8 million last year. Net interest income was $28.9 million against $23.8 million last year. Income before income taxes was $9.5 million against $5.1 million last year. Net income was $6.4 million or $0.61 per basic and diluted share against $3.9 million or $0.41 per basic and diluted share last year. The increase in net income for the full year was also driven by 21.3% net interest income growth coupled with managed expense growth of only 3.4%. The increase in 2016 net interest income was also driven by the same strong growth in average loans which increased by $207.8 million from the prior year period.
Net charge-offs were $0.4 million for the fourth quarter of 2016, compared to $0.2 million for the fourth quarter of 2015.
First Bank is a chartered commercial bank. The Company offers a set of lending products, including commercial and industrial loans, commercial real estate loans (including owner-occupied, investor, construction and development, and multi-family loans), residential real estate loans and consumer and other loans. It offers commercial and industrial loans to small to mid-sized businesses for general business purposes. It invests in various types of liquid assets, including United States Treasury obligations, securities of various federal agencies, state and municipal governments, mortgage-backed securities and certificates of deposit of federally insured institutions. The Company operates 18 full-service branches located in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset and Williamstown, New Jersey, and Doylestown, Trevose, Warminster and West Chester, Pennsylvania.
First Bank Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2016