• First Bank Announces First Quarter Net Income of $7.0 Million and EPS of $0.36

    来源: Nasdaq GlobeNewswire / 26 4月 2023 16:31:01   America/New_York

    HAMILTON, N.J., April 26, 2023 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) (the Bank) today announced its first quarter 2023 financial results, demonstrating continued strength and resilience in a challenging economic environment. The Bank achieved net income of $7.0 million, or $0.36 per diluted share, and maintained solid returns on average assets, equity, and tangible equityi at 1.03%, 9.70%, and 10.16%, respectively. Excluding merger-related expenses and losses on sale of investment securities, First Bank’s first quarter 2023 adjusted diluted earnings per shareii were $0.38, adjusted return on average assetsii was 1.11% and adjusted return on average tangible equityii was 11.17%.

    Compared to the same period last year, the Bank's net income and returns on assets, equity, and tangible equity were lower, reflecting broader industry headwinds, primarily increased market interest rates and deposit costs. However, the Bank remains confident in its ability to navigate the current economic landscape and achieve sustainable growth in earnings and book value over the long term.

    First Quarter 2023 Performance Highlights:

    • Total loans reached $2.39 billion at March 31, 2023, marking a 2.3% increase from the end of the linked quarter at December 31, 2022.
    • Total deposits ended the quarter at $2.24 billion at March 31, 2023, a 2.3% decline from the end of the linked quarter at December 31, 2022.
    • Continued strong asset quality throughout the quarter, as net charge-offs represented 0.05% of average loans on an annualized basis, and nonperforming loans increased slightly to 0.33% at March 31, 2023, compared to 0.27% at December 31, 2022.
    • Net Interest Margin (NIM) for the quarter of 3.52%, down 5 basis points from first quarter 2022, and 17 basis points from the linked quarter ended December 31, 2022.
    • Efficiency ratioiii of 54.42%, up from the prior quarter reflecting the interest rate environment, inflationary pressures and the impact from strategic investments.
    • Steady growth in book value per share to $15.03 and tangible book value per shareiv to $14.05 at March 31, 2023. Tangible book value per shareiv increased $0.16 from the end of the linked quarter at December 31, 2022, and $1.26 from March 31, 2022, underlining continued value creation for shareholders.

    Patrick L. Ryan, the President, and CEO of First Bank, reflected on the quarterly results, stating, “Despite the prevailing challenges in the banking industry, the strength of our relationships and our community-banking model helped minimize the impact of industry deposit outflows. While not immune to the challenges associated with higher funding costs and inflationary expenses, I’m proud of our ability to generate a return on average assets in excess of one percent, even after factoring in costs associated with the pending merger and the sale of certain investment securities.”

    The Bank’s risk management strategy was further emphasized by the strong asset-quality metrics. Mr. Ryan stated, “Our focus on risk management underlines our commitment to prudent, sustainable growth and responsible stewardship of our assets and the assets of our communities.”

    Mr. Ryan acknowledged that margins may compress further as long as the yield curve remains inverted, and funds leave the banking industry in search of higher returns. Nevertheless, he expressed confidence in the Bank's ability to manage these pressures through portfolio optimization, prudent reinvestment in higher-yielding C&I loans, and expense savings initiatives.

    First Bank's strategic C&I expansion plans remain on track, with steady growth and building pipelines in four key areas: i) Small Business Administration (SBA) lending, ii) small business lending, iii) Private Equity/Fund Banking, and iv) Asset-Based Lending. While each initiative is relatively small in comparison to the overall loan portfolio at this point, collectively these groups will help us achieve several long-term goals: i) reduced reliance on commercial real estate lending, ii) continued growth in high-quality commercial deposits, and iii) a higher yielding and lower duration loan portfolio.

    The Malvern Bancorp acquisition is currently tracking in-line with the Bank’s original timeline, with First Bank and Malvern Bancorp shareholder votes on April 28, 2023, all regulatory filings in place and regulatory approvals in process. Assuming all closing conditions are completed, closing is currently expected on June 30, 2023.

    First Bank remains committed to prioritizing technology to enhance its online services and support growth as a middle-market commercial bank, with efforts aimed at enhancing online deposit and loan generation capabilities. By merging technology with traditional personal banking relationships, the Bank will effectively provide the right blend of service and convenience to its customer base.

    First Bank's capital position and liquidity remain strong, with a stockholders' equity to assets ratio of 10.44% and tangible stockholders' equity to tangible assets ratiov of 9.83%. Mr. Ryan expressed his confidence in the Bank’s ability to expand relationships with new and existing customers, maintain a strong asset quality position, and effectively manage expenses, even in the face of inflationary and competitive pressures.

    Mr. Ryan concluded that “Our results during the first quarter of 2023 demonstrate the strength of our relationships and the quality of our community-focused business model. While we are required to report on a quarterly basis, we continue to think strategically with a long-term goal of generating superior returns through the cycle. Short-term industry headwinds will not distract us from achieving our long-term value-creation goals. As I look toward the rest of this year, our new C&I business units, enhanced technology capabilities and our integrated franchise across the wealth belts of New Jersey and mainline Philadelphia will leave us very well positioned to take advantage of a better interest rate environment and continued strong demand for community banking services.”

    Income Statement

    In the first quarter of 2023, First Bank's net interest income increased to $22.8 million, representing a rise of $1.6 million, or 7.8%, compared to the same period in 2022. The increase was primarily driven by the $232.4 million increase in average loans in the first quarter of 2023 compared to the first quarter of 2022.

    The Bank's tax equivalent net interest margin decreased by five basis points to 3.52% compared to the prior year quarter and by 17 basis points from the fourth quarter of 2022. The decrease was primarily driven by the increase in deposit costs which was partially offset by the increase in average loan yields.

    The Bank's provision for credit losses increased to $1.1 million in the first quarter of 2023, compared to $642,000 in the same period of the previous year and $716,000 in the preceding quarter of 2022. The increase was in line with organic loan growth.

    In the first quarter of 2023, non-interest income was $964,000, a decrease from $1.3 million during the same period in 2022. The decrease was primarily due to approximately $6.8 million in investment sales in the first quarter of 2023, which generated $207,000 in losses on sales of securities and a decline in loan fees, primarily loan swap fees, of $156,000. The declines were partially offset by a $104,000 increase in gains on sale of loans. The investment sales were executed to generate additional cash, earning a higher yield to the investments sold with an anticipated earn-back on the losses of less than 18 months. Loan swap activity continues to be slow which resulted in the reduced loan swap income, but SBA loan sale activity picked up during the first quarter of 2023.

    Non-interest expense for the first quarter of 2023 was $13.5 million, an increase of $2.4 million, or 21.4%, compared to $11.1 million for the prior year quarter. The higher non-interest expense was primarily due to a $1.3 million or 20.3% increase in salaries and employee benefits, and $461,000 in merger-related costs in the first quarter of 2023. The increase in salaries and employee benefits was due to both merit adjustments and inflationary market adjustments, increased headcount, primarily due to new locations and growth initiatives, and increases in employee benefit costs.

    On a linked quarter basis, first quarter 2023 non-interest expense increased $1.0 million, or 8.3%, compared to $12.5 million for the fourth quarter of 2022 primarily due to higher salaries and employee benefits and occupancy and equipment expense. The increase in salaries and employee benefits was due to the same factors as noted above, and the increase in occupancy expense was primarily due to the Bank’s new northern New Jersey regional banking center in Fairfield, New Jersey and the Bank’s move into an upgraded branch and regional center in West Chester, Pennsylvania.

    The Bank's income tax expense for the first quarter of 2023 was $2.2 million with an effective tax rate of 23.7%, compared to $2.5 million with an effective tax rate of 23.4% for the first quarter of 2022 and $2.9 million with an effective tax rate of 24.3% for the fourth quarter of 2022.

    Balance Sheet

    First Bank reported total assets of $2.82 billion as of March 31, 2023, an increase of $84.0 million, or 3.1%, from $2.73 billion at December 31, 2022. The Bank's increase in loans during the twelve-month period ended March 31, 2023, reflects growth of $227.6 million, which is in line with the Bank's target loan growth rate for the period.

    As of March 31, 2023, the Bank's total deposits were $2.24 billion, an increase of $63.9 million, or 2.9%, from $2.18 billion at March 31, 2022, but a decrease of $52.1 million, or 2.3%, from $2.29 billion at December 31, 2022. Non-interest-bearing deposits totaled $463.9 million at March 31, 2023, which represents a decrease of $39.9 million, or 7.9%, from December 31, 2022. In contrast, time deposits increased from 23.1% of total deposits at December 31, 2022, to 24.7% at March 31, 2023, a result of customers moving into time deposit products to obtain a higher yield.

    As of March 31, 2023, the Bank's stockholders' equity totaled $294.2 million, growth of $4.7 million, or 1.6%, compared to $289.6 million at December 31, 2022. The increase was mainly driven by the first-quarter 2023 net income and a decline in accumulated other comprehensive loss. The increase was offset somewhat by the Bank’s $1.2 million in cash dividends during the three months ended March 31, 2023.

    As of March 31, 2023, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized with a Tier 1 Leverage ratio of 10.30%, a Tier 1 Risk-Based capital ratio of 10.30%, a Common Equity Tier 1 Capital ratio of 10.30%, and a Total Risk-Based capital ratio of 12.51%. The Bank's strong capital position provides a cushion against potential losses and supports its ability to pursue growth opportunities.

    Asset Quality

    First Bank's asset quality metrics for the first quarter of 2023 remained favorable, with net charge-offs of $315,000 compared to a net recovery of $213,000 in the previous quarter and net charge-offs of $247,000 in the first quarter of 2022. Nonperforming loans increased from $6.3 million at December 31, 2022, to $7.8 million at March 31, 2023, although they decreased from $12.6 million at the end of the first quarter of 2022. Nonperforming loans as a percentage of total loans were 0.33% at March 31, 2023, up from 0.27% at December 31, 2022, but down from 0.58% at the end of the first quarter of 2022. Despite the slight increase in nonperforming loans, the allowance for loan credit losses to nonperforming loans remains healthy at 382.3% at March 31, 2023, which was a modest decrease from 407.6% at December 31, 2022, but a significant increase from 191.7% at the end of the first quarter of 2022. The allowance for credit losses as a percentage of total loans increased to 1.25% at March 31, 2023 from 1.09% at December 31, 2022, primarily due to the implementation of the adoption of the Current Expected Credit Losses (CECL) accounting standard during the first quarter of 2023.

    Balance Sheet Positioning for the Current Environment

    First Bank enhanced its liquidity position in the first quarter of 2023. Total cash and cash equivalents increased $35.1 million during the first quarter to $161.0 million at March 31, 2023. The decline in deposits and the increased use of the Bank’s insured reciprocal deposit product contributed to a decline in adjusted estimated uninsured deposits (estimated uninsured deposits minus uninsured deposits of states and political subdivisions which are secured or collateralized as required under state law) from $808.1 million at December 31, 2022 to $628.5 million at March 31, 2023.

    During the first quarter of 2023 the Bank sold approximately $6.9 million in available for sale securities, significantly increased its available funding with the Federal Home Loan Bank through pledging additional commercial loans, and registered for the Federal Reserve’s Bank Term Funding Program (BTFP). Subsequent to quarter end, the Bank has rolled out some enhanced in-market deposit promotions and added additional collateral for the BTFP and Federal Reserve discount window. These actions have led to a significantly improved available liquidity position. Our available liquidity to adjusted estimated uninsured deposits ratio was approximately 100% at March 31, 2023. Available liquidity includes cash and due from banks, market value of the Bank’s investment securities, currently available funding sources minus pledged securities and restricted cash. This enhanced liquidity position coupled with the flexibility that the Bank will gain after the Malvern Bancorp transaction is closed, provides the Bank with a strong liquidity base and a diverse source of funding options.   

    The tangible stockholders' equity to tangible assets ratio was 9.83% as of March 31, 2023, indicating that the Bank has a sufficient cushion to absorb potential losses.

    Overall, First Bank has a strong capital and liquidity position, which it believes provides a solid foundation to navigate future challenges that may arise. The Bank is committed to managing risk prudently while pursuing growth opportunities and delivering value to its shareholders.

    Cash Dividend Declared

    On April 18, 2023, 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 12, 2023, payable on May 24, 2023.

    Conference Call

    First Bank will host its earnings call on Thursday, April 27, 2023 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 583346. For those unable to participate in the call, a replay will be available by dialing 1-866-813-9403 (access code 164395) from one hour after the end of the conference call until July 25, 2023. 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 $2.8 billion in assets as of March 31, 2023, 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 effects of the recent turmoil in the banking industry (including the failures of two financial institutions); 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.

    ___________________________________

    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 Adjusted diluted earnings per share, adjusted return on average assets and adjusted return on average tangible equity are non-U.S. GAAP financial measures and are calculated by dividing net income adjusted for certain merger-related expenses and other one-time gains or expenses by diluted weighted average shares, average assets and average tangible equity, respectively. For a reconciliation of these non-U.S. GAAP financial measures, 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 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.

    iv 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.

    v Tangible stockholders' equity to tangible assets ratio is a non-U.S. GAAP financial measure and is calculated by dividing tangible equity (equity minus goodwill and other intangible assets) by tangible assets (total assets 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.

    CONTACT: Andrew Hibshman, Chief Financial Officer
    (609) 643-0058, andrew.hibshman@firstbanknj.com



    FIRST BANK AND SUBSIDIARIES 
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION 
    (in thousands, except for share data, unaudited) 
      
        March 31, 2023 December 31, 2022 
    Assets     
    Cash and due from banks$20,627  $17,577  
    Restricted cash 11,700   13,580  
    Interest bearing deposits with banks 128,715   94,759  
      Cash and cash equivalents 161,042   125,916  
    Interest bearing time deposits with banks 747   1,293  
    Investment securities available for sale, at fair value 91,818   98,956  
    Investment securities held to maturity, net of allowance for securities credit losses of   
     $227 at March 31, 2023 and $0 at December 31, 2022 (fair value of $41,773 at   
     March 31, 2023 and $42,465 at December 31, 2022) 46,270   47,193  
    Restricted investment in bank stocks 12,180   6,214  
    Other investments 8,829   8,372  
    Loans, net of deferred fees and costs 2,392,583   2,337,814  
     Less: Allowance for loan credit losses 29,893   25,474  
      Net loans 2,362,690   2,312,340  
    Premises and equipment, net 11,502   10,550  
    Other real estate owned, net -   -  
    Accrued interest receivable 8,562   8,164  
    Bank-owned life insurance 58,476   58,107  
    Goodwill 17,826   17,826  
    Other intangible assets, net 1,496   1,579  
    Deferred income taxes, net 13,679   13,155  
    Other assets 21,780   23,275  
      Total assets$2,816,897  $2,732,940  
            
    Liabilities and Stockholders' Equity    
    Liabilities:    
    Non-interest bearing deposits$463,926  $503,856  
    Interest bearing deposits 1,777,878   1,790,096  
      Total deposits 2,241,804   2,293,952  
    Borrowings 223,416   90,932  
    Subordinated debentures 29,759   29,731  
    Accrued interest payable 1,968   1,218  
    Other liabilities 25,729   27,545  
      Total liabilities 2,522,676   2,443,378  
    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; 21,200,398    
     shares issued and 19,569,334 shares outstanding at March 31, 2023 and     
     21,082,819 shares issued and 19,451,755 shares outstanding at December 31, 2022 104,862   104,512  
    Additional paid-in capital 80,718   80,695  
    Retained earnings 130,808   127,532  
    Accumulated other comprehensive loss (6,324)  (7,334) 
    Treasury stock, 1,631,064 shares at March 31, 2023 and December 31, 2022 (15,843)  (15,843) 
      Total stockholders' equity 294,221   289,562  
      Total liabilities and stockholders' equity$2,816,897  $2,732,940  
            


    FIRST BANK AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME
    (in thousands, except for share data, unaudited)
     
        Three Months Ended
        March 31,
         2023   2022
    Interest and Dividend Income   
    Investment securities—taxable$1,022  $576
    Investment securities—tax-exempt 38   37
    Interest bearing deposits with banks,   
    Federal funds sold and other 1,252   130
    Loans, including fees 31,700   22,143
     Total interest and dividend income 34,012   22,886
           
    Interest Expense   
    Deposits  9,413   1,009
    Borrowings 1,364   288
    Subordinated debentures 440   440
     Total interest expense 11,217   1,737
    Net interest income 22,795   21,149
    Credit loss expense 1,091   642
     Net interest income after credit loss expense 21,704   20,507
           
    Non-Interest Income   
    Service fees on deposit accounts 228   252
    Loan fees  89   245
    Income from bank-owned life insurance 369   373
    Losses on sale of investment securities, net (207)  -
    Gains on sale of loans 141   37
    Gains on recovery of acquired loans 57   124
    Other non-interest income 287   236
     Total non-interest income 964   1,267
           
    Non-Interest Expense   
    Salaries and employee benefits 7,872   6,544
    Occupancy and equipment 1,579   1,424
    Legal fees 203   142
    Other professional fees 651   687
    Regulatory fees 234   193
    Directors' fees 214   218
    Data processing 618   596
    Marketing and advertising 240   164
    Travel and entertainment 219   88
    Insurance  173   165
    Other real estate owned expense, net 18   83
    Merger-related expenses 461   -
    Other expense 1,021   818
     Total non-interest expense 13,503   11,122
    Income Before Income Taxes 9,165   10,652
    Income tax expense 2,176   2,494
    Net Income$6,989  $8,158
           
    Basic earnings per common share$0.36  $0.42
    Diluted earnings per common share$0.36  $0.41
    Cash dividends per common share$0.06  $0.06
           
    Basic weighted average common shares outstanding 19,503,013   19,532,811
    Diluted weighted average common shares outstanding 19,667,194   19,768,452
           


    FIRST BANK AND SUBSIDIARIES
    AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
    (dollars in thousands, unaudited)
                
     Three Months Ended March 31,
      2023   2022 
     Average   AverageAverage   Average
     Balance Interest Rate(5) Balance Interest Rate(5)
    Interest earning assets           
    Investment securities (1) (2)$153,760  $1,068  2.82% $134,033  $621  1.88%
    Loans (3) 2,363,365   31,700  5.44%  2,131,014   22,143  4.21%
    Interest bearing deposits with banks,           
    Federal funds sold and other 96,071   1,084  4.58%  121,422   50  0.17%
    Restricted investment in bank stocks 8,257   101  4.96%  5,616   63  4.55%
    Other investments 8,641   67  3.14%  8,073   17  0.85%
    Total interest earning assets(2) 2,630,094   34,020  5.25%  2,400,158   22,894  3.87%
    Allowance for loan losses (29,331)      (24,057)    
    Non-interest earning assets 144,472       146,674     
    Total assets$2,745,235      $2,522,775     
                
    Interest bearing liabilities           
    Interest bearing demand deposits$319,242  $979  1.24% $298,274  $61  0.08%
    Money market deposits 756,490   4,987  2.67%  706,368   448  0.26%
    Savings deposits 153,639   346  0.91%  190,222   164  0.35%
    Time deposits 532,997   3,101  2.36%  350,223   336  0.39%
    Total interest bearing deposits 1,762,368   9,413  2.17%  1,545,087   1,009  0.26%
    Borrowings 131,211   1,364  4.22%  76,492   288  1.53%
    Subordinated debentures 29,742   440  5.92%  29,632   440  5.94%
    Total interest bearing liabilities 1,923,321   11,217  2.37%  1,651,211   1,737  0.43%
    Non-interest bearing deposits 499,989       583,543     
    Other liabilities 29,751       17,874     
    Stockholders' equity 292,174       270,147     
    Total liabilities and stockholders' equity$2,745,235      $2,522,775     
    Net interest income/interest rate spread (2)   22,803  2.88%    21,157  3.44%
    Net interest margin (2) (4)    3.52%     3.57%
    Tax equivalent adjustment (2)   (8)      (8)  
    Net interest income  $22,795      $21,149   
                
    (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
      3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
    EARNINGS          
    Net interest income $22,795  $23,751  $24,563  $22,910  $21,149 
    Provision for loan losses  1,091   716   216   1,298   642 
    Non-interest income  964   1,446   944   1,463   1,267 
    Non-interest expense  13,503   12,465   11,737   11,409   11,122 
    Income tax expense  2,176   2,916   3,348   2,843   2,494 
    Net income  6,989   9,100   10,206   8,823   8,158 
               
    PERFORMANCE RATIOS          
    Return on average assets (1)  1.03%  1.35%  1.57%  1.38%  1.31%
    Adjusted return on average assets (1) (2)  1.11%  1.40%  1.57%  1.38%  1.31%
    Return on average equity (1)  9.70%  12.61%  14.46%  12.92%  12.25%
    Adjusted return on average equity (1) (2)  10.43%  13.11%  14.46%  12.92%  12.25%
    Return on average tangible equity (1) (2)  10.39%  13.53%  15.55%  13.93%  13.22%
    Adjusted return on average tangible equity (1) (2)  11.17%  14.07%  15.55%  13.93%  13.22%
    Net interest margin (1) (3)  3.52%  3.69%  3.97%  3.76%  3.57%
    Total cost of deposits (1)  1.69%  1.21%  0.50%  0.23%  0.19%
    Efficiency ratio (2)  54.42%  47.68%  46.01%  46.81%  49.62%
               
    SHARE DATA          
    Common shares outstanding  19,569,334   19,451,755   19,447,206   19,483,415   19,634,744 
    Basic earnings per share $0.36  $0.47  $0.52  $0.45  $0.42 
    Diluted earnings per share  0.36   0.46   0.52   0.45   0.41 
    Adjusted diluted earnings per share (2)  0.38   0.48   0.52   0.45   0.41 
    Tangible book value per share (2)  14.05   13.89   13.43   13.08   12.79 
    Book value per share  15.03   14.89   14.44   14.10   13.81 
               
    MARKET DATA          
    Market value per share $10.10  $13.76  $13.67  $13.98  $14.22 
    Market value / Tangible book value  71.90%  99.07%  101.80%  106.84%  111.14%
    Market capitalization $197,650  $267,656  $265,843  $272,378  $279,206 
               
    CAPITAL & LIQUIDITY          
    Tangible stockholders' equity / tangible assets (2)  9.83%  9.96%  9.97%  9.95%  9.79%
    Stockholders' equity / assets  10.44%  10.60%  10.64%  10.64%  10.48%
    Loans / deposits  106.73%  101.91%  103.34%  103.15%  99.41%
               
    ASSET QUALITY          
    Net charge-offs (recoveries) $315  $(213) $705  $404  $247 
    Nonperforming loans  7,820   6,250   5,107   11,888   12,591 
    Nonperforming assets  7,820   6,250   5,400   12,181   12,884 
    Net charge offs (recoveries) / average loans (1)  0.05%  (0.04%)  0.13%  0.07%  0.05%
    Nonperforming loans / total loans  0.33%  0.27%  0.23%  0.53%  0.58%
    Nonperforming assets / total assets  0.28%  0.23%  0.20%  0.47%  0.50%
    Allowance for loan losses / total loans  1.25%  1.09%  1.08%  1.12%  1.12%
    Allowance for loan losses / nonperforming loans  382.26%  407.58%  480.61%  210.58%  191.72%
               
    OTHER DATA          
    Total assets $2,816,897  $2,732,940  $2,638,060  $2,581,192  $2,587,038 
    Total loans  2,392,583   2,337,814   2,263,377   2,233,278   2,164,944 
    Total deposits  2,241,804   2,293,952   2,190,192   2,165,163   2,177,895 
    Total stockholders' equity  294,221   289,562   280,749   274,702   271,068 
    Number of full-time equivalent employees (4)  252   238   228   233   219 
               
    (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%.          
    (4) Includes 8 full-time equivalent seasonal interns as of June 30, 2022.         
               


    FIRST BANK AND SUBSIDIARIES
    QUARTERLY FINANCIAL HIGHLIGHTS
    (dollars in thousands, unaudited)
                
       As of the Quarter Ended
       3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
    LOAN COMPOSITION          
    Commercial and industrial $394,734  $354,203  $323,984  $321,205  $321,979 
    Commercial real estate:          
     Owner-occupied  539,112   533,426   517,448   523,108   499,379 
     Investor  958,574   951,115   942,151   925,643   896,435 
     Construction and development  143,955   142,876   126,206   117,011   96,585 
     Multi-family  220,101   215,990   214,819   201,269   193,865 
     Total commercial real estate  1,861,742   1,843,407   1,800,624   1,767,031   1,686,264 
    Residential real estate:          
     Residential mortgage and first lien home equity loans  94,060   93,847   96,194   98,841   99,992 
     Home equity–second lien loans and revolving lines of credit  29,316   33,551   31,670   30,491   30,485 
     Total residential real estate  123,376   127,398   127,864   129,332   130,477 
    Consumer and other  16,413   16,318   14,654   19,694   30,096 
     Total loans prior to deferred loan fees and costs  2,396,265   2,341,326   2,267,126   2,237,262   2,168,816 
    Net deferred loan fees and costs  (3,682)  (3,512)  (3,749)  (3,984)  (3,872)
     Total loans $2,392,583  $2,337,814  $2,263,377  $2,233,278  $2,164,944 
                
    LOAN MIX          
    Commercial and industrial  16.5%  15.2%  14.3%  14.4%  14.8%
    Commercial real estate:          
     Owner-occupied  22.5%  22.8%  22.9%  23.4%  23.1%
     Investor  40.1%  40.7%  41.6%  41.5%  41.4%
     Construction and development  6.0%  6.1%  5.6%  5.2%  4.5%
     Multi-family  9.2%  9.2%  9.5%  9.0%  8.9%
     Total commercial real estate  77.8%  78.8%  79.6%  79.1%  77.9%
    Residential real estate:          
     Residential mortgage and first lien home equity loans  3.9%  4.0%  4.3%  4.4%  4.6%
     Home equity–second lien loans and revolving lines of credit  1.2%  1.4%  1.4%  1.4%  1.4%
     Total residential real estate  5.1%  5.4%  5.7%  5.8%  6.0%
    Consumer and other  0.7%  0.7%  0.6%  0.9%  1.4%
    Net deferred loan fees and costs  (0.1%)  (0.1%)  (0.2%)  (0.2%)  (0.1%)
     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
       3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
    DEPOSIT COMPOSITION          
    Non-interest bearing demand deposits $463,926  $503,856  $584,025  $600,402  $597,333 
    Interest bearing demand deposits  310,140   322,944   343,042   318,687   314,564 
    Money market and savings deposits  914,063   935,311   860,577   929,075   936,848 
    Time deposits  553,675   531,841   402,549   316,999   329,150 
     Total Deposits $2,241,804  $2,293,952  $2,190,193  $2,165,163  $2,177,895 
                
    DEPOSIT MIX          
    Non-interest bearing demand deposits  20.7%  22.0%  26.7%  27.7%  27.4%
    Interest bearing demand deposits  13.8%  14.1%  15.7%  14.7%  14.5%
    Money market and savings deposits  40.8%  40.8%  39.3%  42.9%  43.0%
    Time deposits  24.7%  23.1%  18.3%  14.7%  15.1%
     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
     3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
    Return on Average Tangible Equity         
    Net income (numerator)$6,989  $9,100  $10,206  $8,823  $8,158 
              
    Average stockholders' equity$292,174  $286,283  $280,093  $273,829  $270,147 
    Less: Average Goodwill and other intangible assets, net 19,379   19,533   19,669   19,823   19,916 
    Average Tangible stockholders' equity (denominator)$272,795  $266,750  $260,424  $254,006  $250,231 
              
    Return on Average Tangible equity (1) 10.39%  13.53%  15.55%  13.93%  13.22%
              
    Tangible Book Value Per Share         
    Stockholders' equity$294,221  $289,562  $280,749  $274,702  $271,068 
    Less: Goodwill and other intangible assets, net 19,322   19,405   19,599   19,768   19,854 
    Tangible stockholders' equity (numerator)$274,899  $270,157  $261,150  $254,934  $251,214 
              
    Common shares outstanding (denominator) 19,569,334   19,451,755   19,447,206   19,483,415   19,634,744 
              
    Tangible book value per share$14.05  $13.89  $13.43  $13.08  $12.79 
              
              
    Tangible Equity / Assets         
    Stockholders' equity$294,221  $289,562  $280,749  $274,702  $271,068 
    Less: Goodwill and other intangible assets, net 19,322   19,405   19,599   19,768   19,854 
    Tangible stockholders' equity (numerator)$274,899  $270,157  $261,150  $254,934  $251,214 
              
    Total assets$2,816,897  $2,732,940  $2,638,060  $2,581,192  $2,587,038 
    Less: Goodwill and other intangible assets, net 19,322   19,405   19,599   19,768   19,854 
    Tangible total assets (denominator)$2,797,575  $2,713,535  $2,618,461  $2,561,424  $2,567,184 
              
    Tangible stockholders' equity / tangible assets 9.83%  9.96%  9.97%  9.95%  9.79%
              
              
    Efficiency Ratio         
    Non-interest expense$13,503  $12,465  $11,737  $11,409  $11,122 
    Less: Merger-related expenses 461   452   -   -   - 
    Adjusted non-interest expense (numerator)$13,042  $12,013  $11,737  $11,409  $11,122 
              
    Net interest income$22,795  $23,751  $24,563  $22,910  $21,149 
    Non-interest income 964   1,446   944   1,463   1,267 
    Total revenue 23,759   25,197   25,507   24,373   22,416 
    Add: Losses on sale of investment securities, net 207   -   -   -   - 
    Adjusted total revenue (denominator)$23,966  $25,197  $25,507  $24,373  $22,416 
              
    Efficiency ratio 54.42%  47.68%  46.01%  46.81%  49.62%
              
    (1) Annualized.         
              


    FIRST BANK AND SUBSIDIARIES
    NON-U.S. GAAP FINANCIAL MEASURES
    (dollars in thousands, except for share data, unaudited)
              
              
     For the Quarter Ended
     3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
              
    Adjusted diluted earnings per share,         
    Adjusted return on average assets, and         
    Adjusted return on average equity         
              
    Net income$6,989  $9,100  $10,206  $8,823  $8,158 
    Add: Merger-related expenses(1) 364   357   -   -   - 
    Add: Losses on sale of investment securities, net(1) 164   -   -   -   - 
    Adjusted net income$7,517  $9,457  $10,206  $8,823  $8,158 
              
    Diluted weighted average common shares outstanding 19,667,194   19,649,282   19,668,133   19,794,657   19,768,452 
    Average assets$2,745,235  $2,680,807  $2,575,742  $2,568,443  $2,522,775 
    Average equity$292,174  $286,283  $280,093  $273,829  $270,147 
    Average Tangible Equity$272,795  $266,750  $260,424  $254,006  $250,231 
              
    Adjusted diluted earnings per share$0.38  $0.48  $0.52  $0.45  $0.41 
    Adjusted return on average assets(2) 1.11%  1.40%  1.57%  1.38%  1.31%
    Adjusted return on average equity(2) 10.43%  13.11%  14.46%  12.92%  12.25%
    Adjusted return on average tangible equity(2) 11.17%  14.07%  15.55%  13.93%  13.22%
              
    (1) Items are tax-effected using a federal income tax rate of 21%.        
    (2) Annualized.         
              

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