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First Bank Reports Third Quarter 2017 Net Income of $2.5 Million, an Increase of 38% Compared to 2016

Year-To-Date Net Income is Up 39% to $6.4 Million

For the Third Quarter and Year to Date: Continued Organic Loan Growth; Increased Operating Efficiency; Stable Asset Quality Metrics; Strong Period End Capital Levels

HAMILTON, N.J., Oct. 30, 2017 (GLOBE NEWSWIRE) -- First Bank (Nasdaq:FRBA) today announced results for the third quarter and first nine months of 2017. Net income for the third quarter was $2.5 million or $0.16 per diluted share, compared to $1.8 million or $0.16 per diluted share for the third quarter 2016. Third quarter 2017 diluted earnings per share were consistent with the prior year quarter despite both a 4.2 million share increase in diluted weighted average shares outstanding and non-recurring merger-related expenses, excluding tax effects, of $0.08 per share. The increase in third quarter net income was driven by net interest income growth of 42.9%, which was primarily the result of organic loan growth.

Net income for the first nine months of 2017 was $6.4 million, an increase of $1.8 million, or 39.3%, compared to $4.6 million for 2016. Diluted earnings per share for the first nine months of 2017 were $0.47, an increase of $0.02, or 4.4%, over the prior year period and were also reflective of increased weighted average diluted shares outstanding and merger-related expenses for the current period.

On September 18, 2017, First Bank announced that it had completed its merger with Bucks County Bank, previously headquartered in Doylestown, Pennsylvania. The acquisition of Bucks County Bank, effective September 15, expands First Bank’s Pennsylvania presence through the addition of four full-service locations in Doylestown, Warminster, Bensalem and Levittown, Pennsylvania. First Bank has added two former Bucks County Bank directors, John Harding and Christopher Chandor, to its Board of Directors. At the time of closing of the merger, excluding any purchase accounting adjustments, Bucks County Bank had $197.6 million in assets, $175.6 million in total loans, $155.1 million in total deposits and $21.1 million in stockholders’ equity. The effect of the merger on First Bank net income for the quarter and year to date was minimal as it reflected only 15 days of activity.

2017 Performance Highlights:

  • Total net revenue (net interest income plus non-interest income) for the quarter increased by 44.0%, or $3.4 million, to $11.3 million, compared to $7.8 million for the prior year quarter.
  • Total loans of $1.2 billion at September 30, 2017 were up $296.1 million, or 33.0%, from December 31, 2016, and up $367.4 million, or 44.4% from $827.2 million on September 30, 2016.
  • Total deposits of $1.2 billion at September 30, 2017 were up $256.9 million, or 28.7%, from $894.9 million at December 31, 2016 and up $277.7 million, or 31.8% from $874.1 million at September 30, 2016.
  • Continued strong asset quality metrics with annualized net loan charge-offs to average loans of 0.13% for third quarter 2017. Nonperforming loans to total loans of 0.56% at September 30, 2017 increased by 7 basis points compared to 0.49% for the linked second quarter 2017 and is 10 basis points lower compared to 0.66% at December 31, 2016.
  • Continued improvement in our efficiency ratio1 of 50.21% for the third quarter, down from 62.04% for the third quarter 2016, and from 58.21% for the second quarter 2017.
  • Completed acquisition of Bucks County Bank which added four full-service locations in Pennsylvania.

“Our third quarter results were an extension of First Bank’s very strong momentum from the first half of 2017, as we continued to grow earning assets, effectively manage our operating expenses, successfully completed the acquisition of Bucks County Bank and maintained our solid asset quality metrics,” said Patrick L. Ryan, President and Chief Executive Officer. “These efforts are mirrored in our strong improvement in top-line revenue which flowed down through to a nearly 38% increase in net income compared to third quarter 2016. Our earnings per share held steady compared to the prior year quarter despite an increase of approximately 4.2 million in diluted weighted average shares outstanding, as well as the impact of non-recurring merger-related expenses for the current quarter. Our effective two-pronged strategy of growing both organically and by a targeted acquisition enabled us to grow total assets by $439.1 million from the third quarter 2016, while at the same time continuing to reduce our efficiency ratio to a very respectable 50.21% for the current quarter.

“Shortly after we completed a very solid quarter, we entered into a definitive merger agreement to expand our service footprint into neighboring Burlington County by acquiring Delanco Bancorp, Inc. This is another strategic transaction into an area with compelling customer demographics and excellent growth potential which should further strengthen our balance sheet by diversifying our loan portfolio and providing expanded access to cost-effective retail funding. Importantly, we believe the transaction will be immediately accretive to First Bank earnings per share and we expect there to be minimal dilution to our tangible book value. We remain well-positioned to continue our solid performance for the remainder of 2017 and into 2018, and to continue to explore all appropriate growth opportunities.”

Income Statement

Our net interest income for the third quarter 2017 was $10.7 million, an increase of $3.2 million, or 42.9%, compared to $7.5 million in the third quarter 2016. This growth was driven by a $3.8 million, or 38.4%, increase in interest and dividend income primarily a result of a $231.7 million increase in average loan balances compared with the third quarter 2016. This was modestly offset by increased interest expense of $566,000 for the comparative quarter, which reflected average balance increases for both interest bearing deposits and borrowings.

Net interest income for the nine months ended September 30, 2017, totaled $27.4 million, an increase of $6.3 million, or 29.9%, compared to $21.1 million for 2016. The increase in net interest income was also driven by significant growth in average loans, primarily organic, which increased by $185.4 million from the prior year period.

1 The efficiency ratio is a non-GAAP financial measure. For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the last page of this press release.

The third quarter 2017 net interest margin was 3.58%, an increase of 42 basis points compared to 3.16% for the prior year quarter, and an increase of 35 basis points compared to the linked second quarter 2017. The increase compared to third quarter 2016 and linked second quarter 2017 was primarily the result of a higher average loan yield reflected in a 41 basis point increase in the rate paid on interest-earning assets. The higher earning asset yield and subsequent higher net interest margin included the impact of a significant prepayment penalty related to the early payoff of a large commercial loan relationship which had the effect of adding 16 basis points to the net interest margin.

The provision for loan losses for the third quarter 2017 totaled $716,000, an increase of $425,000 compared to $291,000 for the third quarter 2016, and a decrease of $90,000 compared to $806,000 for the linked second quarter 2017. The increase in the provision compared to third quarter 2016, reflected organic growth in our commercial loan portfolio and higher net loan charge-offs. Asset quality metrics were relatively stable for the comparable periods. The provision for loan losses for the first nine months of 2017 totaled $2.0 million compared to $1.7 million for the same period in 2016. The nine month provision is also reflective of our organic loan growth in 2017, as well as its continued stable asset quality metrics.

Third quarter 2017 non-interest income increased $247,000, to $631,000, compared to $384,000 in the third quarter 2016, primarily a result of higher gains on sale of loans along with additional income from bank-owned life insurance. Nine month non-interest income totaled $1.5 million for 2017 compared to $1.1 million for 2016. Similar to the third quarter 2017, the increase in year to date non-interest income was a result of higher gains on sale of loans and an increase in income from bank-owned life insurance, partially offset by lower gains on recovery of acquired loans.

Non-interest expense for third quarter 2017 totaled $6.8 million, an increase of $2.0 million, or 41.4%, compared to $4.8 million for the prior year quarter. The higher non-interest expense compared to third quarter 2016 was primarily a result of merger-related expenses of $1.2 million, along with higher salaries and employee benefits, which increased by $284,000 and reflected, in part, the assimilation of former Bucks County Bank employees. Non-interest expense for the first nine months of 2017 totaled $17.4 million, an increase of $3.8 million or 28.1% compared to $13.6 million for the same period in 2016. The increase was also primarily a result of merger-related expenses and increased salaries and employee benefits. Excluding non-recurring merger-related expenses, the Bank’s revenue growth rate outpaced the rate of growth for non-interest expense during the third quarter and for the first nine months of 2017.

Pre-provision net revenue2 for the third quarter 2017 was $5.5 million, an increase of $2.6 million, or 87.5%, compared to $2.9 million for the third quarter 2016, and an increase of $1.7 million, or 46.2%, compared to $3.8 million in the linked second quarter 2017.

Income tax expense for the third quarter 2017 was $1.3 million, an increase of $358,000 compared to $955,000 for third quarter 2016. The third quarter 2017 effective income tax rate was 34.6% compared to 34.7% for third quarter 2016.

2 Pre-provision net revenue is a non-GAAP financial measure. For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the last page of this press release.

Balance Sheet

Total assets at September 30, 2017 were $1.4 billion, an increase of $439.1 million, or 43.6%, compared to $1.0 billion at September 30, 2016 due primarily to loan growth, both organic and acquired. Total loans were $1.2 billion at September 30, 2017, an increase of $367.4 million, or 44.4%, compared to $827.2 million on September 30, 2016, and an increase of $296.1 million, or 33.0%, compared to $898.4 million at the 2016 year end. Total loans increased $201.1 million compared to $993.4 million for the linked second quarter 2017. The growth during the third quarter was broadly distributed across our commercial and consumer loan segments and included both originated and acquired loans.

Total deposits were $1.2 billion at September 30, 2017, an increase of $277.7 million, or 31.8%, compared to $874.1 million on September 30, 2016, and were up $256.9 million, or 28.7%, from December 31, 2016. Non-interest bearing deposits totaled $195.4 million at September 30, 2017, an increase of $76.8 million, or 64.8%, from December 31, 2016.

Stockholders’ equity increased to $163.0 million at September 30, 2017, up $74.2 million or 83.6% compared to $88.8 million at December 31, 2016. The increase was primarily a result of the common stock offering completed in June 2017, which raised $37.5 million in net new capital, the issuance of additional shares in the acquisition of Bucks County Bank which increased capital by $29.7 million and a $5.9 million increase in retained earnings for the nine-month period ended September 30, 2017.

Asset Quality

First Bank’s asset quality metrics remained stable during the third quarter, reflective of ongoing disciplined risk management and underwriting standards. Net charge-offs were $348,000 for the third quarter 2017, compared to $30,000 for third quarter 2016 and $22,000 for the second quarter 2017. Net charge-offs as an annualized percentage of average loans were 0.13% in third quarter 2017, compared to 0.01% for both the third quarter 2016 and the linked second quarter 2017. Nonperforming loans as a percentage of total loans at September 30, 2017 were 0.56%, compared with 0.66% at December 31, 2016, 0.45% at September 30, 2016 and 0.49% at June 30, 2017. The allowance for loan losses to nonperforming loans was 167.1% at September 30, 2017, compared with 164.7% at December 31, 2016, 252.4% at the end of third quarter 2016, and 221.8% at June 30, 2017.

As of September 30, 2017, the Bank exceeded all regulatory capital requirements to be considered well capitalized with a Tier 1 Leverage ratio of 12.41% a Tier 1 Risk-Based capital ratio of 11.38%, a Common Equity Tier 1 Capital ("CET1") ratio of 11.38%, and a Total Risk-Based capital ratio of 13.87%.

Definitive Agreement to Acquire Delanco Bancorp, Inc.

First Bank announced on October 18, 2017 that it had entered into a definitive merger agreement to acquire Delanco Bancorp, Inc. in a stock transaction for total consideration valued at approximately $13.5 million. Upon the closing of the transaction, Delanco Federal Savings Bank, the wholly owned bank subsidiary of Delanco Bancorp, Inc. will merge with and into First Bank. The merger has been unanimously approved by the boards of directors of both institutions. The transaction is expected to be completed in first quarter 2018, subject customary approvals and closing conditions. Delanco Federal Savings Bank is headquartered in Delanco, New Jersey, and serves its customers and communities through two full-service locations in Delanco and Cinnaminson, New Jersey. Delanco Federal Savings Bank has assets of approximately $126 million, loans of $85 million and deposits of $111 million as of June 30, 2017.

Cash Dividend Declared

On October 17, 2017 the Board of Directors declared a quarterly cash dividend of $0.02 per share to common shareholders of record at the close of business on November 10, 2017, payable on November 24, 2017. The Board of Directors believes that this dividend provides shareholders an added tangible benefit, and that it is appropriate given our current financial performance, momentum and near-term prospects.

Conference Call

First Bank will host an earnings call on Tuesday, October 31, 2017 at 9:00 a.m. Eastern time. The direct dial toll free number for the call is 844-825-9784. For those unable to participate in the call, a replay will be available by dialing 1-877-344-7529 (access code 10112994) from one hour after the end of the conference call until January 29, 2018. Replay information will also be available on our 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 14 full-service branches in Cranbury, Denville, Ewing, Flemington, Hamilton, Lawrence, Randolph, Somerset and Williamstown, New Jersey, and Trevose, Doylestown, Warminster, Bensalem and Levittown, Pennsylvania. With $1.4 billion in assets as of September 30, 2017, First Bank offers a traditional 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”.

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 10-K under the caption “Item 1A. Risk Factors”, and any subsequent quarterly reports on Forms 10-Q and general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, the ability to obtain required shareholder approvals of the Delanco Bancorp merger, the ability to complete such merger as expected and within the expected timeframe, the possibility that one or more of the conditions to the completion of such merger may not be satisfied, and results of regulatory exams, among other factors. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on such forward-looking statements. Past results are not necessarily indicative of future performance.

FIRST BANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data, unaudited)
September 30, December 31,
2017 2016
Assets
Cash and due from banks$10,148 $6,078
Federal funds sold - 5,000
Interest bearing deposits with banks 57,474 19,211
Cash and cash equivalents 67,622 30,289
Interest bearing time deposits with banks 5,530 7,440
Investment securities available for sale 59,508 47,077
Investment securities held to maturity (fair value of $53,128
at September 30, 2017 and $53,358 at December 31, 2016) 52,748 53,473
Restricted investment in bank stocks 5,720 3,890
Other investments 6,025 5,000
Loans held for sale 1,483 -
Loans, net of deferred fees and costs 1,194,522 898,429
Less: Allowance for loan losses 11,269 9,826
Net loans 1,183,253 888,603
Premises and equipment, net 5,862 3,338
Other real estate owned, net 2,027 1,292
Accrued interest receivable 3,487 2,573
Bank-owned life insurance 29,588 21,067
Goodwill 10,497 -
Other intangible assets, net 966 224
Deferred income taxes 11,169 8,350
Other assets 1,305 678
Total assets$1,446,790 $1,073,294
Liabilities and Stockholders' Equity
Non-interest bearing deposits$195,381 $118,569
Interest bearing deposits 956,476 776,365
Total deposits 1,151,857 894,934
Borrowings 105,565 64,510
Subordinated debentures 21,721 21,641
Accrued interest payable 1,255 636
Other liabilities 3,367 2,767
Total liabilities 1,283,765 984,488
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;
issued and outstanding 17,437,173 shares at September 30, 2017
and 11,410,274 shares at December 31, 2016 86,973 56,885
Additional paid-in capital 56,889 18,779
Retained earnings 19,492 13,611
Accumulated other comprehensive loss (329) (469)
Total stockholders' equity 163,025 88,806
Total liabilities and stockholders' equity$1,446,790 $1,073,294


FIRST BANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share data, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
Interest and Dividend Income
Investment securities—taxable$412 $247 $1,175 $882
Investment securities—tax-exempt 121 125 369 376
Interest bearing deposits with banks and other 170 102 445 279
Loans, including fees 12,876 9,340 33,575 26,574
Total interest and dividend income 13,579 9,814 35,564 28,111
Interest Expense
Deposits 2,269 1,941 6,355 5,666
Borrowings 256 18 605 145
Subordinated debentures 399 399 1,195 1,195
Total interest expense 2,924 2,358 8,155 7,006
Net interest income 10,655 7,456 27,409 21,105
Provision for loan losses 716 291 1,960 1,743
Net interest income after provision for loan losses 9,939 7,165 25,449 19,362
Non-Interest Income
Service fees on deposit accounts 50 38 134 119
Loan fees 23 21 83 56
Income from bank-owned life insurance 213 129 521 337
Gains on sale of investment securities, net - - - 25
Gains on sale of loans 128 - 264 -
Gains on recovery of acquired loans 114 114 227 288
Other non-interest income 103 82 283 235
Total non-interest income 631 384 1,512 1,060
Non-Interest Expense
Salaries and employee benefits 2,968 2,684 8,546 7,185
Occupancy and equipment 754 671 2,158 1,996
Legal fees 69 63 218 215
Other professional fees 343 287 1,023 856
Regulatory fees 73 139 474 464
Directors' fees 147 107 397 340
Data processing 296 236 807 694
Marketing and advertising 193 125 463 375
Travel and entertainment 63 49 184 154
Insurance 55 50 178 160
Other real estate owned expense, net 289 118 603 360
Merger-related expenses 1,233 - 1,513 -
Other expense 295 264 875 816
Total non-interest expense 6,778 4,793 17,439 13,615
Income Before Income Taxes 3,792 2,756 9,522 6,807
Income tax expense 1,313 955 3,113 2,207
Net Income$2,479 $1,801 $6,409 $4,600
Basic earnings per share$0.16 $0.16 $0.49 $0.46
Diluted earnings per share$0.16 $0.16 $0.47 $0.45
Basic weighted average common shares outstanding 15,373,278 11,359,613 13,151,716 10,102,767
Diluted weighted average common shares outstanding 15,722,351 11,520,646 13,504,414 10,224,537


FIRST BANK AND SUBSIDIARIES
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)
Three Months Ended September 30,
2017 2016
Average Average Average Average
Balance Interest Rate (5) Balance Interest Rate (5)
Interest earning assets
Investment securities (1) (2)$98,863 $574 2.30% $79,685 $415 2.07%
Loans (3) 1,043,913 12,876 4.89% 812,254 9,340 4.57%
Interest bearing deposits with banks and other 32,417 97 1.19% 46,772 64 0.54%
Restricted investment in bank stocks 4,255 48 4.48% 1,294 20 6.15%
Other investments 5,071 25 1.96% 5,000 18 1.43%
Total interest earning assets (2) 1,184,519 13,620 4.56% 945,005 9,857 4.15%
Allowance for loan losses (11,184) (9,300)
Non-interest earning assets 55,129 38,927
Total assets$1,228,464 $974,632
Interest bearing liabilities
Interest bearing demand deposits 120,845 $184 0.60% $97,924 $136 0.55%
Money market deposits 163,386 318 0.77% 127,669 201 0.63%
Savings deposits 74,025 90 0.48% 70,365 88 0.50%
Time deposits 481,550 1,677 1.38% 448,590 1,516 1.34%
Total interest bearing deposits 839,806 2,269 1.07% 744,548 1,941 1.04%
Borrowings 70,176 256 1.45% 6,790 18 1.05%
Subordinated debentures 21,704 399 7.35% 21,600 399 7.39%
Total interest bearing liabilities 931,686 2,924 1.25% 772,938 2,358 1.21%
Non-interest bearing deposits 156,000 112,260
Other liabilities 3,295 2,586
Stockholders' equity 137,483 86,848
Total liabilities and stockholders' equity$1,228,464 $974,632
Net interest income/interest rate spread (2) 10,696 3.31% 7,499 2.94%
Net interest margin (2) (4) 3.58% 3.16%
Tax-equivalent adjustment (2) (41) (43)
Net interest income $10,655 $7,456
(1) Average balances of investment securities available for sale are based on amortized cost.
(2) Interest and average rates are tax equivalent using a federal income tax rate of 34%.
(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
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)
Nine Months Ended September 30,
2017 2016
Average Average Average Average
Balance Interest Rate (5) Balance Interest Rate (5)
Interest earning assets
Investment securities (1) (2)$99,222 $1,669 2.25% $85,586 $1,386 2.16%
Loans (3) 961,180 33,575 4.67% 775,786 26,574 4.58%
Interest bearing deposits with banks and other 33,804 258 1.02% 43,079 171 0.53%
Restricted investment in bank stocks 3,733 122 4.36% 1,745 59 4.52%
Other investments 5,024 66 1.74% 5,000 49 1.31%
Total interest earning assets (2) 1,102,963 35,689 4.33% 911,196 28,239 4.14%
Allowance for loan losses (10,561) (8,728)
Non-interest earning assets 47,400 37,369
Total assets$1,139,802 $939,837
Interest bearing liabilities
Interest bearing demand deposits$118,092 $528 0.60% $87,516 $416 0.63%
Money market deposits 161,109 861 0.71% 122,807 630 0.69%
Savings deposits 71,415 261 0.49% 73,443 275 0.50%
Time deposits 458,136 4,705 1.37% 430,200 4,345 1.35%
Total interest bearing deposits 808,752 6,355 1.05% 713,966 5,666 1.06%
Borrowings 59,918 605 1.35% 18,349 145 1.06%
Subordinated debentures 21,678 1,195 7.35% 21,572 1,195 7.39%
Total interest bearing liabilities 890,348 8,155 1.22% 753,887 7,006 1.24%
Non-interest bearing deposits 134,949 107,466
Other liabilities 3,184 2,342
Stockholders' equity 111,321 76,142
Total liabilities and stockholders' equity$1,139,802 $939,837
Net interest income/interest rate spread (2) 27,534 3.11% 21,233 2.90%
Net interest margin (2) (4) 3.34% 3.11%
Tax-equivalent adjustment (2) (125) (128)
Net interest income $27,409 $21,105
(1) Average balances of investment securities available for sale are based on amortized cost.
(2) Interest and average rates are tax equivalent using a federal income tax rate of 34%.
(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
(dollars in thousands, except for share and employee data, unaudited)
3Q2017 (1) 2Q2017 1Q2017 4Q2016 3Q2016
EARNINGS
Net interest income$10,655 $8,654 $8,100 $7,798 $7,456
Provision for loan losses 716 806 438 954 291
Non-interest income 631 422 459 570 384
Non-interest expense 6,778 5,369 5,292 4,717 4,793
Income tax expense 1,313 914 886 891 955
Net income 2,479 1,987 1,943 1,806 1,801
PERFORMANCE RATIOS
Return on average assets (2) 0.80% 0.72% 0.73% 0.70% 0.74%
Return on average equity (2) 7.15% 7.54% 8.73% 8.10% 8.25%
Net interest margin (2) (4) 3.58% 3.23% 3.16% 3.12% 3.16%
Efficiency ratio (3) 50.21% 58.21% 61.32% 58.23% 62.04%
Pre-provision net revenue (3)$5,499 $3,761 $3,244 $3,383 $2,933
SHARE DATA
Common shares outstanding 17,437,173 15,015,778 11,447,259 11,410,274 11,393,609
Basic earnings per share$0.16 $0.16 $0.17 $0.16 $0.16
Diluted earnings per share 0.16 0.15 0.17 0.16 0.16
Tangible book value per share (3) 8.69 8.71 7.94 7.76 7.66
Book value per share 9.35 8.72 7.95 7.78 7.68
MARKET DATA (period-end)
Market value per share$13.30 $11.65 $11.95 $11.60 $8.38
Market value / book value 142.26% 133.57% 150.25% 149.04% 109.16%
Market capitalization$231,914 $174,934 $136,795 $132,359 $95,478
CAPITAL & LIQUIDITY
Tangible equity / tangible assets (3) 10.56% 11.29% 8.28% 8.25% 8.66%
Equity / assets 11.27% 11.30% 8.30% 8.27% 8.68%
Loans / deposits 103.70% 105.00% 97.96% 100.39% 94.62%
ASSET QUALITY
Net charge-offs$348 $22 $146 $424 $30
Nonperforming loans 6,745 4,916 5,233 5,967 3,683
Nonperforming assets 8,772 6,133 6,371 7,289 4,895
Net charge offs / average loans (2) 0.13% 0.01% 0.06% 0.20% 0.01%
Nonperforming loans / total loans 0.56% 0.49% 0.57% 0.66% 0.45%
Nonperforming assets / total assets 0.61% 0.53% 0.58% 0.68% 0.49%
Allowance for loan losses / total loans 0.94% 1.10% 1.11% 1.09% 1.12%
Allowance for loan losses / nonperforming loans 167.07% 221.77% 193.35% 164.67% 252.40%
PERIOD-END DATA
Total assets$1,446,790 $1,158,546 $1,096,395 $1,073,294 $1,007,685
Total loans 1,194,522 993,426 915,280 898,429 827,161
Total deposits 1,151,857 946,152 934,326 894,934 874,149
Total stockholders' equity 163,025 130,969 91,045 88,806 87,463
Full-time equivalent employees (5) 142 116 104 108 104
___________________________
(1) Includes effects of Bucks County Bank merger effective September 15, 2017.
(2) Annualized.
(3) 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.
(4) Tax equivalent using a federal income tax rate of 34%.
(5) Includes 8 seasonal staff as of 2Q2017.


FIRST BANK AND SUBSIDIARIES
NON-U.S. GAAP FINANCIAL MEASURES
(dollars in thousands, except for share data, unaudited)
3Q2017 (1) 2Q2017 1Q2017 4Q2016 3Q2016
Tangible Book Value
Stockholders' equity$163,025 $130,969 $91,045 $88,806 $87,463
Less: Goodwill and other intangible assets, net 11,463 196 196 196 196
Tangible equity (numerator)$151,562 $130,773 $90,849 $88,610 $87,267
Common shares outstanding (denominator)$17,437,173 $15,015,778 $11,447,259 $11,410,274 $11,393,609
Tangible book value per share$8.69 $8.71 $7.94 $7.76 $7.66
Tangible Equity / Assets
Stockholders' equity$163,025 $130,969 $91,045 $88,806 $87,463
Less: Goodwill and other intangible assets, net 11,463 196 196 196 196
Tangible equity (numerator)$151,562 $130,773 $90,849 $88,610 $87,267
Total assets$1,446,790 $1,158,546 $1,096,395 $1,073,294 $1,007,685
Less: Goodwill and other intangible assets, net 11,463 196 196 196 196
Adjusted total assets (denominator)$1,435,327 $1,158,350 $1,096,199 $1,073,098 $1,007,489
Tangible equity / assets 10.56% 11.29% 8.29% 8.26% 8.66%
Efficiency Ratio
Non-interest expense$6,778 $5,369 $5,292 $4,717 $4,793
Less: Merger-related expenses 1,233 130 150 - -
Adjusted non-interest expense (numerator)$5,545 $5,239 $5,142 $4,717 $4,793
Net interest income$10,655 $8,654 $8,100 $7,798 $7,456
Non-interest income 631 422 459 570 384
Total revenue 11,286 9,076 8,559 8,368 7,840
Less: Gains on sale of loans 128 - 136 - -
Less: Gains on recovery of acquired loans 114 76 37 268 114
Adjusted total revenue (denominator)$11,044 $9,000 $8,386 $8,100 $7,726
Efficiency ratio 50.21% 58.21% 61.32% 58.23% 62.04%
Pre-Provision Net Revenue
Net interest income$10,655 $8,654 $8,100 $7,798 $7,456
Non-interest income 631 422 459 570 384
Less: Gains on sale of loans 128 - 136 - -
Less: Gains on recovery of acquired loans 114 76 37 268 114
Less: Non-interest expense 6,778 5,369 5,292 4,717 4,793
Add: Merger-related expenses 1,233 130 150 - -
Pre-provision net revenue$5,499 $3,761 $3,244 $3,383 $2,933
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(1) Includes effects of Bucks County Bank merger effective September 15, 2017.


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

Source:First Bank