First Bank (NASDAQ:FRBA) Q4 2022 Earnings Conference Call January 26, 2023 9:00 AM ET Company Participants Patrick Ryan - President & Chief Executive Officer Andrew Hibshman - Chief Financial Officer Peter Cahill - Chief Lending Officer Conference Call Participants David Bishop - Hovde Group Manuel Navas - D.A. Davidson Operator Now let me turn the call over to Patrick Ryan, President and CEO. So, Patrick, you may begin. Thank you, and good morning, everybody. Welcome to our fourth quarter earnings conferen ...

Financial Data and Key Metrics Changes - The company reported a net income of $10.2 million for Q3 2022, translating to $0.52 per diluted share, with a return on average assets of 1.57% [14] - The net interest margin expanded by 21 basis points during the quarter, reaching 3.7% [4][18] - Return on tangible common equity was above 15%, and the efficiency ratio remained below 50% for the seventh consecutive quarter [6] - Non-performing assets to total assets declined to just 21 basis points, reflecting improved asset quality [6][25] Business Line Data and Key Metrics Changes - Year-to-date net loan growth was $185 million, representing a 12% annualized growth rate, excluding PPP loans [7][31] - Total loans increased by $36.5 million in Q3 2022, with a total of $101 million in new loans closed and funded during the quarter [16][32] - Non-interest income decreased to $944,000 from $1.5 million in Q2 2022, primarily due to lower loan sale income and fees [26] Market Data and Key Metrics Changes - Total deposits increased by $25 million during Q3 2022, although non-interest-bearing deposits decreased by $16.4 million [17] - The company anticipates an acceleration of deposit costs due to the rising interest rate environment [9] Company Strategy and Development Direction - The company is refocusing on deposit growth after a period of excess liquidity, emphasizing the importance of core deposit generation [11][60] - New opportunities are being explored in niche areas such as asset-based lending and small business lending, alongside traditional commercial banking [12] - The company is also looking to expand its presence in private equity fund banking, which is expected to diversify its portfolio and enhance profitability [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite potential market slowdowns due to rising interest rates [48][51] - The company is well-positioned to take advantage of opportunities arising from recent M&A activity in the market [48] - Management indicated that while deposit pricing pressures are increasing, they expect to maintain margins at current levels [21][70] Other Important Information - The company repurchased 59,885 shares at an average price of $13.97 during Q3 2022, which had a marginal impact on tangible book value per share [24] - The allowance for loan losses as a percentage of loans was reduced to 1.09%, supported by a significant decline in non-performing loans [25] Q&A Session Summary Question: Loan growth expectations in light of rising deposit costs - Management noted that while there may be a slight slowdown in demand due to rising rates, they expect to see opportunities from recent M&A activity [48][51] Question: Future loan sales in the SBA environment - Management indicated a preference to hold new SBA production loans for now, with potential for future sales depending on the rate environment [53][54] Question: Capital return strategies including stock repurchase - Management stated that they are considering various methods to return capital to shareholders, including stock buybacks and dividends, depending on market conditions [56][57] Question: Changes in deposit and funding strategies - Management clarified that the refocus on deposits is more about returning to a normal operational mindset rather than a complete revamp of strategies [60] Question: Performance of the new private equity fund banking group - Management expressed optimism about the new group, expecting it to contribute significantly to loan growth and deposit generation over time [63][64] Question: Loan fees turning negative - Management explained that the negative loan fees were due to accounting nuances related to early payoffs of SBA loans [66][67]

First Bank (NASDAQ:FRBA) Q2 2022 Earnings Conference Call July 27, 2022 9:00 AM ET CompanyParticipants Andrew Hibshman - Chief Financial Officer Patrick Ryan - President & Chief Executive Officer Peter Cahill - Chief Lending Officer Conference Call Participants Nick Cucharale - Piper Sandler Manuel Navas - D.A. Davidson David Bishop - Hovde Group Operator Hello, everyone and welcome to the First Bank Earnings Conference Call Second Quarter 2022. My name is Emily and I will be moderating today's event. [Oper ...

First Bank (NASDAQ:FRBA) Q1 2022 Earnings Conference Call April 26, 2022 9:00 AM ET Company Participants Patrick Ryan – President, Chief Executive Officer Andrew Hibshman – Chief Financial Officer Peter Cahill – Chief Lending Officer Conference Call Participants Nicholas Cucharale – Piper Sandler Manuel Navas – D.A. Davidson David Bishop – Hovde Group Erik Zwick – Boenning & Scattergood Operator Everyone, and welcome to First Bank First Quarter 2022 Earnings Call. If you would let the opportunity to ask a q ...

First Bank (NASDAQ:FRBA) Q4 2021 Earnings Conference Call January 27, 2022 9:00 AM ET Company Participants Patrick Ryan - President, Chief Executive Officer Andrew Hibshman - Chief Financial Officer Peter Cahill - Chief Lending Officer Conference Call Participants Nick Cucharale - Piper Sandler Bryce Rowe - The Hovde Group Erik Zwick - Boenning & Scattergood Manuel Navas – D.A. Davidson Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamp ...

Financial Data and Key Metrics Changes - In Q3 2021, the company reported net income of $9 million or $0.46 per diluted share, marking the second highest net income quarter in the bank's history and the highest for pre-provision net revenue at $12.3 million [17] - Return on assets exceeded 1.4% for the third consecutive quarter, and return on tangible common equity was over 15% [7] - Non-interest income averaged $1.8 million per quarter over the past five quarters, up 37% from the previous average of $1.3 million [8] Business Line Data and Key Metrics Changes - Net loan growth was muted in Q3, with a $13 million increase in loans excluding PPP loan forgiveness, compared to an increase of $86 million in non-PPP loans in Q2 [18] - Total deposits increased by $9.7 million during Q3, with a reduction in reliance on higher-cost time deposits [21] - Non-performing loans increased slightly but remained lower as a percentage of total loans compared to the previous year [28] Market Data and Key Metrics Changes - The company experienced a reduction in the utilization of working capital lines of credit, with a decline from 52% at the end of 2020 to 43% by September 30, 2021 [43] - The loan pipeline grew to $265 million by the end of Q3, a 33% increase from the previous quarter [45] Company Strategy and Development Direction - The company plans to leverage the acquisition of two branches from OceanFirst Bank to enhance deposit growth and customer acquisition [12] - The focus remains on managing excess liquidity while driving down the cost of deposits [13] - The company aims to maintain a strong commercial loan pipeline and expects loan growth in Q4 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of the commercial pipeline and prospects for loan growth in Q4, despite muted loan growth in Q3 [20] - The company anticipates strong net loan growth in Q4, supported by the acquisition of new branches and a robust lending pipeline [12][45] Other Important Information - The efficiency ratio improved to below 46% in Q3, down from 46.66% in Q2, reflecting controlled non-interest expense growth [32] - The company announced an increase in dividends and a renewal of its stock buyback plan, reinforcing its strong financial position [8][15] Q&A Session Summary Question: Plans for branch acquisition and impact on margin - Management indicated that the strong pipeline would likely lead to deploying excess liquidity into commercial loans, with some opportunities to reduce overall liquidity [55][56] Question: Stability of margin expectations - Management expects to maintain a stable margin, despite the roll-off of PPP fees, and is focused on bringing in low-cost deposits [57][58] Question: Structural changes in deposit trends - Management noted a balancing act in deposit pricing, with no significant shifts observed, and highlighted ongoing opportunities in commercial deposits [60][61] Question: Loan pipeline yields and competition - Loan yields have remained consistent, with healthy competition in the market, and the average yield for new loans was reported at approximately 3.95% [62][63] Question: Dividend increase rationale - The dividend increase was seen as a catch-up to pre-COVID levels and a reflection of improved profitability, with a focus on maintaining the ability to deliver on dividends [67][70] Question: Expense management outlook - Management aims to keep non-interest expense growth in the low single digits, despite recent hires and branch acquisitions [71][72] Question: SBA lending program growth expectations - The SBA lending program is expected to contribute significantly to non-interest income, with optimistic projections for growth in the coming year [77][78]

First Bank (NASDAQ:FRBA) Q2 2021 Earnings Conference Call July 27, 2021 9:00 AM ET Company Representatives Patrick Ryan - President, Chief Executive Officer Andrew Hibshman - Chief Financial Officer Peter Cahill - Chief Lending Officer Emilio Cooper - Chief Deposits Officer Conference Call Participants Bryce Rowe - The Hovde Group Erik Zwick - Boenning and Scattergood Nick Cucharale - Piper Sandler Operator Good day, and welcome to the First Bank Second Quarter 2021 Earnings Call. All participants will be i ...

Financial Data and Key Metrics Changes - For Q1 2021, the company reported a net income of $9.7 million or $0.49 per diluted share, compared to $3.2 million or $0.16 per diluted share in Q1 2020, indicating significant profitability growth [9] - The efficiency ratio improved to below 50% for Q1 2021, driven by a credit to the provision for loan losses, increased noninterest income, and controlled noninterest expense growth [9][10] - The tax equivalent net interest margin increased to 3.6% at the end of Q1 2021, a 53 basis point improvement over the last nine months [16] Business Line Data and Key Metrics Changes - Total loans in Q1 2021 decreased by $25 million or 1.2%, with a notable reduction in commercial loans due to prepayments [19] - Noninterest income rose to $2.3 million in Q1 2021, up from $1.2 million in Q1 2020, marking an increase of 89.5% [10] - Loan fees increased by $415,000, and gains on the sale of loans improved by $436,000 compared to the same quarter last year [11] Market Data and Key Metrics Changes - Noninterest-bearing deposits increased by $76 million or 18% from the end of 2020, while total deposits grew nearly $67 million from Q4 2020 [27] - The cost of deposits declined to 39 basis points for Q1 2021, down from 50 basis points in Q4 2020, representing a reduction of 99 basis points from Q1 2020 [31] - Noninterest-bearing deposits now represent 25.4% of total deposits, surpassing time deposits at 25.1% [29] Company Strategy and Development Direction - The company aims to grow low-cost core deposits, improve the deposit mix, and lower the cost of funds while delivering best-in-class service [26] - There is a focus on enhancing core profitability through initiatives to grow noninterest income and reduce costs [12][18] - The management is optimistic about the SBA lending business, anticipating increased demand for financing from small businesses in the coming years [49] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan pipeline, which grew from $142 million at the end of Q4 2020 to $209 million at the end of Q1 2021, indicating strong future loan growth potential [22] - The company expects to continue benefiting from lower credit costs and PPP fees, which could support earnings throughout 2021 [8][18] - Management noted that asset quality remains strong, with minimal delinquencies and a decline in deferred loans related to COVID-19 [24] Other Important Information - The company funded over $100 million in new PPP loans in 2021, contributing $1.6 million in PPP income for the quarter [7] - The allowance for loan losses as a percentage of nonperforming loans was reported at 214.74%, indicating a strong coverage ratio [10] Q&A Session Summary Question: Impact of branch consolidations on occupancy costs - Management indicated that the impact of branch consolidations and reduced corporate office space will lead to savings, with specific costs related to accelerated depreciation and lease terminations [36][37] Question: Loan demand and prepayment normalization - Management noted that prepayments have normalized, with projections indicating a more stable environment moving forward [38][39] Question: Future funding costs and margin trajectory - Management expects continued reductions in funding costs due to low short-term rates and excess liquidity in the market [41][42] Question: Consistency of SBA loan sales - Management expressed optimism about the SBA business, highlighting a strong pipeline and the efficiency of a dedicated team for processing [44][46] Question: Capital and stock buyback activity - Management confirmed an appetite for stock buybacks, especially at or below book value, although execution can be challenging due to regulatory constraints [50] Question: Average loan yields and securities portfolio direction - Management indicated that average loan yields vary by type, with a cautious approach to expanding the securities portfolio due to inflation concerns [72]

Financial Data and Key Metrics Changes - Net income for 2020 was $19.4 million or $0.97 per diluted share, compared to $13.4 million or $0.69 per diluted share for 2019, reflecting an increase of $6 million [20] - Net interest income for the year increased by almost 20%, driven by a significant reduction in deposit costs [8][24] - Non-interest income grew almost 60% in 2020 compared to 2019, with loan swap fee income and gains from the recovery of acquired loans contributing to this growth [9] - Total provisions for loan losses were $9.5 million, up about $5.5 million from the prior year, marking a 140% increase [10] Business Line Data and Key Metrics Changes - Total loans reached $2.05 billion in 2020, with $190 million in PPP loans funded [31] - Excluding PPP, loans grew by $187 million, representing over 10% growth for the year [32] - Net interest income for Q4 2020 was $19.7 million, an increase of 21.8% compared to Q4 2019 [24] - Non-interest expense for the year was up only 2.6%, indicating strong expense control [9] Market Data and Key Metrics Changes - Cost of deposits dropped to 0.50% by year-end, down from 1.39% in Q4 2019, marking a reduction of 89 basis points [24][44] - Non-interest bearing deposits increased to over 22% of total deposits, up from 16.8% at the start of the year [7][46] - Total deposits grew by 16% in 2020, with significant growth in non-interest bearing and money market balances [46] Company Strategy and Development Direction - The company shifted focus from aggressive customer acquisition to a more mature model emphasizing bottom-line results and expense control [5][6] - Plans for 2021 include continued strong net interest income growth and a modestly higher margin driven by lower interest expenses [30] - The company aims to maintain effective expense management with a projected quarterly run rate of about $10.5 million for non-interest expenses [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic rebound and expects EPS growth for 2021 to be 20% to 25% higher than 2019 [17] - The impact of COVID-19 remains a concern, but the downside risk is considered manageable compared to earlier stress test scenarios [14] - The company anticipates continued loan growth and a stable asset quality outlook as it navigates the ongoing pandemic [41] Other Important Information - The efficiency ratio improved to 52.54% for Q4 2020, compared to 57.28% for 2019, reflecting better expense management [29][30] - The company closed two branches in Hamilton, New Jersey, but does not expect material attrition due to these closures [48] Q&A Session Summary Question: Inquiry about expense levels and performance-related compensation - Management clarified that the increase in expenses in Q4 was due to a catch-up in accruals after earlier reductions in response to pandemic uncertainties [53] Question: Loan growth and diversification from commercial real estate - Management indicated that while there will be continued activity in commercial real estate, there is optimism for growth in C&I and owner-occupied loans, aided by relationships developed through PPP [55][56] Question: Expectations for swap fees and loan growth - Management expects a bounce back in swap fees, although it remains unpredictable due to the nature of large deals [58] Question: Liquidity position and timing of deployment - The company is managing excess liquidity levels between $60 million to $65 million and has been retiring more expensive funding sources [60] Question: Loan growth outlook and impact of PPP - The loan growth outlook of 5% to 7% is exclusive of PPP loans, focusing on core business growth [92]

First Bank (NASDAQ:FRBA) Q3 2020 Earnings Conference Call October 27, 2020 9:00 AM ET Company Participants Patrick L. Ryan - President & CEO Stephen Carman - EVP & CFO Peter Cahill - EVP & Chief Lending Officer Emilio Cooper - EVP & Chief Deposits Officer Conference Call Participants Nicholas Cucharale - Piper Sandler Christopher Keith - D.A. Davidson Erik Zwick - Boenning & Scattergood Operator Good morning and welcome to the First Bank Third Quarter 2020 Earnings Conference Call. All participants will be ...