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 ...

First Bank (NASDAQ:FRBA) Q1 2021 Earnings Conference Call April 27, 2021 9:00 AM ET Company Participants Patrick Ryan - President, CEO & Director Stephen Carman - EVP, Treasurer & CFO Peter Cahill - EVP & Chief Lending Officer Emilio Cooper - EVP & Chief Deposit Officer Conference Call Participants Nick Cucharale - Piper Sandler & Co. Bryce Rowe - Hovde Group Erik Zwick - Boenning and Scattergood Christopher Keith - D.A. Davidson & Co. Operator Good day, and welcome to the First Bank First Quarter 2021 Earn ...

First Bank (NASDAQ:FRBA) Q4 2020 Earnings Conference Call January 28, 2021 9:00 AM ET Company Participants Patrick 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 Bryce Rowe - Hovde Group Erik Zwick - Boenning & Scattergood Operator Good day and welcome to the First Bank FRBA Fourth Quarter 2020 Earnings Conference Call. A ...

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 ...