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First Bank Announces Third Quarter of 2023 Net Loss of $1.3 Million driven by one-time costs associated with Malvern Bancorp acquisition
Quarterly results reflect the successful completion of Malvern Bancorp merger, total assets exceed $3.5 billion, improved geographic diversification and
About this update from First Bank
[{"type":"text","content":"Quarterly results reflect the successful completion of Malvern Bancorp merger, total assets exceed $3.5 billion, improved geographic diversification and projected earnings profile\nHAMILTON, N.J., Oct. 25, 2023 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) (the Bank) today announced its third quarter 2023 financial results with a net loss of $1.3 million, or a loss of $0.05 per diluted share, and losses on average assets, equity, and tangible equityi of 0.14%, 1.43%, and 1.66%, respectively. Excluding merger-related expenses and other one-time expenses, First Bank’s third quarter 2023 adjusted diluted earnings per shareii were $0.42, adjusted return on average assetsii was 1.13% and adjusted return on average tangible equityii was 13.23%. Compared to the same period of last year, the Bank's adjusted net income and adjusted returns on assets, equity, and tangible equity were lower, reflecting broader industry headwinds, primarily due to increased funding costs. However, the Malvern Bank acquisition will provide opportunities for stronger earnings and profitability metrics going forward. Third Quarter 2023 Performance Highlights: Completion of the Malvern Bancorp (Malvern) acquisition on July 17, 2023. At the acquisition date, Malvern contributed approximately $953.8 million in total assets, $727.7 million in loans and $671.9 million in deposits, after acquisition accounting adjustments.Total loans were $3.02 billion at September 30, 2023, marking a 24.0% increase from the end of the linked quarter at June 30, 2023.Total deposits ended the quarter at $2.97 billion at September 30, 2023, a 23.6% increase from the end of the linked quarter at June 30, 2023.Improvement in net interest margin and adjusted profitability metrics, primarily due to the benefits of the Malvern acquisition.Sales of certain loans and investments acquired from Malvern during the current quarter with net proceeds of approximately $165.5 million allowed for the reduction of $130.0 million in higher cost FHLB advances. Patrick L. Ryan, President and CEO of First Bank, reflected on the quarterly results, stating, “We are excited about the successful closing of the Malvern acquisition. The transaction has expanded our presence in Southeastern Pennsylvania, creating critical mass in one of the most attractive markets in the Northeast. The acquisition ...