Business & Finance
Business and Finance
Business and Finance
Tue, March 10, 2009
Mon, March 9, 2009
Fri, March 6, 2009 First Bank: First Bank Adds Capital -- Reports Significant Loan and Deposit Growth; 2008 Results of Operations
WILLIAMSTOWN, NJ--(Marketwire - March 6, 2009) - First Bank (
In the fourth quarter of 2008, a prominent central New Jersey investor group successfully completed a recapitalization of First Bank raising $19.2 million in net new capital. First Bank's capital base finished 2008 at $25.4 million compared to $7.6 million at the end of 2007. First Bank's book value was $7.45 per share at December 31, 2008. First Bank's enhanced capital base supported its growth in 2008 and will provide the foundation for its expansion plans for 2009 and beyond.
First Bank reported a net loss for 2008 of $1.5 million. The net loss was expected as First Bank made significant investments in the growth of its franchise. The Bank expects to open two new branches by the end of the first quarter, and move into its permanent facility in Williamstown by mid-year. In addition, the Bank significantly enhanced its management team following the recapitalization.
First Bank was a well capitalized bank at December 31, 2008 with a total risk-based capital ratio of 58.82%, well over the minimum of 10% to be considered well capitalized under regulatory definitions. Asset quality remained strong with nonperforming assets to total assets of only 0.14% at year end 2008.
With continued growth in the Williamstown market, First Bank will add a permanent branch facility there by mid-year. President and Chief Executive Officer James W. Loney discussed First Bank's 2009 expansion plans into the demographically attractive Central New Jersey market. "By the end of March we will have opened full service branches in Lawrence and Ewing, both in Mercer County," he stated. "The investor group that led our recapitalization has quality relationships in the Central New Jersey market through their involvement in strong banking franchises like Yardville National Bank and others. Those relationships will also help drive significant growth for First Bank going forward," he noted.
Executive Vice President and Chief Operating Officer Patrick L. Ryan noted First Bank's strategic emphasis on "A Return to Banking Basics." "Great companies, built for the long run, focus on one or two lines of business," he reflected. "We will accept deposits, help businesses manage cash flow and make loans to qualified community borrowers." He concluded, "As big banks get acquired or taken apart we expect community banks with focused business plans, like First Bank, will be the direct beneficiaries."
About First Bank
First Bank is a New Jersey, state chartered bank, which conducts its business with three full-service branches in Ewing, Lawrence, and Williamstown, New Jersey. First Bank offers a range of deposit and loan products to individuals and businesses in its Central and Southern New Jersey markets. First Bank's common stock is quoted on the OTC Bulletin Board 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 the company's control and could impede its ability to achieve these goals. These factors include general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, and results of regulatory exams, among other factors.
