 Net Income of 7.4 Million for First Six Months of 2020 For the Second Quarter and First Half of 2020: Continued Strong Loan Origination, Solid Revenue Growth, Effective Management of Non-Interest ExpenseHAMILTON, N.J., July 27, 2020 GLOBE NEWSWIRE -- First Bank Nasdaq Global Market: FRBA today announced results for the three and six months ended June 30, 2020. Net income for the second quarter of 2020 was 4.1 million, or 0.21 per diluted share, compared to 2.8 million, or 0.15 per diluted share, for the second quarter of 2019. Return on average assets and return on average equity for the second quarter of 2020 were 0.74 and 7.33, respectively, and 0.64 and 5.64, respectively, for the second quarter of 2019. Net income for the first six months of 2020 was 7.4 million, or 0.36 per diluted share, compared to 7.1 million, or 0.38 per diluted share, for the same period in 2019.Second Quarter 2020 Performance Highlights: Total net revenue net interest income plus non-interest income of 18.2 million for the quarter increased 3.1 million, or 20.7, from 15.1 million, compared to the prior year quarter. Total loans of 1.96 billion at June 30, 2020 increased 406.5 million, including 190.5 million in Paycheck Protection Program PPP loans, or 26.2, from June 30, 2019, and increased 231.4 million, or 13.4, from December 31, 2019. Total deposits of 1.92 billion at June 30, 2020 increased 479.8 million, or 33.2, from June 30, 2019 and 282.4 million, or 17.2, compared to December 31, 2019. Despite the ongoing challenges presented by the COVID-19 pandemic, asset quality metrics remained solid during the quarter, with net charge-offs of 1.0 million, or an annualized 0.21 of average loans, for second quarter 2020, compared to net charge-offs of 481,000 for second quarter 2019. Nonperforming loans at June 30, 2020 were 14.1 million, 14.6 million on June 30, 2019, and 13.8 million on March 31, 2020. The ratio of nonperforming loans to total loans was 0.72 at June 30, 2020 compared to 0.94 at June 30, 2019, and 0.79 at March 31, 2020. Successful subordinated note issuance with net proceeds of 29.5 million. Completion of approved share repurchase program with a total of 1.0 million shares repurchased during the first six months of 2020. Continued effective non-interest expense management was reflected in the second quarter 2020 efficiency ratioi of 53.64 compared to 59.76 for second quarter 2019, and 58.03 for the linked first quarter of 2020.Our intense focus on customer service was reflected in our second quarter results highlighted by strong loan origination, double-digit net revenue growth, a continuation of solid asset quality metrics, and effective non-interest expense management, said Patrick L. Ryan, President and Chief Executive Officer. This solid team effort was realized despite considerable logistical hurdles and the economic challenges related to the COVID-19 pandemic. These pandemic headwinds have in no way subsided, however our team continues to perform above and beyond to make certain that the Banks customers receive the support necessary to weather the current storm.While our second quarter loan growth, prior to deferred loan fees and costs, of more than 202 million was driven primarily by PPP lending, it also included approximately 12 million in non-PPP loan growth. An additional benefit of our significant participation in the PPP lending program has been the strong increase in deposits. Participation in the PPP lending program, and our other efforts to drive commercial deposit growth, led to strong growth in both the first and second quarters of 2020. The increase in non-interest bearing deposits in the first half of 2020 was particularly significant, growing by more than 183 million during that period. In addition to the deposits that were linked to the PPP program, we also realized solid core deposit growth related to new and existing commercial banking relationships. We are also excited about developing additional relationships with the approximately 150 new customers introduced to us through the PPP program.We took appropriate steps during the first half of 2020 to ensure that First Bank had adequate liquidity to meet the potential needs of our customers. Our liquidity position remains strong reflecting a funding base of core non-interest bearing demand deposit accounts and low-cost interest-bearing savings, interest checking and money market deposit accounts. The significant increase in non-interest bearing deposits has allowed us to lower time deposit and core deposit rates in a much lower rate environment. We expect to continue to move deposit costs lower which will help stabilize or improve our margin.Our provision for loan losses for the first and second quarters were notably higher compared to prior quarters primarily due to continued uncertainty about the duration of, and the level of economic disruption from the COVID-19 pandemic. We are closely monitoring loan deferrals and the impact to our borrowers due to the pandemic. While its impossible to predict how ultimately our loan portfolio will perform in this difficult environment, we believe our strong credit underwriting standards will put us in a good position to manage the potential negative impact. We are also seeing some positive trends as over 40 of deferred loans have reached their deferred payment due date and more than three-quarters of these loans have made their regular payment.Our earnings performance has benefited from PPP loan generated fees and loan swap fees. In addition, weve done a good job of lowering deposit costs helping to stabilize our margin. At the same time non-interest expense has been managed effectively, reflected in a lower efficiency ratio. We are well capitalized, have strong liquidity and the capital structure flexibility to adapt to these unprecedented times.Income StatementFirst Banks net interest income for the second quarter of 2020 was 16.3 million, an increase of 2.2 million, or 15.3, compared to 14.2 million in the second quarter of 2019. This increase was driven by a 1.5 million, or 7.3, increase in interest and dividend income, along with a 665,000 decrease in total interest expense.The increase in interest income was primarily a result of a 377.0 million increase in average loans compared with the second quarter of 2019. The reduction in interest expense was a result of a 48-basis point reduction for the average rates paid on interest bearing liabilities. Six-month 2020 net interest income totaled 32.2 million, an increase of 4.0 million or 14.2, compared to 28.2 million for 2019. The increase in the 2020 year to date net interest income was also driven by strong growth in average loans, which increased by 321.3 million, or 21.4, from the prior year period.The second quarter 2020 tax equivalent net interest margin was 3.07, a decrease of 30 basis points compared to the prior year quarter and a decrease of 23 basis points compared to the linked first quarter of 2020. The decrease compared to second quarter 2019 was primarily the result of a 74-basis point reduction in the average rate for interest-earning assets. The 74 basis point reduction was primarily the result of the 75 basis point decrease in the targeted federal funds rate during the second half of 2019 and the 150 basis point reduction in March of 2020. The decrease was also impacted by the yield on PPP loans which reduced the average rate on interest earning assets by approximately 7 basis points during the quarter ended June 30, 2020. The lower interest rates for interest-earning assets was partially offset by a 48-basis point reduction in the average cost of interest-bearing deposits, reflecting the repricing of time deposits lower, as well as lower interest rates for money markets and interest bearing demand deposits. The tax equivalent net interest margin for the six months ended June 30, 2020 was 3.18, a decrease of 23 basis points compared to the same period in 2019. The decrease in the six-month net interest margin was also a result of lower average interest rates for interest-earning assets, which declined by 51 basis points. The reduction in the rate for interest-earning assets was partially mitigated by a 30-basis point reduction in the cost of total interest-bearing liabilities, primarily interest bearing deposits.The provision for loan losses for the second quarter of 2020 was 3.0 million, an increase of 1.3 million compared to 1.7 million in the second quarter of 2019. The increase in the provision compared to second quarter 2019, is primarily attributable to uncertainty in relation to potential credit losses due to the ongoing COVID-19 pandemic. The provision for loan losses for the first six months of 2020 totaled 5.9 million compared to 2.1 million for the same period in 2019. The increase in the six-month provision for loan losses was primarily a result of the same factors as discussed for the three-month period.Second quarter 2020 non-interest income increased by 956,000 to 1.9 million, compared to 924,000 in second quarter 2019, primarily the result of a 500,000 increase in loan fees, primarily loan swap fees, and a 318,000 increase in income from bank owned life insurance compared to the second quarter of 2019. Non-interest income totaled 3.1 million for the six months ended June 30, 2020 compared to 1.6 million for the same period in 2019. This increase in non-interest income for the first six months of 2020, was primarily a result of the same sources of revenue described for the three-month period.Non-interest expense for second quarter 2020 totaled 9.8 million, an increase of 640,000, compared to 9.1 million for the prior year quarter. 