First National Corporation, the parent company of First Bank, reported net income of $726,000, or $0.08 per basic and diluted share for the quarter ended September 30, 2015 compared to $1.2 million, or $0.19 per basic and diluted share for the same period of 2014.
The current year results were impacted by higher noninterest expenses from the bank’s recent expansion.
Operating Highlights
- Total assets increased $169.5 million from one year ago to $688.9 million
- Net loan growth of $15.2 million for the quarter and $35.9 million over the last twelve months
- Deposits increased $175.0 million to $613.9 million while the cost to fund earning assets decreased to 0.21%
- Net interest income increased $675 thousand or 14%
- Noninterest income increased $590 thousand or 36%
- Substandard loans cut almost in half as balances decreased by $9.6 million or 48%
- Began an efficiency initiative to streamline processes, improve customer service and reduce expenses
“We are pleased with the progress made during the quarter as we successfully deployed deposits assumed in the recent branch acquisition,” said Scott C. Harvard, President and CEO of the company.
Harvard continued, “Our team was able to deploy recently acquired deposits into loans and securities during the quarter, making a positive impact on margin and net interest income. The new south region lending team under the leadership of Butch Smiley was a strong contributor to our success for the period. Moving forward, we will work to build on this loan momentum while focusing on streamlining processes and improving efficiency across the company.”
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