JACKSONVILLE, Fla., Jan. 20, 2017 /PRNewswire/ -- FirstAtlantic Financial Holdings, Inc. (OTCQX: FFHD), today reported net income for year-end 2016 totaling $3.7 million or $.62 per common share, an increase of $100,000 or 3% from the previous year.
The growth in net income was a result of an $815,000 increase in interest income for the year. Key contributors to the increase in interest income were growth in loan interest of $478,000 and investment income of $298,000. Other factors impacting income were a reduction in loan loss provision expense due to improved asset quality and a non-reoccurring gain on sale of securities.
The company's loan portfolio grew by $10.2 million during the year to $310 million, an increase of 3.4%. Non-interest bearing deposits, which consist primarily of business checking accounts increased by $12.9 million, or 14.4%, to $102 million at December 31, 2016, and now comprise 29% of total deposits, up from 25.3% of total deposits at the same time in 2015. Total deposits were down by $1.1 million to $352 million. The improved mix of deposits contributed to a reduction in cost of funds from .44% in 2015 to .39% in 2016.
The asset quality measures for FirstAtlantic Bank continue to improve. As of December 31, 2016, the ratio of non-performing assets to total assets has declined to .20% from .63% the previous year. Total non-performing assets declined by $1.75 million to $887,000 in 2016. Net loan charge-offs were $90,000, a very low rate of only .03% of average loans, and a significant improvement from an already low net loan charge off of $278,000 in 2015.
Total shareholder's equity grew by $2.5 million, a 4.3% increase in 2016. Tangible shareholder's equity increased by 5.1% in 2016 to $57.7 million. Other key accomplishments in 2016 included:
- The board of directors increased the frequency of the dividend paid to shareholders to quarterly from annually. The quarterly dividend was $.03 per share, which on an annual basis, represents a 20% increase from the previous $.10 annual dividend.
- The FirstAtlantic stock price continued to grow, ending the year at $11.20. This represents a 31.76% increase in price since the stock began trading on the OTC Markets in March 2015, and an 11.22% increase in 2016.
"The value of our company has been positively impacted by the results achieved in 2016," stated FirstAtlantic Bank President & CEO Mitchell W. Hunt, Jr. "We look forward to continued success in 2017 and serving the needs of our community in northeast Florida."
The 2016 year-end financial statements, shareholder letters, and other communications are available through www.otcmarkets.com under the symbol FFHD.
About FirstAtlantic Financial Holdings, Inc.:
FirstAtlantic Financial Holdings, Inc. (OTCQX: FFHD) is the holding company for FirstAtlantic Bank, which is a full service community bank, headquartered in Jacksonville, Florida. FirstAtlantic Bank has approximately $436 million in assets and eight financial centers located in Jacksonville, Orange Park, St. Augustine and Ponte Vedra Beach. FirstAtlantic Bank (www.bankfirstatlantic.com) is dedicated to serving businesses, professionals, and consumers while offering a full array of banking services. FirstAtlantic Financial Holdings, Inc. has received a 3-Star Rating from Morningstar (available at otcmarkets.com under the symbol FFHD). FirstAtlantic Bank has earned the coveted 5-Star Superior Rating from BauerFinancial, Inc., the Nation's premier bank rating firm.
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SOURCE FirstAtlantic Financial Holdings, Inc.