JACKSONVILLE, Fla., April 20, 2016 /PRNewswire/ -- FirstAtlantic Financial Holdings, Inc. (OTCQX: FFHD), today reported net income of $738,000 or $.12 per common share for the first quarter of 2016 compared to net income of $.17 per share in the previous year's first quarter. The decline in year over year net income is attributable primarily to a non-recurring gain on loan sale occurring in the previous year. Excluding non-recurring items and loan loss provision expense, core earnings increased by 12% over the first quarter of 2015. Core earnings growth was fueled by a $305,000 increase in net interest income as a result of $32 million in asset growth.
The company's loan portfolio grew by 7.5% to $304 million compared to the first quarter of 2015. Improvements in asset quality measures continued with non-performing assets ending the quarter at .49% of total assets compared to 1.20% a year earlier.
FirstAtlantic's cost of funds remained stable at .39% during the quarter, the first full quarter after the Federal Reserve increased short term rates. Compared to a year ago, cost of funds has declined by .10% from .49%. The improvement in funding costs is attributable to the improved mix of deposits as non-interest bearing deposit accounts, primarily business checking accounts, experienced growth of $4.2 million during the quarter, an annualized growth rate of 18%, and now represent 27% of total deposits.
Total shareholders' equity increased by $1.7 million during the quarter to $59.5 million, an annualized growth rate of 12%, while tangible common equity increased by $1.8 million to $56.7 million, a 13% annualized increase. As of March 31, 2016, book value and tangible book value per share were $9.92 and $9.46, respectively.
Earlier this month, FirstAtlantic paid a quarterly cash dividend of $.03 per share. The dividend represents an annualized amount of $.12 per share, a 20% increase over the $.10 annual dividend paid April 28, 2015.
"We are very pleased to share our first quarter results as we continue to build shareholder value," stated FirstAtlantic Bank President & CEO Mitchell W. Hunt, Jr. "Our first quarter successes are a direct result of the hard work and dedication of the team members at FirstAtlantic Bank."
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 $425 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 Bank has earned the coveted 5-Star Superior Rating from BauerFinancial, Inc., the Nation's premier bank rating firm.
SOURCE FirstAtlantic Financial Holdings, Inc.