Although net loans over the past 12 months contracted $4.3 million, or 1.8%, net interest income for the quarter ended September 30, 2016, increased 1.2% from the same quarter a year ago thanks to greater investment revenues and lower funding costs. Noninterest income declined 4.0% between the comparative quarters due to reduced service charges on deposit accounts. Costs associated with the transition to an outsourced IT management solution and greater compensation expenses were largely responsible for the 5.5% increase in noninterest expenses.
At approximately 9.0%, First Federal's tier one leverage ratio was well in excess of the five percent regulatory standard for "well-capitalized" financial institutions. The bank's other capital measurements also continue to comfortably exceed "well-capitalized" standards. In addition, First Bancorp has paid a dividend of 15.5 cents per outstanding share for 34 consecutive quarters.
Certain information in this press release may constitute forward-looking information that involves risks and uncertainties that could cause actual results to differ materially from those estimated. Persons are cautioned that such forward-looking statements are not guarantees of future performance and are subject to various factors that could cause actual results to differ materially from those estimated. Undue reliance should not be placed on such forward-looking statements.
Contact
Michael H Head, President & CEO
***@fbei.net
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