First Bank (NASDAQ:FRBA) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 09:00 am ET

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First Bank (NASDAQ:FRBA) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the First Bank Second Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, this event is being recorded.

I would now like to turn the conference over to the President and CEO, Mr. Patrick Ryan. Please go ahead, sir.

Executive
Patrick L. Ryan

Good morning. Thank you and welcome to our second quarter 2020 earnings conference call. I'm joined today by Steve Carman, our Chief Financial Officer; Peter Cahill, our Chief Lending Officer; and Emilio Cooper, our Chief Deposits Officer. Before we begin, however, Steve will read the Safe Harbor statement.

Executive
Stephen Carman

The following discussion may contain forward-looking statements concerning the financial condition, results of operations and business of the First Bank. We caution that such statements are subject to a number of uncertainties and actual results could differ materially and therefore, you should not place undue reliance on any forward-looking statements we make. We may not update any forward-looking statements we make today for future events or developments. Information about risks and uncertainties are described under item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the FDIC.

Pat, back to you.

Executive
Patrick L. Ryan

Thank you, Steve. I'd like to start my remarks this morning with a summary of the PPP program as I am sure many of you've heard from other banks that have already released earning the impact of the PPP program on our customers, on our staff and on our communities can't be understated. Certainly from our standpoint and our perspective it was a tremendous team performance with people from all parts of the bank getting retrained, shipping in, helping out, working overtime and I would certainly say it was a great success from our perspective.

Three primary benefits from the program number one, we're seeing a lot of customer goodwill, at the end of the day most everybody pretty much everybody that wanted a PPP loan was able to get one, but for quite some time there was a lot of fear and anxiety out in the market and the fact that we were able to get people submitted and approved quickly and also help a lot of folks who were knocking out by their primary bank at the time, that certainly created a lot of goodwill and also created a lot of great new loan and deposit opportunities with new commercial prospects. And the third benefit obviously the additional interest and fee income that we will be receiving over the life of these loans.

Stepping back from PPP for a second in the quarter, it was a good quarter in terms of our ancillary fee income sources. The prepayment penalty income was $184,000 in the quarter, which is a little bit below our quarterly average from last year of $214,000. Loan swap fee income was up significantly in the quarter at $553,000 compared to the quarterly average from last year of