First Bank provides update on COVID-19 related financial hardship payment deferrals
HAMILTON, N.J., Sept. 15, 2020 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) today announced updated information on their COVID-19 related financial hardship payment deferrals
“We continue to monitor and analyze our COVID-19 deferrals based on asset class and borrower type,” said Patrick L. Ryan, President and Chief Executive Officer. Through August 31, 2020, the Bank has granted COVID-19 deferrals, primarily for 90 days, for a total of 613 loans representing approximately $433.7 million of existing loan balances. This excludes loans that requested deferrals but were subsequently paid off. As of August 31, 2020, 590 loans totaling $420.5 million of these deferred loans have already come due for their first payment since their 90 day deferral was put in place. Out of the 590 loans, 530 loans or $361.7 million have made a payment in full and the Bank anticipates regular payments will continue on these loans. The Bank is working with the remainder of these customers and expect the majority will also get back on track with normal payments or will take an additional 90 day deferral. Results are positive with 86.03% of COVID-19 deferrals that came due by August 31, 2020 now making payments.
Mr. Ryan added, “we have focused on proactively working with our borrowers in the industries hardest hit by the COVID-19 pandemic.” The Bank’s hospitality and restaurant loan portfolio totaled $160.9 million at June 30, 2020 or 8.23% of total loans. Hospitality loans totaling $59.0 million have received a COVID-19 related deferral out of a total of $74.9 million total loans, or 79%. Of these COVID-19 deferred loans, as of August 31, 2020, loans totaling $58.2 million have already come due for their first payment since their 90 day deferral was put in place. Of the $58.2 million in loans, $40.9 million have made a payment and the Bank anticipates regular payments will continue on these loans. The Bank is in discussions with the remainder of these early deferrals about either additional deferral time, return to partial payment, or return to full repayment. The total remaining deferred portfolio in the hospitality industry is $18.1 million.