First Bank provides update on COVID-19 related financial hardship payment deferrals - Seite 2

Restaurant loans totaling $41.6 million have received a COVID-19 related deferral out of a total of $86.0 million total loans or 48.4%. Of these COVID-19 deferred loans, as of August 31, 2020, loans totaling $41.4 million have already come due for their first payment since their 90 day deferral was put in place.  Of the $41.4 million, $36.8 million have made a payment and the Bank anticipates regular payments will continue on these loans. The total remaining deferred portfolio in the restaurant industry is $4.8 million.

The total remaining deferred portfolio for these two industries is $22.9 million or 1.17 % of the total loans as of June 30, 2020.

Retail loans totaling $118.9 million have received a COVID-19 related deferral. Of these deferred loans, as of August 31, 2020, loans totaling $116.1 million have already come due for their first payment since their 90 day deferral was put in place. Of the $116.1 million, $104.9 million resumed payments. The total remaining deferred portfolio in the retail industry is $14.0 million or 0.71% of the total loans as of June 30, 2020.

Requests for deferrals have significantly decreased.  As of the August 31, 2020 date, the portfolio of deferred loans was $72.0 million or 3.67% of the total loans as of June 30, 2020, a reduction of $362.2 million, or 83%, compared to the peak deferral portfolio of $434.2 million. The remaining deferred loan portfolio consists mainly of retail loans (19.4%), hospitality loans (25.1%), restaurant loans (6.7%), industrial & warehouse loans (8.6%), consumer real estate secured loans (6.8%) and arts, entertainment and recreation loans (13.6%).

Consistent with industry regulatory guidance, borrowers that were otherwise current on loan payments that were granted COVID-19 related financial hardship payment deferrals will continue to be reported as current loans throughout the agreed upon deferral period, will continue to accrue interest and will not be required to be accounted for as a troubled debt restructuring. This will also apply to borrowers that request a second 90 day deferral request.

Mr. Ryan concluded, “while we are very pleased with these positive trends, future results will be dependent on the pandemic and its impact on the local business conditions in New Jersey and Pennsylvania.”

See additional details of the Bank’s COVID-19 deferrals in the attached presentation. 

About First Bank

First Bank is a New Jersey state-chartered bank with 18 full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington, Hamilton, Hamilton Square, Lawrence, Mercerville, Pennington, Randolph, Somerset and Williamstown, New Jersey; and Doylestown, Trevose, Warminster and West Chester, Pennsylvania. With $2.3 billion in assets as of June 30, 2020, First Bank offers a full range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia corridor. First Bank's common stock is listed on the Nasdaq Global Market under the symbol “FRBA”.