FirstBank profit growth picks up speed

Net interest margin hits 4%, credit quality still improving

FirstBank posted a second-quarter profit of $8.6 million, a jump of 41 percent from the number of the spring of 2013 and up almost 10 percent from the first quarter.

The third-largest bank headquartered in Tennessee and Middle Tennessee's No. 15 in terms of deposit market share finished the quarter with operating revenues of $24.3 million, up 14 percent from the year before. The bank's loan book was $1.46 billion, up slightly from Q1 and an increase of 10 percent from mid-2013. Net interest margin ended the quarter at 4.00 percent, up from 3.87 percent at the end of March and 3.76 percent a year earlier.

“FirstBank continues to show strength and growth in our key indicators,” said President and CEO Chris Holmes. “Our net income is substantially ahead of last year, and this translates directly into the range of financial products and services that we can provide to our growing customer base.”

Credit quality also improved nicely during the quarter, with nonperforming assets as a percent of total loans coming in at 2.11 percent versus 2.5 percent in March and 3.23 percent in June 2013. Also contributing to fee income were mortgages, with origination income climbing to $7.2 million from $6.4 million last year.

Click here for the bank's release.