First Home Bancorp, Inc. Reports Record Earnings for First Quarter 2021

ST. PETERSBURG, Fla.–(BUSINESS WIRE)–First Home Bancorp, Inc. (OTCQX: FHBI) (“FHBI” or the “Company”), parent company of First Home Bank (“First Home” or the “Bank”) reported record earnings for the first quarter of 2021, driven by mortgage banking income, as well as loan origination fees and net interest income associated with the Paycheck Protection Program (“PPP”). The Company reported net income for the first quarter of 2021 of $7.51 million, or $3.07 per basic common share and $2.76 per diluted common share, compared to net income of $5.61 million, or $2.29 per basic common share and $2.03 per diluted common share, in the fourth quarter 2020, and a net loss of $501 thousand, or $(0.30) per basic and diluted common share in the first quarter of 2020. The first quarter’s earnings increased tangible book value to $26.89 per common share.

FHBI Chief Executive Officer Anthony N. Leo stated, “The record quarter earnings in the first quarter of 2021 continued the success from First Home Bancorp, Inc.’s remarkable year of 2020. Record production in residential mortgage lending together with the Bank’s participation in the PPP program drove the extraordinary profitability in the quarter. At the same time, we continued to expand our community banking franchise, with core deposits increasing 27% in the past year, while our conventional loan portfolio grew by 34% in that period.”

Mr. Leo continued, “Once again, the Company provided critical rescue funding to struggling businesses, originating $287 million in PPP loans in the quarter, with over $1.2 billion in PPP loans originated over the course of the program. Now, our CreditBench Division is reaching out to businesses in Tampa Bay and across the nation to provide fresh growth capital under the SBA recovery program, which carries a 90% guarantee on SBA 7(a) loans originated through September 30, 2021 or until appropriations are depleted.”

Mr. Leo further noted, “The success of our residential and SBA lending services have allowed us to take advantage of market opportunities, while making significant investments in technology and infrastructure to position the Company for future growth in an evolving environment.”

First Quarter 2021 Highlights

• The Company reported return on average common equity of 49.56% for the first quarter 2021, an increase over the prior quarter’s return on average common equity of 39.97%.
• Despite significant levels of PPP loans in the first quarter of 2021 and throughout much of 2020 which inflated average assets, return on average assets for the first quarter of 2021 equaled 1.84%, an increase over fourth quarter of 2020 return on average assets of 1.48%.
• The Bank’s Residential Mortgage Division produced a record volume of loan originations, with production of $716 million during the first quarter of 2021 compared to $641 million of production during the fourth quarter of 2020 and $272 million during the first quarter of 2020.
• The Bank originated $287 million of PPP loans during the first quarter of 2021 to businesses in need and as a result, net loan origination fee income increased to $6.01 million in the first quarter of 2021 compared to $5.24 million recognized in the fourth quarter of 2020.
• In consideration of strong revenue from other sources, the Company’s record earnings were achieved while recognizing no gain on sale of SBA guaranteed 7(a) loans during the quarter, advancing the Company’s strategy of increasing recurring revenue through holding government guaranteed loans.

Results of Operations

Net Income

Net income was $7.51 million for the first quarter of 2021 compared to net income of $5.61 million in the fourth quarter 2020, and a net loss of $501 thousand in the first quarter of 2020. The modest loss in the first quarter of 2020 was due to several factors including a downturn in the value of the residential mortgage pipeline in reaction to market movements…