The Company recognized earnings of $947,000 in the first half of fiscal 2016, a 36.8% improvement from the same period last fiscal year. Lower cost of funds and improved performance of the investment portfolio were primarily responsible for the 7.3% increase in net interest income. In addition, the modest provision for loan losses reflects the continually improving credit quality of the loan portfolio. Noninterest income improved 7.0% between the comparative six-month periods as the gradual recovery of the housing market has led to greater mortgage loan sales. At the same time, noninterest expenses have been contained, increasing less than one percent.
At approximately 8.7%, First Federal’s tier one capital ratio was well in excess of the five percent regulatory standard for "well-capitalized" financial institutions. The bank’s other capital measurements also continue to comfortably exceed "well-capitalized" standards. In addition, First Bancorp has paid a dividend of 15.5 cents per outstanding share for 31 consecutive quarters.
Certain information in this press release may constitute forward-looking information that involves risks and uncertainties that could cause actual results to differ materially from those estimated. Persons are cautioned that such forward-looking statements are not guarantees of future performance and are subject to various factors that could cause actual results to differ materially from those estimated.
