First Bank & Trust is pleased to announce that the bank’s net income for the first half of 2014 is up 20 percent compared to the same period last year. Income for the first half of 2014 was $2.2 million compared to $1.87 million in the same period in 2013.
Robert Yohanan, CEO of First Bank & Trust’s holding company, said the increase was due in part to higher interest income and stronger loan demands. The bank is also poised to benefit if interest rates go higher because it has a high level of short-term loans that have floating interest rates. Earnings from loans increased from $11.8 million for the first half of 2013 to $12.9 million in the first half of 2014.
Yohanan said the second reason for the increase is a higher percentage of demand deposits, which are deposits that can be withdrawn by the account holder at any time, and which the bank doesn’t pay interest on. Demand deposits now make up 38 percent of all deposits, up from 36 percent last year, which Yohanan said was a higher percentage than most banks in the country have achieved.
Total deposits increased from $743 million on June 30, 2013, to $795 million on June 30 of 2014. Meanwhile, total assets grew from $820 million to $892 million.
The earnings gain means that the book value of the Holding Company shares have increased in value to $45.20 per share, up from $41.10 per share a year ago.