COOP deal boosted First Bank's 2009 net income

First Bank reported a net income of $4.3 million in the fourth quarter of 2009, compared to $5.0 million reported in the fourth quarter of 2008. Total net income for 2009 was $56.3 million compared to $22 million in 2008.

The increase in net income was attributed to the $67.9 million acquisition of Cooperative Bank in Wilmington. After taxes and assets, this gain was realized to be $41.1 million.

“In light of the current economic environment, I am pleased with the solid results we are reporting today.  We continue to remain a profitable and sound institution that is well-positioned for the future.  During the second half of 2009, we successfully integrated the Cooperative acquisition, and I would like to thank all of our employees for their hard work in continuing to take care of their customers during the transition,” said First Bank President and CEO Jerry Ocheltree in a statement.

First Bank also reported a significant increase in FDIC insurance expenditures. The bank spent $5.5 million in 2009 compared to $1.2 million in 2008 for the FDIC insurance.

First Bank received a $123 million discount on the assets acquired from Cooperative Bank which resulted in a gain of $53.8 million.

During the third and fourth quarters of 2009, First Bank had the assets and loans of Cooperative Bank appraised. According to a press release from First Bank, the appraised values were higher than the original estimates made when Cooperative was acquired.  Therefore, First Bank changed the gains in the second quarter to reflect the actual gains. The originally stated second quarter of 2009 gain of $53.8 million has been increased to $67.9 million, retroactively. The bank also said that the gains could be adjusted again as more fair values become available during the next year.

Total assets of First Bank at Dec. 31, 2009, including the impact of Cooperative, amounted to $3.5 billion, 28.9 percent higher than a year earlier.  Total loans at Dec. 31, 2009 amounted to $2.7 billion, a 20.0 percent increase from a year earlier, and total deposits amounted to $2.9 billion at Dec. 31, 2009, a 41.4 percent increase from a year earlier.

Outside of the acquisition of Cooperative Bank however, First Bank saw a “general decline in loans” but an increase in deposits. Loans decreased by 4 percent in 2009, but experienced deposit growth of about 7 percent.