First Bank earnings fall 29 percent
Good lawyers and bad loans are expensive.
First Bank Monday reported 2006 net income of $84.6 million, down from $114.6 million in earnings in 2005. The bank blames lower earnings on more charge offs for bad loans, higher expenses, including higher salaries for its employees, and legal costs.
First Bank, which is restating four years worth of earnings, agreed earlier this year to settle a shareholder lawsuit over its mortgage-related accounting errors for more than $74 million. It also agreed this year to a submit to oversight by U.S. banking regulators.
First Bank’s lower earnings aren’t from lack of business. The bank’s loans grew by a billion dollars last year, including $426 million in residential mortgages and $374 million in construction loans.
July 10th, 2007 16:19
What is this? Real news? I have come to expect fun, light hearted articles about the people, places, and characters of the island. Who cares about banks? I say get back to brew pubs, bars, beaches, and random people in the street!
July 10th, 2007 16:46
Good point. This is horrible.
We feel so awful about this that we’re packing up for Road Trip: July.
How about some Beach Breaks from some nearby islands?
July 10th, 2007 16:50
yes jeff………do nearby islands.
do Jost and talk with ivan
please…………..
July 10th, 2007 19:12
I like the turn this has taken. Bank schmank, let’s see some beach!
July 21st, 2007 15:02
I MISS STJOHN AND CORAL BAY !!!!! JE RIEVENS!!FRENCH FOR I WILL RETURN>>>