First Bank reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, total interest and dividend income was $15.6 million against $10.2 million last year. Net interest income was $12.3 million against $7.8 million last year. This growth was driven by a $5.4 million, or 53.0%, increase in interest and dividend income that was primarily a result of a $358.0 million increase in average loan balances compared with the fourth quarter 2016, a result of both organic and acquired growth. Included in this growth was $175.8 million in gross principal loans, as of September 15, 2017, from acquisition of Bucks County Bank. The increase in net interest income was partially offset by increased interest expense of $962,000 for the comparative quarter, which reflected average balance increases for both interest bearing deposits and borrowings, primarily as a result of $155.1 million of deposits, as of September 15, 2017, from Bucks County Bank. Net interest income after provision for loan losses was $11.5 million against $6.8 million last year. Income before income taxes was $4.9 million against $2.7 million last year. Net income was $0.583 million or $0.03 per basic and diluted share against $1.8 million or $0.16 per basic and diluted share last year. Tangible book value per share at December 31, 2017 was $8.70 against $7.76 at December 31, 2016. Book value per share at December 31, 2017 was $9.36 against $7.78 at December 31, 2016. Return on average assets was 0.16% against 0.70% last year. Return on average equity was 1.40% against 8.10% last year. Adjusted return on average assets was 0.89% against 0.63% a year ago. Adjusted return on average equity was 7.84% against 7.28% a year ago. Adjusted diluted earnings per share was $0.18 against $0.14 a year ago.

For the year, total interest and dividend income was $51.2 million against $38.3 million last year. Net interest income was $39.7 million against $28.9 million last year. The increase in net interest income was also driven by significant growth in average loans, both organic and acquired, which increased by $228.9 million from 2016.
Income before income taxes was $14.4 million against $9.5 million last year. Net income was $6.993 million or $0.48 per diluted share against $6.4 million or $0.61 per diluted share last year. The increase in net income for the full year was also driven by 21.3% net interest income growth coupled with managed expense growth of only 3.4%. The increase in 2016 net interest income was also driven by the same strong growth in average loans which increased by $207.8 million from the prior year period.
Full year 2017 results were affected by the change in corporate income tax rates and the resulting revaluation of deferred tax assets as well as certain merger-related items. Full year 2016 results were also affected by certain merger-related items.

Net charge-offs for the fourth quarter were $287,000, compared to $424,000 for fourth quarter 2016 and $348,000 for third quarter 2017.