FORT MYERS, FL / ACCESSWIRE / April 18, 2022 / FineMark Holdings, Inc. (the "Holding Company"); (OTCQX:FNBT), the parent company of FineMark National Bank & Trust (the "Bank"; collectively, "FineMark"), today reported net revenues of $26.3 million for the first quarter ended March 31, 2022, compared to $22 million in the first quarter of 2021. Net income was $6.9 million, or $.58 per diluted share, compared with net income of $5.6 million, or $.61 per diluted share, for the same period a year ago.

Joseph R. Catti, Chairman & Chief Executive Officer:

"FineMark delivered strong results for the first quarter, despite volatility in the equity markets and the horrific Russian invasion of Ukraine. The war has resulted in unthinkable human suffering and the global economic consequences are just beginning to materialize. Despite all of this uncertainty around the world and in the US, our people once again proved they are relentless in their focus to serve our clients and our communities, in any given situation."

Net Interest Income & Margin

For the first quarter of 2022, FineMark's net interest income totaled $17.5 million, up 14% from the year prior. This increase was largely due to growth in the Bank's investment portfolio (78% increase year-over-year), continued loan growth, and the repayment of $71 million in Federal Home Loan Bank (FHLB) advances, which reduced the Bank's interest expense by $67,000 for the quarter.

The Bank also purchased $289 million in high-quality investment grade bonds which generated $707,000 in interest income for the quarter. The investment portfolio now represents 35% of total assets. Total interest income grew by 8%.

As a result of the overall low interest rate environment, the Bank ended the quarter with a net interest margin of 2.14% (down from 2.25% in first quarter 2021).

Non-Interest Income

Due to our high-touch, relationship-driven approach to service, FineMark experienced significant growth in the trust and investment business, adding $221.3 million in assets from new and existing clients, compared with $146.9 million in the first quarter of 2021. During a period of high market volatility, the Bank's assets under management and administration grew 13%. In addition, the Bank realized gains of $618,000 on the repayment of the FHLB debt, previously mentioned.

Non-Interest Expense

Non-interest expense increased 18% for a total of $17 million in the first quarter of 2022, compared to $14.4 million first quarter 2021. This increase is primarily due to salary expense, which rose 20%. As FineMark continues to grow, additional expenses are incurred to maintain high service levels, which included 14 new associates hired in the first quarter. FineMark's efficiency ratio decreased to 64.5%, compared to 65.4% in the first quarter of last year.

Credit Quality

FineMark maintained strong asset quality during the first quarter. Loan production totaled $210 million for the quarter, compared to $211 million last year. While loan production was robust, loan paydowns were $175 million, resulting in net loan growth of $35 million or 8%. These figures mirror results for the same period last year.

The Bank remains committed to maintaining its high credit standards through our relationship-centered approach to banking. Loan decisions are always based on an in-depth understanding of each borrower's needs and unique financial situation. As a result, the Bank has experienced minimal loan defaults through various market cycles.

At the end of the quarter, non-performing loans were $714,000, or .04% of total loans, a decrease from .08% compared to the first quarter of 2021. Additionally, only $299,000, or .01% of total loans, were past due at the end of Q1 2022, a 96% decrease from a year ago. The current allowance is $20.7 million (or 1.01% of gross loans).

Capital

All capital ratios continue to exceed regulatory requirements for "well-capitalized" banks. On March 31, 2022, FineMark's Tier 1 leverage ratio on a consolidated basis was 9.22%; the total risk-based capital ratio was 20.25%.

Rising interest rates toward the end of the quarter resulted in a $41 million net unrealized loss on the Bank's investment portfolio. This unrealized loss does not reflect bond credit quality; rather, it shows how rapidly interest rates have increased. Because the Bank intends to hold these bonds to maturity, the losses are likely to remain unrealized. This unrealized loss resulted in a book value per share of $23.82 on March 31, 2022, compared to $23.20 a year prior. Excluding the unrealized loss, book value per share would have been $27.37.

Return on average equity (ROAE) decreased to 9.17% this quarter, compared to 10.48% for the first quarter of 2021. This reduction is due to the higher capital levels from the stock offering in 2021.

Performance on the OTCQX Exchange

Shares of FineMark Holdings, Inc. (OTCQX:FNBT), the parent company of FineMark National Bank & Trust, are traded on the OTCQX exchange. Operated by the OTC Markets Group, the OTCQX allows investors to trade privately-held stock through their preferred broker. During the first quarter of 2022, FineMark's shares traded in a range between $33.15 and $36.00, and at an average volume of 1,267 shares trading per day. The shares closed the quarter trading at $33.25, an 11% increase compared to the end of the first quarter of 2021, for a price-to-tangible book value multiple of 1.40.

Renovation & Expansion Updates

In spring 2022, FineMark will open two new locations in Florida. The Jupiter office is expected to open in May. In June, a second Naples location is slated to open in the heart of the historic downtown area.

Additionally, the buildout of the second-floor space at our headquarters location in Fort Myers, Florida, is nearly complete. Tenants will occupy half of the area and the Bank will reserve the remaining space for continued growth.

Closing Remarks from Chairman & Chief Executive Officer, Joseph R. Catti

"As we close the first quarter of 2022 - the first quarter of FineMark's fifteenth year in business - I am struck by our associates' enthusiasm and dedication and our clients' trust and confidence. Without such steadfast support, the achievements presented here would not be possible.

The results shared today are a testament to our associates unparalleled commitment to providing the highest level of personalized service to our clients and the strength of our balance sheet.

Since our founding in 2007, our mission and vision has never wavered. In everything we do, we strive to make a positive impact on the families, individuals, and communities we serve while also being good stewards of FineMark's resources. We believe that this intentional focus will continue to create shareholder value through various economic environments and across market cycles."

FineMark Holdings, Inc. is the parent company of FineMark National Bank & Trust. Founded in 2007, FineMark National Bank & Trust is a nationally chartered bank, headquartered in Florida. Through its offices located in Florida, Arizona and South Carolina, FineMark offers a full range of financial services including personal and business banking, lending services, trust, and investment services. The Corporation's common stock trades on the OTCQX under the symbol FNBT. Investor information is available on the Corporation's website at www.finemarkbank.com .

CONTACT:

Ryan Roberts, Investor Relations
8695 College Pkwy Suite 100
Fort Myers, FL 33919
239-461-3850
investorrelations@finemarkbank.com

FINEMARK HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets
($ in thousands, except share amounts)

FINEMARK HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Earnings (Unaudited)
($ in thousands, except per share amounts)

FineMark Holdings, Inc.
Consolidated Financial Highlights
First Quarter 2022}
Unaudited

*annualized

Background

FineMark Holdings, Inc. is the parent company of FineMark National Bank & Trust. Founded in 2007, FineMark National Bank & Trust is a nationally chartered bank, headquartered in Florida. Through its offices located in Florida, Arizona and South Carolina, FineMark offers a full range of financial services including personal and business banking, lending services, trust, and investment services. The Corporation's common stock trades on the OTCQX under the symbol FNBT. Investor information is available on the Corporation's website at www.finemarkbank.com .

Forward-Looking Statements

This press release contains statements that are "forward-looking statements." You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends, and which do not relate to historical matters. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control. These risks, uncertainties, and other factors may cause our actual results, performance or achievements to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include: weakness in national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets; volatility in national and international financial markets; reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits; reductions in the market value or outflows of assets under administration; changes in the value of securities and other assets; reductions in loan demand; changes in loan collectability, default and charge-off rates; changes in the size and nature of our competition; changes in legislation or regulation and accounting principles, policies and guidelines; occurrences of cyber-attacks, hacking and identity theft; natural disasters; and changes in the assumptions used in making such forward-looking statements. You should carefully review all of these factors and you should be aware that there might be other factors that could cause these differences.

These forward-looking statements were based on information, plans and estimates at the date of this report. We assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

SOURCE: FineMark Holdings, Inc.