Reliant Bancorp Inc., a Franklin, Tennessee-based parent company for Reliant Bank, reported a net loss in the first quarter of $215,000, or 2 cents per share, as the bank boosted its loan loss reserves amid the coronavirus slowdown in business.
A year earlier, the bank earned $3.8 million, or 33 cents per share, in the same period.
“The COVID-19 pandemic has caused tremendous damage to the global economy and global citizens, but our Reliant franchise remains strong,” said DeVan Ard, Jr., president, chairman and CEO of Reliant. “Financially, this was a very successful quarter for Reliant. We grew net interest income by 18% to a record $17.1 million and our net interest margin expanded by 15 basis points to 3.61%. Loan production was robust in the first quarter, a reflection of the strong economies in Nashville and Chattanooga.”
Loan volume grew 29%, or $150 million in new loans, Ard said.
FirstBank profits down nearly 97%
FB Financial Corp, the parent company of FirstBank, said Monday it earned $700,000, or 2 cents per share, in the first quarter of 2020, compared to net income of $19.6 million, or 62 cents per share, a year earlier.
FirstBank said provisions for credit losses and unfunded commitments totaled $29.6 million in the first quarter of this year, up from $3 million a year earlier.
FirstBank CEO Christopher Holmes said the first quarter “will be remembered as a defining time for our company” with both the COVID-19 crisis and tornadoes in Tennessee..
“Over the last five weeks, we have approved and funded over 1,500 Paycheck Protection Program loans totaling $267 million for small businesses, preserving jobs for approximately 29,000 employees in our communities.,” Holmes said. “Additionally, we reached out to our customers and deferred loan payments for over 1,400 consumer and businesses totaling $680 million.”
FirstBank also recently completed its merger with Farmers National Bank of Scottsville, Kentucky and announced a merger with Franklin Financial Network, Inc., expected to close in the third quarter.
Insurers can’t cancel policies after storms
Tornado victims hurt by the Easter storms that swept into Chattanooga April 12-13 cannot have their policies canceled for non-payment for 60 days, state insurance regulators said Monday.
The Tennessee Department of Commerce and Insurance said policyholders for health, home or auto insurance plans who live in eight Southeast Tennessee counties affected by the deadly tornadoes and severe weather on Easter night cannot have their policies canceled until June.
The 60-day extension is not a waiver of a policyholder’s obligation to pay a premium, however. Where a delay in a premium payment appears to be the result of a disruption to the mail delivery system or to the policyholder’s displacement due to the tornadoes, state regulators have told insurers to work with the policyholder and take those circumstances into account before policy cancellation.
If any insurance carrier cancels a policy for a storm victim for non-payment and will not reinstate the policy at no cost and at the same premium, residents may file a complaint with the state.
Consumers may file a complaint by calling 615) 741-2218 or 1-800-342-4029.