- First Bank (FRBA, Financial) reported a decrease in net income to $9.4 million in Q1 2025 from $12.5 million in Q1 2024.
- The bank experienced significant loan growth, with total loans increasing 11.8% annualized from Q4 2024.
- Improved asset quality with nonperforming assets at 0.42% of total assets, down from 0.46% in Q4 2024.
First Bank (FRBA) has reported a net income of $9.4 million, or $0.37 per diluted share, for the first quarter of 2025. This marks a decline from $12.5 million, or $0.50 per diluted share, during the same quarter in 2024, reflecting a 24.8% year-over-year decrease in earnings.
The bank's loan portfolio saw robust growth, with total loans reaching $3.24 billion as of March 31, 2025, representing a $91.8 million increase or 11.8% annualized growth from the fourth quarter of 2024. Similarly, total deposits increased to $3.12 billion, up by $63.9 million or 8.5% annualized.
First Bank's net interest margin improved to 3.65%, an 11 basis point increase from the previous quarter, indicating effective asset and liability management. Despite the earnings dip, the bank maintained strong asset quality, with nonperforming assets decreasing to 0.42% of total assets from 0.46% at the end of 2024.
The bank's non-interest expense rose by 14.5% to $20.4 million, partly driven by investments in new branches and personnel. A part of this increase includes an $815,000 impairment charge on an OREO asset. Nonetheless, the bank persevered with its strategic transition towards becoming a full-service, middle-market commercial bank, focusing on commercial and industrial (C&I) lending.
Looking to the future, First Bank continues to invest in technology and expansion to scale its operations while maintaining a disciplined approach to expenses, as evidenced by its efficiency ratio remaining below 60% for the 23rd consecutive quarter.
First Bank has maintained its quarterly dividend of $0.06 per share and executed a share repurchase program, buying back 256,454 shares at an average price of $15.06 per share. The bank's tangible book value per share grew to $14.47, further supporting shareholder value.
