First Bank Announces First Quarter 2025 Net Income of $9.4 Million

Core Insights - First Bank reported a net income of $9.4 million for Q1 2025, a decrease from $12.5 million in Q1 2024, with diluted earnings per share dropping from $0.50 to $0.37 [1][3][34] - The bank's return on average assets, equity, and tangible equity decreased to 1.00%, 9.20%, and 10.54% respectively, compared to 1.41%, 13.36%, and 15.64% in the previous year [1][34] - The bank achieved a 10.8% year-over-year increase in tangible book value per share, reflecting strong loan and deposit growth [3][6] Financial Performance - Net interest income increased to $32.1 million, a 5.9% rise from the same period in 2024, driven by a $2.2 million increase in interest income [4][34] - The tax equivalent net interest margin was 3.65%, up from 3.54% in Q4 2024, indicating improved efficiency in interest income generation [5][34] - Total loans reached $3.24 billion, growing by $91.8 million or 11.8% annualized from the previous quarter [6][13] Asset Quality - Nonperforming assets decreased to 0.42% of total assets, down from 0.46% at the end of 2024 and 0.64% a year earlier, indicating improved asset quality [6][17][40] - The allowance for credit losses on loans was 1.21%, slightly up from 1.20% at the end of 2024 [18][40] Operational Efficiency - The efficiency ratio remained below 60% for the 23rd consecutive quarter, reflecting the bank's commitment to maintaining operational efficiency [3][34] - Non-interest expense increased by 14.5% year-over-year to $20.4 million, primarily due to higher salaries and employee benefits [9][10][34] Capital and Liquidity - Total assets increased by $100.4 million or 2.7% from the previous quarter, reaching $3.88 billion [12][13] - The bank's Tier 1 Leverage ratio was 9.63%, indicating strong capital adequacy [16][40] Shareholder Returns - The bank declared a cash dividend of $0.06 per share, totaling $1.5 million, with plans for continued dividends [20][21] - A share repurchase program is in place, with 350,000 shares repurchased at an average price of $14.74 per share [21][40]