First Bank Announces Third Quarter 2025 Net Income of $11.7 Million

Core Insights - First Bank reported strong financial performance for Q3 2025, with net income of $11.7 million, up from $8.2 million in Q3 2024, reflecting a significant increase in profitability metrics [1][3] - The bank's return on average assets, equity, and tangible equity improved to 1.16%, 10.85%, and 12.35% respectively, compared to the previous year [1][3] Financial Performance - Net interest income rose to $35.5 million, an increase of $5.5 million or 18.1% year-over-year, driven by higher average loan balances [4][5] - Total loans reached $3.37 billion, growing by $46.6 million or 5.6% annualized from the previous quarter [5] - Total deposits increased to $3.22 billion, up $55.4 million or 6.9% annualized from the linked quarter [5] - The net interest margin improved to 3.71%, up six basis points from the previous quarter [5][6] Efficiency and Growth - The efficiency ratio improved to 51.81%, down from 56.13% in the previous quarter, indicating enhanced operational efficiency [5] - Tangible book value per share increased by 12.4% annualized to $15.33 [5] Asset Quality - Nonperforming assets decreased to 0.36% of total assets, down from 0.40% in the previous quarter [5][17] - The allowance for credit losses on loans was 1.25% of total loans, slightly up from 1.21% a year ago [18] Non-Interest Income and Expenses - Non-interest income totaled $2.4 million, a slight decrease from previous quarters, primarily due to one-time enhancements in the prior year [8] - Non-interest expenses increased to $19.7 million, up 5.5% year-over-year, mainly due to higher salaries and employee benefits [9][10] Capital Management - The bank's stockholders' equity increased by $22.7 million or 5.6% year-to-date, supported by net income [15] - The bank continues to exceed regulatory capital requirements, with a Tier 1 Leverage ratio of 9.54% [16] Future Outlook - The bank anticipates continued growth in 2026, supported by strong pipelines and new branch openings, projecting a growth rate in the 5% range [3]