Core Insights - First Bank reported solid profitability metrics in Q4 2025, with a return on average assets (ROAA) of 1.21%, up from 1.10% year-over-year, and return on tangible common equity improving to 12.58% from 11.82% [3] - The bank's net interest margin (NIM) for Q4 was 3.74%, an increase of 20 basis points from Q4 2024, while the full-year NIM was 3.69% compared to 3.57% in 2024 [4] - Despite a quarterly decline in total loans, loans were up $149 million, or approximately 5%, over the last 12 months, with commercial and industrial (C&I) loans leading the growth [2] Loan Production and Payoffs - In 2025, First Bank funded $429 million in new loans, with only 20% of that occurring in Q4, and average loan growth for the year was $267 million [2] - Q4 loan payoffs totaled $135 million, representing 47% of all payoffs for the year, and were primarily driven by investor real estate loans [1][2] Deposit Strategy - Total deposits declined by $21 million in Q4, mainly due to a $27.1 million drop in brokered deposits, as the bank focused on profitable relationships [7] - Time deposits were reduced by $38 million, or 18% annualized, contributing to an 8% decrease in money market and savings balances during the quarter [8] Credit Quality - Credit quality was described as mixed, with core commercial real estate (CRE) delinquency at 0.02% at year-end, while non-performing assets to total assets rose to 46 basis points from 36 basis points [10][12] - The allowance for credit losses increased to 1.38% of total loans from 1.25%, driven by charge-offs in the small business portfolio [12] Expenses and Capital Actions - Non-interest income was $2.3 million in Q4, slightly down from $2.4 million in Q3, while non-interest expenses decreased to $17.1 million from $19.7 million [16][17] - The efficiency ratio was reported at 49.46%, remaining below 60% for the 26th consecutive quarter, and tangible book value per share increased to $15.81, up more than 12% annualized [18] Future Outlook - For 2026, First Bank aims for $200 million in net loan growth, with expectations of contributions from asset-based lending and community banking [20] - The bank plans to continue reducing acquisition accounting accretion and anticipates stable margins while lowering deposit costs [20][22]