First Bank (FRBA) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $9.4 million ($0.37 per diluted share), down from $12.5 million ($0.50 per share) in Q1 2024, due to higher non-interest and credit loss expenses despite strong loan and deposit growth.

• Return on average assets was 1.00% and return on average equity was 9.20% for Q1 2025, both lower than the prior year quarter.

• Tangible book value per share rose to $14.47, up 10.8% year-over-year, with a continued focus on commercial and industrial lending and operational efficiency.

• Total assets grew 2.7% to $3.88 billion, with loans up 2.9% to $3.24 billion and deposits up 2.1% to $3.12 billion as of March 31, 2025.

• Asset quality remained strong, with nonperforming assets at 0.42% of total assets and allowance for credit losses at 1.21% of total loans.

Financial highlights

• Net interest income increased 5.9% year-over-year to $32.1 million, driven by higher interest income and margin expansion.

• Net interest margin was 3.65%, up 11 basis points sequentially and 1 basis point year-over-year.

• Non-interest expense rose 14.5% year-over-year to $20.4 million, mainly from higher salaries, OREO impairment, and new branch costs.

• Credit loss expense was $1.5 million, up from a benefit in Q1 2024, reflecting loan growth and increased delinquencies.

• Efficiency ratio remained below 60% for the 23rd consecutive quarter, at 57.65% for Q1 2025.

Outlook and guidance

• Management expects continued quality growth in 2025, supported by strong underwriting, diversification, and stable margin.

• Organic loan and deposit growth goals for the year are $175–$200 million net.

• Effective tax rate is expected in the 23–24% range going forward.

• Ongoing investments in technology, digital banking, and branch expansion are planned.

• No major changes anticipated in non-interest expense run rate, aside from incremental branch costs.