First Bank (FRBA) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $11.7 million ($0.47 per diluted share), up from $8.2 million ($0.32 per share) in Q3 2024, with return on average assets at 1.16% and return on average equity at 10.85%.

• Tangible book value per share grew to $15.33, up 12.4% annualized from the previous quarter.

• The company operates 27 branches, focusing on commercial real estate and commercial & industrial lending in New Jersey, Pennsylvania, and Florida.

• The company is evolving from a community bank to a middle market commercial bank, expanding digital and treasury management capabilities.

• Maintains a relationship-driven model with specialized business units and a disciplined M&A strategy.

Financial highlights

• Net interest income for Q3 2025 was $35.5 million, up from $30.1 million in Q3 2024; net interest margin rose to 3.71% from 3.48% a year ago.

• Total loans reached $3.37 billion, up 7.3% from year-end 2024, with C&I and owner-occupied CRE leading growth.

• Deposits increased to $3.22 billion, up $55 million in Q3, with growth in time and interest-bearing demand deposits.

• Efficiency ratio improved to 51.81% for Q3 2025, down from 57.1% in Q3 2024.

• Non-interest income for the nine months ended September 30, 2025 was $7.1 million, up 38% year-over-year.

Outlook and guidance

• Management expects continued organic growth, supported by a clean balance sheet, strong asset quality, and recent investments in business diversification.

• Margins expected to remain stable as deposit costs are pushed lower and higher-yielding loans replace runoff.

• Loan growth target for the year remains in the 6%-7% range, with Q3 pipeline supporting continued growth.

• Management expects increased loan payoff activity to slow growth in Q4 2025 but anticipates healthy balance sheet growth in the 5% range for 2026.

• Effective tax rate is expected to remain stable.