First Bank (FRBA) Q4 2024 earnings summary

Executive summary

• Achieved net income of $42.2 million or $1.67 per diluted share for 2024, more than doubling 2023's $20.9 million ($0.95 per share), with a 13% annualized increase in core EPS over the past decade.

• Tangible book value more than doubled over 10 years, with a 7.5% annualized growth rate.

• Fourth quarter 2024 net income was $10.5 million ($0.41 per diluted share), up from $8.4 million ($0.33 per share) in Q4 2023.

• Maintained investment grade credit ratings and top quartile performance in ROAA, ROTCE, and efficiency ratio.

• Strategic initiatives included launching Banking as a Service, expanding specialty teams, and opening new branches in Trenton, NJ and Media, PA.

Financial highlights

• Total loans at December 31, 2024 were $3.14 billion, up $123 million or 4% year-over-year; total deposits rose to $3.06 billion, up $88.3 million or 3%.

• Q4 2024 net income was $10.5M; diluted EPS was $0.41; tangible book value per share reached $14.19.

• Net interest margin increased to 3.54% in Q4 from 3.48% in Q3; full year net interest margin was 3.57%.

• Non-interest income for Q4 2024 was $2.2 million, down from $2.5 million in Q3 but up from a loss of $3.0 million in Q4 2023.

• Non-interest expenses were $19.1 million in Q4, up from $18.6 million in Q3 and up 6.6% year-over-year, mainly due to higher salaries and branch activity.

Outlook and guidance

• Management expects continued profitability and growth in 2025, supported by new business units, technology investments, and branch expansion.

• Banking-as-a-service unit to launch first fintech partnership in Q1 2025, with revenue expected in 2025.

• Margin guidance is flat to improving, dependent on yield curve steepening and deposit cost management.

• Loan growth rates in 2025 anticipated to match recent quarterly growth.

• Effective tax rate expected to be 25%-26% due to new NJ Corporate Transit Fee.