First Bank (FRBA) Q4 2025 earnings summary

Executive summary

• Net income for Q4 2025 was $12.3 million ($0.49 per diluted share), up from $10.5 million ($0.41 per share) in Q4 2024; full year 2025 net income was $43.7 million ($1.74 per share), up from $42.2 million ($1.67 per share) in 2024.

• Achieved $3.96 billion in assets, $3.29 billion in loans, and $3.20 billion in deposits as of Q4 2025, with a strong presence in the Philadelphia to NYC corridor.

• Net interest margin (NIM) expanded to 3.74% in Q4 2025, up 20 bps year-over-year; full-year NIM was 3.69% versus 3.57% in 2024.

• Return on average assets rose to 1.21% in Q4 2025 from 1.10% in Q4 2024; return on tangible common equity improved to 12.58% from 11.82%.

• Quarterly cash dividend increased by 50% to $0.09 per share; new share repurchase program authorized for up to 1.2 million shares or $20.4 million.

Financial highlights

• Total loans at year-end were $3.29 billion, up 4.7% year-over-year, but down $80.7 million from Q3 due to elevated payoffs.

• Net interest income increased $633,000 sequentially, driven by margin expansion.

• Efficiency ratio improved to 49.46% in Q4, down from 56.91% in Q4 2024, and remained below 60% for the 26th consecutive quarter.

• Tangible book value per share grew to $15.81, up 11.5% year-over-year.

• Tier 1 leverage ratio at 9.75%.

Outlook and guidance

• Targeting $200 million net loan growth in 2026, with focus on asset-based lending, community banking, and modest CRE growth.

• Continued focus on deposit growth, expense management, and closing the cost of funds gap with peers.

• Management expects continued investment in technology and talent, with specialty banking groups nearing scale and ongoing efficiency initiatives to support profitability in 2026.

• Anticipates future effective tax rate of approximately 24-25%.