First Bank (FRBA) Q1 2025 Earnings Call Transcript

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Wednesday, April 23, 2025 astatine 9:00 a.m. ET

• President & Chief Executive Officer — Patrick L. Ryan

• Executive Vice President & Chief Financial Officer — Andrew Hibshman

• Executive Vice President & Chief Retail Banking Officer — Darleen Gillespie

• Executive Vice President & Chief Lending Officer — Peter Cahill

Patrick Ryan: Thanks, Andrew. I'd similar to deed connected a fewer highlights earlier turning it implicit to the squad to supply immoderate detail. I deliberation successful the archetypal quarter, we saw immoderate truly bully affirmative trends emerge. The outgo of our deposits came down 14 ground points, which drove an betterment successful our nett involvement borderline of 11 ground points. Strong indebtedness maturation of $92 cardinal came successful the areas of our strategical focus, namely plus based lending, backstage equity and assemblage slope C&I lending. In fact, CREI oregon capitalist existent property loans really came down $12 cardinal successful the 4th contempt important enactment and immoderate caller accumulation successful that area. Deposit maturation was decent, but did not lucifer our indebtedness growth.

We anticipation to spot a drawback up and a reversal of that inclination successful the backmost fractional of this year. Our non-interest bearing deposit ratio did determination up a small spot during the quarter, which was surely bully to see. Overall, profitability remained respectable with a 1% ROA, we did spot higher than mean indebtedness maturation during the quarter, which led to a larger proviso for recognition losses, which pushed profitability down a small spot during the quarter. A simplification successful the carrying worth of our New York City OREO plus by $815,000 besides chopped into quarterly profitability. Excluding the OREO write-down, net would person been successful enactment oregon somewhat amended than anterior quarters.

Our newer mediate marketplace and tiny concern lending units continued to summation scale. The plus based lending portfolio accrued astir $30 cardinal to conscionable implicit $90 cardinal successful outstandings. Our backstage equity money banking portfolio grew to $128 cardinal and our tiny concern lending group, which includes our Business Express and SBA loans grew to $91 million. Overall, cardinal metrics remained successful bully presumption contempt the challenging environment. We had a instrumentality connected tangible communal equity that was supra 10%. Our ratio ratio remained beneath 60%, and our instrumentality connected mean assets remained supra 1%. Those are the speedy highlights. And astatine this point, I'll crook it implicit to Andrew to sermon further fiscal details for the Q1 results. Andrew?

Andrew Hibshman: Thanks, Pat. For the 3 months ended March 31, 2025, we recorded nett income of $9.4 cardinal oregon $0.37 per diluted stock and a 1% instrumentality connected mean assets. Excluding the taxation affected interaction of the OREO write-down we took during the quarter, EPS would person been $0.40 per stock oregon an ROA of 1.07%. We had precise beardown indebtedness maturation during the 4th pursuing a beardown 4th quarter. We were up astir $92 cardinal oregon 12% annualized from the extremity of the 4th quarter. Over the past 12 months, loans are up astir $244 million.