First Bank (FRBA) Q3 2025 Earnings Call Transcript

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Thursday, October 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

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Patrick Ryan: Thanks, Andrew. I'll deed connected a mates of the high-level points from the 4th and past crook it implicit to the squad to supply immoderate of the details. In the 3rd quarter, we saw a bully summation successful nett involvement income, acknowledgment to continued indebtedness and deposit growth, coupled with nett involvement borderline expansion. Our nett involvement income was up $1.5 cardinal compared to the 2nd 4th and up $5 cardinal compared to a twelvemonth ago. Our borderline was up 6 ground points linked 4th and was up 23 ground points compared to a twelvemonth ago. And the pre-provision nett gross fig accrued to 1.81% from 1.65% successful the anterior quarter.

So each bully affirmative movements upward successful presumption of our wide gross and margin. That beardown gross growth, coupled with disbursal control, drove continued improved profitability -- our nett income was up $3.5 cardinal oregon 43% compared to Q3 of 2024. Our instrumentality connected mean assets improved 28 ground points to 1.16% compared to 0.88% successful the 3rd 4th of past year. Our net per stock improved to $0.47 successful the 3rd quarter, a 46% summation compared to Q3 a twelvemonth ago, and our instrumentality connected tangible communal equity came successful astatine 12.35%. We did spot continued indebtedness portfolio diversification wrong the quarter.

Our capitalist commercialized existent property to superior ratio came down to 370% from a precocious of 430% aft we closed the Malvern acquisition. Our specialized lending groups present marque up 16% of full loans, but wrong that broader class of specialized lending, nary niche makes up much than 5% of full loans. Overall, recognition prime seems to beryllium holding up with the objection of immoderate softness we saw successful the tiny concern segment, specifically companies with revenues nether $1 million. Our NPAs successful our nonperforming loans did diminution during the quarter, and our allowance sum ratio to nonperformers accrued to 2.93%. Charge-offs were elevated but stay precise manageable.

Third 4th results besides included 2 months of "extra sub indebtedness expense" arsenic we did not wage disconnected the aged sub indebtedness until September 1 of this year. And during the quarter, we bought backmost astir 120,000 shares astatine an mean terms of $14.91. In summary, the halfway operating trends look good, and they're improving. The economical outlook remains uncertain, but we're good positioned for immoderate complaint situation whitethorn emerge. And obviously, we're keeping a adjacent oculus connected the wide level of economical enactment and what that mightiness mean for recognition prime going forward. I'll crook it implicit present to Andrew Hibshman, our CFO, to springiness you a small much item connected the fiscal results. Andrew?