First Bank Q4 Earnings Call Highlights

First Bank (NASDAQ:FRBA) executives highlighted borderline enlargement and improved profitability successful the 4th fourth of 2025, portion acknowledging elevated recognition costs tied to its tiny concern indebtedness merchandise and an unusually ample question of indebtedness payoffs that drove a quarterly diminution successful full loans.

President and CEO Patrick Ryan said 2025 “did not play retired precisely arsenic we expected,” but characterized results arsenic solid, emphasizing that the bank’s nett involvement borderline (NIM) continues to beryllium the superior operator of profitability. First Bank reported a fourth-quarter NIM of 3.74%, up 20 ground points from the 4th fourth of 2024. For the afloat year, NIM was 3.69% versus 3.57% successful 2024.

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Those trends helped assistance profitability metrics, with instrumentality connected mean assets (ROAA) astatine 1.21% successful the 4th quarter, compared to 1.10% successful the year-ago period. Return connected tangible communal equity improved to 12.58% from 11.82%.

Chief Financial Officer Andrew Hibshman reported fourth-quarter nett income of $12.3 million, oregon $0.49 per diluted share, besides translating to a 1.21% ROAA.

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Management said indebtedness accumulation remained solid, but payoffs surged precocious successful the year. Hibshman said fourth-quarter indebtedness payoffs totaled $135 million—nearly arsenic overmuch arsenic the combined full for the archetypal 3 quarters—resulting successful an $81 cardinal diminution successful full loans from the extremity of the 3rd quarter.

Despite the quarterly decline, Hibshman said loans were inactive up $149 million, oregon astir 5%, implicit the past 12 months, “with C&I starring the way.” Chief Lending Officer Peter Cahill added that the slope funded $429 cardinal of caller loans during 2025, with lone 20% of that funded successful the 4th quarter. He besides said mean indebtedness maturation for the afloat twelvemonth was $267 million, which helium called a “good indicator of a engaged year.”

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Cahill said astir caller loans were successful C&I and owner-occupied existent estate, which comprised 62% of 2025 originations, portion capitalist existent property made up 22%. The largest payoffs during the 4th were mostly capitalist existent property loans, including operation loans refinanced with semipermanent financing elsewhere. Cahill said the $135 cardinal successful fourth-quarter payoffs represented 47% of each payoffs for the twelvemonth and was the largest quarterly payoff magnitude the slope has experienced, with six of its 10 largest payoffs occurring successful the quarter.