First Bank Stock Earnings Reports

First Bank reported Q1 2026 net income of $7.6 million ($0.30 diluted EPS) with a 0.79% return on average assets. Results missed internal expectations primarily due to elevated credit costs in the credit‑scored small business portfolio and unusually high loan payoffs that depressed average loan balances. Net interest income declined vs. Q4 (NII down $2.2 million) and net interest margin fell 5 bps to 3.69%, driven by lower average loan balances, reduced purchase accounting accretion and heightened deposit competition; management expects the margin to be relatively stable but potentially pressured by deposit pricing. Net charge‑offs rose to $5.0 million in the quarter, almost entirely from the small business portfolio; management says the product and sales processes were revamped starting in 2025, problem loans have been charged off or specifically reserved, and the allowance for credit losses to total loans increased to ~1.39% (with ~$2 million in specific reserves for known small‑business issues). Loan originations in Q1 totaled $106 million (in line with recent quarterly averages) but payoffs were elevated at $73 million; the probable funding pipeline stood at $383 million (up 15% from 12/31) and management reiterated a $200 million loan growth target for 2026, noting net loan growth of roughly $50 million by mid‑April. Deposit balances grew modestly ($25.1 million) and benefit from prior Fed rate cuts helped lower interest‑bearing deposit costs, but deposit pricing pressure has reemerged. Noninterest expenses were $20.9 million, elevated by seasonal items; the bank continues to run an efficiency ratio below 60% (27 consecutive quarters). Capital remains strong: the board has an approved $20 million buyback program and management says even full execution would leave capital well above regulatory minimums. Overall, management views the elevated credit costs as isolated, believes reserve and capital levels provide a strong buffer, and is optimistic profitability and loan growth should normalize and improve through 2026.