First Bank Shares Present a Stable Path Forward

First Bank concluded its 2025 fiscal year with a fourth quarter that presented contrasting dynamics. The institution's management is now pivoting towards a focused growth strategy for 2026, aiming to build on improvements in core profitability metrics.

The bank reported solid fundamental improvements for the final quarter of 2025, even as loan balances experienced temporary pressure. Key figures from the period include:

• Q4 2025 Revenue: $38.46 million
• Q4 2025 Net Income: $12.3 million
• Earnings Per Share (EPS): $0.49
• Net Interest Margin: 3.74% (a 20-basis point increase year-over-year)
• Return on Tangible Common Equity (ROTCE): 12.58%
• Quarterly Dividend Per Share: $0.09

Loan Portfolio and Profitability Dynamics

A significant factor in the quarter was an $81 million reduction in total loan volume. This contraction was primarily driven by substantial loan repayments totaling $135 million. However, taking a broader annual view reveals a more positive trend: the bank's loan book actually grew by $149 million, or 5%, over the full course of 2025.

Concurrently, the bank's profitability metrics showed clear strength. The net interest margin expanded to 3.74%. Furthermore, the Return on Tangible Common Equity (ROTCE) demonstrated a healthy rise, reaching 12.58% compared to 11.82% in the prior-year period.

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Strategic Focus for the Coming Year

Looking ahead to 2026, First Bank's leadership has outlined a targeted growth plan. The bank is aiming for net loan growth of approximately $200 million. Strategic emphasis will be placed on several key areas: asset-based lending, community banking initiatives, and commercial real estate financing.

To support these ambitions and enhance operational efficiency, the institution plans to optimize its branch network and increase investments in technology. For the full 2026 fiscal year, management anticipates an effective tax rate ranging between 24% and 25%. The current banking environment in the Northeastern United States is viewed as favorably above average, a condition that may provide a supportive backdrop for these growth objectives.

Shareholder Returns and Annual Summary

Regarding capital returns to shareholders, the ex-dividend date has now passed. The company declared a quarterly cash dividend of $0.09 per share, which is scheduled for payment on February 20.

First Bank finished the entire 2025 year with a net profit of $43.7 million. By concentrating on commercial lending and technological modernization, the bank intends to accelerate its growth trajectory in 2026, despite the recent quarter being impacted by sizable repayments.