First Bank Q3 net income rises, margin expands on higher loan yields
FRBA•First Bank reported Q3 net income of $12.17 million and EPS of $0.49, as net interest income reached $36.77 million and its margin expanded. It raised its quarterly dividend by 33% and authorized a new $24 million share buyback program.
1. Quarterly results
First Bank said Q3 net income and EPS rose from both the prior quarter and the year-ago period. Net interest income was $36.77 million, net income was $12.17 million and EPS was $0.49.
2. Growth and margin
The company attributed higher net income and net interest margin to broad-based loan and deposit growth. It said higher loan yields, repayment of higher-cost borrowings and favorable asset mix supported margin expansion, while expense containment improved its efficiency ratio.
3. Capital and outlook
First Bank raised its quarterly dividend by 33% and authorized a new $24 million share buyback program. It anticipates an effective tax rate of about 23% to 25%, sees an opportunity for investor-owned CRE growth as its CREI-to-capital ratio has declined, and plans to manage deposit costs and deepen core customer relationships.
