First Bank delivered improved second-quarter results as disciplined expense management, steady lending activity, and deposit growth helped offset ongoing competitive pressures across the banking industry. The regional lender reported higher earnings and maintained a stable net interest margin, demonstrating resilience despite elevated funding costs and continued competition for deposits.

The results reflect management’s focus on expanding commercial banking relationships while maintaining operational efficiency and preserving asset quality in a higher interest rate environment.

Loan and Deposit Growth Drive Earnings Improvement

First Bank reported second-quarter net income of $10.9 million, or $0.43 per diluted share, compared with $10.2 million, or $0.41 per diluted share, in the same quarter last year.

Total loans increased to $3.37 billion at June 30, 2026, rising $68.0 million from the previous quarter and $44.8 million from a year earlier. Growth was led by commercial and industrial lending together with owner-occupied commercial real estate financing.

Deposits also expanded meaningfully, reaching $3.32 billion, an increase of $96.2 million from the first quarter and $155.5 million year over year. Management credited the growth to successful customer acquisition and retention despite continued pricing competition across the banking sector.

Net interest income increased to $34.8 million, supported primarily by lower funding costs and higher average loan balances.

Stable Margins and Improved Efficiency Support Profitability

The bank maintained a tax-equivalent net interest margin of 3.68%, remaining essentially unchanged from recent quarters despite modest declines in loan yields.

Expense management continued to be a significant strength. First Bank’s efficiency ratio improved to 54.52%, compared with 57.55% in the previous quarter and 56.13% a year earlier. Non-interest expenses declined due primarily to lower salary and employee benefit costs along with reduced occupancy expenses.

Credit costs also improved. The provision for credit losses declined to $2.2 million, down significantly from the previous quarter as losses in the bank’s small business portfolio moderated.

Management noted that pre-provision net revenue expanded by nearly 9% sequentially, reflecting continued momentum in the bank’s core commercial banking operations.

Credit Quality Remains Stable as Book Value Continues to Grow

Although nonperforming assets increased during the quarter following the addition of several commercial real estate loans to nonaccrual status, management said overall credit quality remains within historical and industry norms.

The allowance for credit losses remained stable at 1.38% of total loans, while net charge-offs declined significantly from the previous quarter. Executives indicated that underwriting improvements within the small business portfolio are expected to further reduce future credit costs.

First Bank also continued to strengthen shareholder value, with tangible book value per share rising to $16.27, representing approximately 9% annualized growth over both the previous quarter and the prior year. Management emphasized that consistent growth in tangible book value reflects the successful integration of prior acquisitions and the bank’s evolution into a middle-market commercial banking franchise.

Looking ahead, First Bank expects continued loan pipeline strength, disciplined expense control, and stable credit performance to support profitability. While competition for deposits and commercial lending remains intense, management believes its operational efficiency, strong capital position, and focus on commercial banking relationships position the company for sustainable long-term growth and shareholder value creation.