First Bank Sees Promising Second Quarter Results with Strong Asset Growth and Stable Margin

First Bank's Q2 2026 earnings call revealed a significant improvement in the company's financial performance. According to Patrick Ryan, President and CEO, the second quarter was 'a much better quarter' compared to previous periods. The company saw a return of solid asset growth, with loans growing by $68 million during the quarter, bringing year-to-date growth to $79 million.

This growth puts First Bank on track to meet its annual loan growth goal of $200 million for the year. Ryan highlighted that pipelines are strong and that the new production engine has been busy, suggesting a sustainable return to stronger asset growth. The company's deposit growth also accelerated in the second quarter, increasing by $96 million, which pushed it ahead of its deposit growth plan for the year.

First Bank's margin remained stable at 3.68%, with loan yields declining modestly and deposit costs decreasing slightly. The provision for credit losses decreased significantly to more normalized levels due to improved trends in the small business portfolio. Non-interest expense came in at $20.1 million, a decrease from an artificially high level in the first quarter.

The company's pre-provision return on average assets increased by 10 basis points compared to the prior quarter, reaching 1.69%. Ryan expressed excitement about First Bank's position at the midpoint of the year, citing strong balance sheet growth, a stable margin, normalized credit expenses, and minor non-interest expense growth as key drivers for improved results in the second half of the year.

Andrew Hibshman, Chief Financial Officer, added that net income for the quarter was $10.9 million, or $0.43 per diluted share, representing a 1.09% return on average assets. The decline in credit loss expense compared to the first quarter contributed significantly to this improvement. Diluted earnings per share increased by $0.13, or approximately 43%, on a linked-quarter basis.

Overall, First Bank's Q2 results suggest a promising recovery from previous quarters, with strong asset growth and stable margins contributing to improved financial performance.