First Bank’s Q3 Results: A Tale of Robust Profits Amidst Revenue Shortfall

First Bank’s latest quarterly earnings report presents a complex narrative of financial performance. The institution delivered a significant surge in profitability that exceeded market forecasts, yet this achievement was tempered by revenue figures that fell short of expectations. This divergence has prompted scrutiny from analysts and raises questions about the bank’s strategic trajectory.

Analyst Consensus and Market Performance

Financial experts have responded positively to the underlying strength shown by First Bank. The consensus rating among analysts is a “Strong Buy,” with an average price target of $19.00. This target implies a potential upside of approximately 21% from the stock’s closing price of $15.63 on the day the results were released. The market’s initial reaction, however, was muted; shares declined by 0.9% following the announcement.

Dissecting the Financial Figures

For the third quarter of 2025, First Bank reported a net income of $11.7 million. This represents a substantial 43% increase compared to the same period last year. On a per-share basis, earnings came in at $0.47, surpassing analyst estimates by 2.17%. This profit strength is largely attributed to enhanced operational efficiency and an improved net interest margin, which expanded by seven basis points quarter-over-quarter to reach 3.71%.

Should investors sell immediately? Or is it worth buying First Bank?

Contrasting this profit performance, the bank’s total revenue of $34.97 million for Q3 2025 missed analyst projections by 4.87%.

• Q3 2025 Net Income: $11.7 million (up 43% year-over-year).
• Q3 2025 Earnings Per Share (EPS): $0.47 (2.17% above estimates).
• Q3 2025 Revenue: $34.97 million (4.87% below estimates).
• Annual Loan Growth Target: 6-7%.
• Consensus Price Target: $19.00.

Strategic Initiatives and Leadership

Management has reaffirmed its commitment to growth, targeting an annual loan portfolio expansion rate of 6 to 7 percent. Supporting this ambition, the bank’s deposit base grew to $3.22 billion by the end of September 2025, marking a 5.5% increase since the start of the year. Asset quality also showed positive trends, with non-performing assets declining.

In a move to bolster its governance, First Bank appointed Bridget Welborn as its new Chief Risk Officer and Head of the Legal Department in November 2025. The coming quarters will be critical for the bank as it seeks to translate its profit momentum and strategic hires into achieving its lending goals and reinvigorating its top-line revenue growth.