First Bank Q1 net income falls as higher credit losses weigh

FIRST BANK (Hamilton)

27/04/2026 21:49

Overview

US community bank's Q1 net income and EPS declined yr/yr on higher credit loss expense

Net interest income rose 6% yr/yr, supported by stable net interest margin and deposit growth

Company repurchased 33,619 shares in Q1 and maintained quarterly dividend at $0.09 per share

Outlook

First Bank expects future credit costs tied to its small business portfolio to decline significantly

Company anticipates improved results for the remainder of 2026, driven by lower credit costs and growth

First Bank expects its future effective tax rate to be about 24% to 25%, excluding discrete items

Result Drivers

CREDIT LOSS EXPENSES - Elevated credit loss expense, mainly from net charge-offs in the small business portfolio, reduced profitability

NET INTEREST INCOME - Net interest income increased 6% yr/yr, driven by lower deposit costs despite flat interest income

NON-INTEREST EXPENSES - Higher salaries, benefits, and maintenance costs contributed to increased non-interest expenses

Company press release: ID:nGNX3M7jjC

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$0.30
Q1 Net Income
$7.65 mln
Q1 Net Interest Income
$34.009 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for FIRST BANK (Hamilton) is $19.50, about 18% above its April 24 closing price of $16.53

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)