First Bank Targets $200 Million Loan Growth Amid Small Business Credit Pressures

First Bank (FRBA) has reported first-quarter earnings for 2026 that failed to meet internal projections. The shortfall was primarily attributed to headwinds within the bank's lending operations, specifically regarding its small business segment. CEO Patrick Ryan noted that elevated credit costs within the credit-scored small business portfolio served as the primary driver for the earnings miss. This indicates increased risk or higher default rates among small commercial borrowers, necessitating higher provisions for credit losses. Despite the quarterly performance dip, the bank remains focused on expansion. Management has established a target of $200 million in loan growth for the full year 2026, signaling a commitment to balance sheet growth despite current credit pressures. Market participants will likely monitor the bank's ability to manage these credit costs in the coming quarters. The balance between achieving growth targets and maintaining asset quality in the small business sector will be critical for the bank's performance through the remainder of the year.