First Bank Of Toyama (TSE:7184) Stock Rally Meets Persistent Credit Risk

First Bank Of Toyama stock comes into this post earnings window priced at ¥2,957, after a modest 7 day slip that follows strong 30 and 90 day gains. The short term chart looks noisy. The real story sits on the balance sheet.

The headline from this quarter is credit quality. Non performing loans stand at ¥24,771m against total loans of just over ¥1,047,602m and past disclosures point to a relatively low allowance coverage. For a regional lender that matters more than any single quarter’s earnings per share. The rest of the numbers need to be read through that risk lens.

Love the recent share price strength in First Bank Of Toyama but uneasy about the level of non performing loans and balance sheet risk? Take a look at our list of solid balance sheet and fundamentals stocks (38 results) for banks and lenders that pair loan growth with more robust cushions against credit stress.

Q4 2026 Earnings Summary

• Total Revenue (Q4 2026 vs Q4 2025): ¥11,801m vs. ¥5,891m (a very large increase from the prior year quarter)
• Net Income (Excl. Extra Items, Q4 2026 vs Q4 2025): ¥4,512m vs. a loss of ¥290m (a return to profit from a loss in the prior year quarter)
• Basic EPS (Q4 2026 vs Q4 2025): ¥71.79 vs. a loss of ¥4.55 (a shift from a loss per share to a positive result)
• Non Performing Loans (Q4 2026 vs Q4 2025): ¥24,771m vs. ¥25,614m (a slightly lower reported non performing loan balance)

Prefer clean charts instead of reviewing rows of figures and long earnings write ups? See First Bank Of Toyama’s full visual breakdown with a focus on its balance sheet strength and credit risk in the company report for First Bank Of Toyama.

First Bank Of Toyama earnings support cautious optimism

For investors leaning positive on First Bank Of Toyama, this quarter’s direction of travel helps. Revenue in Q4 2026 is much higher than Q4 2025 and the bank has shifted from a loss to a profit, with basic EPS also moving from negative to clearly positive territory. That improvement in earnings quality pairs with a modestly lower non performing loan balance. The share price is still up over 30 and 90 days despite a recent pullback, which shows the market has already rewarded this better profitability picture.

Balance sheet risk keeps the bear case alive

The cautious story around First Bank Of Toyama still has weight. Non performing loans remain sizeable in absolute terms relative to the loan book, and prior disclosures highlight a relatively thin allowance buffer. The latest quarter does not show a sharp reduction in credit risk, only a slight improvement. Recent share price gains over 30 and 90 days could make some holders more sensitive to any future credit shock. For now, the bounce in profitability sits alongside a balance sheet that still needs close monitoring.

After a period of rising profits and a sizeable non performing loan book, are you sure this is not masking deeper structural issues? Review the full risk analysis for First Bank Of Toyama which shows 3 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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