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First Bank Announces First Quarter 2025 Net Income of $9.4 Million
Source: Nasdaq GlobeNewswire / 22 Apr 2025 16:35:00 America/New_York
HAMILTON, N.J., April 22, 2025 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) ("the Bank") today announced results for the first quarter of 2025. Net income for the first quarter of 2025 was $9.4 million, or $0.37 per diluted share, compared to $12.5 million, or $0.50 per diluted share, for the first quarter of 2024. Return on average assets, return on average equity and return on average tangible equityi for the first quarter of 2025 were 1.00%, 9.20% and 10.54%, respectively, compared to 1.41%, 13.36% and 15.64%, respectively, for the first quarter of 2024.
First Quarter 2025 Performance Highlights:
- Total loans of $3.24 billion at March 31, 2025 grew $91.8 million, or 11.8%, annualized, from the linked quarter ended December 31, 2024.
- Total deposits were $3.12 billion at March 31, 2025, increasing $63.9 million, or 8.5% annualized from the linked quarter ended December 31, 2024.
- Net interest margin measured 3.65% for the first quarter of 2025, increasing 11 basis points from 3.54% for the linked quarter ended December 31, 2024.
- Tangible book value per shareii grew to $14.47 at March 31, 2025, increasing 8.0%, annualized, from $14.19 at December 31, 2024.
- Strong asset quality continued, with nonperforming assets decreasing to 0.42% of total assets at March 31, 2025, compared to 0.46% at December 31, 2024 and 0.64% at March 31, 2024.
“We are pleased to report high-quality loan and deposit growth in the first quarter of 2025,” Patrick L. Ryan, President and CEO of First Bank, reflecting on the Bank’s performance. “Our team produced excellent Commercial and Industrial (“C&I”) loan growth during the quarter with an improved net interest margin and sustained asset quality. We are especially pleased to have achieved this with an efficiency ratio that remained below 60% for the 23rd consecutive quarter, and with continued growth in our primary areas of focus. Our recent and ongoing investments in technology and new C&I lending and deposit-focused business units are building scale and bearing fruit, as reflected in our 10.8% year-over-year increase in tangible book value per share.”
Mr. Ryan continued, “Our success demonstrates a deep commitment to continuing our evolution from a traditional community bank into a full-service, middle market commercial bank. We are executing with a clear vision for our future success, growing our balance sheet and earnings power through strategic initiatives focused on diversification and profitability. Our goal is to achieve top-quartile performance among our peers in any economic environment. We expect our strong underwriting and diversification strategies will support quality growth in 2025 and beyond. As our new business units continue to scale up, we expect to see even better efficiency and profitability moving forward. Additionally, we are pleased to continue driving returns for shareholders through successful share buybacks and meaningful dividends.”
Income Statement
In the first quarter of 2025, the Bank’s net interest income increased to $32.1 million, growing $1.8 million, or 5.9%, compared to the same period in 2024. The increase was primarily driven by an increase of $2.2 million in interest income which outpaced the $450,000 increase in interest expense in the first quarter of 2025 compared to the same quarter in 2024. Net interest income increased $498,000, or 1.6%, over the linked fourth quarter of 2024. This increase was primarily driven by a decrease of $1.6 million in interest expense on deposits, resulting from lower average rates in the first quarter, partially offset by a $1.1 million decrease in interest income from interest bearing deposits with banks, due to lower average balances and yields.
The Bank’s tax equivalent net interest margin measured 3.65% for the first quarter of 2025, increasing by one basis point from 3.64% for the prior year quarter, and increasing by 11 basis points from 3.54% for the fourth quarter of 2024. The relatively flat margin from the prior year quarter was primarily driven by similar decreases in the average rate on interest earning assets and interest bearing liabilities. The Bank’s net interest margin increased compared to the linked fourth quarter primarily due to declines in average rates on deposits and borrowings outpacing the slight reduction in average rates on earning assets. The Bank’s tax equivalent net interest margin includes the impact of amortization and accretion of premiums and discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions. The net impact of amortization of premiums and accretion of discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions was a $2.8 million increase in net interest income during the first quarter of 2025, compared to $3.1 million for the quarter ended December 31, 2024 and $4.2 million for the first quarter of 2024.
The Bank recorded a credit loss expense totaling $1.5 million during the first quarter of 2025, compared to a credit loss expense totaling $234,000 for the fourth quarter of 2024 and a $698,000 credit loss benefit for the first quarter of 2024. The increased credit loss expense for the first quarter of 2025 is primarily due to the Bank's loan growth during the quarter. The Bank’s credit loss benefit for the first quarter of 2024 reflected the Bank’s strong and stable asset quality and lack of loan growth during the quarter.
In the first quarter of 2025, the Bank recorded non-interest income totaling $2.0 million, compared to non-interest income measuring $2.0 million during the same period in 2024 and $2.2 million in non-interest income during the fourth quarter of 2024. Non-interest income declined from the linked quarter primarily due to lower loan fee income.
Non-interest expense for the first quarter of 2025 was $20.4 million, an increase of $2.6 million, or 14.5%, compared to $17.8 million for the prior year quarter. Higher non-interest expense was largely due to increases of $1.1 million in salaries and employee benefits primarily due to a larger employee base, $832,000 in other real estate owned ("OREO") expense due to an $815,000 impairment of an OREO asset recorded during the quarter, and $438,000 in occupancy and equipment primarily due to new branch locations added at the end of 2024.
On a linked quarter basis, non-interest expense increased $1.3 million from $19.1 million for the fourth quarter of 2024. The linked quarter increase primarily reflects increases of $781,000 in OREO expense due to the $815,000 impairment of an OREO asset recorded during the quarter, $606,000 in salaries and employee benefits costs due to year-end salary increases and higher payroll taxes due to bonus payments made in the first quarter of 2025, $202,000 in occupancy and equipment costs due to the new branch locations added at the end of 2024 and higher maintenance and repair costs. These increases were partially offset by a decrease of $425,000 in other professional fees compared to the linked quarter primarily due to lower consulting services and personnel placement fees.
Income tax expense for the three months ended March 31, 2025 was $2.8 million with an effective tax rate of 22.7%, compared to $2.7 million with an effective tax rate of 17.5% for the first quarter of 2024. The effective tax rate for the first quarter of 2025 included the impact of certain discrete items related to stock compensation activity as well as the impact of additional tax credit investments made by the Bank during the quarter. The effective tax rate for the first quarter of 2024 was lower due to certain one-time adjustments primarily related to the finalization of certain tax items related to our acquisition of Malvern Bancorp, Inc. and Malvern Bank, National Association ("Malvern"). Income tax expense for the three months ended December 31, 2024 was $3.9 million with an effective tax rate of 27.2%, which included additional tax related to the Bank’s bank-owned life insurance (“BOLI”) restructuring completed in the second half of 2024. We anticipate our future effective tax rate will be in the range of 23% to 24%.
Balance Sheet
Total assets increased $100.4 million, or 2.7%, from December 31, 2024 to March 31, 2025. Total loans as of March 31, 2025 increased $91.8 million, or 2.9%, from $3.14 billion at December 31, 2024. The Bank’s cash and cash equivalents increased by $16.2 million, or 5.9%, compared to December 31, 2024, as management continued to ensure adequate on-balance sheet liquidity.
The Bank reported total assets of $3.88 billion at March 31, 2025, an increase of $289.4 million, or 8.1%, from $3.59 billion at March 31, 2024. Total loans increased $243.6 million, or 8.1%, to $3.24 billion at March 31, 2025 compared to $2.99 billion at March 31, 2024. The increase primarily reflects strong organic loan growth, particularly in the C&I and owner-occupied commercial real estate portfolios.
Total deposits increased by $63.9 million or 2.1% from $3.06 billion at December 31, 2024 to $3.12 billion at March 31, 2025, due to a combination of in-market and brokered deposits which were utilized to support significant loan growth during the first quarter of 2025. The Bank's total deposits increased $149.5 million, or 5.0%, from $2.97 billion at March 31, 2024. Organic deposit growth was primarily due to our team’s success in attracting new deposit relationships while also maintaining existing balances amid heightened industry-wide pricing competition.
During the three months ended March 31, 2025, stockholders’ equity increased by $5.8 million, or 1.4%, primarily due to net income, partially offset by dividends and share repurchases.
As of March 31, 2025, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 9.63%, a Tier 1 Risk-Based capital ratio of 9.59%, a Common Equity Tier 1 Capital ratio of 9.59%, and a Total Risk-Based capital ratio of 11.46%. The tangible stockholders' equity to tangible assets ratioiii measured 9.47% as of March 31, 2025 compared to 9.56% at December 31, 2024. The decline from December 31, 2024, was primarily due to the asset growth during the quarter ended March 31, 2025.
Asset Quality
First Bank's asset quality metrics remained favorable during the first quarter of 2025. Total nonperforming loans declined from $11.7 million at December 31, 2024 to $11.6 million at March 31, 2025. Total nonperforming assets declined from $17.3 million to $16.4 million during the same period primarily due to the $815,000 impairment of an OREO asset recorded during the quarter.
The Bank recorded net recoveries of $15,000 during the first quarter of 2025 compared to net recoveries of $155,000 in the fourth quarter of 2024 and net charge-offs of $5.3 million in the first quarter of 2024. Net charge-offs for the first quarter of 2024 reflected the charge-off of a $5.5 million purchased credit deteriorated (“PCD”) loan acquired from Malvern, partially offset by $201,000 in net recoveries. The allowance for credit losses on loans as a percentage of total loans measured 1.21% at March 31, 2025, compared to 1.20% at December 31, 2024 and 1.22% at March 31, 2024.
Liquidity and Borrowings
Management believes the Bank’s current liquidity position, coupled with our various contingent funding sources, provides the Bank with a strong liquidity base and a diverse source of funding options. The Bank’s cash and cash equivalents increased by $16.2 million, or 5.9%, compared to December 31, 2024, ensuring adequate on-balance sheet liquidity. Borrowings increased by $34.9 million compared to December 31, 2024, as the Bank utilized Federal Home Loan Bank (“FHLB”) advances to support loan growth, while continuing to maintain adequate available borrowing capacity at the FHLB.
Cash Dividend Declared
On February 21, 2025, the Bank paid $0.06 per share in cash dividends to common stockholders totaling $1.5 million that was declared by the Bank’s Board of Directors on January 21, 2025.
On April 15, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.06 per share to common stockholders of record at the close of business on May 9, 2025, payable on May 23, 2025.
Share Repurchase Program
During the first quarter of 2025 the Bank repurchased 256,454 shares of common stock at an average price of $15.06 per share, under the share repurchase program authorized in October 2024. Through March 31, 2025, 350,000 shares have been repurchased from the current share repurchase plan with a total cost of $5.2 million or $14.74 per share on average. The share repurchase program provides for the repurchase of up to 1.0 million shares of First Bank common stock with an aggregate repurchase amount of up to $16.0 million. The share repurchase program will expire on September 30, 2025.
Conference Call and Earnings Release Supplement
Additional details on the quarterly results and the Bank are included in the attached earnings release supplement. http://ml.globenewswire.com/Resource/Download/b39afd8e-20bb-4429-bcd7-61a0762ab19e
First Bank will host its earnings call on Wednesday, April 23, 2025 at 9:00 AM Eastern Time. The direct dial toll free number for the live call is 1-800-715-9871 and the access code is 3909613. For those unable to participate in the call, a replay will be available by dialing 1-800-770-2030 (access code 3909613) from one hour after the end of the conference call until July 22, 2025. Replay information will also be available on First Bank’s website at www.firstbanknj.com under the “About Us” tab. Click on “Investor Relations” to access the replay of the conference call.
About First Bank
First Bank is a New Jersey state-chartered bank with 26 full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Morristown, Pennington, Randolph, Somerset, Trenton and Williamstown, New Jersey; and Coventry, Devon, Doylestown, Lionville, Malvern, Media, Paoli, Trevose, Warminster and West Chester, Pennsylvania; and Palm Beach, Florida. With $3.88 billion in assets as of March 31, 2025, First Bank offers a full range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia corridor. First Bank's common stock is listed on the Nasdaq Global Market under the symbol “FRBA.”
Forward Looking Statements
This press release contains certain forward-looking statements, either express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding First Bank’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about First Bank, any of which may change over time and some of which may be beyond First Bank’s control. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: whether First Bank can: successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions, integrate acquired entities and realize anticipated efficiencies, sustain its internal growth rate, and provide competitive products and services that appeal to its customers and target markets; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Bank operates and in which its loans are concentrated, including the effects of declines in housing market values; the impact of public health emergencies, on First Bank, its operations and its customers and employees; an increase in unemployment levels and slowdowns in economic growth; First Bank's level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; changes in market interest rates may increase funding costs and reduce earning asset yields thus reducing margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of First Bank's investment securities portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank's operations, including changes in regulations affecting financial institutions and expenses associated with complying with such regulations; uncertainties in tax estimates and valuations, including due to changes in state and federal tax law; First Bank's ability to comply with applicable capital and liquidity requirements, including First Bank’s ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; and possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Forward-Looking Statements” and “Risk Factors” in First Bank’s Annual Report on Form 10-K and any updates to those risk factors set forth in First Bank’s proxy statement, subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if First Bank’s underlying assumptions prove to be incorrect, actual results may differ materially from what First Bank anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and First Bank does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All forward-looking statements expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that First Bank or persons acting on First Bank’s behalf may issue.
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This press release contains “non-GAAP” financial measures, which management uses in its analysis of First Bank’s performance. Management believes these non-GAAP financial measures allow for better comparability of period to period operating performance. Additionally, First Bank believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided in the accompanying financial tables.
i Return on average tangible equity is a non-GAAP financial measure and is calculated by dividing net income by average tangible equity (average equity minus average goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release
ii Tangible book value per share is a non-GAAP financial measure and is calculated by dividing common shares outstanding by tangible equity (equity minus goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.
iii Tangible stockholders' equity to tangible assets ratio is a non-GAAP financial measure and is calculated by dividing tangible equity (equity minus goodwill and other intangible assets) by tangible assets (total assets minus goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.
FIRST BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data, unaudited)March 31, 2025 December 31, 2024 Assets Cash and due from banks $ 32,396 $ 18,252 Restricted cash 11,910 14,270 Interest bearing deposits with banks 243,778 239,392 Cash and cash equivalents 288,084 271,914 Interest bearing time deposits with banks 743 743 Investment securities available for sale, at fair value (amortized cost of $90,393 and $84,083, respectively) 85,059 77,413 Equity securities, at fair value 1,860 1,870 Investment securities held to maturity, net of allowance for credit losses of $209 and $206, respectively (fair value of $42,565 and $42,770, respectively) 46,387 47,123 Restricted investment in bank stocks 15,933 14,333 Other investments 13,388 11,612 Loans held for sale 618 - Loans, net of deferred fees and costs 3,236,039 3,144,266 Less: Allowance for credit losses (39,223) (37,773) Net loans 3,196,816 3,106,493 Premises and equipment, net 21,267 21,351 Other real estate owned, net 4,822 5,637 Accrued interest receivable 14,889 14,267 Bank-owned life insurance 86,258 85,553 Goodwill 44,166 44,166 Other intangible assets, net 8,341 8,827 Deferred income taxes, net 25,178 25,528 Other assets 26,950 43,516 Total assets $ 3,880,759 $ 3,780,346 Liabilities and Stockholders' Equity Liabilities: Non-interest bearing deposits $ 535,584 $ 519,320 Interest bearing deposits 2,584,210 2,536,576 Total deposits 3,119,794 3,055,896 Borrowings 281,867 246,933 Subordinated debentures 29,981 29,954 Accrued interest payable 4,887 3,820 Other liabilities 29,315 34,587 Total liabilities 3,465,844 3,371,190 Stockholders' Equity: Preferred stock, par value $2 per share; 10,000,000 shares authorized; no shares issued and outstanding - - Common stock, par value $5 per share; 40,000,000 shares authorized; 27,576,676 shares issued and 25,045,612 shares outstanding and 27,375,439 shares issued and 25,100,829 shares outstanding, respectively 136,220 135,495 Additional paid-in capital 124,555 124,524 Retained earnings 184,657 176,779 Accumulated other comprehensive loss (3,938) (4,925) Treasury stock, 2,531,064 and 2,274,610 shares, respectively (26,579) (22,717) Total stockholders' equity 414,915 409,156 Total liabilities and stockholders' equity $ 3,880,759 $ 3,780,346 FIRST BANK
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share data, unaudited)Three Months Ended March 31, 2025 2024 Interest and Dividend Income Investment securities—taxable $ 1,188 $ 1,182 Investment securities—tax-exempt 51 38 Interest bearing deposits with banks, Federal funds sold and other 2,997 3,025 Loans, including fees 51,552 49,319 Total interest and dividend income 55,788 53,564 Interest Expense Deposits 20,844 20,786 Borrowings 2,412 2,116 Subordinated debentures 440 344 Total interest expense 23,696 23,246 Net interest income 32,092 30,318 Credit loss expense (benefit) 1,544 (698) Net interest income after credit loss expense 30,548 31,016 Non-Interest Income Service fees on deposit accounts 356 344 Loan fees 326 102 Income from bank-owned life insurance 793 785 Gains on sale of loans, net 29 229 Gains on recovery of acquired loans 24 118 Other non-interest income 443 386 Total non-interest income 1,971 1,964 Non-Interest Expense Salaries and employee benefits 11,118 10,038 Occupancy and equipment 2,464 2,026 Legal fees 368 316 Other professional fees 726 756 Regulatory fees 684 602 Directors' fees 282 242 Data processing 805 806 Marketing and advertising 399 296 Travel and entertainment 236 244 Insurance 214 244 Other real estate owned expense, net 920 88 Other expense 2,168 2,152 Total non-interest expense 20,384 17,810 Income Before Income Taxes 12,135 15,170 Income tax expense 2,754 2,658 Net Income $ 9,381 $ 12,512 Basic earnings per common share $ 0.37 $ 0.50 Diluted earnings per common share $ 0.37 $ 0.50 Basic weighted average common shares outstanding 25,118,062 25,039,949 Diluted weighted average common shares outstanding 25,269,002 25,199,381 FIRST BANK
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)Three Months Ended March 31, 2025 2024 Average Average Average Average Balance Interest Rate (5) Balance Interest Rate (5) Interest earning assets Investment securities (1) (2) $ 134,274 $ 1,250 3.78% $ 147,147 $ 1,228 3.36% Loans (3) 3,170,772 51,552 6.59% 2,979,522 49,319 6.66% Interest bearing deposits with banks, Federal funds sold and other 234,032 2,575 4.46% 203,158 2,710 5.37% Restricted investment in bank stocks 14,137 300 8.61% 10,421 199 7.68% Other investments 14,054 122 3.52% 11,870 116 3.93% Total interest earning assets (2) 3,567,269 55,799 6.34% 3,352,118 53,572 6.43% Allowance for credit losses (38,181) (37,607) Non-interest earning assets 261,101 261,237 Total assets $ 3,790,189 $ 3,575,748 Interest bearing liabilities Interest bearing demand deposits $ 644,736 $ 4,027 2.53% $ 618,941 $ 3,666 2.38% Money market deposits 1,045,013 8,631 3.35% 1,014,906 9,789 3.88% Savings deposits 142,502 650 1.85% 162,113 574 1.42% Time deposits 717,881 7,536 4.26% 671,546 6,757 4.05% Total interest bearing deposits 2,550,132 20,844 3.31% 2,467,506 20,786 3.39% Borrowings 234,526 2,412 4.17% 167,141 2,116 5.09% Subordinated debentures 29,963 440 5.87% 42,470 344 3.24% Total interest bearing liabilities 2,814,621 23,696 3.41% 2,677,117 23,246 3.49% Non-interest bearing deposits 521,326 481,503 Other liabilities 40,570 40,586 Stockholders' equity 413,672 376,542 Total liabilities and stockholders' equity $ 3,790,189 $ 3,575,748 Net interest income/interest rate spread (2) 32,103 2.93% 30,326 2.92% Net interest margin (2) (4) 3.65% 3.64% Tax equivalent adjustment (2) (11) (8) Net interest income $ 32,092 $ 30,318 (1) Average balance of investment securities available for sale is based on amortized cost. (2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%. (3) Average balances of loans include loans on nonaccrual status. (4) Net interest income divided by average total interest earning assets. (5) Annualized. FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(in thousands, except for share and employee data, unaudited)As of or For the Quarter Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 EARNINGS Net interest income $ 32,092 $ 31,594 $ 30,094 $ 30,540 $ 30,318 Credit loss expense (benefit) 1,544 234 1,579 63 (698) Non-interest income 1,971 2,176 2,479 689 1,964 Non-interest expense 20,384 19,124 18,644 17,953 17,810 Income tax expense 2,754 3,915 4,188 2,140 2,658 Net income 9,381 10,497 8,162 11,073 12,512 PERFORMANCE RATIOS Return on average assets (1) 1.00% 1.10% 0.88% 1.23% 1.41% Return on average equity (1) 9.20% 10.27% 8.15% 11.52% 13.36% Return on average tangible equity (1) (2) 10.54% 11.82% 9.42% 13.40% 15.64% Net interest margin (1) (3) 3.65% 3.54% 3.48% 3.62% 3.64% Yield on loans (1) 6.59% 6.62% 6.73% 6.81% 6.66% Total cost of deposits (1) 2.75% 2.89% 3.06% 3.01% 2.83% Efficiency ratio (2) 57.65% 56.98% 58.49% 55.88% 55.56% SHARE DATA Common shares outstanding 25,045,612 25,100,829 25,186,920 25,144,983 25,096,449 Basic earnings per share $ 0.37 $ 0.42 $ 0.32 $ 0.44 $ 0.50 Diluted earnings per share 0.37 0.41 0.32 0.44 0.50 Book value per share 16.57 16.30 15.96 15.61 15.23 Tangible book value per share (2) 14.47 14.19 13.84 13.46 13.06 MARKET DATA Market value per share $ 14.81 $ 14.07 $ 15.20 $ 12.74 $ 13.74 Market value / Tangible book value 102.35% 99.16% 109.83% 94.65% 105.20% Market capitalization $ 370,926 $ 353,169 $ 382,841 $ 320,347 $ 344,825 CAPITAL & LIQUIDITY Stockholders' equity / assets 10.69% 10.82% 10.70% 10.86% 10.64% Tangible stockholders' equity / tangible assets (2) 9.47% 9.56% 9.41% 9.50% 9.27% Loans / deposits 103.73% 102.89% 101.23% 101.02% 100.75% ASSET QUALITY Net charge-offs $ (15) $ (155) $ 386 $ 175 $ 5,293 Net charge-offs (recoveries), excluding PCD loan charge-off (4) (15) (155) 386 175 (201) Nonperforming loans 11,584 11,677 12,014 14,227 17,054 Nonperforming assets 16,406 17,314 17,651 20,226 23,053 Net charge offs / average loans (1) 0.00% (0.02%) 0.05% 0.02% 0.72% Net charge offs (recoveries), excluding PCD loan charge-off / average loans (1) (4) (0.00%) (0.02%) 0.05% 0.02% (0.03%) Nonperforming loans / total loans 0.36% 0.37% 0.39% 0.47% 0.57% Nonperforming assets / total assets 0.42% 0.46% 0.47% 0.56% 0.64% Allowance for credit losses on loans / total loans 1.21% 1.20% 1.21% 1.21% 1.22% Allowance for credit losses on loans / nonperforming loans 338.60% 323.48% 311.59% 254.81% 213.42% OTHER DATA Total assets $ 3,880,759 $ 3,780,346 $ 3,757,653 $ 3,615,731 $ 3,591,398 Total loans 3,236,039 3,144,266 3,087,488 2,998,029 2,992,423 Total deposits 3,119,794 3,055,896 3,050,070 2,967,634 2,970,262 Total stockholders' equity 414,915 409,156 402,070 392,489 382,254 Number of full-time equivalent employees 315 318 313 294 288 (1) Annualized. (2) Non-GAAP financial measure that we believe provides management and investors with information that is useful in understanding our financial performance and condition. See the accompanying table, "Non-GAAP Financial Measures," for calculation and reconciliation. (3) Tax equivalent using a federal income tax rate of 21%. (4) Excludes $5.5 million in a PCD loan charge-off in first quarter of 2024, which was reserved for through purchase accounting marks at the time of the Malvern acquisition. FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)As of the Quarter Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 LOAN COMPOSITION Commercial and industrial $ 651,690 $ 576,625 $ 546,541 $ 530,996 $ 508,911 Commercial real estate: Owner-occupied 694,113 671,357 688,988 647,625 625,643 Investor 1,160,549 1,181,684 1,170,508 1,143,954 1,172,311 Construction and development 200,262 205,096 193,460 190,108 184,816 Multi-family 308,217 287,843 267,861 270,238 279,668 Total commercial real estate 2,363,141 2,345,980 2,320,817 2,251,925 2,262,438 Residential real estate: Residential mortgage and first lien home equity loans 142,298 142,769 144,081 144,978 154,704 Home equity–second lien loans and revolving lines of credit 52,438 51,020 49,763 46,882 45,869 Total residential real estate 194,736 193,789 193,844 191,860 200,573 Consumer and other 29,760 31,324 29,518 26,321 23,702 Total loans prior to deferred loan fees and costs 3,239,327 3,147,718 3,090,720 3,001,102 2,995,624 Net deferred loan fees and costs (3,288) (3,452) (3,232) (3,073) (3,201) Total loans $ 3,236,039 $ 3,144,266 $ 3,087,488 $ 2,998,029 $ 2,992,423 LOAN MIX Commercial and industrial 20.1% 18.3% 17.7% 17.7% 17.0% Commercial real estate: Owner-occupied 21.5% 21.4% 22.3% 22.3% 20.9% Investor 35.9% 37.6% 37.9% 37.9% 39.2% Construction and development 6.2% 6.5% 6.3% 6.3% 6.2% Multi-family 9.5% 9.1% 8.7% 8.7% 9.3% Total commercial real estate 73.1% 74.6% 75.2% 75.2% 75.6% Residential real estate: Residential mortgage and first lien home equity loans 4.4% 4.6% 4.7% 4.7% 5.2% Home equity–second lien loans and revolving lines of credit 1.6% 1.6% 1.6% 1.6% 1.5% Total residential real estate 6.0% 6.2% 6.3% 6.3% 6.7% Consumer and other 0.9% 1.0% 0.9% 0.9% 0.8% Net deferred loan fees and costs (0.1%) (0.1%) (0.1%) (0.1%) (0.1%) Total loans 100.0% 100.0% 100.0% 100.0% 100.0% FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)As of the Quarter Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 DEPOSIT COMPOSITION Non-interest bearing demand deposits $ 535,584 $ 519,320 $ 519,079 $ 499,765 $ 470,749 Interest bearing demand deposits 629,974 629,099 597,802 574,515 580,864 Money market and savings deposits 1,197,517 1,198,039 1,235,637 1,199,382 1,219,634 Time deposits 756,719 709,438 697,552 693,972 699,015 Total Deposits $ 3,119,794 $ 3,055,896 $ 3,050,070 $ 2,967,634 $ 2,970,262 DEPOSIT MIX Non-interest bearing demand deposits 17.2% 17.0% 17.0% 16.8% 15.8% Interest bearing demand deposits 20.2% 20.6% 19.6% 19.4% 19.6% Money market and savings deposits 38.4% 39.2% 40.5% 40.4% 41.1% Time deposits 24.2% 23.2% 22.9% 23.4% 23.5% Total Deposits 100.0% 100.0% 100.0% 100.0% 100.0% FIRST BANK
NON-GAAP FINANCIAL MEASURES
(in thousands, except for share data, unaudited)As of or For the Quarter Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Return on Average Tangible Equity Net income (numerator) $ 9,381 $ 10,497 $ 8,162 $ 11,073 $ 12,512 Average stockholders' equity $ 413,672 $ 406,579 $ 398,535 $ 386,644 $ 376,542 Less: Average Goodwill and other intangible assets, net 52,805 53,278 53,823 54,347 54,790 Average Tangible stockholders' equity (denominator) $ 360,867 $ 353,301 $ 344,712 $ 332,297 $ 321,752 Return on average tangible equity (1) 10.54% 11.82% 9.42% 13.40% 15.64% Tangible Book Value Per Share Stockholders' equity $ 414,915 $ 409,156 $ 402,070 $ 392,489 $ 382,254 Less: Goodwill and other intangible assets, net 52,507 52,993 53,484 54,026 54,483 Tangible stockholders' equity (numerator) $ 362,408 $ 356,163 $ 348,586 $ 338,463 $ 327,771 Common shares outstanding (denominator) 25,045,612 25,100,829 25,186,920 25,144,983 25,096,449 Tangible book value per share $ 14.47 $ 14.19 $ 13.84 $ 13.46 $ 13.06 Tangible Equity / Tangible Assets Stockholders' equity $ 414,915 $ 409,156 $ 402,070 $ 392,489 $ 382,254 Less: Goodwill and other intangible assets, net 52,507 52,993 53,484 54,026 54,483 Tangible stockholders' equity (numerator) $ 362,408 $ 356,163 $ 348,586 $ 338,463 $ 327,771 Total assets $ 3,880,759 $ 3,780,346 $ 3,757,653 $ 3,615,731 $ 3,591,398 Less: Goodwill and other intangible assets, net 52,507 52,993 53,484 54,026 54,483 Tangible total assets (denominator) $ 3,828,252 $ 3,727,353 $ 3,704,169 $ 3,561,705 $ 3,536,915 Tangible stockholders' equity / tangible assets 9.47% 9.56% 9.41% 9.50% 9.27% Efficiency Ratio Non-interest expense $ 20,384 $ 19,124 $ 18,644 $ 17,953 $ 17,810 Less: Other real estate owned write-down 815 - 362 - - Adjusted non-interest expense (numerator) $ 19,569 $ 19,124 $ 18,282 $ 17,953 $ 17,810 Net interest income $ 32,092 $ 31,594 $ 30,094 $ 30,540 $ 30,318 Non-interest income 1,971 2,176 2,479 689 1,964 Total revenue 34,063 33,770 32,573 31,229 32,282 Add: Losses on sale of investment securities, net - - 555 - - (Subtract) Add: (Gains) losses on sale of loans, net (29) (38) (135) 900 (229) Less: Bank Owned Life Insurance Incentive (88) (168) (1,116) - - Adjusted total revenue (denominator) $ 33,946 $ 33,564 $ 31,877 $ 32,129 $ 32,053 Efficiency ratio 57.65% 56.98% 57.35% 55.88% 55.56% (1) Annualized. CONTACT: Andrew Hibshman, Chief Financial Officer (609) 643-0058, andrew.hibshman@firstbanknj.com 
