First Bank Announces Third Quarter 2025 Net Income of $11.7 Million

Strong net interest margin and operating efficiency drive robust earnings and tangible book value expansion

HAMILTON, N.J., Oct. 22, 2025 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) ("the Bank") today announced results for the third quarter of 2025. Net income for the third quarter of 2025 was $11.7 million, or $0.47 per diluted share, compared to $8.2 million, or $0.32 per diluted share, for the third quarter of 2024. Return on average assets, return on average equity and return on average tangible equityⁱ for the third quarter of 2025 were 1.16%, 10.85% and 12.35%, respectively, compared to 0.88%, 8.15% and 9.42%, respectively, for the third quarter of 2024.

Third Quarter 2025 Performance Highlights:

• Total loans of $3.37 billion at September 30, 2025 grew $46.6 million, or 5.6%, annualized, from the linked quarter ended June 30, 2025. The yield on average loans increased four basis points to 6.66%

• Total deposits were $3.22 billion at September 30, 2025, increasing $55.4 million, or 6.9% annualized, from the linked quarter ended June 30, 2025. The average total cost of deposits declined three basis points to 2.69%

• Net interest margin measured 3.71% for the third quarter of 2025, increasing six basis points compared to 3.65% for the linked quarter

• Efficiencyⁱⁱ ratio measured 51.81% for the third quarter of 2025, improving from 56.13% for the linked quarter

• Nonperforming assets to total assets declined, measuring 0.36% at September 30, 2025, compared to 0.40% at June 30, 2025 and 0.47% at September 30, 2024

• Tangible book value per shareⁱⁱⁱ grew to $15.33 at September 30, 2025, increasing 12.4%, annualized, from $14.87 at June 30, 2025
  
  

“We are pleased to report high-quality earnings and outstanding profitability metrics for the third quarter of 2025,” said Patrick L. Ryan, President and CEO of First Bank. “Our team delivered meaningful loan and deposit growth with favorable pricing, resulting in solid net interest margin expansion. We continued to execute our strategy to grow deep commercial relationships with unique proficiency, operating with an efficiency ratio that remained below 60% for the 25th consecutive quarter. Continued efficient growth positioned First Bank to deliver a 12.4% annualized increase in tangible book value per share during the third quarter. Importantly, we continue to diversify our portfolio with growth in our C&I and Consumer businesses outpacing Investor CRE. While growth remained strong in the third quarter, we do expect increased loan pay off activity to slow our growth rate in the fourth quarter. As we start to look out towards 2026, strong pipelines and the addition of new branch locations should allow for continued healthy balance sheet growth in the 5% range. We did increase our Allowance for Credit Losses slightly during the quarter in response to declining metrics in our small business segment. While this is a relatively small segment within the overall portfolio, we want to be cautious as small businesses tend to face challenges should an economic downturn emerge. Nevertheless, year-to-date net charge-offs as a percentage of average loans measured 10 basis points, which is consistent with historic levels.”

Mr. Ryan added, “We have an ongoing focus on relationship-building and profitability amid continued competition. We expect to continue delivering enhanced returns to our shareholders through prudent capital management, including reduced costs afforded by our recent subordinated debt refinancing, and through dividends and share buybacks.”

Income Statement

In the third quarter of 2025, the Bank’s net interest income increased to $35.5 million, growing $5.5 million, or 18.1%, compared to the same period in 2024. The increase was primarily driven by an increase of $5.0 million in interest income, reflecting higher average loan balances, and a $441,000 decrease in interest expense, primarily due to a 42 basis point reduction in the cost of interest bearing deposits, which more than offset increased costs related to the timing of our subordinated debt refinancing. See “Subordinated Debt Refinance” below for further detail. Net interest income increased $1.5 million, or 4.5%, over the linked quarter of 2025. This increase was driven by a $2.0 million increase in interest income, primarily due to higher average loan balances and yields, partially offset by an increase of $471,000 in interest expense. The increase in interest expense primarily resulted from higher average interest bearing deposits and increased costs related to the timing of our subordinated debt refinancing, which outpaced the decline in average borrowings during the third quarter of 2025.

The Bank’s tax equivalent net interest margin measured 3.71% for the third quarter of 2025, increasing 23 basis points from 3.48% for the third quarter of 2024 and increasing seven basis points from the second quarter of 2025. Improvement from the prior year quarter was driven by an improved interest rate spread, reflecting declines in average rates on deposits and borrowings which outpaced the reduction in average rates on earning assets. The Bank’s net interest margin improved compared to the linked quarter primarily due to an increase in average rates on loans and a decrease in average rate on deposits and borrowings, partially offset by the increased cost of subordinated debt related to the timing of the refinancing. 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 purchase accounting impact was $2.6 million in net interest income during the third quarter of 2025, compared to $2.7 million for the second quarter of 2025.

The Bank recorded a credit loss expense totaling $3.0 million during the third quarter of 2025, compared to credit loss expense totaling $2.6 million for the second quarter of 2025 and $1.6 million for the third quarter of 2024. The increased credit loss expense for the third quarter of 2025 was primarily due to increases in net charge-offs related to the Bank's small business portfolio, as well as loan growth during the quarter. The Bank’s credit loss expense for the linked and prior year periods reflected loan growth and the Bank’s strong and stable asset quality.

The Bank recorded non-interest income totaling $2.4 million for the third quarter of 2025, compared to $2.5 million and $2.7 million for the prior year and linked quarters, respectively. Non-interest income decreased by $58,000 compared to the prior year quarter primarily related to one-time enhancement to the cash surrender value of BOLI that resulted from the restructuring transaction during the third quarter of 2024. During the third quarter of 2024, the Bank recorded $1.1 million in one-time enhancements that resulted from a BOLI restructuring transaction, which was partially offset by $555,000 in net losses on the sale of investment securities related to the Bank’s balance sheet restructuring initiatives at that time coupled with $446,000 increased income from gain on recovery of acquired loans in the current quarter. Non-interest income decreased by $281,000 from the linked quarter primarily due to lower loan swap fee income and a $397,000 gain recorded in the linked quarter on the sale of a corporate facility acquired through the Malvern acquisition.

Non-interest expense for the third quarter of 2025 was $19.7 million, increasing $1.0 million, or 5.5%, compared to $18.6 million for the prior year quarter. Higher non-interest expense was largely due to an increase of $1.2 million in salaries and employee benefits related to merit increases and a larger employee base. Other miscellaneous increases were related to the Bank’s significant growth over the last twelve months and ongoing branch network optimization initiatives. These increases were partially offset by a decline in other real estate owned (OREO) expense due to the liquidation of the Bank’s large OREO asset during the second quarter of 2025.

On a linked quarter basis, non-interest expense decreased $1.2 million from $20.9 million in the second quarter of 2025. The linked quarter decline primarily reflects non-recurring items recorded during the second quarter of 2025 coupled with effective expense management. During the second quarter of 2025, the Company recorded $863,000 in one-time executive severance payments in salaries and benefits expense. Declines in other professional fees, data processing and marketing expense were primarily related to efficiency initiatives implemented during the third quarter.

Income tax expense for the three months ended September 30, 2025 was $3.6 million with an effective tax rate of 23.4%, compared to $4.2 million with an effective tax rate of 33.9% for the third quarter of 2024. Income tax expense for the third quarter of 2024 included approximately $1.2 million of tax expense recorded related to the BOLI restructuring completed during that period. Excluding this impact, the effective tax rate would have been approximately 24.0% for the third quarter of 2024. Income tax expense for the nine months ended September 30, 2025 was $9.4 million with an effective tax rate of 23.0%. We anticipate our future effective tax rate will be relatively stable and should not be significantly impacted by any recent legislative tax changes.

Balance Sheet

Total assets increased $252.3 million, or 6.7%, from $3.78 billion at December 31, 2024 to $4.03 billion at September 30, 2025. Total loans increased $229.6 million, or 7.3%, over the same period, reflecting strong organic growth, particularly in the commercial and industrial (“C&I”) portfolio. The Bank’s cash and cash equivalents increased by $47.0 million, or 17.3%, compared to December 31, 2024, as management continued to maintain adequate on-balance sheet liquidity.

The Bank reported total deposits of $3.22 billion as of September 30, 2025, an increase of $167.7 million, or 5.5%, from $3.06 billion at December 31, 2024. 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. The increase was primarily due to a combination of in-market commercial and consumer balances, offset somewhat by a decline in government-related deposit balances. Compared to December 31, 2024, non-interest bearing demand deposits increased by $59.0 million to comprise 18.0% of total deposits, up from 17.0%. Over the same period, interest bearing demand deposits decreased by $67.7 million to comprise 17.4% of total deposits at September 30, 2025, down from 20.6% at December 31, 2024. Money market and savings deposits increased by $30.7 million to comprise 38.1% of total deposits at September 30, 2025, down from 39.2% at December 31, 2024. Time deposits increased by $145.7 million to comprise 26.5% at September 30, 2025, up from 23.2% at December 31, 2024.

During the nine months ended September 30, 2025, stockholders’ equity increased by $22.7 million, or 5.6%, primarily due to net income, partially offset by dividends and share repurchases.

As of September 30, 2025, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 9.54%, a Tier 1 Risk-Based capital ratio of 10.15%, a Common Equity Tier 1 Capital ratio of 10.15%, and a Total Risk-Based capital ratio of 12.25%. The tangible stockholders' equity to tangible assets ratio^iv measured 9.55% as of September 30, 2025 compared to 9.56% at December 31, 2024.

Asset Quality

First Bank's asset quality metrics remained favorable during the third quarter of 2025. Total nonperforming assets declined from $17.3 million at December 31, 2024 to $14.4 million at September 30, 2025, primarily due to the sale of the Bank’s OREO asset during the second quarter of 2025, partially offset by the addition of nonperforming loans. Total nonperforming loans increased from $11.7 million at December 31, 2024 to $14.4 million at September 30, 2025.

The Bank recorded net charge-offs of $1.7 million during the third quarter of 2025, compared to net charge-offs of $796,000 and $386,000 in the linked and prior year quarters, respectively. The year to date net charge-offs primarily reflects losses in the Bank's small business portfolio. The allowance for credit losses on loans as a percentage of total loans measured 1.25% at September 30, 2025, compared to 1.23% at June 30, 2025 and 1.21% at September 30, 2024.

Liquidity and Borrowings

Management believes the Bank’s current on-balance sheet 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 decreased by $26.0 million, or 7.5%, compared to June 30, 2025, reflecting the use of some excess funds to pay off higher cost borrowing sources. Borrowings decreased by $25.1 million compared to June 30, 2025, as the Bank reduced its Federal Home Loan Bank (“FHLB”) advances, while continuing to maintain adequate available borrowing capacity at the FHLB.

Subordinated Debt Refinance

On June 18, 2025, the Bank announced the closing of a $35.0 million private placement of fixed-to-floating rate subordinated notes with a maturity date of June 30, 2035 and a fixed rate of interest of 7.125% per annum for the first five years. Thereafter, the notes will pay interest at a floating rate, reset quarterly, equal to the then current three-month Secured Overnight Financing Rate (“SOFR”) plus 343 basis points. The notes may be redeemed at the option of the Bank, without penalty, on any quarterly interest payment date on or after June 30, 2030. The notes have been structured to qualify as Tier 2 capital for regulatory purposes.

The Bank redeemed its 2020 $30.0 million fixed-to-floating rate subordinated notes on September 1, 2025. The 2020 notes carried a fixed rate of 5.50% per annum through June 1, 2025. On June 1, 2025, the 2020 notes repriced to a rate of 9.704% per annum.

The Bank carried both subordinated note issuances totaling $65.0 million from June 18, 2025 through September 1, 2025. The monthly interest expense in July and August for the $30.0 million of called notes was approximately $243,000 per month.

Cash Dividend Declared

On October 21, 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 November 7, 2025, payable on November 21, 2025.

Share Repurchase Program

During the third quarter of 2025 the Bank repurchased 119,493 shares of common stock at an average price of $14.91 per share, under the share repurchase program that was authorized in October 2024 and expired on September 30, 2025. Through September 30, 2025, 662,678 shares were repurchased under the previous repurchase plan with a total cost of $9.8 million or $14.83 per share on average. The share repurchase program provided 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 Board of Directors has authorized management to proceed with regulatory applications for a new share repurchase program. The regulatory applications have been submitted, and the Bank is awaiting a response. The timing, price and volume of any future repurchases will be based on market conditions, relevant securities laws and other factors. The stock repurchases may be made from time to time on the open market or in privately negotiated transactions. Any stock repurchase program does not require the Bank to repurchase any specific number of shares, and the Bank may terminate any active repurchase program at any time.

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/fea462fb-5a4c-4259-bdde-f2f3542517c6

First Bank will host its earnings call on Thursday, October 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 6022332. For those unable to participate in the call, a replay will be available by dialing 1-800-770-2030 (access code 6022332) from one hour after the end of the conference call until January 31, 2026. 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 a branch network that traverses the New York to Philadelphia corridor and includes a single location in Palm Beach County, Florida. With $4.03 billion in assets as of September 30, 2025, First Bank offers a full range of deposit and loan products to individuals and businesses in its markets. 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 The efficiency ratio is a non-U.S. GAAP financial measure and is calculated by dividing non-interest expense less merger-related expenses by adjusted total revenue (net interest income plus non-interest income). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱⁱ 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.

^iv 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)

FIRST BANK
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share data, unaudited)

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AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)

FIRST BANK
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)

(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)

(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 accompanying table, "Non-GAAP Financial Measures," for calculation and reconciliation.
(3) Tax equivalent using a federal income tax rate of 21%.

FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)

FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)

FIRST BANK
NON-GAAP FINANCIAL MEASURES
(in thousands, except for share data, unaudited)