Strong net interest margin and operating efficiency support tangible book value expansion

Dividend increase declared

HAMILTON, N.J., Jan. 26, 2026 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) ("the Bank") today announced results for the fourth quarter of 2025. Net income for the fourth quarter of 2025 was $12.3 million, or $0.49 per diluted share, compared to $10.5 million, or $0.41 per diluted share, for the fourth quarter of 2024. Return on average assets, return on average equity and return on average tangible equityⁱ for the fourth quarter of 2025 were 1.21%, 11.11% and 12.58%, respectively, compared to 1.10%, 10.27% and 11.82%, respectively, for the fourth quarter of 2024.

Full year 2025 net income was $43.7 million, or $1.74 per diluted share, compared to $42.2 million, or $1.67 per diluted share for 2024. Return on average assets, return on average equity and return on average tangible equity for the full year 2025 were 1.11%, 10.26% and 11.69%, respectively, compared to 1.15%, 10.77% and 12.50%, respectively, for the full year 2024.

Fourth Quarter 2025 Performance Highlights:

Total loans were $3.29 billion at December 31, 2025, increasing $149.0 million, or 4.7%, from December 31, 2024, and decreasing $80.7 million from the linked quarter ended September 30, 2025. Elevated levels of payoffs totaling $134.8 million during the fourth quarter of 2025 drove the decline in loans. This level of payoffs was almost as much as the total for the first nine months of 2025 which totaled $149.9 million.

Total deposits were $3.20 billion at December 31, 2025, increasing $146.4 million, or 4.8%, from December 31, 2024, and decreasing $21.3 million, or 2.6% annualized, from the linked quarter ended September 30, 2025.

Net interest margin measured 3.74% for the fourth quarter of 2025, increasing three basis points compared to 3.71% for the linked quarter. Net interest margin measured 3.69% for the full year 2025, increasing 12 basis points compared to 3.57% for the full year 2024.

Total revenue (net interest income plus non-interest income) of $38.5 million for the fourth quarter of 2025 increased $495,000, or 1.3%, compared to the linked quarter, while full year total revenue was $147.2 million, an increase of $17.3 million, or 13.4%, compared to 2024.

Efficiency ratioⁱⁱ measured 49.46% for the fourth quarter of 2025, improving from 51.81% for the linked quarter and 56.91% for the fourth quarter of 2024.

Tangible book value per shareⁱⁱⁱ grew to $15.81 at December 31, 2025, increasing 12.4%, annualized, from $15.33 at September 30, 2025 and increasing 11.5% from $14.19 at December 31, 2024.

Patrick L. Ryan, President and CEO of First Bank, reflected on the Bank's performance, stating, "We experienced continued improvement in our core operating trends and we also saw a number of "non-standard" items during the fourth quarter. Our community banking and specialty banking teams continued to execute our strategy to grow deep commercial relationships, building solid loan and deposit pipelines heading into 2026. During the fourth quarter we increased our net interest margin with effective pricing and balance sheet management, even as loan balances retracted amidst elevated payoff activity during the quarter. We operated with an efficiency ratio that remained below 60% for the 26th consecutive quarter, contributing to strong pre-provision net revenue and demonstrating our core operating strength.

"We did see continued softness in the micro/small business credit-scored segment which led to elevated specific reserves and charge-offs in the quarter. Helping to offset those elevated credit costs in the quarter was a $1.9 million gain (booked as a contra expense) related to an OREO property in Florida that we had been carrying for several years at a $0 value. The unusually high payoff activity led to higher than usual prepayment income during the quarter, a short-term boost to help offset the reduction in interest-earning assets. The re-opening of the federal government in the quarter also allowed us to resume SBA loan sales, which helped drive improved non-interest income in the quarter.

"In our largest commercial segments, we continue to see mostly stable asset quality trends, ending the year with a nonperforming asset to total assets ratio of 0.46% which is identical to the ratio we had at the end of 2024. Criticized loans which includes loans classified as substandard and special mention totaled $80.4 million, or 2.44% of loans at December 31, 2025, up from $67.2 million, or 2.15% of loans at December 31, 2024. Unfortunately, we needed to downgrade one $23 million cashflow-based C&I loan to substandard towards the end of the year due to continued challenges with the sales and profitability of the business. While this business has a number of locations that continue to perform well, the overall downward trends drove the need to downgrade and we're monitoring the situation closely given the cashflow-based nature of the credit.

"When going a level deeper in our risk rating scale, the total balance of pass/watch rated loans declined from $85.7 million at December 31, 2024, to $70.8 million at September 30, 2025 and $57.8 million at December 31, 2025. Combining all three categories, pass/watch, special mention and substandard, our ratio declined from 4.86% at December 31, 2024, to 4.41% at September 30, 2025 and to 4.20% at December 31, 2025. Meanwhile, credit quality in our largest segment, CREI, has been strong and improving with delinquency levels in that portfolio at 0.02% at December 31, 2025. In summary, small business lending has been a challenge but it remains a small portfolio, and we expect things to stabilize throughout 2026. C&I loans have performed well, except for the aforementioned credit that was downgraded and the CREI portfolio is performing very well."

Mr. Ryan added, "We are focused on efficiency and profitability coupled with sustainable balance sheet growth as we continue our evolution from a traditional community bank into a full-service, middle market commercial bank. In 2025 we grew loans by 4.7% and delivered an 11.5% increase in tangible book value per share, demonstrating our ability to produce meaningful growth in shareholder returns. We are very pleased that our strong performance in 2025 and our expectations for continued strength in 2026 allowed for a 50% increase to our quarterly cash dividend.

"In 2026 we expect to continue investing in our franchise, from technology to talent. Our specialty banking groups are continuing to move closer to scale, while our core community bankers and CRE lending teams are executing their strategies for profitable growth. We have an optimized branch footprint and are positioned to serve our customers with both in-person and digital convenience and excellence. We believe our diverse teams and our balance sheet are positioned to drive healthy growth and strong profitability across a range of economic conditions and interest rate environments, and we expect our ongoing efficiency initiatives will continue to support increased shareholder returns."

Income Statement

In the fourth quarter of 2025, the Bank's net interest income increased to $36.2 million, growing $4.6 million, or 14.5%, compared to the same period in 2024. The increase was primarily driven by an increase of $3.5 million in interest income, reflecting higher average loan balances, and a $1.1 million decrease in interest expense, primarily due to a 40 basis point reduction in the cost of interest bearing deposits. Net interest income increased $633,000, or 1.8%, over the linked quarter of 2025. This increase was driven by a decrease of $1.5 million in interest expense, which primarily resulted from an 18 basis point reduction in the cost of interest bearing deposits and lower costs related to the timing of our subordinated debt refinancing in the third quarter of 2025. This was partially offset by an $854,000 decrease in interest income, primarily due to lower average loan balances and yields.

Full year 2025 net interest income totaled $137.8 million, an increase of $15.3 million, or 12.5%, compared to $122.5 million for 2024. The increase was primarily a result of higher interest income from loans due to average loan growth of $267.0 million, or 8.8%, which outpaced the nine basis point decline in average loan yields in 2025. Net interest income growth was additionally supported by a decrease in interest expense due to a 30 basis point decline in the cost of interest bearing deposits, reflective of the lower interest rate environment in 2025. The average annual cost of time, money market, and interest bearing demand deposits decreased 34, 57, and 15 basis points, respectively, while the average cost of savings deposits increased 37 basis points.

The Bank's tax equivalent net interest margin measured 3.74% for the fourth quarter of 2025, increasing 20 basis points from 3.54% for the fourth quarter of 2024 and increasing three basis points from the third 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 improved interest rate spread, reflecting declines in average rates on deposits which outpaced the reduction in average rates on earning assets. Net interest margin for the fourth quarter of 2025 also benefited from the decreased cost of subordinated debt related, to the timing of refinancing during the third quarter of 2025. 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 and prepayment penalty income. The net purchase accounting impact was $1.6 million in net interest income during the fourth quarter of 2025, compared to $2.6 million for the third quarter of 2025. Prepayment penalty income was $945,000 in the fourth quarter of 2025, compared to $54,000 in the third quarter of 2025.

The full year 2025 tax equivalent net interest margin was 3.69%, an increase of 12 basis points compared to 3.57% for the full year 2024. The increase was principally a result of a 28 basis point decrease in interest bearing liabilities cost, partially offset by a 14 basis point reduction in the yield on interest earning assets.

The Bank recorded a credit loss expense totaling $4.8 million during the fourth quarter of 2025, compared to credit loss expense totaling $3.0 million for the third quarter of 2025 and $234,000 for the fourth quarter of 2024. The increased credit loss expense in the fourth quarter of 2025 was primarily due to additional net charge-offs and increased specific reserves, primary related to the Bank's small business portfolio. Additionally, during the fourth quarter of 2025, there was a $20.9 million increase in substandard loans, which led to an increased level of reserves, particularly in our C&I portfolio.

For the full year 2025, the Bank reported a credit loss expense of $11.9 million, compared to $1.2 million for 2024. The increase in credit loss expense reflects the higher level of net charge-offs when compared to 2024 and higher provision commensurate with loan growth during the year. Net charge-offs for 2025 totaled $4.2 million, compared to $205,000 for 2024, excluding $5.5 million in a purchase credit deteriorated loan charge-off in the first quarter of 2024, which was reserved through purchase accounting marks at the time of the Malvern acquisition in 2023.

The Bank recorded non-interest income totaling $2.3 million for the fourth quarter of 2025, compared to $2.2 million and $2.4 million for the prior year and linked quarters, respectively. Non-interest income increased by $107,000 compared to the prior year quarter primarily related to higher gains on the sale of loans during the fourth quarter of 2025, partially offset by lower loan fees. Non-interest income decreased by $138,000 from the linked quarter primarily due to lower gains on the recovery of acquired loans, partially offset by higher loan fees and gains on the sale of loans during the fourth quarter of 2025.

Non-interest income for the full year ended December 31, 2025 totaled $9.4 million, increasing $2.1 million, or 28.3%, compared to $7.3 million for the full year ended December 31, 2024. $1.7 million of the increase related to $666,000 in net gains on the sale of loans recorded in 2025, compared to $1.1 million in net losses realized on the sale of loans and investment securities in 2024. Additionally, in 2025 the Bank recorded $1.0 million in gains on the recovery of acquired loans and gains on the sale of other assets, compared to $270,000 recorded in 2024. The increase in non-interest income was partially offset by a $1.0 million reduction in income earned from bank-owned life insurance ("BOLI") in 2025 due to elevated BOLI gains recognized in 2024 related to restructuring of the Bank's BOLI assets.

Non-interest expense for the fourth quarter of 2025 was $17.1 million, decreasing $2.0 million, or 10.7%, compared to $19.1 million for the fourth quarter of 2024. The decrease was primarily due to a $1.9 million gain related to the sale of an Other Real Estate Owned ("OREO") asset that was acquired in 2019 and was held at no carrying value. Salaries and employee benefits expense increased $469,000 compared to the prior year quarter, while other operating expense categories declined in total, reflecting the Bank's effective expense management in 2025.

Non-interest expense decreased $2.6 million from $19.7 million in the third quarter of 2025. The linked quarter decline was principally due to the aforementioned $1.9 million OREO gain recorded during the fourth quarter of 2025, coupled with a $400,000 decrease in salaries and employee benefits primarily due to lower bonus expense in the quarter. Declines across other expense categories were primarily related to ongoing implementation of efficiency initiatives during the fourth quarter.

Non-interest expense for the full year 2025 totaled $78.0 million, an increase of $4.5 million, or 6.1%, compared to $73.5 million for 2024. The increase was primarily a result of salaries and employee benefits costs increasing $4.7 million due to a larger employee base and occupancy and equipment costs rising $1.0 million primarily due to branch optimization efforts. These efforts included three new branch locations, two branch closures/consolidations and one branch relocation. This was partially offset by the aforementioned $1.9 million OREO gain and lower professional fees in 2025.

Income tax expense for the three months ended December 31, 2025 was $4.3 million with an effective tax rate of 25.7%, compared to $3.9 million with an effective tax rate of 27.2% for the fourth quarter of 2024. Income tax expense for the fourth quarter of 2024 was elevated primarily due to the impact of the BOLI restructuring completed in 2024. Income tax expense for the full year ended December 31, 2025 was $13.6 million with an effective tax rate of 23.8%, compared to $12.9 million with an effective tax rate of 23.4% for the full year ended December 31, 2024. The fourth quarter 2025 tax rate was higher than the full year rate due to some year-end adjustments primarily related to state tax allocations and tax credit activity. We anticipate our future effective tax rate will be approximately 24-25%.

Balance Sheet

The Bank reported total assets of $3.96 billion at December 31, 2025, an increase of $180.3 million, or 4.8%, from $3.78 billion at December 31, 2024. Total loans increased $149.0 million, or 4.7%, over the same period, reflecting strong organic growth, particularly in the commercial and industrial ("C&I") portfolio, partially offset by elevated payoffs during the fourth quarter. The Bank's cash and cash equivalents increased by $37.3 million, or 13.7%, compared to December 31, 2024, as management continued to maintain adequate on-balance sheet liquidity.

Total assets decreased $72.0 million during the fourth quarter of 2025 primarily due to a net decline in loans of $80.7 million. The decline in loans was driven by an elevated level of payoffs totaling $134.8 million. New loan activity continued to be robust. Cash and cash equivalents also decreased by $9.7 million compared to September 30, 2025.

The Bank reported total deposits of $3.20 billion as of December 31, 2025, an increase of $146.4 million, or 4.8%, from $3.06 billion at December 31, 2024. Deposit growth was primarily due to our team's success in attracting new deposit relationships and maintaining existing balances amid heightened industry-wide pricing competition, partially offset by the Bank's strategic decision to allow certain higher-cost and non-core funding to leave the Bank. Compared to December 31, 2024, non-interest bearing demand deposits increased by $53.0 million to comprise 17.9% of total deposits, up from 17.0%. Over the same period, interest bearing demand deposits decreased by $21.0 million to comprise 19.0% of total deposits at December 31, 2025, down from 20.6% at December 31, 2024. Money market and savings deposits increased by $7.2 million to comprise 37.6% of total deposits at December 31, 2025, down from 39.2% at December 31, 2024. Time deposits increased by $107.2 million to comprise 25.5% at December 31, 2025, up from 23.2% at December 31, 2024.

During the fourth quarter of 2025, total deposits declined by $21.3 which included a decline of $6.0 million in non-interest bearing deposits and $15.3 million in interest bearing balances. The decline in interest bearing balances was primarily due to a reduction in brokered time deposits as the elevated level of loan pay offs put less pressure on funding needs. The decline in non-interest bearing balances was primarily due to year-end deposit fluctuations in existing accounts.

During the twelve months ended December 31, 2025, stockholders' equity increased by $34.3 million, or 8.4%, primarily due to net income, partially offset by dividends and share repurchases.

As of December 31, 2025, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 9.75%, a Tier 1 Risk-Based capital ratio of 10.67%, a Common Equity Tier 1 Capital ratio of 10.67%, and a Total Risk-Based capital ratio of 12.88%. The tangible stockholders' equity to tangible assets ratio^iv measured 10.03% as of December 31, 2025 compared to 9.56% at December 31, 2024.

Asset Quality

Total nonperforming assets increased from $17.3 million at December 31, 2024 to $18.4 million at December 31, 2025, due to the addition of nonperforming loans, partially offset by sale of the Bank's OREO assets during the year. Total nonperforming loans increased from $11.7 million at December 31, 2024 to $18.4 million at December 31, 2025. During the fourth quarter of 2025, nonperforming loans increased $4.0 million primarily in nonperforming small business loans.

The Bank recorded net charge-offs of $1.7 million during the fourth quarter of 2025, compared to net charge-offs of $1.7 million during the third quarter of 2025 and net recoveries of $155,000 in the fourth quarter of 2024. Fourth quarter and full year 2025 net charge-offs primarily reflect losses in the Bank's small business portfolio. The allowance for credit losses on loans as a percentage of total loans measured 1.38% at December 31, 2025, compared to 1.25% at September 30, 2025 and 1.20% at December 31, 2024. In addition to the impact of charge-offs, the increase in the allowance percentage from September 30, 2025 reflects a $2.7 million increase in specific reserves from $2.1 million at September 30, 2025 to $4.7 million at December 31, 2025. The increase in specific reserves relates to reserves against nonperforming small business loans.

Total criticized loans which includes loans classified as substandard and special mention totaled $80.4 million, or 2.44% of loans at December 31, 2025, compared to $71.6 million, or 2.12% of loans at September 30, 2025 and $67.1 million or 2.13% of loans at December 31, 2024. The increase was primarily attributable to a large C&I loan that was downgraded to substandard during the fourth quarter but continued to make current payments through December 31, 2025.

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 $9.7 million, or 3.0%, compared to September 30, 2025, reflecting the use of some excess funds to pay off higher cost borrowing sources and reallocate some cash balances into the investment portfolio. Borrowings decreased by $65.1 million compared to September 30, 2025, due to the Bank's reduced Federal Home Loan Bank ("FHLB") advances, which drove higher available borrowing capacity at the FHLB.

Increased Cash Dividend Declared

On January 21, 2026, the Bank's Board of Directors declared a quarterly cash dividend of $0.09 per share to common stockholders of record at the close of business on February 6, 2026, payable on February 20, 2026. This reflects an increase compared to the Bank's prior quarterly cash dividend of $0.06 per share.

Share Repurchase Program

The Board of Directors authorized and the Bank received final regulatory approvals on November 7, 2025 for a new share repurchase program, allowing for the repurchase of up to 1.2 million shares of First Bank common stock with an aggregate repurchase amount of up to $20.4 million. The repurchase program expires September 30, 2026. The Bank did not repurchase shares of common stock during the fourth quarter of 2025. 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/3b1ba25e-3fd7-4497-8aaa-56eb8a5d7eec

First Bank will host its earnings call on Tuesday, January 27, 2026 at 9:00 AM Eastern Time. The direct dial number for the call is 1-800-715-9871, toll free, using the access code 2389718. The conference call will also be available (listen-only) via the internet by accessing FRBA Conference Calls. For those unable to participate in the call, a replay will be available on the Bank's website, www.myfirstbank.com. The conference call will also be available (listen-only) via the Internet by accessing FRBA conference call. The conference call information is also available by accessing the Bank's website: www.myfirstbank.com, on the – "Investor Relations" page.

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 $3.96 billion in assets as of December 31, 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 statements regarding First Bank's future financial and business performance, business and growth strategy, projected plans, objectives for our business, products and risk management, integration of the acquired businesses and anticipated results related thereto, our ability to recognize anticipated operational efficiencies, our market presence and desirability of the markets we operate in, competition in our markets, our competitive strength, consumers behavior and relative expectations, our share repurchase programs, anticipated changes in statutes, regulations or regulatory policies applicable to us and their impacts on our business, and other projections based on macroeconomic and industry conditions and 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 important factors that could affect First Bank's 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, consummating and integrating suitable acquisitions and realizing 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 inflation, declines in housing markets and public sentiment regarding the financial services industry; the chance that we may experience material weaknesses in our internal control over financial reporting or otherwise fail to maintain an effective system of internal controls in the future; 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 or reduce earning asset yields thus reducing margin; the impact of changes in interest rates, both up and down, 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; decreases in the value of securities and other assets, adequacy of loan loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; operational risks, including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemic; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank's operations, including the effect of any 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 the 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, accounting standards, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks, uncertainties, and assumptions, including the important factors 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 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.

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)

	Year Ended December 31,
	2025			2024
Assets
Cash and due from banks	$	22,141		$	18,252
Restricted cash		7,780			14,270
Interest bearing deposits with banks		279,299			239,392
Cash and cash equivalents		309,220			271,914
Interest bearing time deposits with banks		747			743
Investment securities available for sale, at fair value (amortized cost of $108,635 and $84,083, respectively)		104,740			77,413
Investment securities held to maturity, net of allowance for credit losses of $163 and $206, respectively (fair value of $37,866 and $42,770, respectively)		40,424			47,123
Equity securities, at fair value		1,930			1,870
Restricted investment in bank stocks		13,877			14,333
Other investments		16,033			11,612
Loans, net of deferred fees and costs		3,293,225			3,144,266
Less: Allowance for credit losses on loans		(45,384	)		(37,773	)
Net loans		3,247,841			3,106,493
Premises and equipment, net		18,367			21,351
Other real estate owned, net		-			5,637
Accrued interest receivable		14,382			14,267
Bank-owned life insurance		88,475			85,553
Goodwill		44,166			44,166
Other intangible assets, net		7,124			8,827
Deferred income taxes, net		22,623			25,528
Other assets		28,087			43,516
Total assets	$	3,958,036		$	3,780,346

Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing deposits	$	572,349		$	519,320
Interest bearing deposits		2,629,959			2,536,576
Total deposits		3,202,308			3,055,896
Borrowings		236,672			246,933
Subordinated debentures		34,384			29,954
Accrued interest payable		4,763			3,820
Other liabilities		36,407			34,587
Total liabilities		3,514,534			3,371,190

Commitments and Contingencies		-			-

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; 27,643,986 shares issued and 24,800,244 shares outstanding and 27,375,439 shares issued and 25,100,829 shares outstanding, respectively		136,788			135,495
Additional paid-in capital		126,334			124,524
Retained earnings		214,458			176,779
Accumulated other comprehensive loss		(2,875	)		(4,925	)
Treasury stock, 2,843,742 and 2,274,610 shares, respectively		(31,203	)		(22,717	)
Total stockholders' equity		443,502			409,156
Total liabilities and stockholders' equity	$	3,958,036		$	3,780,346

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

	Three Months Ended					Year Ended
	December 31,					December 31,
	2025			2024		2025			2024
Interest and Dividend Income
Investment securities—taxable	$	1,219		$	1,119	$	4,878		$	4,780
Investment securities—tax-exempt		43			48		167			157
Interest bearing deposits with banks, Federal funds sold and other		3,803			4,088		13,930			14,567
Loans, including fees		55,255			51,584		217,475			202,623
Total interest and dividend income		60,320			56,839		236,450			222,127

Interest Expense
Deposits		20,926			22,440		84,839			88,693
Borrowings		2,566			2,365		10,913			9,224
Subordinated debentures		651			440		2,876			1,664
Total interest expense		24,143			25,245		98,628			99,581
Net interest income		36,177			31,594		137,822			122,546
Credit loss expense		4,789			234		11,889			1,178
Net interest income after credit loss expense		31,388			31,360		125,933			121,368

Non-Interest Income
Service fees on deposit accounts		377			369		1,501			1,425
Loan fees		322			436		1,357			873
Income from bank-owned life insurance		754			825		3,010			4,038
Losses on sale of investment securities, net		-			-		-			(555	)
Gains (losses) on sale of loans, net		352			38		666			(498	)
Gains on recovery of acquired loans		44			61		649			270
Gain on sale of other assets		-			-		397			-
Other non-interest income		434			447		1,797			1,755
Total non-interest income		2,283			2,176		9,377			7,308

Non-Interest Expense
Salaries and employee benefits		10,981			10,512		45,439			40,693
Occupancy and equipment		2,352			2,262		9,495			8,450
Legal fees		213			230		1,144			1,031
Other professional fees		704			1,151		3,136			3,779
Regulatory fees		643			635		2,665			2,605
Directors' fees		260			288		1,063			1,072
Data processing		685			791		3,112			3,146
Marketing and advertising		243			372		1,515			1,355
Travel and entertainment		300			269		1,057			1,031
Insurance		207			250		871			990
Other real estate owned expense, net		(1,938	)		139		(949	)		1,018
Other expense		2,435			2,225		9,458			8,361
Total non-interest expense		17,085			19,124		78,006			73,531
Income Before Income Taxes		16,586			14,412		57,304			55,145
Income tax expense		4,262			3,915		13,645			12,901
Net Income	$	12,324		$	10,497	$	43,659		$	42,244

Basic earnings per common share	$	0.50		$	0.42	$	1.75		$	1.68
Diluted earnings per common share	$	0.49		$	0.41	$	1.74		$	1.67

Basic weighted average common shares outstanding		24,807,303			25,160,097		24,948,588			25,126,100
Diluted weighted average common shares outstanding		24,965,492			25,323,401		25,099,404			25,283,771

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

	Three Months Ended December 31,
	2025									2024
	Average						Average			Average						Average
	Balance			Interest			Rate⁽⁵⁾			Balance			Interest			Rate⁽⁵⁾
Interest earning assets
Investment securities⁽¹⁾⁽²⁾	$	133,719		$	1,271			3.77	%	$	126,400		$	1,177			3.70	%
Loans⁽³⁾		3,338,838			55,255			6.57	%		3,101,750			51,584			6.62	%
Interest bearing deposits with banks,
Federal funds sold and other		338,424			3,373			3.95	%		301,565			3,648			4.81	%
Restricted investment in bank stocks		15,086			293			7.71	%		13,181			291			8.78	%
Other investments		16,390			137			3.32	%		13,199			149			4.49	%
Total interest earning assets⁽²⁾		3,842,457			60,329			6.23	%		3,556,095			56,849			6.36	%
Allowance for credit losses		(42,486	)								(37,895	)
Non-interest earning assets		247,873									270,689
Total assets	$	4,047,844								$	3,788,889

Interest bearing liabilities
Interest bearing demand deposits	$	609,358		$	3,615			2.35	%	$	629,374		$	4,244			2.68	%
Money market deposits		1,061,255			8,227			3.08	%		1,087,031			9,706			3.55	%
Savings deposits		147,893			736			1.97	%		148,265			695			1.86	%
Time deposits		866,724			8,348			3.82	%		696,803			7,795			4.45	%
Total interest bearing deposits		2,685,230			20,926			3.09	%		2,561,473			22,440			3.49	%
Borrowings		256,720			2,566			3.97	%		215,699			2,365			4.36	%
Subordinated debentures		34,362			651			7.58	%		29,936			440			5.88	%
Total interest bearing liabilities		2,976,312			24,143			3.22	%		2,807,108			25,245			3.58	%
Non-interest bearing deposits		586,236									531,836
Other liabilities		45,237									43,366
Stockholders' equity		440,059									406,579
Total liabilities and stockholders' equity	$	4,047,844								$	3,788,889
Net interest income/interest rate spread⁽²⁾					36,186			3.01	%					31,604			2.78	%
Net interest margin⁽²⁾⁽⁴⁾								3.74	%								3.54	%
Tax equivalent adjustment⁽²⁾					(9	)								(10	)
Net interest income				$	36,177								$	31,594

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

	Year Ended December 31,
	2025									2024
	Average						Average			Average						Average
	Balance			Interest			Rate			Balance			Interest			Rate
Interest earning assets
Investment securities⁽¹⁾⁽²⁾	$	133,298		$	5,080			3.81	%	$	139,222		$	4,970			3.57	%
Loans⁽³⁾		3,289,505			217,475			6.61	%		3,022,503			202,623			6.70	%
Interest bearing deposits with banks,
Federal funds sold and other		284,162			12,226			4.30	%		248,866			13,052			5.24	%
Restricted investment in bank stocks		15,690			1,204			7.67	%		11,893			990			8.32	%
Other investments		15,399			500			3.25	%		12,498			525			4.20	%
Total interest earning assets⁽²⁾		3,738,054			236,485			6.33	%		3,434,982			222,160			6.47	%
Allowance for credit losses		(40,307	)								(37,224	)
Non-interest earning assets		252,301									266,705
Total assets	$	3,950,048								$	3,664,463

Interest bearing liabilities
Interest bearing demand deposits	$	605,400		$	14,758			2.44	%	$	606,654		$	15,697			2.59	%
Money market deposits		1,069,287			35,008			3.27	%		1,056,996			40,627			3.84	%
Savings deposits		144,883			2,860			1.97	%		154,367			2,475			1.60	%
Time deposits		798,969			32,213			4.03	%		684,369			29,894			4.37	%
Total interest bearing deposits		2,618,539			84,839			3.24	%		2,502,386			88,693			3.54	%
Borrowings		269,395			10,913			4.05	%		190,354			9,224			4.85	%
Subordinated debentures		38,517			2,876			7.47	%		33,031			1,664			5.04	%
Total interest bearing liabilities		2,926,451			98,628			3.37	%		2,725,771			99,581			3.65	%
Non-interest bearing deposits		556,623									504,238
Other liabilities		41,261									42,322
Stockholders' equity		425,713									392,132
Total liabilities and stockholders' equity	$	3,950,048								$	3,664,463
Net interest income/interest rate spread⁽²⁾					137,857			2.96	%					122,579			2.82	%
Net interest margin⁽²⁾⁽⁴⁾								3.69	%								3.57	%
Tax equivalent adjustment⁽²⁾					(35	)								(33	)
Net interest income				$	137,822								$	122,546

(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.

FIRST BANK

QUARTERLY FINANCIAL HIGHLIGHTS

(in thousands, except for share and employee data, unaudited)

	As of or For the Quarter Ended
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
EARNINGS
Net interest income	$	36,177		$	35,544		$	34,009		$	32,092		$	31,594
Credit loss expense		4,789			2,998			2,558			1,544			234
Non-interest income		2,283			2,421			2,702			1,971			2,176
Non-interest expense		17,085			19,670			20,867			20,384			19,124
Income tax expense		4,262			3,582			3,047			2,754			3,915
Net income		12,324			11,715			10,239			9,381			10,497

PERFORMANCE RATIOS
Return on average assets⁽¹⁾		1.21	%		1.16	%		1.04	%		1.00	%		1.10	%
Return on average equity⁽¹⁾		11.11	%		10.85	%		9.77	%		9.20	%		10.27	%
Return on average tangible equity^{(1) (2)}		12.58	%		12.35	%		11.16	%		10.54	%		11.82	%
Net interest margin^{(1) (3)}		3.74	%		3.71	%		3.65	%		3.65	%		3.54	%
Yield on loans⁽¹⁾		6.57	%		6.66	%		6.62	%		6.59	%		6.62	%
Total cost of deposits⁽¹⁾		2.54	%		2.69	%		2.72	%		2.75	%		2.89	%
Efficiency ratio⁽²⁾		49.46	%		51.81	%		56.13	%		57.60	%		56.91	%

SHARE DATA
Common shares outstanding		24,800,244			24,799,049			24,905,790			25,045,612			25,100,829
Basic earnings per share	$	0.50		$	0.47		$	0.41		$	0.37		$	0.42
Diluted earnings per share		0.49			0.47			0.41			0.37			0.41
Book value per share		17.88			17.41			16.96			16.57			16.30
Tangible book value per share⁽²⁾		15.81			15.33			14.87			14.47			14.19

MARKET DATA
Market value per share	$	16.46		$	16.29		$	15.47		$	14.81		$	14.07
Market value / Tangible book value		104.08	%		106.24	%		104.03	%		102.35	%		99.16	%
Market capitalization	$	408,212		$	403,977		$	385,293		$	370,926		$	353,169

CAPITAL & LIQUIDITY
Stockholders' equity / assets		11.21	%		10.71	%		10.51	%		10.69	%		10.82	%
Tangible stockholders' equity / tangible assets⁽²⁾		10.04	%		9.55	%		9.34	%		9.47	%		9.56	%
Loans / deposits		102.84	%		104.66	%		105.02	%		103.73	%		102.89	%

ASSET QUALITY
Net (recoveries) charge-offs	$	1,686		$	1,737		$	796		$	(15	)	$	(155	)
Nonperforming loans		18,381			14,420			15,978			11,584			11,677
Nonperforming assets		18,381			14,420			15,978			16,406			17,314
Net (recoveries) charge offs / average loans⁽¹⁾		0.20	%		0.21	%		0.10	%		(0.00	%)		(0.02	%)
Nonperforming loans / total loans		0.56	%		0.43	%		0.48	%		0.36	%		0.37	%
Nonperforming assets / total assets		0.46	%		0.36	%		0.40	%		0.42	%		0.46	%
Allowance for credit losses on loans / total loans		1.38	%		1.25	%		1.23	%		1.21	%		1.20	%
Allowance for credit losses on loans / nonperforming loans		246.91	%		292.73	%		255.83	%		338.60	%		323.48	%

OTHER DATA
Total assets	$	3,958,036		$	4,032,636		$	4,019,335		$	3,880,759		$	3,780,346
Total loans		3,293,225			3,373,910			3,327,288			3,236,039			3,144,266
Total deposits		3,202,308			3,223,607			3,168,213			3,119,794			3,055,896
Total stockholders' equity		443,502			431,875			422,379			414,915			409,156
Number of full-time equivalent employees		334			332			335			315			318

(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)

	As of the Quarter Ended
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
LOAN COMPOSITION
Commercial and industrial	$	727,075		$	740,350		$	706,849		$	651,690		$	576,625
Commercial real estate:
Owner-occupied		662,245			685,277			707,766			694,113			671,357
Investor		1,148,297			1,211,491			1,192,716			1,160,549			1,181,684
Construction and development		193,312			181,855			161,361			200,262			205,096
Multi-family		282,854			284,983			309,189			308,217			287,843
Total commercial real estate		2,286,708			2,363,606			2,371,032			2,363,141			2,345,980
Residential real estate:
Residential mortgage and first lien home equity loans		154,167			151,372			160,935			142,298			142,769
Home equity–second lien loans and revolving lines of credit		72,919			65,129			62,738			52,438			51,020
Total residential real estate		227,086			216,501			223,673			194,736			193,789
Consumer and other		55,862			57,222			29,248			29,760			31,324
Total loans prior to deferred loan fees and costs		3,296,731			3,377,679			3,330,802			3,239,327			3,147,718
Net deferred loan fees and costs		(3,506	)		(3,769	)		(3,514	)		(3,288	)		(3,452	)
Total loans	$	3,293,225		$	3,373,910		$	3,327,288		$	3,236,039		$	3,144,266

LOAN MIX
Commercial and industrial		22.1	%		21.9	%		21.2	%		20.1	%		18.3	%
Commercial real estate:
Owner-occupied		20.1	%		20.3	%		21.3	%		21.5	%		21.4	%
Investor		34.9	%		35.9	%		35.8	%		35.9	%		37.6	%
Construction and development		5.9	%		5.4	%		4.8	%		6.2	%		6.5	%
Multi-family		8.5	%		8.5	%		9.3	%		9.5	%		9.1	%
Total commercial real estate		69.4	%		70.1	%		71.3	%		73.1	%		74.6	%
Residential real estate:
Residential mortgage and first lien home equity loans		4.7	%		4.5	%		4.8	%		4.4	%		4.6	%
Home equity–second lien loans and revolving lines of credit		2.2	%		1.9	%		1.9	%		1.6	%		1.6	%
Total residential real estate		6.9	%		6.4	%		6.7	%		6.0	%		6.2	%
Consumer and other		1.7	%		1.7	%		0.9	%		0.9	%		1.0	%
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
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
DEPOSIT COMPOSITION
Non-interest bearing demand deposits	$	572,349		$	578,345		$	590,209		$	535,584		$	519,320
Interest bearing demand deposits		608,076			561,365			553,909			629,974			629,099
Money market and savings deposits		1,205,275			1,228,758			1,241,277			1,197,517			1,198,039
Time deposits		816,608			855,139			782,818			756,719			709,438
Total Deposits	$	3,202,308		$	3,223,607		$	3,168,213		$	3,119,794		$	3,055,896

DEPOSIT MIX
Non-interest bearing demand deposits		17.9	%		18.0	%		18.6	%		17.2	%		17.0	%
Interest bearing demand deposits		19.0	%		17.4	%		17.5	%		20.2	%		20.6	%
Money market and savings deposits		37.6	%		38.1	%		39.2	%		38.4	%		39.2	%
Time deposits		25.5	%		26.5	%		24.7	%		24.2	%		23.2	%
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
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
Return on Average Tangible Equity
Net income (numerator)	$	12,324		$	11,715		$	10,239		$	9,381		$	10,497

Average stockholders' equity	$	440,059		$	428,359		$	420,443		$	413,672		$	406,579
Less: Average goodwill and other intangible assets, net		51,434			51,882			52,301			52,805			53,278
Average tangible stockholders' equity (denominator)	$	388,625		$	376,477		$	368,142		$	360,867		$	353,301

Return on average tangible equity⁽¹⁾		12.58	%		12.35	%		11.16	%		10.54	%		11.82	%

Tangible Book Value Per Share
Stockholders' equity	$	443,502		$	431,875		$	422,379		$	414,915		$	409,156
Less: Goodwill and other intangible assets, net		51,290			51,633			52,026			52,507			52,993
Tangible stockholders' equity (numerator)	$	392,212		$	380,242		$	370,353		$	362,408		$	356,163

Common shares outstanding (denominator)		24,800,244			24,799,049			24,905,790			25,045,612			25,100,829

Tangible book value per share	$	15.81		$	15.33		$	14.87		$	14.47		$	14.19

Tangible Equity / Tangible Assets
Stockholders' equity	$	443,502		$	431,875		$	422,379		$	414,915		$	409,156
Less: Goodwill and other intangible assets, net		51,290			51,633			52,026			52,507			52,993
Tangible stockholders' equity (numerator)	$	392,212		$	380,242		$	370,353		$	362,408		$	356,163

Total assets	$	3,958,036		$	4,032,636		$	4,019,335		$	3,880,759		$	3,780,346
Less: Goodwill and other intangible assets, net		51,290			51,633			52,026			52,507			52,993
Tangible total assets (denominator)	$	3,906,746		$	3,981,003		$	3,967,309		$	3,828,252		$	3,727,353

Tangible stockholders' equity / tangible assets		10.04	%		9.55	%		9.34	%		9.47	%		9.56	%

Efficiency Ratio
Non-interest expense	$	17,085		$	19,670		$	20,867		$	20,384		$	19,124
Less: Other real estate owned write-down, net		-			-			-			815			-
Less: Executive officer severance benefits		-			-			863			-			-
Add: Gains on sale of other real estate owned		1,938			-			-			-			-
Adjusted non-interest expense (numerator)	$	19,023		$	19,670		$	20,004		$	19,569		$	19,124

Net interest income	$	36,177		$	35,544		$	34,009		$	32,092		$	31,594
Non-interest income		2,283			2,421			2,702			1,971			2,176
Total revenue		38,460			37,965			36,711			34,063			33,770
Less: Gains on sale of other assets		-			-			(397	)		-			-
Less: Bank Owned Life Insurance Incentive		-			-			-			(88	)		(168	)
Adjusted total revenue (denominator)	$	38,460		$	37,965		$	36,314		$	33,975		$	33,602

Efficiency ratio		49.46	%		51.81	%		55.09	%		57.60	%		56.91	%


(1) Annualized.

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

	As of or For the Year Ended
	12/31/2025			12/31/2024
Return on Average Tangible Equity
Net income (numerator)	$	43,659		$	42,244

Average stockholders' equity	$	425,713		$	392,132
Less: Average goodwill and other intangible assets, net		52,101			54,057
Average tangible stockholders' equity (denominator)	$	373,612		$	338,075

Return on average tangible equity		11.69	%		12.50	%

CONTACT: Andrew Hibshman, Chief Financial Officer

(609) 643-0058, andrew.hibshman@firstbanknj.com

First Bank Announces Fourth Quarter 2025 Net Income of $12.3 Million and Full Year Net Income of $43.7 Million