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

Rhea-AI Summary

First Bank (Nasdaq: FRBA) reported Q3 2025 net income of $11.7 million ($0.47 diluted), up from $8.2 million in Q3 2024. Key metrics: NIM 3.71%, efficiency ratio 51.81%, tangible book value per share $15.33 (12.4% annualized growth), total loans $3.37 billion and total deposits $3.22 billion at September 30, 2025. The bank recorded credit loss expense $3.0 million and net charge-offs $1.7 million, citing small business portfolio losses. Capital and liquidity remained strong with Tier 1 leverage at 9.54%. The board declared a $0.06 quarterly dividend and completed share repurchases totaling 662,678 shares through September 30, 2025.

Positive

• Net income of $11.7M in Q3 2025
• Net interest margin 3.71% for Q3 2025
• Efficiency ratio improved to 51.81%
• Tangible book value per share $15.33 (+12.4% annualized)
• Total loans $3.37B and deposits $3.22B

Negative

• Credit loss expense increased to $3.0M in Q3 2025
• Net charge-offs of $1.7M in Q3 2025
• Higher salaries and benefits increased non-interest expense by $1.2M
• New subordinated notes carry 7.125% fixed rate for five years

Insights

Bank Financial Analyst

Strong quarter: higher net income, margin expansion, efficiency gains and tangible book value growth, with modest credit caution in small business loans.

First Bank delivered third quarter net income of $11.7 million ($0.47 diluted), improving profitability metrics: return on assets 1.16%, return on equity 10.85%, and tax‑equivalent net interest margin 3.71%. Core drivers were higher average loan balances and loan yields, a reduction in deposit costs, and an efficiency ratio that improved to 51.81%, which supports sustainable earnings conversion from revenue to pre‑tax profit.

The credit profile shows mixed signals. Nonperforming assets fell to 0.36% of assets, yet nonperforming loans and net charge‑offs rose, concentrated in the small business portfolio; allowance for credit losses ticked up to 1.25% of loans. Liquidity and capital remain strong: total assets rose to $4.03 billion, regulatory capital ratios exceed well‑capitalized thresholds, and management completed a subordinated debt refinancing. These facts imply manageable near‑term credit risks but warrant monitoring of small business charge‑offs and allowance adequacy.

Watch the following over the next 3–12 months: trajectory of quarterly net charge‑offs and allowance utilization, fourth quarter loan payoff activity the company flagged, execution of new branch rollouts and loan pipelines cited for 2026 growth, and outcome/timing of the new share repurchase regulatory approvals and declared dividend payable November 21, 2025. These items will clarify whether current earnings momentum and tangible book value growth are durable.

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.

__________________

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)

		September 30, 2025					December 31, 2024
Assets
Cash and due from banks		$	27,130				$	18,252
Restricted cash			8,150					14,270
Interest bearing deposits with banks			283,602					239,392
Cash and cash equivalents			318,882					271,914
Interest bearing time deposits with banks			747					743
Investment securities available for sale, at fair value (amortized cost of $86,926 and $84,083, respectively)			82,740					77,413
Investment securities held to maturity, net of allowance for credit losses of $181 and $206, respectively (fair value of $37,942 and $42,770, respectively)			41,016					47,123
Equity securities, at fair value			1,922					1,870
Restricted investment in bank stocks			16,865					14,333
Other investments			13,912					11,612
Loans, net of deferred fees and costs			3,373,910					3,144,266
Less: Allowance for credit losses			(42,211	)				(37,773	)
Net loans			3,331,699					3,106,493
Premises and equipment, net			18,411					21,351
Other real estate owned, net			-					5,637
Accrued interest receivable			14,940					14,267
Bank-owned life insurance			87,721					85,553
Goodwill			44,166					44,166
Other intangible assets, net			7,467					8,827
Deferred income taxes, net			24,878					25,528
Other assets			27,270					43,516
Total assets		$	4,032,636				$	3,780,346
Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing deposits		$	578,345				$	519,320
Interest bearing deposits			2,645,262					2,536,576
Total deposits			3,223,607					3,055,896
Borrowings			301,737					246,933
Subordinated debentures			34,350					29,954
Accrued interest payable			4,780					3,820
Other liabilities			36,287					34,587
Total liabilities			3,600,761					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; 27,642,791 shares issued and 24,799,049 shares outstanding and 27,375,439 shares issued and 25,100,829 shares outstanding, respectively			136,713					135,495
Additional paid-in capital			125,839					124,524
Retained earnings			203,616					176,779
Accumulated other comprehensive loss			(3,090	)				(4,925	)
Treasury stock, 2,843,742 and 2,274,610 shares, respectively			(31,203	)				(22,717	)
Total stockholders' equity			431,875					409,156
Total liabilities and stockholders' equity		$	4,032,636				$	3,780,346

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

		Three Months Ended September 30,									Nine Months Ended September 30,
		2025				2024					2025				2024
Interest and Dividend Income
Investment securities—taxable		$	1,225			$	1,201				$	3,659			$	3,661
Investment securities—tax-exempt			32				35					124				109
Interest bearing deposits with banks, Federal funds sold and other			3,643				3,972					10,127				10,479
Loans, including fees			56,274				50,957					162,220				151,039
Total interest and dividend income			61,174				56,165					176,130				165,288
Interest Expense
Deposits			21,793				23,081					63,913				66,253
Borrowings			2,679				2,550					8,347				6,859
Subordinated debentures			1,158				440					2,225				1,224
Total interest expense			25,630				26,071					74,485				74,336
Net interest income			35,544				30,094					101,645				90,952
Credit loss expense			2,998				1,579					7,100				944
Net interest income after credit loss expense			32,546				28,515					94,545				90,008
Non-Interest Income
Service fees on deposit accounts			386				362					1,124				1,056
Loan fees			141				218					1,035				437
Income from bank-owned life insurance			740				1,819					2,256				3,213
Losses on sale of investment securities, net			-				(555	)				-				(555	)
Gains (loss) on sale of loans, net			210				135					314				(536	)
Gains on recovery of acquired loans			481				35					605				209
Gain on sale of other assets			-				-					397				-
Other non-interest income			463				465					1,363				1,308
Total non-interest income			2,421				2,479					7,094				5,132
Non-Interest Expense
Salaries and employee benefits			11,381				10,175					34,458				30,181
Occupancy and equipment			2,329				2,080					7,143				6,188
Legal fees			284				245					931				801
Other professional fees			782				943					2,432				2,628
Regulatory fees			654				728					2,022				1,970
Directors' fees			261				272					803				784
Data processing			729				800					2,427				2,355
Marketing and advertising			370				310					1,272				983
Travel and entertainment			270				233					757				762
Insurance			217				245					664				740
Other real estate owned expense, net			-				662					989				879
Other expense			2,393				1,951					7,023				6,136
Total non-interest expense			19,670				18,644					60,921				54,407
Income Before Income Taxes			15,297				12,350					40,718				40,733
Income tax expense			3,582				4,188					9,383				8,986
Net Income		$	11,715			$	8,162				$	31,335			$	31,747
Basic earnings per common share		$	0.47			$	0.32				$	1.25			$	1.26
Diluted earnings per common share		$	0.47			$	0.32				$	1.24			$	1.26
Basic weighted average common shares outstanding			24,844,262				25,174,285					24,996,201				25,114,685
Diluted weighted average common shares outstanding			25,110,969				25,343,820					25,263,922				25,265,250

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

		Three Months Ended September 30,
		2025															2024
		Average										Average					Average										Average
		Balance					Interest					Rate (5)					Balance					Interest					Rate (5)
Interest earning assets
Investment securities (1) (2)		$	130,148				$	1,264					3.85	%			$	137,216				$	1,244					3.61	%
Loans (3)			3,349,869					56,274					6.66	%				3,010,116					50,957					6.73	%
Interest bearing deposits with banks,
Federal funds sold and other			286,532					3,199					4.43	%				265,474					3,593					5.38	%
Restricted investment in bank stocks			15,569					335					8.54	%				12,768					257					8.01	%
Other investments			15,720					109					2.75	%				12,776					122					3.80	%
Total interest earning assets (2)			3,797,838					61,181					6.39	%				3,438,350					56,173					6.50	%
Allowance for credit losses			(40,999	)														(36,612	)
Non-interest earning assets			248,940															271,105
Total assets		$	4,005,779														$	3,672,843
Interest bearing liabilities
Interest bearing demand deposits		$	561,538				$	3,415					2.41	%			$	587,045				$	3,974					2.69	%
Money market deposits			1,105,934					9,232					3.31	%				1,064,045					10,573					3.95	%
Savings deposits			148,737					780					2.08	%				149,057					587					1.57	%
Time deposits			828,019					8,366					4.01	%				690,723					7,947					4.58	%
Total interest bearing deposits			2,644,228					21,793					3.27	%				2,490,870					23,081					3.69	%
Borrowings			266,627					2,679					3.99	%				206,588					2,550					4.91	%
Subordinated debentures			54,554					1,158					8.49	%				29,908					440					5.88	%
Total interest bearing liabilities			2,965,409					25,630					3.43	%				2,727,366					26,071					3.80	%
Non-interest bearing deposits			569,795															506,084
Other liabilities			42,216															40,858
Stockholders' equity			428,359															398,535
Total liabilities and stockholders' equity		$	4,005,779														$	3,672,843
Net interest income/interest rate spread (2)								35,551					2.96	%									30,102					2.70	%
Net interest margin (2) (4)													3.71	%														3.48	%
Tax equivalent adjustment (2)								(7	)														(8	)
Net interest income							$	35,544														$	30,094

(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)

		Nine Months Ended September 30,
		2025															2024
		Average										Average					Average										Average
		Balance					Interest					Rate (5)					Balance					Interest					Rate (5)
Interest earning assets
Investment securities (1) (2)		$	133,157				$	3,809					3.82	%			$	143,528				$	3,793					3.53	%
Loans (3)			3,272,879					162,220					6.63	%				2,995,895					151,039					6.73	%
Interest bearing deposits with banks,
Federal funds sold and other			265,877					8,853					4.45	%				231,171					9,404					5.43	%
Restricted investment in bank stocks			15,894					911					7.66	%				11,461					699					8.15	%
Other investments			15,064					363					3.22	%				12,262					376					4.10	%
Total interest earning assets (2)			3,702,871					176,156					6.36	%				3,394,317					165,311					6.51	%
Allowance for credit losses			(39,573	)														(37,000	)
Non-interest earning assets			253,794															265,368
Total assets		$	3,917,092														$	3,622,685
Interest bearing liabilities
Interest bearing demand deposits		$	604,066				$	11,143					2.47	%			$	599,025				$	11,453					2.55	%
Money market deposits			1,071,993					26,781					3.34	%				1,046,911					30,921					3.95	%
Savings deposits			143,870					2,124					1.97	%				156,416					1,780					1.52	%
Time deposits			776,136					23,865					4.11	%				680,194					22,099					4.34	%
Total interest bearing deposits			2,596,065					63,913					3.29	%				2,482,546					66,253					3.56	%
Borrowings			273,667					8,347					4.08	%				181,844					6,859					5.04	%
Subordinated debentures			39,918					2,225					7.43	%				34,071					1,224					4.79	%
Total interest bearing liabilities			2,909,650					74,485					3.42	%				2,698,461					74,336					3.68	%
Non-interest bearing deposits			546,643															494,971
Other liabilities			39,921															41,971
Stockholders' equity			420,878															387,282
Total liabilities and stockholders' equity		$	3,917,092														$	3,622,685
Net interest income/interest rate spread (2)								101,671					2.94	%									90,975					2.83	%
Net interest margin (2) (4)													3.67	%														3.58	%
Tax equivalent adjustment (2)								(26	)														(23	)
Net interest income							$	101,645														$	90,952

(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
		9/30/2025					6/30/2025						3/31/2025					12/31/2024					9/30/2024
EARNINGS
Net interest income		$	35,544				$	34,009					$	32,092				$	31,594				$	30,094
Credit loss expense			2,998					2,558						1,544					234					1,579
Non-interest income			2,421					2,702						1,971					2,176					2,479
Non-interest expense			19,670					20,867						20,384					19,124					18,644
Income tax expense			3,582					3,047						2,754					3,915					4,188
Net income			11,715					10,239						9,381					10,497					8,162
PERFORMANCE RATIOS
Return on average assets (1)			1.16	%				1.04	%					1.00	%				1.10	%				0.88	%
Return on average equity (1)			10.85	%				9.77	%					9.20	%				10.27	%				8.15	%
Return on average tangible equity (1) (2)			12.35	%				11.16	%					10.54	%				11.82	%				9.42	%
Net interest margin (1) (3)			3.71	%				3.65	%					3.65	%				3.54	%				3.48	%
Yield on loans (1)			6.66	%				6.62	%					6.59	%				6.62	%				6.73	%
Total cost of deposits (1)			2.69	%				2.72	%					2.75	%				2.89	%				3.06	%
Efficiency ratio (2)			51.81	%				56.13	%					57.60	%				56.91	%				57.11	%
SHARE DATA
Common shares outstanding			24,799,049					24,905,790						25,045,612					25,100,829					25,186,920
Basic earnings per share		$	0.47				$	0.41					$	0.37				$	0.42				$	0.32
Diluted earnings per share			0.47					0.41						0.37					0.41					0.32
Book value per share			17.41					16.96						16.57					16.30					15.96
Tangible book value per share (2)			15.33					14.87						14.47					14.19					13.84
MARKET DATA
Market value per share		$	16.29				$	15.47					$	14.81				$	14.07				$	15.20
Market value / Tangible book value (2)			106.24	%				104.03	%					102.35	%				99.16	%				109.83	%
Market capitalization		$	403,977				$	385,293					$	370,926				$	353,169				$	382,841
CAPITAL & LIQUIDITY
Stockholders' equity / assets			10.71	%				10.51	%					10.69	%				10.82	%				10.70	%
Tangible stockholders' equity / tangible assets (2)			9.55	%				9.34	%					9.47	%				9.56	%				9.41	%
Loans / deposits			104.66	%				105.02	%					103.73	%				102.89	%				101.23	%
ASSET QUALITY
Net charge-offs (recoveries)		$	1,737				$	796					$	(15	)			$	(155	)			$	386
Nonperforming loans			14,410					15,978						11,584					11,677					12,014
Nonperforming assets			14,410					15,978						16,406					17,314					17,651
Net charge offs (recoveries)/ average loans (1)			0.21	%				0.10	%					(0.00	%)				(0.02	%)				0.05	%
Nonperforming loans / total loans			0.43	%				0.48	%					0.36	%				0.37	%				0.39	%
Nonperforming assets / total assets			0.36	%				0.40	%					0.42	%				0.46	%				0.47	%
Allowance for credit losses on loans / total loans			1.25	%				1.23	%					1.21	%				1.20	%				1.21	%
Allowance for credit losses on loans / nonperforming loans			292.93	%				255.83	%					338.60	%				323.48	%				311.59	%
OTHER DATA
Total assets		$	4,032,636				$	4,019,335					$	3,880,759				$	3,780,346				$	3,757,653
Total loans			3,373,910					3,327,288						3,236,039					3,144,266					3,087,488
Total deposits			3,223,607					3,168,213						3,119,794					3,055,896					3,050,070
Total stockholders' equity			431,875					422,379						414,915					409,156					402,070
Number of full-time equivalent employees			332					335						315					318					313

(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
		9/30/2025					6/30/2025					3/31/2025					12/31/2024				9/30/2024
LOAN COMPOSITION
Commercial and industrial		$	740,350				$	706,849				$	651,690				$	576,625			$	546,541
Commercial real estate:
Owner-occupied			685,277					707,766					694,113					671,357				688,988
Investor			1,211,491					1,192,716					1,160,549					1,181,684				1,170,508
Construction and development			181,855					161,361					200,262					205,096				193,460
Multi-family			284,983					309,189					308,217					287,843				267,861
Total commercial real estate			2,363,606					2,371,032					2,363,141					2,345,980				2,320,817
Residential real estate:
Residential mortgage and first lien home equity loans			151,372					160,935					142,298					142,769				144,081
Home equity–second lien loans and revolving lines of credit			65,129					62,738					52,438					51,020				49,763
Total residential real estate			216,501					223,673					194,736					193,789				193,844
Consumer and other			57,222					29,248					29,760					31,324				29,518
Total loans prior to deferred loan fees and costs			3,377,679					3,330,802					3,239,327					3,147,718				3,090,720
Net deferred loan fees and costs			(3,769	)				(3,514	)				(3,288	)				(3,452	)			(3,232	)
Total loans		$	3,373,910				$	3,327,288				$	3,236,039				$	3,144,266			$	3,087,488
LOAN MIX
Commercial and industrial			21.9	%				21.2	%				20.1	%				18.3	%			17.7	%
Commercial real estate:
Owner-occupied			20.3	%				21.3	%				21.5	%				21.4	%			22.3	%
Investor			35.9	%				35.8	%				35.9	%				37.6	%			37.9	%
Construction and development			5.4	%				4.8	%				6.2	%				6.5	%			6.3	%
Multi-family			8.5	%				9.3	%				9.5	%				9.1	%			8.7	%
Total commercial real estate			70.1	%				71.3	%				73.1	%				74.6	%			75.2	%
Residential real estate:
Residential mortgage and first lien home equity loans			4.5	%				4.8	%				4.4	%				4.6	%			4.7	%
Home equity–second lien loans and revolving lines of credit			1.9	%				1.9	%				1.6	%				1.6	%			1.6	%
Total residential real estate			6.4	%				6.7	%				6.0	%				6.2	%			6.3	%
Consumer and other			1.7	%				0.9	%				0.9	%				1.0	%			0.9	%
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
		9/30/2025					6/30/2025					3/31/2025					12/31/2024					9/30/2024
DEPOSIT COMPOSITION
Non-interest bearing demand deposits		$	578,345				$	590,209				$	535,584				$	519,320				$	519,079
Interest bearing demand deposits			561,365					553,909					629,974					629,099					597,802
Money market and savings deposits			1,228,758					1,241,277					1,197,517					1,198,039					1,235,637
Time deposits			855,139					782,818					756,719					709,438					697,552
Total Deposits		$	3,223,607				$	3,168,213				$	3,119,794				$	3,055,896				$	3,050,070
DEPOSIT MIX
Non-interest bearing demand deposits			18.0	%				18.6	%				17.2	%				17.0	%				17.0	%
Interest bearing demand deposits			17.4	%				17.5	%				20.2	%				20.6	%				19.6	%
Money market and savings deposits			38.1	%				39.2	%				38.4	%				39.2	%				40.5	%
Time deposits			26.5	%				24.7	%				24.2	%				23.2	%				22.9	%
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
		9/30/2025					6/30/2025					3/31/2025					12/31/2024					9/30/2024
Return on Average Tangible Equity
Net income (numerator)		$	11,715				$	10,239				$	9,381				$	10,497				$	8,162
Average stockholders' equity		$	428,359				$	420,443				$	413,672				$	406,579				$	398,535
Less: Average Goodwill and other intangible assets, net			51,882					52,301					52,805					53,278					53,823
Average Tangible stockholders' equity (denominator)		$	376,477				$	368,142				$	360,867				$	353,301				$	344,712
Return on average tangible equity (1)			12.35	%				11.16	%				10.54	%				11.82	%				9.42	%
Tangible Book Value Per Share
Stockholders' equity		$	431,875				$	422,379				$	414,915				$	409,156				$	402,070
Less: Goodwill and other intangible assets, net			51,633					52,026					52,507					52,993					53,484
Tangible stockholders' equity (numerator)		$	380,242				$	370,353				$	362,408				$	356,163				$	348,586
Common shares outstanding (denominator)			24,799,049					24,905,790					25,045,612					25,100,829					25,186,920
Tangible book value per share		$	15.33				$	14.87				$	14.47				$	14.19				$	13.84
Tangible Equity / Tangible Assets
Stockholders' equity		$	431,875				$	422,379				$	414,915				$	409,156				$	402,070
Less: Goodwill and other intangible assets, net			51,633					52,026					52,507					52,993					53,484
Tangible stockholders' equity (numerator)		$	380,242				$	370,353				$	362,408				$	356,163				$	348,586
Total assets		$	4,032,636				$	4,019,335				$	3,880,759				$	3,780,346				$	3,757,653
Less: Goodwill and other intangible assets, net			51,633					52,026					52,507					52,993					53,484
Tangible total assets (denominator)		$	3,981,003				$	3,967,309				$	3,828,252				$	3,727,353				$	3,704,169
Tangible stockholders' equity / tangible assets			9.55	%				9.34	%				9.47	%				9.56	%				9.41	%
Efficiency Ratio
Non-interest expense		$	19,670				$	20,867				$	20,384				$	19,124				$	18,644
Less: Other real estate owned write-down			-					-					815					-					362
Adjusted non-interest expense (numerator)		$	19,670				$	20,867				$	19,569				$	19,124				$	18,282
Net interest income		$	35,544				$	34,009				$	32,092				$	31,594				$	30,094
Non-interest income			2,421					2,702					1,971					2,176					2,479
Total revenue			37,965					36,711					34,063					33,770					32,573
Add: Losses on sale of investment securities, net			-					-					-					-					555
Subtract: Gain on sale of other assets			-					(397	)				-					-					-
Less: Bank owned life insurance incentive			-					-					(88	)				(168	)				(1,116	)
Add: Executive officer severance benefits			-					863					-					-					-
Adjusted total revenue (denominator)		$	37,965				$	37,177				$	33,975				$	33,602				$	32,012
Efficiency ratio			51.81	%				56.13	%				57.60	%				56.91	%				57.11	%

(1) Annualized.

CONTACT: Andrew Hibshman, Chief Financial Officer
(609) 643-0058, andrew.hibshman@firstbanknj.com

FAQ

What was First Bank (FRBA) net income for Q3 2025 and EPS?

First Bank reported $11.7 million net income and $0.47 diluted EPS for Q3 2025.

How did FRBA's net interest margin and efficiency ratio perform in Q3 2025?

FRBA's tax-equivalent NIM was 3.71% and the efficiency ratio was 51.81% in Q3 2025.

What loan and deposit levels did First Bank (FRBA) report as of September 30, 2025?

As of September 30, 2025, First Bank reported $3.37 billion in total loans and $3.22 billion in total deposits.

Did First Bank (FRBA) change its dividend or buy back shares in Q3 2025?

The board declared a quarterly cash dividend of $0.06 per share and repurchased 662,678 shares through September 30, 2025.

What asset quality issues did FRBA disclose in Q3 2025?

FRBA recorded higher credit loss expense of $3.0M and net charge-offs of $1.7M, linked to the small business portfolio.

How did the subordinated debt refinance affect First Bank (FRBA) in 2025?

FRBA closed a $35.0M subordinated note issuance on June 18, 2025 with a 7.125% fixed rate for five years and redeemed $30.0M of 2020 notes on Sept 1, 2025.