First Bank Announces First Quarter 2026 Net Income of $7.6 Million

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

HAMILTON, N.J., April 27, 2026 (GLOBE NEWSWIRE) — First Bank (Nasdaq Global Market: FRBA) (“the Bank”) today announced results for the first quarter of 2026. Net income for the first quarter of 2026 was $7.6 million, or $0.30 per diluted share, compared to $9.4 million, or $0.37 per diluted share, for the first quarter of 2025. Return on average assets, return on average equity and return on average tangible equityⁱ for the first quarter of 2026 were 0.79%, 6.89% and 7.78%, respectively, compared to 1.00%, 9.20% and 10.54%, respectively, for the first quarter of 2025.

First Quarter 2026 Performance Highlights:

Patrick L. Ryan, President and CEO of First Bank, reflecting on the Bank’s performance, stated, “We generated modest growth in loans and deposits during the first quarter, and our strong margin and efficient operations supported solid year-over-year expansion in income, excluding credit loss expenses. However, our performance in Q1 did not live up to our internal standards. Continued clean-up in the credit-scored, small business portfolio drove elevated credit costs which led to lower overall profitability. Steps taken starting in mid-2025 to modify the product structure and sales process have tightened things significantly, which should lead to better performance going forward.  We believe we have fully captured expenses tied to any known problems, and future credit costs tied to this portfolio should come down significantly as we move forward.”

“Our loan pipelines heading into the second quarter are strong, and we anticipate our community banking and specialty banking teams’ strong execution will continue to grow deep commercial relationships that will support our growth goals. Elevated payoff activity continued to compress our loan balances in the first quarter, although at a moderated pace compared to the fourth quarter. We operated with an efficiency ratio that remained below 60% for the 27th consecutive quarter, demonstrating a core operating strength that differentiates us in a competitive environment.” 

Mr. Ryan continued, “Overall, credit quality remains at manageable levels.  Non-performing assets rose during the quarter, but at 66 basis points of total assets, the overall level is in line with historical averages.  The first quarter increase relates to an isolated situation in which a strong commercial real estate borrower is constrained by the impact of a broader corporate restructuring. Our ratio of criticized loans to total loans increased modestly to 2.52% from 2.44% at the end of the year, and 2.49% a year ago.”  

“We track tangible book value per share as a critical measure of progress toward our strategic goals,” Mr. Ryan added. “During the last twelve months, we delivered 10% year-over-year growth in tangible book value per share, and we are pleased to have achieved linked quarter improvement in this measure despite reduced earnings. Our operating strategy is focused on consistent and efficient execution as we continue our evolution from a traditional community bank into a full-service, middle market commercial bank. Despite our reduced profitability in the first quarter, we anticipate lower credit costs coupled with better growth and continued tight expense management will drive improved results throughout the remainder of this year.”

Income Statement

In the first quarter of 2026, the Bank’s net interest income increased to $34.0 million, growing $1.9 million, or 6.0%, compared to the same period in 2025. The increase was primarily driven by a $1.9 million decrease in interest expense, while interest income remained flat to the prior period. The decrease in interest expense was primarily due to a 38 basis point reduction in the cost of interest bearing deposits. Net interest income decreased $2.2 million, or 6.0%, compared to the linked fourth quarter of 2025. The decline was driven by a decrease of $4.5 million in interest income, which primarily resulted from lower average loans due to declines late in the fourth quarter of 2025, combined with a 21 basis point reduction in the yield on average loans. This was partially offset by a 15 basis point reduction in the cost of interest bearing deposits combined with lower average deposits due to deposit growth that occurred late in the quarter.

The Bank’s tax equivalent net interest margin measured 3.69% for the first quarter of 2026, increasing four basis points from 3.65% for the first quarter of 2025 and decreasing five basis points from the fourth 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 yields on earning assets. The Bank’s net interest margin declined compared to the linked quarter primarily due to a reduced interest rate spread, reflecting declines in average yields on loans which primarily resulted from lower prepayment penalty fees and purchase accounting benefits received compared to the linked quarter. This was partially offset by lower average rates on deposits. 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 $1.2 million in net interest income during the first quarter of 2026, compared to $1.6 million for the fourth quarter of 2025 and $2.8 million for the first quarter of 2025. Prepayment penalty income was $517,000 in the first quarter of 2026, compared to $945,000 in the fourth quarter of 2025.

The Bank recorded a credit loss expense totaling $5.6 million during the first quarter of 2026, compared to credit loss expense totaling $4.8 million for the fourth quarter of 2025 and $1.5 million for the first quarter of 2025. The increased credit loss expense in the first quarter of 2026 was primarily due to additional net charge-offs, primarily related to the Bank’s small business portfolio. Credit loss expense for the first quarter of 2025 was commensurate with loan growth during the quarter.

The Bank recorded non-interest income totaling $2.4 million for the first quarter of 2026, compared to $2.0 million and $2.3 million for the prior year and linked quarters, respectively. Non-interest income increased by $413,000 compared to the prior year quarter primarily related to higher gains on the sale of loans and earnings from other investments during the first quarter of 2026. Non-interest income increased by $101,000 from the linked quarter primarily due to earnings from other investments.

Non-interest expense for the first quarter of 2026 was $20.9 million, increasing $559,000 or 2.7%, compared to $20.4 million for the first quarter of 2025. The increase was primarily due to a $1.2 million increase in salaries and employee benefits expense. This increase was offset somewhat by Other Real Estate Owned (“OREO”) expense decline, primarily due to the $815,000 impairment of an OREO asset recorded during the prior year quarter.

Non-interest expense increased $3.9 million from $17.1 million in the fourth quarter of 2025. The linked quarter increase reflects the $1.9 million gain related to the sale of an OREO asset recorded during the fourth quarter of 2025. Excluding the OREO gain, non-interest expenses increased by $1.9 million compared to the linked quarter, primarily due to a $1.3 million increase in salaries and employee benefits costs, which included annual merit related salary adjustments and benefit cost increases in the first quarter of 2026 combined with higher payroll taxes, primarily due to annual bonus payments made during the first quarter of 2026. Occupancy and equipment expenses also rose, increasing $229,000 primarily due to higher weather-related maintenance costs and annual rent increases. 

Income tax expense for the first quarter of 2026 was $2.3 million with an effective tax rate of 22.7%, compared to $2.8 million with an effective tax rate of 22.7% for the first quarter of 2025 and $4.3 million with an effective tax rate of 25.7% for the fourth quarter of 2025. Income tax expense for the first quarters of 2025 and 2026 included the benefit of certain discrete items related to stock compensation activity which typically has an outsized impact during the first quarter due to the timing of year-end stock compensation issuance. Excluding discrete items, we anticipate our future effective tax rate will be approximately 24% to 25%.

Balance Sheet

Total assets increased $12.7 million, or 0.3%, from December 31, 2025 to March 31, 2026, primarily due to an increase in loans of $10.9 million. The increase reflected growth in commercial loans, after declines during the fourth quarter of 2025, which were driven primarily by elevated levels of loan payoffs. New loan pipelines continued to be strong and support the Company’s long-term growth expectations. Cash and cash equivalents increased by $9.0 million compared to December 31, 2025, and liquidity ratios continue to be stable.

The Bank reported total assets of $3.97 billion at March 31, 2026, an increase of $90.0 million, or 2.3%, from $3.88 billion at March 31, 2025. Total loans increased $68.1 million, or 2.1%, over the same period, reflecting strong organic growth in the C&I portfolio, partially offset by declines in the commercial real estate portfolio, which included elevated levels of payoffs during each of the fourth quarter of 2025 and first quarter of 2026. The Bank’s cash and cash equivalents increased by $30.1 million, or 10.4%, compared to March 31, 2025, as management continued to maintain adequate on-balance sheet liquidity.

Total deposits increased by $25.1 million, or 0.8%, from $3.20 billion at December 31, 2025 to $3.23 billion at March 31, 2026. The Bank’s total deposits increased $107.6 million, or 3.5%, from $3.12 billion at March 31, 2025. Deposit growth was primarily due to our team’s success in attracting new deposit relationships while also maintaining existing relationships amid heightened industry-wide pricing competition. 

During the three months ended March 31, 2026, stockholders’ equity increased by $5.9 million, or 1.3%, primarily due to net income, partially offset by dividends and share repurchases.

As of March 31, 2026, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 10.20%, a Tier 1 Risk-Based capital ratio of 10.88%, a Common Equity Tier 1 Capital ratio of 10.88%, and a Total Risk-Based capital ratio of 13.08%. The tangible stockholders’ equity to tangible assets ratio^iv measured 10.17% as of March 31, 2026, compared to 10.04% at December 31, 2025.

Asset Quality

Total nonperforming assets, comprised exclusively of nonperforming loans in both periods, increased from $18.4 million at December 31, 2025 to $26.2 million at March 31, 2026. Nonperforming loans increased $7.8 million during the first quarter of 2026, primarily due to the addition of a well secured, single-borrower commercial real estate credit totaling $9.5 million, offset somewhat by pay-offs and paydowns on certain other nonperforming loans during the quarter.

The Bank recorded net charge-offs of $5.0 million during the first quarter of 2026, compared to net charge-offs of $1.7 million during the fourth quarter of 2025 and net recoveries of $15,000 in the first quarter of 2025. First quarter of 2026 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 1.39% at March 31, 2026, compared to 1.38% at December 31, 2025 and 1.21% at March 31, 2025. 

Total criticized loans, which includes loans classified as substandard and special mention, increased slightly to $83.2 million, or 2.52% of loans at March 31, 2026, compared to $80.4 million, or 2.44% of loans at December 31, 2025 and $80.7 million or 2.49% of loans at March 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 increased by $9.0 million, or 2.9%, compared to December 31, 2025, ensuring adequate on-balance sheet liquidity. Borrowings decreased by $15.1 million and $60.0 million compared to December 31, 2025 and March 31, 2025, respectively, due to the Bank’s reduced Federal Home Loan Bank (“FHLB”) advances, which drove higher available borrowing capacity at the FHLB.

Cash Dividend Declared

On April 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 May 8, 2026, payable on May 22, 2026.

Share Repurchase Program

During the first quarter of 2026 the Bank repurchased 33,619 shares of common stock at an average price of $15.50 per share, under the share repurchase program authorized in November 2025. Through March 31, 2026, 33,619 shares have been repurchased from the current share repurchase plan with a total cost of $521,000 or $15.50 per share on average. The share repurchase program provides 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.

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/6bc39b00-8745-48bd-9684-cf396ee9f42e

First Bank will host its earnings call on Tuesday, April 28, 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 3623576. The conference call will also be available (listen-only) via the internet by accessing FRBA conference call. For those unable to participate in the call, a replay will be available on the Bank’s website, www.myfirstbank.com. 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 $3.97 billion in assets as of March 31, 2026, 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.

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This press release contains “non-GAAP” financial measures, which management uses in its analysis of First Bank’s performance. Management believes these non-GAAP financial measures allow for better comparability of period to period operating performance. Additionally, First Bank believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided in the accompanying financial tables.

ⁱ Return on average tangible equity is a non-GAAP financial measure and is calculated by dividing net income by average tangible equity (average equity minus average goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱ The efficiency ratio is a non-U.S. GAAP financial measure and is calculated by dividing non-interest expense less merger-related expenses by adjusted total revenue (net interest income plus non-interest income).  For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱⁱ Tangible book value per share is a non-GAAP financial measure and is calculated by dividing common shares outstanding by tangible equity (equity minus goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.

^iv Tangible stockholders’ equity to tangible assets ratio is a non-GAAP financial measure and is calculated by dividing tangible equity (equity minus goodwill and other intangible assets) by tangible assets (total assets minus goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.