First Bank (FRBA) investor relations material

Executive summary

• Net income for Q4 2025 was $12.3 million ($0.49 per diluted share), with full-year net income of $43.7 million ($1.74 per share), both up year-over-year.

• Achieved $3.96 billion in assets, $3.29 billion in loans, and $3.20 billion in deposits as of Q4 2025, with a strong presence in the Philadelphia to NYC corridor.

• Net interest margin expanded to 3.74% in Q4 2025, up 20 bps year-over-year, driving higher profitability.

• Tangible book value per share rose to $15.81 at year-end, up 11.5% year-over-year.

• Quarterly cash dividend increased 50% to $0.09 per share; new share repurchase program authorized for up to 1.2 million shares or $20.4 million.

Financial highlights

• Total loans at year-end were $3.29 billion, up 4.7% year-over-year, but down $80.7 million from Q3 due to elevated payoffs.

• Total deposits reached $3.20 billion, up 4.8% year-over-year, with a slight sequential decline in Q4.

• Net interest income increased $633,000 sequentially, driven by margin expansion.

• Efficiency ratio improved to 49.46%, below 60% for the 26th consecutive quarter.

• Tier 1 leverage ratio at 9.75% at year-end.

Outlook and guidance

• Targeting $200 million net loan growth in 2026, with active pipelines in C&I, asset-based lending, and CRE.

• Management expects continued investment in technology and talent, with specialty banking groups nearing scale and ongoing efficiency initiatives to support profitability in 2026.

• Focus on closing the cost of funds gap with peers, increasing non-interest income, and further reducing non-interest expense to average asset ratio.

• Enhanced capital levels and liquidity position provide flexibility for organic growth, dividends, and share buybacks.

• Anticipates future effective tax rate of approximately 24-25%.