Net interest margin expansion, loan and deposit growth, and operating efficiency drive increased earnings and tangible book value

Dividend increase declared to $0.12 per share 

HAMILTON, N.J., Oct. 22, 2026 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) (the Bank) today announced net income of $12.2 million, or $0.49 per diluted share, for the third quarter of 2026. This compares to $10.9 million, or $0.43 per diluted share, in the second quarter of 2026 and $11.7 million, or $0.47 per diluted share, for the third quarter of 2025. The Bank's annualized return on average assets was 1.18%, return on average equity was 10.50%, and return on average tangible equityⁱ was 11.79% for the third quarter of 2026.

Third Quarter 2026 Performance Highlights:

• High-Quality Earnings Growth Drives Increased Tangible Book Valueⁱⁱ. Net income, and diluted earnings per share rose by 12.0% and 12.5%, respectively, compared to the linked quarter. These results drove continued and strong internal capital generation, including a 7.8% annualized increase in tangible book value per share.
  
• Broad-Based Loan Growth. Total loans grew to $3.42 billion at September 30, 2026, increasing $50.2 million, or 5.9% annualized, from June 30, 2026. Growth was strong across the Bank’s commercial and industrial, owner-occupied commercial real estate (CRE), and construction and development portfolios. Average loan yields expanded by 15 basis points from the linked quarter.
  
• Robust Deposit Generation and Effective Deposit Cost Management. Total deposits grew to $3.37 billion at September 30, 2026, increasing $43.0 million, or 5.1% annualized, from June 30, 2026. The Bank’s substantial deposit growth throughout the third quarter supported management’s ability to reduce higher-cost borrowings by $90 million.
  
• Net Interest Margin Expansion. Net interest margin increased to 3.74% for the third quarter of 2026, compared to 3.68% and 3.71% for the linked and prior year quarters, respectively. Improvement from the linked quarter reflects relationship-driven loan and deposit growth coupled with pricing discipline and efficient balance sheet positioning.
  
• Expense Containment Reflected in Efficiency Measures. Expense growth remained well-contained, contributing to a third quarter efficiency ratioⁱⁱⁱ of 52.37%, compared to 54.52% for the linked quarter. The Bank also evaluates the ratio of noninterest expense to average assets as a measure of its efficiency. During the third quarter of 2026, this measure improved to 1.97%, reflecting the success of the Bank’s cost containment and balance sheet growth initiatives.

Patrick L. Ryan, President and CEO of First Bank, stated, “We are pleased to report strong third quarter results that reflect continued momentum across our franchise. Earnings improved over both the linked and prior-year quarters, producing a healthy return on average assets of 1.18% and return on average tangible equity of 11.79%. These results reflect our team’s effectiveness in delivering high-quality, relationship-based balance sheet growth while maintaining disciplined pricing and expense control. This supported a very strong efficiency ratio of 52.37%, marking our 29^th consecutive quarter below 60%.”

Mr. Ryan continued, “Our margin benefited from higher loan yields, the paydown of higher-cost borrowings and a favorable earning asset mix. We grew loans and deposits by an annualized 5.9% and 5.1%, respectively, underscoring the strength of our origination platform and our ability to fund growth with core deposits. We remain focused on managing our total cost of deposits while continuing to deepen relationships with our core customers. We positioned our balance sheet for strong performance in the current interest rate environment, including through the purchase of investment securities and the paydown of borrowings during the third quarter of 2026. We also see investor-owned commercial real estate ("CREI") growth as an opportunity as our CREI to total risk-based capital ratio has declined to 333%.”

Mr. Ryan added, “Nonperforming assets increased slightly during the quarter; however, we received a $5.6 million pay-down on a non-performing loan shortly after quarter-end bringing the total below June 30, 2026 levels. Charge-offs during the quarter were primarily from our Business Express portfolio, which continues to run-off. We remain diligent in our credit administration and proactive in working through individual credits.”

“Strong earnings generation supported growth in our capital position,” Mr. Ryan continued, “We are pleased to announce our Board of Directors’ approval of a $0.03 increase to our quarterly cash dividend for the fourth quarter of 2026. This 33% increase reflects the strength of First Bank’s earnings power as we approach the end of 2026. We remain committed to building long-term shareholder value through consistent earnings and prudent capital management. We remain confident in our strategy, our team, and the long-term positioning of our franchise.”

Income Statement

Net interest income increased to $36.8 million for the third quarter of 2026, growing $2.0 million, or 5.6%, from the second quarter of 2026 and $1.2 million, or 3.4%, from the third quarter of 2025. The increase in net interest income was supported by net interest margin expansion to 3.74%, as well as growth in average earning assets which outpaced growth in interest bearing liabilities. The linked quarter increase reflected growth of $2.9 million in interest income, which primarily resulted from higher average loan balances and yields. This was partially offset by growth of $949,000 in interest expense, reflecting higher average interest-bearing deposit balances and costs. The $1.2 million year-over-year increase in net interest income reflected a $2.2 million decrease in interest expense, which outpaced a $1.0 million decrease in interest income. The decrease in interest expense was primarily due to lower average borrowings and borrowing costs combined with higher average interest-bearing deposit balances and a 28 basis point reduction in the cost of interest-bearing deposits. The decrease in interest income primarily reflected lower loan yields partially offset by higher average loan balances.

The tax-equivalent net interest margin was 3.74% for the third quarter of 2026, increasing from 3.68% for the second quarter of 2026 and 3.71% for the third quarter of 2025. Margin expansion during the quarter reflected higher loan yields and a favorable shift in the Bank's funding mix, including the paydown of borrowings. The total cost of deposits increased five basis points to 2.47% for the third quarter of 2026, and the yield on loans increased 15 basis points to 6.48%. Improvement from the prior year quarter was driven by nine basis points of improvement in 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 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 third quarter of 2026, $1.2 million during the second quarter of 2026 and $2.6 million for the third quarter of 2025. Prepayment penalty income was $329,000 in the third quarter of 2026, compared to $258,000 in the second quarter of 2026 and $54,000 in the third quarter of 2025.

Credit loss expense was $2.2 million for the third quarter of 2026, essentially unchanged from $2.2 million for the second quarter of 2026, and down from $3.0 million for the third quarter of 2025. Credit loss expense for each of the periods was impacted by net charge-offs, primarily related to small business C&I loans originated through the Bank's Business Express loan product, loan growth and increases in nonperforming loans.

Non-interest income was $2.0 million for the third quarter of 2026, compared to $2.1 million for the second quarter of 2026 and $2.4 million for the third quarter of 2025. Non-interest income decreased by $148,000 from the linked quarter primarily due to the recognition of $165,000 losses resulting from changes in the fair value of other investments during the third quarter of 2026. Non-interest income decreased by $422,000 from the prior year quarter primarily due to a larger gain on recovery of acquired loans recorded in the third quarter of 2025 and the aforementioned losses resulting from changes in the fair value of other investments.

Non-interest expense was $20.3 million for the third quarter of 2026, compared to $20.1 million for the second quarter of 2026 and $19.7 million for the third quarter of 2025. The modest increase reflects higher salaries and employee benefits, partially offset by successful execution of Bank’s cost containment efforts.

Income tax expense for the third quarter of 2026 was $4.0 million with an effective tax rate of 24.96%, compared to $3.7 million with an effective tax rate of 25.51% for the second quarter of 2026 and $3.6 million with an effective tax rate of 23.42% for the third quarter of 2025. The Bank anticipates its future effective tax rate will be approximately 23% to 25%.

Balance Sheet

Total assets were $4.05 billion at September 30, 2026, compared to $4.09 billion at June 30, 2026 and $3.96 billion at December 31, 2025. The modest decline from the linked quarter primarily reflected a $131.5 million reduction in cash and cash equivalents, partially offset by $50.2 million in loan growth and $44.3 million in investment securities growth. 

Total loans, net of deferred fees and costs, grew $50.2 million, or 1.5%, compared to June 30, 2026 and $129.1 million, or 3.9%, compared to December 31, 2025. Growth from the linked quarter primarily reflected higher construction and development, C&I, and owner-occupied CRE balances, partially offset by a decrease in investor CRE. Growth from December 31, 2025 reflected higher owner-occupied CRE, C&I, and investor CRE loans, partially offset by lower residential mortgage and multi-family loans. Over the twelve months ended September 30, 2026, the Bank’s higher-yielding C&I portfolio grew to comprise 22.4% of total loans, compared to 21.9% at September 30, 2025, reflecting the successful expansion of our specialized lending businesses.

Total deposits grew $43.0 million, or 1.3%, compared to June 30, 2026 and $164.4 million, or 5.1%, compared to December 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. 

Borrowings were $151.5 million at September 30, 2026, declining $90.1 million, or 37.3%, from June 30, 2026, as the Bank utilized excess liquidity to reduce wholesale funding.

During the nine months ended September 30, 2026, stockholders’ equity increased by $17.3 million, or 3.9%, primarily due to net income, partially offset by dividends and share repurchases.

As of September 30, 2026, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 10.21%, a Tier 1 Risk-Based capital ratio of 10.87%, a Common Equity Tier 1 Capital ratio of 10.87%, and a Total Risk-Based capital ratio of 13.03%. The tangible stockholders' equity to tangible assets ratio^iv measured 10.26% as of September 30, 2026, compared to 10.04% at December 31, 2025.

Asset Quality

Total nonperforming assets, comprised exclusively of nonperforming loans, were $35.7 million at September 30, 2026, compared to $32.7 million at June 30, 2026 and $14.4 million at September 30, 2025. Nonperforming assets represented 0.88% of total assets at September 30, 2026, compared to 0.80% at June 30, 2026 and 0.36% at September 30, 2025. The increase in non-performing loans was primarily due to the addition of C&I loans totaling $2.1 million, partially offset by payoffs and paydowns on other nonperforming loans.

Net charge-offs were $1.9 million for the third quarter of 2026, compared to $1.6 million for the second quarter of 2026 and $1.7 million for the third quarter of 2025. Net charge-offs represented an annualized 0.22% of average loans for the third quarter of 2026. Net charge-offs for the three and nine months of 2026 primarily reflected losses related to small business C&I loans originated through the Bank's Business Express loan product.

The allowance for credit losses on loans was $47.0 million at September 30, 2026, representing 1.37% of total loans, compared to 1.38% at June 30, 2026 and 1.25% at September 30, 2025. The allowance for credit losses on loans represented 1.32 times nonperforming loans at September 30, 2026, compared to 1.43 times at June 30, 2026 and 2.93 times at September 30, 2025.

Total criticized loans, which includes loans classified as substandard and special mention, increased to $91.1 million, or 2.66% of loans at September 30, 2026, compared to $90.9 million, or 2.69% of loans at June 30, 2026 and $70.9 million or 2.10% of loans at September 30, 2025.

Liquidity, Investments and Borrowings

Management believes the Bank’s current on-balance sheet liquidity position, coupled with its various contingent funding sources, provides the Bank with a strong liquidity base and a diverse source of funding options. Cash and cash equivalents were $220.0 million at September 30, 2026, a decrease of $131.5 million, or 37.4%, compared to June 30, 2026. The Bank utilized its excess liquidity to reduce borrowings by $90.1 million, or 37.3%, to $151.5 million at September 30, 2026. In addition, during the back-end of the third quarter, the Bank shifted some excess liquidity into low-risk investments, primarily government sponsored mortgage-backed securities, which will provide increased yields while maintaining adequate liquidity.

Cash Dividend Declared

On October 20, 2026, the Bank’s Board of Directors declared a quarterly cash dividend of $0.12 per share to common stockholders of record at the close of business on November 6, 2026, payable on November 20, 2026. This reflects an increase compared to the Bank’s prior quarterly cash dividend of $0.09 per share.

Share Repurchase Program

During the third quarter of 2026, the Bank did not repurchase shares of common stock. Through September 30, 2026, 359,007 shares were repurchased from the share repurchase plan which was authorized in November 2025 and expired on September 30, 2026, with a total cost of $5.5 million or $15.46 per share on average.

The Board of Directors authorized and the Bank received final regulatory approvals 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 $24.0 million. The repurchase program expires on September 30, 2027. 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/c2497111-2354-4774-a3e3-3420c40d6c07

First Bank will host its earnings call on October 23, 2026 at 9:00 AM Eastern Time. The direct dial number for the call is 1-833-461-5787, toll free, using the meeting ID 747 757 245. 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 “Investor Relations” page of the Bank’s website, www.myfirstbank.com.

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 $4.05 billion in assets as of September 30, 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 public health emergencies; 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 press release 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 Tangible book value per share is a non-GAAP financial measure and is calculated by dividing tangible equity (equity minus goodwill and other intangible assets) by common shares outstanding. 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.

ⁱⁱⁱ The efficiency ratio is a non-GAAP financial measure and is calculated by dividing adjusted non-interest expense 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 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.

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