First Bank Announces Second Quarter 2026 Net Income of $10.9 Million

HAMILTON, N.J., July 23, 2026 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) ("the Bank") today announced results for the second quarter of 2026. Net income for the second quarter of 2026 was $10.9 million, or $0.43 per diluted share, compared to $10.2 million, or $0.41 per diluted share, for the second quarter of 2025. Return on average assets, return on average equity and return on average tangible equityⁱ for the second quarter of 2026 were 1.09%, 9.62% and 10.84%, respectively, compared to 1.04%, 9.77% and 11.16%, respectively, for the second quarter of 2025.

Second Quarter 2026 Performance Highlights:

Patrick L. Ryan, President and CEO of First Bank, reflecting on the Bank’s performance, stated, “Our team’s outstanding execution drove our strong and improved performance in the second quarter. Pre-provision net revenue^iv expanded by nearly 9% from the linked quarter, reflecting momentum in our core business activities. Loan production was robust in our areas of focus, with C&I loans and owner-occupied CRE loans up a combined $83 million during the quarter. Deposit growth of $96 million was strong, despite increased pricing and competitive pressure for deposit dollars. Small declines in both loan yields and deposit costs overall supported our strong and stable net interest margin. We maintained our focus on tight expense management, operating with an improved efficiency ratio that remained below 60% for the 28th consecutive quarter. We believe this is a core operating strength that differentiates us in a competitive environment. We will continue to focus on expense management and efficiency gains moving forward as that will be the biggest driver of improved profitability in the near term. Importantly, credit costs decreased to the lowest level in five quarters, contributing to growth of nearly 7% in earnings per share compared to last year’s second quarter. Charge-offs during the quarter remained isolated to the credit-scored, small business portfolio, and the underlying metrics in the portfolio continue to improve which should lead to a reduction in credit costs related to this portfolio in future quarters. The changes we’ve implemented to this product’s structure and sales process are proving effective.”

Mr. Ryan continued, “Overall credit quality remains within acceptable historical ranges. Our ratio of allowance for credit losses on loans to total loans remained flat to the linked quarter. The increase in non-performing assets reflected the addition of one commercial real estate credit that moved to non-accrual status. Our ratio of criticized loans to total loans increased modestly to 2.69% from 2.52% in the linked quarter and 2.40% a year ago. While this ratio is elevated from historical lows, we remain well within industry and peer averages.”  

“We track tangible book value per share as a critical measure of progress toward our strategic goals,” Mr. Ryan added. “Over the past twelve months, we grew tangible book value per share over 9%. We’ve delivered tangible book value growth in each of the past eleven quarters since our largest acquisition in 2023, demonstrating our operational effectiveness as we’ve continued our evolution from a traditional community bank into a full-service, middle market commercial bank. We aim to continue growing profitability and shareholder returns through consistent and efficient execution.”

Income Statement

In the second quarter of 2026, the Bank’s net interest income increased to $34.8 million, growing $798,000, or 2.3%, compared to the same period in 2025. The increase was primarily driven by a $2.7 million decrease in interest expense, which outpaced a $1.9 million decrease in interest income. The decrease in interest expense was primarily due to a 37 basis point reduction in the cost of interest bearing deposits combined with decreased average borrowings and borrowing costs. Net interest income increased $798,000, or 2.3%, compared to the linked first quarter of 2026. The increase reflected growth of $1.4 million in interest income, which primarily resulted from higher average loan balances at relatively stable yields. This was partially offset by growth of $622,000 in interest expense, which was driven by higher average interest-bearing deposit balances at relatively stable costs.

The Bank’s tax equivalent net interest margin measured 3.68% for the second quarter of 2026, increasing three basis points from 3.65% for the second quarter of 2025 and decreasing one basis point from the first quarter of 2026. 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 net interest margin declined one basis point compared to the linked quarter, remaining relatively stable due to a modest one basis point decline in interest rate spread. The average cost of interest bearing deposits declined by one basis point, while average loan yields declined by two basis points. 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 both first and second quarter of 2026 and $2.7 million for the second quarter of 2025. Prepayment penalty income was $257,000 in the second quarter of 2026, compared to $517,000 in the first quarter of 2026 and $268,000 in the second quarter of 2025.

The Bank recorded a credit loss expense totaling $2.2 million during the second quarter of 2026, compared to credit loss expense totaling $5.6 million for the first quarter of 2026 and $2.6 million for the second quarter of 2025. Compared to the linked quarter, the decreased credit loss reflected continued but lower net charge-offs related to the Bank's small business portfolio. Credit loss expense for the second quarter of 2025 was commensurate with loan growth during the quarter.

The Bank recorded non-interest income totaling $2.1 million for the second quarter of 2026, compared to $2.7 million and $2.4 million for the prior year and linked quarters, respectively. Non-interest income decreased by $555,000 compared to the prior year quarter, primarily related to a $397,000 gain on the sale of a corporate facility in the second quarter of 2025 and higher loan fees earned in the prior year quarter primarily due to higher loan swap fee income. Non-interest income decreased by $237,000 from the linked quarter primarily due to lower earnings from other investments, lower gain on sale of loans and lower loan swap fees income offset by higher gain on recovery of acquired loans.

Non-interest expense for the second quarter of 2026 was $20.1 million, decreasing $721,000 or 3.5%, compared to $20.9 million for the second quarter of 2025. The decrease was primarily due to a $549,000 decrease in salaries and employee benefits expense.

Non-interest expense for the second quarter of 2026 decreased $797,000 from $20.9 million in the first quarter of 2026. The linked quarter decline reflected a $910,000 decrease in salaries and employee benefits costs. Occupancy and equipment expenses also declined by $280,000 primarily due to lower weather-related maintenance costs in the second quarter. 

Income tax expense for the second quarter of 2026 was $3.7 million with an effective tax rate of 25.5%, compared to $3.0 million with an effective tax rate of 22.9% for the second quarter of 2025 and $2.3 million with an effective tax rate of 22.7% for the first quarter of 2026. Income tax expense for the first quarter of 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. Income tax expense for the second quarter of 2025 included Historic and Solar Tax credits. Excluding discrete items, we anticipate our future effective tax rate will be approximately 23% to 25%.

Balance Sheet

The Bank reported total assets of $4.09 billion at June 30, 2026, an increase of $129.4 million, or 3.3%, from $3.96 billion at December 31, 2025. Total loans increased $78.9 million, or 2.3%, over the same period, reflecting strong organic growth in the C&I, commercial real estate owner-occupied and commercial real estate investor portfolios. The Bank’s cash and cash equivalents increased by $42.3 million, or 13.7%, compared to December 31, 2025, as management continued to focus on adequate on-balance sheet liquidity.

Total assets increased $116.6 million, or 2.9%, during the current quarter, primarily due to an increase in loans of $68.0 million and a $33.3 million increase in cash and cash equivalents. The increase reflected strong growth in commercial loans. New loan pipelines continued to be strong and support the Bank’s long-term growth expectations. Cash and cash equivalents increase supports strong liquidity ratios at June 30, 2026.

Total deposits increased to $3.32 billion at June 30, 2026 by $121.4 million, or 3.8%, from $3.20 billion at December 31, 2025. The Bank's total deposits increased $96.2 million, or 3.0%, from $3.23 billion at March 31, 2026. 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 six months ended June 30, 2026, stockholders’ equity increased by $9.7 million, or 2.2%, primarily due to net income, partially offset by dividends and share repurchases.

As of June 30, 2026, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 10.17%, a Tier 1 Risk-Based capital ratio of 10.82%, a Common Equity Tier 1 Capital ratio of 10.82%, and a Total Risk-Based capital ratio of 13.00%. The tangible stockholders' equity to tangible assets ratio^v measured 9.98% as of June 30, 2026, compared to 10.04% at December 31, 2025. The decline from December 31, 2025, was primarily due to the asset growth during the period.

Asset Quality

Total nonperforming assets, comprised exclusively of nonperforming loans in both periods, increased from $18.4 million at December 31, 2025 to $32.7 million at June 30, 2026. Nonperforming loans increased $14.3 million from December 31, 2025 primarily due to the addition of two well-secured commercial real estate credits totaling $16.5 million, partially offset by pay-offs and paydowns on other nonperforming loans during the first six months of the year.

The Bank recorded net charge-offs of $1.6 million during the second quarter of 2026, compared to net charge-offs of $5.0 million during the first quarter of 2026 and net charge-offs of $796,000 in the second quarter of 2025. Net charge-offs for the first and second quarters of 2026 primarily reflect losses in the Bank's small business portfolio. The allowance for credit losses on loans as a percentage of total loans measured 1.38% at June 30, 2026, compared to 1.39% at March 31, 2026 and 1.23% at June 30, 2025. 

Total criticized loans, which includes loans classified as substandard and special mention, increased to $90.9 million, or 2.69% of loans at June 30, 2026, compared to $83.2 million, or 2.52% of loans at March 31, 2026 and $79.9 million or 2.40% of loans at June 30, 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 $33.3 million, or 10.5%, compared to March 31, 2026. Borrowings increased by $19.9 million compared to March 31, 2026 as Federal Home Loan Bank (“FHLB”) advances were utilized to support strong loan growth, FHLB advances decreased $85.3 million compared to June 30, 2025, which has allowed for higher available borrowing capacity at the FHLB.

Cash Dividend Declared

On July 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 August 7, 2026, payable on August 21, 2026.

Share Repurchase Program

During the second quarter of 2026, the Bank repurchased 325,388 shares of common stock at an average price of $15.45 per share, under the share repurchase program authorized in November 2025. Through June 30, 2026, 359,007 shares have been repurchased from the current share repurchase plan with a total cost of $5.5 million or $15.46 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 on 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/daf9708b-882b-4e58-9643-28a13c87789f

First Bank will host its earnings call on Friday, July 24, 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 872 094 274. 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 $4.09 billion in assets as of June 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.

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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 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 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 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.

^iv Pre-provision net revenue is a non-U.S. GAAP financial measure and is calculated by adding net interest income and non-interest income and subtracting non-interest expense adjusted by certain non-recurring items. For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. 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.

^v 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