Company Overview - First Bank (FRBA) is anticipated to report a year-over-year decline in earnings of 8.5%, with expected earnings of $0.43 per share for the quarter ended June 2025, while revenues are projected to increase by 13.6% to $35.47 million [3][11] Earnings Expectations - The upcoming earnings report is scheduled for July 22, and the stock may experience upward movement if the reported numbers exceed expectations, whereas a miss could lead to a decline [2][3] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Most Accurate Estimate for First Bank is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.18%, suggesting a bearish outlook from analysts [11] - The Zacks Rank for First Bank is currently 3 (Hold), complicating predictions of an earnings beat [11] Historical Performance - In the last reported quarter, First Bank was expected to post earnings of $0.39 per share but delivered $0.37, resulting in a surprise of -5.13% [12] - Over the past four quarters, First Bank has beaten consensus EPS estimates two times [13] Industry Comparison - Washington Trust Bancorp (WASH), another player in the Zacks Banks - Northeast industry, is expected to report earnings of $0.63 per share, with revenues projected to rise by 11.8% to $53.92 million [17][18] - Washington Trust also has a Zacks Rank of 3 and an Earnings ESP of -10.64%, indicating a similar challenge in predicting an earnings beat [19]

Core Viewpoint - First Bank is set to discuss its financial and operational performance for the second quarter of 2025 during an upcoming earnings conference call scheduled for July 23, 2025 [1] Group 1: Conference Call Details - The earnings conference call will take place on July 23, 2025, at 9:00 a.m. Eastern Time [1] - Key executives including the President, CFO, Chief Lending Officer, and Chief Retail Banking Officer will present the second quarter results [1] - The management presentation is expected to last approximately 15 to 30 minutes, followed by a Q&A session with investors [1] Group 2: Company Overview - First Bank is a New Jersey state-chartered bank with 27 full-service branches located in New Jersey and Pennsylvania, as well as Palm Beach, Florida [2] - As of March 31, 2025, First Bank has total assets amounting to $3.88 billion [2] - The bank offers a traditional range of deposit and loan products primarily serving individuals and businesses in the New York City to Philadelphia corridor [2]

Group 1 - First Bank announced the closing of a $35.0 million private placement of fixed-to-floating rate subordinated notes, intending to use the proceeds to redeem $30.0 million of existing subordinated notes and for general corporate purposes [1][2] - The notes have a maturity date of June 30, 2035, with a fixed interest rate of 7.125% for the first five years, transitioning to a floating rate thereafter, which is the three-month Secured Overnight Financing Rate (SOFR) plus 343 basis points [2] - The notes are structured to qualify as Tier 2 capital for regulatory purposes, and the Bank can redeem them without penalty starting June 30, 2030 [2] Group 2 - CEO Patrick L. Ryan expressed satisfaction with the successful completion of the subordinated debt offering, highlighting that it allows the Bank to retire existing notes at a lower interest rate and enhance its capital base without diluting common stock [3] - The overall cost of capital is considered attractive due to the tax-deductible nature of the instrument combined with the low interest rate [3] - Piper Sandler & Co. acted as the sole placement agent for the offering, with legal advice provided by Luse Gorman, PC and Silver, Freedman, Taff & Tiernan LLP [3] Group 3 - First Bank is a New Jersey state-chartered bank with 27 full-service branches and $3.88 billion in assets as of March 31, 2025, offering a range of deposit and loan products primarily in the New York City to Philadelphia corridor [4]

Group 1 - First Bank appointed Larry Jackson as the new Chief Credit Officer, effective April 2025, bringing over 21 years of experience in credit risk management [1][2] - CEO Adam Currie expressed excitement about Jackson's appointment, highlighting his expertise and leadership skills as vital for the bank's growth [2] - Jackson is relocating to Greensboro with his family and is committed to community involvement, aligning with the bank's values [2] Group 2 - First Bank, a subsidiary of First Bancorp, is headquartered in Southern Pines, North Carolina, with total assets of approximately $12.1 billion [3] - The bank operates 113 branches in North Carolina and South Carolina, focusing on tailored banking solutions and local expertise [3] - First Bancorp's common stock is traded on the NASDAQ under the symbol "FBNC" [3]

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings revisions to maintain momentum. Group 1: Stock Performance - First Bank (FRBA) has shown a solid price increase of 0.7% over the past 12 weeks, indicating investor willingness to pay more for potential upside [4] - Over the last four weeks, FRBA's price increased by 13.9%, suggesting that the upward trend is still intact [5] - FRBA is currently trading at 87% of its 52-week high-low range, indicating a potential breakout [5] Group 2: Fundamental Strength - FRBA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6] - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7] Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like FRBA that are on an uptrend supported by strong fundamentals [3] - The article suggests exploring over 45 Zacks Premium Screens tailored to different investing styles to find potential winning stocks [8]

-1- Financial Results First Quarter 2025 April 24, 2025 -2- AGENDA | 1 | 1Q 2025 – | Quarter Highlights | Aurelio Alemán, President and Chief Executive Officer | | --- | --- | --- | --- | | 2 | 1Q 2025 – | Results of Operations | Orlando Berges, | | | | | Executive Vice President and Chief Financial Officer | | 3 | 1Q 2025 – | Questions and Answers | | -3- FIRST QUARTER 2025 Financial Performance Highlights FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" concerning the Cor ...

Core Viewpoint - First Bank (FRBA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Recent Earnings Estimate Revisions - First Bank is projected to earn $1.69 per share for the fiscal year ending December 2025, reflecting a year-over-year decrease of 1.7% [8]. - Over the past three months, the Zacks Consensus Estimate for First Bank has increased by 2.4%, indicating a positive trend in earnings outlook [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of First Bank to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - The cost of deposits decreased by 14 basis points, leading to an improvement in net interest margin by 11 basis points [7] - Net income for Q1 2025 was $9.4 million or $0.37 per diluted share, with a return on average assets (ROA) of 1% [12] - Excluding the OREO write-down, EPS would have been $0.40 per share or an ROA of 1.07% [12] - Return on tangible common equity was above 10%, and the efficiency ratio remained below 60% [11][22] - Non-performing assets (NPAs) to total assets declined to 0.42% from 0.46% at the end of Q4 2024 [17] Business Line Data and Key Metrics Changes - Strong loan growth of $92 million, representing a 12% annualized increase, with total loans up approximately $244 million over the last 12 months [13][34] - The asset-based lending portfolio increased by almost $30 million to just over $90 million [10] - Private equity fund banking portfolio grew to $128 million, while small business lending, including Business Express and SBA loans, reached $91 million [10][102] - Non-interest bearing demand deposits increased to 17.2% of total deposits, up from 15.8% a year ago [28] Market Data and Key Metrics Changes - Total deposits increased by $64 million or 8% from Q4 2024, and grew $150 million or 5% from Q1 2024 [26] - The lending pipeline at the end of Q1 stood at $326 million, up 33% from the previous quarter [38] Company Strategy and Development Direction - The company aims to focus on C&I lending, with 81% of new loans closed in Q1 being C&I loans [35] - Plans to open new branches in New Jersey and relocate a Florida branch to enhance customer engagement [30][31] - The company is committed to maintaining a low-risk balance sheet while pursuing growth opportunities in new business units [23][130] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding loan demand, expecting continued activity in construction and refinancing despite economic uncertainties [61] - The company is focused on deposit generation and maintaining strong customer relationships to support growth [51] - Management indicated that the allowance for credit losses is at a comfortable level, with a conservative approach to credit risk [72][74] Other Important Information - Non-interest expenses for Q1 2025 were $20.4 million, including an $815,000 impairment of an OREO asset [19] - The effective tax rate for Q1 was 22.7%, with expectations to remain in the range of 23% to 24% going forward [22] Q&A Session Summary Question: Thoughts on the lending environment moving forward - Management noted that ongoing construction projects will continue, and while there may be a slowdown in the future, current loan demand remains strong [60] Question: Regarding stock buybacks and future activity - The company is actively considering stock buybacks, especially while the stock is trading at lower levels [66][69] Question: Credit reserves and potential economic downturns - Management feels comfortable with the current allowance for credit losses, indicating it is higher than most peers [72][74] Question: Details on the OREO write-down - The write-down was related to an acquired loan from a merger, and management is focused on selling the asset promptly [78] Question: Insights on new loan yields and brokered deposits - New loan yields averaged around 7.25% to 7.50%, with broker deposits added at rates between 4% and 4.5% [95][96] Question: Growth targets for C&I lending and private equity banking - The company anticipates significant growth in asset-based lending and private equity banking, targeting $150 million to $200 million in outstandings over the next few years [101][102] Question: Expectations for M&A activity - Management remains open to M&A opportunities but sees current market conditions as a barrier to significant activity [123] Question: Deposit pricing strategies - The company is actively reviewing exception-based pricing to manage deposit costs amid competitive pressures [132]

Financial Data and Key Metrics Changes - The company recorded net income of $9.4 million or $0.37 per diluted share, with a return on average assets (ROA) of 1% for Q1 2025 [12] - Excluding the OREO write down, EPS would have been $0.40 per share or an ROA of 1.07% [12] - Net interest margin increased to 3.65% from 3.54% in the previous quarter, supported by a decline in interest-bearing deposit costs [14] - Nonperforming assets to total assets declined to 0.42% from 0.46% at the end of Q4 2024 [15] Business Line Data and Key Metrics Changes - Loan growth was strong at $92 million, representing a 12% annualized growth rate, with significant contributions from asset-based lending, private equity, and small business lending [8][25] - The asset-based lending portfolio increased to just over $90 million, while the private equity fund banking portfolio grew to $128 million [10] - Small business lending, including Business Express and SBA loans, reached $91 million [10] Market Data and Key Metrics Changes - Total deposits increased by $64 million or 8% from the previous quarter, with noninterest-bearing deposits growing significantly [21] - The noninterest-bearing demand deposits ratio rose to 17.2%, up from 15.8% a year ago [21] - Time deposits increased by $47 million, supported by brokered funding [22] Company Strategy and Development Direction - The company aims to focus on deposit generation and maintaining profitable relationships in a competitive environment [20] - Plans for branch expansion include opening new branches in New Jersey and relocating a Florida branch [22] - The company is investing in technology, including the rollout of a Salesforce CRM tool to enhance customer relationship management [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding loan demand, anticipating continued activity in construction and refinancing despite potential economic slowdowns [41][42] - The company is focused on maintaining a strong credit profile and managing risks associated with new lending units [88] - Management believes the current allowance for credit losses is adequate, with a strong coverage ratio relative to peers [51] Other Important Information - The efficiency ratio remained strong at 57.65%, below 60% for 23 consecutive quarters [18] - The company continued its buyback program and maintained a stable cash dividend [19] Q&A Session Summary Question: Loan growth in the quarter and future lending environment - Management noted that much of the loan activity is tied to ongoing projects, with expectations for continued demand in the near term [41][42] Question: Buyback activity and future plans - Management indicated that buyback activity is on the radar, especially while the stock trades at lower levels [47][48] Question: Credit reserves and economic outlook - Management feels comfortable with the current allowance for credit losses, indicating a strong coverage ratio [50][51] Question: OREO write down details - The write down was related to an acquired loan in New York City, with management taking a conservative approach to ensure full coverage [56][57] Question: NIM and funding costs - Management discussed expectations for stable net interest margin, with some headwinds and tailwinds offsetting each other [66] Question: Growth targets for C&I lending - Management provided growth targets for asset-based lending and private equity, indicating potential for significant increases in the coming years [74][75]

First Bank (FRBA) came out with quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of -5.13%. A quarter ago, it was expected that this company would post earnings of $0.39 per share when it actually produced earnings of $0.42, delivering a surprise of 7.69%. While First Bank has outperformed the market ...