-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]

Core Insights - First Bank reported a net income of $9.4 million for Q1 2025, a decrease from $12.5 million in Q1 2024, with diluted earnings per share at $0.37 compared to $0.50 in the previous year [1][3][4] - The bank achieved strong loan growth of 11.8% annualized, with total loans reaching $3.24 billion, and total deposits increased by 8.5% annualized to $3.12 billion [6][15] - The efficiency ratio remained below 60% for the 23rd consecutive quarter, indicating sustained operational efficiency [3][6] Financial Performance - Net interest income rose to $32.1 million, a 5.9% increase from Q1 2024, driven by a $2.2 million rise in interest income [4][6] - The tax equivalent net interest margin was 3.65%, up 11 basis points from the previous quarter [5][6] - Non-interest income remained stable at $2.0 million compared to the same period in 2024, but decreased from $2.2 million in Q4 2024 [9] Asset Quality - Nonperforming assets decreased to 0.42% of total assets, down from 0.46% at the end of 2024 and 0.64% a year earlier [6][18] - The allowance for credit losses on loans was 1.21%, slightly up from 1.20% at the end of 2024 [19] Balance Sheet Highlights - Total assets increased by $100.4 million, or 2.7%, from December 31, 2024, to March 31, 2025, totaling $3.88 billion [13][14] - Stockholders' equity rose by $5.8 million, or 1.4%, primarily due to net income [16] - The bank's Tier 1 Leverage ratio was 9.63%, indicating strong capital adequacy [17] Shareholder Returns - The bank declared a cash dividend of $0.06 per share, totaling $1.5 million, and plans to pay the same amount for the next quarter [21] - A share repurchase program was initiated, with 256,454 shares repurchased at an average price of $15.06 per share [22]

Core Insights - First Bank reported a net income of $9.4 million for Q1 2025, a decrease from $12.5 million in Q1 2024, with diluted earnings per share dropping from $0.50 to $0.37 [1][3][34] - The bank's return on average assets, equity, and tangible equity decreased to 1.00%, 9.20%, and 10.54% respectively, compared to 1.41%, 13.36%, and 15.64% in the previous year [1][34] - The bank achieved a 10.8% year-over-year increase in tangible book value per share, reflecting strong loan and deposit growth [3][6] Financial Performance - Net interest income increased to $32.1 million, a 5.9% rise from the same period in 2024, driven by a $2.2 million increase in interest income [4][34] - The tax equivalent net interest margin was 3.65%, up from 3.54% in Q4 2024, indicating improved efficiency in interest income generation [5][34] - Total loans reached $3.24 billion, growing by $91.8 million or 11.8% annualized from the previous quarter [6][13] Asset Quality - Nonperforming assets decreased to 0.42% of total assets, down from 0.46% at the end of 2024 and 0.64% a year earlier, indicating improved asset quality [6][17][40] - The allowance for credit losses on loans was 1.21%, slightly up from 1.20% at the end of 2024 [18][40] Operational Efficiency - The efficiency ratio remained below 60% for the 23rd consecutive quarter, reflecting the bank's commitment to maintaining operational efficiency [3][34] - Non-interest expense increased by 14.5% year-over-year to $20.4 million, primarily due to higher salaries and employee benefits [9][10][34] Capital and Liquidity - Total assets increased by $100.4 million or 2.7% from the previous quarter, reaching $3.88 billion [12][13] - The bank's Tier 1 Leverage ratio was 9.63%, indicating strong capital adequacy [16][40] Shareholder Returns - The bank declared a cash dividend of $0.06 per share, totaling $1.5 million, with plans for continued dividends [20][21] - A share repurchase program is in place, with 350,000 shares repurchased at an average price of $14.74 per share [21][40]

Core Points - First Bank will hold an earnings conference call to discuss its financial and operating performance for the first quarter ending March 31, 2025 [1] - The conference call is scheduled for April 23, 2025, at 9:00 a.m. Eastern Time, with management providing an overview followed by a Q&A session [1] - The first quarter results will be released after market close on April 22, 2025, and will be available on the company's website [1] Company Overview - First Bank is a New Jersey state-chartered bank with 26 full-service branches across New Jersey, Pennsylvania, and Florida [2] - As of December 31, 2024, First Bank has $3.78 billion in assets and offers a range of deposit and loan products primarily in the New York City to Philadelphia corridor [2] - The company's common stock is listed on the Nasdaq Global Market under the symbol "FRBA" [2]

Event: Earnings Conference Call – First Quarter 2025 When: Wednesday, April 23, 2025 at 9:00 a.m. Eastern Time Access: Conference Call Dial-In: (800) 715-9871 (toll free) Conference Call Access Code: 3909613 Patrick L. Ryan, President and Chief Executive Officer, Andrew L. Hibshman, Chief Financial Officer, Peter J. Cahill, Chief Lending Officer, and Darleen Gillespie, Chief Retail Banking Officer will provide an overview of first quarter 2025 results. The management presentation typically lasts approximate ...

Group 1 - The trend is crucial for short-term investing, but ensuring its sustainability is challenging [1] - A unique short-term trading strategy called "Recent Price Strength" helps identify stocks with strong fundamentals that can maintain an uptrend [2] - First Bank (FRBA) has shown a solid price increase of 2.7% over 12 weeks, indicating investor confidence [3] Group 2 - A price increase of 10% over the past four weeks suggests that FRBA's price trend is still intact [4] - FRBA is trading at 85.7% of its 52-week high-low range, indicating a potential breakout [4] - The stock has a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5][6] Group 3 - The Zacks Rank 1 stocks have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of this ranking system [6] - The Average Broker Recommendation for FRBA is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [6] - Other stocks passing the "Recent Price Strength" screen may also present investment opportunities [7]

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...