First Bank Announces Fourth Quarter 2024 Net Income of $10.5 Million and Full Year Net Income of $42.2 Million

HAMILTON, N.J., Jan. 23, 2025 (GLOBE NEWSWIRE) -- First Bank (Nasdaq Global Market: FRBA) ("the Bank") today announced results for the fourth quarter and full year 2024. Net income for the fourth quarter of 2024 was $10.5 million, or $0.41 per diluted share, compared to $8.4 million, or $0.33 per diluted share, for the fourth quarter of 2023. Return on average assets, return on average equity and return on average tangible equityi for the fourth quarter of 2024 were 1.10%, 10.27% and 11.82%, respectively, compared to 0.93%, 9.06% and 10.67%, respectively, for the fourth quarter of 2023. Full year 2024 net income was $42.2 million, or $1.67 per diluted share, compared to $20.9 million, or $0.95 per diluted share for 2023. Return on average assets, return on average equity and return on average tangible equityi for the full year 2024 were 1.15%, 10.77% and 12.50%, respectively, compared to 0.66%, 6.38% and 7.17%, respectively, for the full year 2023. Financial results for the fourth quarter and full year of 2023 included the impact of merger-related expenses and other one-time items that were primarily related to the Malvern Bancorp acquisition, completed in July 2023. See the analysis of the Bank's adjusted net income in the attached financial tables, which include a reconciliation of non-GAAP financial measure. Fourth Quarter 2024 Performance Highlights: Total loans of $3.14 billion at December 31, 2024 grew $56.8 million, or 7.3%, annualized, from the linked quarter ended September 30, 2024.Total deposits were $3.06 billion at December 31, 2024, increasing $5.8 million from the linked quarter ended September 30, 2024.Tangible book value per shareii grew to $14.19 at December 31, 2024, increasing 10.0%, annualized, from $13.84 at September 30, 2024.Total net revenue (net interest income plus non-interest income) of $33.8 million for the fourth quarter of 2024 increased $5.8 million, or 20.6%, compared to the prior year quarter, while full year total net revenue was $129.9 million, an increase of $26.1 million, or 25.1%, compared to 2023. Strong asset quality continued, with nonperforming assets decreasing to 0.46% of total assets at December 31, 2024, compared to 0.47% at September 30, 2024 and 0.69% at December 31, 2023. Patrick L. Ryan, President and CEO of First Bank, reflected on the Bank’s performance, stating, “We had a great finish to a very strong year. Our community banking and specialty banking teams produced strong loan growth during the quarter, with solid pipelines going into 2025. We are especially pleased to have achieved this with continued strength in asset quality and with sustained efficiency. Our efficiency ratio remained below 60% for the 22nd consecutive quarter, even as we invested in technology and new C&I and deposit-focused business units. We have a clear vision for our future success – continued evolution from a traditional community bank into a full-service, middle market commercial bank. We are building from the core with our great commercially-focused, community bankers and our proven CRE lending teams. From that strong core we have layered in several exciting new initiatives that are all gaining momentum and moving closer to scale. With our Banking as a Service (“BaaS”) initiative launching this year, and our Asset Based Lending (“ABL”), Private Equity (“PE”) and Small Business teams all growing nicely, we’re excited for 2025 and beyond.” Ryan continued, “First Bank is a unique and exciting investment opportunity where shareholders can own both an established franchise generating strong financial performance today with real opportunities for even stronger performance moving forward as the new business units grow and bear fruit. Furthermore, prudent interest rate management and incremental balance sheet repositioning during 2024 leave us well positioned to thrive in 2025 as we can generate strong profitability in various interest rate environments.” Mr. Ryan added, “In 2025, to help drive continued core deposit growth, we are expanding our community banking network, with recent branch openings in Trenton, NJ and Media, PA, making First Bank even more accessible for our customers. Ongoing upgrades to our online banking platform will further enhance the digital customer’s experience. We’re also rolling out new technology and tools to enhance our sales culture. These investments will support our strong team of bankers in their efforts to add quality deposit relationships, expand our newer specialty banking teams, and maintain excellent asset quality. We believe we are well-positioned to achieve our profitability and growth goals in 2025. We are proud of our track record of delivering top-quartile performance while still making significant and important investments in the future.” Mr. Ryan concluded, “In December, the Kroll Bond Rating Agency ("KBRA") again affirmed our investment grade credit ratings. Their press release cited our successful execution of strategy in recent years, including a demonstrated ability to effectively integrate acquisitions and to effectively navigate the interest rate hiking cycle. KBRA remarked the Bank’s focus on building a stronger core deposit base has been notable, and profitability has compared favorably to peers. We believe KBRA’s report is another validation of our approach to building franchise value for our shareholders.” Income Statement In the fourth quarter of 2024, the Bank’s net interest income increased to $31.6 million, growing $595,000, or 1.9%, compared to the same period in 2023. The increase was primarily driven by an increase of $3.7 million in interest income which outpaced the $3.1 million increase in interest expense in the fourth quarter of 2024 compared to the same quarter in 2023. Net interest income increased $1.5 million, or 5.0%, over the linked third quarter of 2024. Growth was primarily driven by a $627,000 increase in interest income on loans, due to higher average loan volume, and by decreases of $641,000 and $185,000 in interest expense on deposits and borrowings, respectively, which resulted from lower average rates in the fourth quarter. Full year 2024 net interest income totaled $122.5 million, an increase of $18.0 million, or 17.3%, compared to $104.5 million for 2023. The increase was primarily a result of higher interest income from loans due to substantial loan growth related to the Malvern acquisition in the third quarter of 2023, organic loan growth in 2024, and higher loan yields. This was partially offset by increased interest expense due to an expanded deposit base related to the Malvern acquisition and organic growth, as well as the higher cost of deposits in 2024. Interest and dividend income increased by $48.1 million, reflecting growth in average loans, which increased by $325.5 million, or 12.1%, from the prior year, and a 74 basis point increase in the average yield on loans. The average cost of total interest bearing deposits increased 72 basis points compared to the prior year, reflective of the higher interest rate environment and ongoing competition for deposits throughout 2024. The average cost of time, money market, savings, and interest bearing demand deposits increased 127, 53, 51, and 43 basis points, respectively. The Bank’s tax equivalent net interest margin measured 3.54% for the fourth quarter of 2024, decreasing by 14 basis points from 3.68% for the prior year quarter, and increasing by six basis points from 3.48% for the third quarter of 2024. The decrease from the prior year quarter was primarily driven by higher average rates on deposits. The Bank’s net interest margin increased compared to the linked third quarter primarily due to declines in average rates on deposits and borrowings which outpaced the reduction in average rates 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. The net impact of amortization of premiums and accretion of discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions was $3.1 million during the fourth quarter of 2024, compared to $3.9 million for the quarter ended December 31, 2023 and $3.4 million for the third quarter of 2024. The full year 2024 tax equivalent net interest margin was 3.57%, an increase of 10 basis points compared to 3.47% for the full year 2023. The increase was principally a result of a 70 basis point increase in the yield on interest earning assets, partially offset by a 66 basis point increase in interest bearing liabilities cost. The Bank recorded a credit loss expense totaling $234,000 during the fourth quarter of 2024, compared to a credit loss benefit totaling $294,000 for the same period of the previous year and a $1.6 million credit loss expense for the third quarter of 2024. The credit loss expense for the fourth quarter of 2024 reflects the Bank’s organic loan growth. Credit loss expense was muted by the net recoveries during the quarter and the Banks’s strong and stable asset quality, while the credit loss benefit during the prior year quarter was primarily due to flat loan growth during the quarter. The Bank’s credit loss expense for the third quarter of 2024 was commensurate with robust organic loan growth during the quarter. For the full year 2024, the Bank reported a credit loss expense of $1.2 million, compared to $7.9 million for 2023. Full year 2023 credit loss expense included a $5.5 million credit loss recorded to establish a reserve for acquired Malvern loans in 2023. The decrease in credit loss expense reflects a lower level of net charge-offs and strong credit quality metrics when compared to 2023. Net charge-offs for 2024 totaled $205,000, excluding $5.5 million in a PCD loan charge-off in the first quarter of 2024, which was reserved for through purchase accounting marks at the time of the Malvern acquisition, compared to net charge-offs of $1.5 million in 2023. In the fourth quarter of 2024, the Bank recorded non-interest income totaling $2.2 million, compared to non-interest income measuring $(3.0) million during the same period in 2023 and $2.5 million in non-interest income during the third quarter of 2024. Results for the fourth quarter of 2023 included $4.7 million in combined losses on the sale of investments and loans. The losses were primarily related to the Bank’s balance sheet repositioning, which primarily included the sale of lower-yielding residential loans and investment securities acquired from Malvern Bank during the third quarter of 2023. For the full year ended December 31, 2024, the Bank recorded non-interest income totaling $7.3 million compared to $(715,000) in non-interest income earned for the full year ended December 31, 2023. The increase was primarily due to the net losses realized on the sale of loans and investments related to balance sheet repositioning initiatives in 2023, in addition to the increased bank-owned life insurance income (“BOIL”) restructuring benefit and higher levels of customer activity in 2024 following the July 2023 Malvern acquisition. Non-interest expense for the fourth quarter of 2024 was $19.1 million, an increase of $1.2 million, or 6.6%, compared to $17.9 million for the prior year quarter. Higher non-interest expense was largely due to increases of $1.5 million in salaries and employee benefits primarily due to a larger employee base, $265,000 in occupancy and equipment primarily due to new branch openings, and $159,000 in other professional fees and consulting services. This was partially offset by merger-related expenses that declined by $338,000 due to no merger activity in 2024. On a linked quarter basis, non-interest expense increased $480,000 from $18.6 million for the third quarter of 2024. The linked quarter increase primarily reflects salaries and employee benefits costs increasing $337,000 due to a larger employee base and higher incentive compensation accrual, occupancy and equipment costs rising $182,000 due to branch relocation and opening activity, and other professional fees rising $208,000 primarily related to investments in technology and consulting services. This was partially offset by a decrease of $523,000 in other real estate owned ("OREO") expense due to a $362,000 impairment of an OREO asset recorded during the linked quarter, along with other related legal and real estate tax expenses. Non-interest expense for the full year 2024 totaled $73.5 million, an increase of $4.8 million, or 7.0%, compared to $68.7 million for 2023. The increase was primarily a result of salaries and employee benefits costs increasing $6.4 million due to a larger employee base, occupancy and equipment costs rising $1.3 million due to an expanded network of facilities, and other generalized increases related to both the addition of Malvern in the second half of 2023 and ongoing investments in technology, products, and business operations. This was partially offset by an $8.0 million decrease in merger-related costs. Income tax expense for the three months ended December 31, 2024 was $3.9 million with an effective tax rate of 27.2%, compared to $2.0 million with an effective tax rate of 19.1% for the fourth quarter of 2023. Income tax expense for the three months ended September 30, 2024 was $4.2 million with an effective tax rate of 33.9%. Both the third and fourth quarter of 2024 tax expense included additional tax related to the Bank’s BOLI restructuring. Income tax expense for the full year ended December 31, 2024 was $12.9 million with an effective tax rate of 23.4%, compared to $6.3 million for the full year 2023 with an effective tax rate of 23.1%. The full year tax rate in 2024 also included the negative impact of the BOLI restructuring but was offset by certain other tax adjustments from the first half of 2024 that reduced tax expense, primarily related to the revaluation of the Bank’s deferred tax assets due to the impact of the New Jersey Corporate Transit Fee. The New Jersey Corporate Transit Fee will result in an increased tax rate in future periods. We anticipate our future effective tax rate will be closer to 25-26%. Balance Sheet The Bank reported total assets of $3.78 billion as of December 31, 2024, an increase of $171.0 million, or 4.7%, from $3.61 billion at December 31, 2023. Total loans increased $122.8 million, or 4.1%, to $3.14 billion at December 31, 2024 compared to $3.02 billion at December 31, 2023. The increase primarily reflects strong organic loan growth recorded in the second half of 2024, partially offset by sales of loans and investment securities totaling approximately $35.3 million during 2024. The Bank’s cash and cash equivalents increased by $44.0 million, or 19.3%, compared to December 31, 2023, to ensure adequate on-balance sheet liquidity. Total assets increased $22.7 million, or 0.6%, from September 30, 2024 to December 31, 2024. Total loans as of December 31, 2024 increased $56.8 million, or 1.8%, from $3.09 billion at September 30, 2024. Cash and cash equivalents decreased by $40.4 million, or 12.9%, compared to September 30, 2024. As of December 31, 2024, the Bank's total deposits were $3.06 billion, an increase of $88.3 million, or 3.0%, from $2.97 billion at December 31, 2023. Modest organic deposit growth during 2024 was primarily due to our team’s success in attracting new deposit relationships while also maintaining existing balances amid heightened industry-wide pricing competition. Growth was tempered by the Bank’s strategic decision to allow certain higher-cost and non-core funding to leave the Bank. During the twelve months ended December 31, 2024, stockholders’ equity increased by $38.3 million, or 10.3%, primarily due to net income, partially offset by dividends. As of December 31, 2024, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 9.50%, a Tier 1 Risk-Based capital ratio of 9.70%, a Common Equity Tier 1 Capital ratio of 9.70%, and a Total Risk-Based capital ratio of 11.56%. The tangible stockholders' equity to tangible assets ratioiii increased to 9.56% as of December 31, 2024 compared to 8.89% at December 31, 2023. Asset Quality First Bank's asset quality metrics for the fourth quarter of 2024 remained favorable. Total nonperforming loans declined from $25.0 million at December 31, 2023 to $11.7 million at December 31, 2024, while total nonperforming assets declined from $25.0 million to $17.3 million during the same period. The Bank recorded net recoveries of $155,000 during the fourth quarter of 2024 compared to net charge-offs of $386,000 in the third quarter of 2024 and net charge-offs of $209,000 in the fourth quarter of 2023. The allowance for credit losses on loans as a percentage of total loans measured 1.20% at December 31, 2024, compared to 1.21% at September 30, 2024 and 1.40% at December 31, 2023. The decline from December 31, 2023 to December 31, 2024 reflected the $5.5 million charge-off and elimination of the Bank’s reserves on a Malvern purchase credit deteriorated loan transferred to OREO during the first quarter of 2024. Liquidity and Borrowings Management believes the Bank’s current liquidity position, coupled with our various contingent funding sources, provides us with a strong liquidity base and a diverse source of funding options. The Bank utilized its excess liquidity position to support strong loan growth in the fourth quarter of 2024 which led to total cash and cash equivalents decreasing by $40.4 million to $271.9 million at December 31, 2024, compared to September 30, 2024. Borrowings increased by $9.9 million compared to September 30, 2024, as the Bank utilized some Federal Home Loan Bank (“FHLB”) advances to support loan growth, while continuing to maintain adequate available borrowing capacity at the FHLB. Cash Dividend Declared On January 21, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.06 per share to common stockholders of record at the close of business on February 7, 2025, payable on February 21, 2025. Share Repurchase Program During the fourth quarter of 2024 the Bank repurchased 93,546 shares of common stock at an average price of $14.31, under the share repurchase program authorized in October 2024. The share repurchase program provides for the repurchase of up to 1.0 million shares of First Bank common stock for an aggregate repurchase amount of up to $16.0 million. The share repurchase program will expire on September 30, 2025. Conference Call and Earnings Release Supplement Additional details on the quarterly results and the Bank are included in the attached earnings release supplement. A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/506d5a7a-b1f8-4689-b91a-151b3952b08f First Bank will host its earnings call on Friday, January 24, 2025 at 9:00 AM Eastern Time. The direct dial toll free number for the live call is 1-800-715-9871 and the access code is 5565911. For those unable to participate in the call, a replay will be available by dialing 1-800-770-2030 (access code 5565911) from one hour after the end of the conference call until April 24, 2025. Replay information will also be available on First Bank’s website at www.firstbanknj.com under the “About Us” tab. Click on “Investor Relations” to access the replay of the conference call. About First Bank First Bank is a New Jersey state-chartered bank with 26 full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Morristown, Pennington, Randolph, Somerset, Trenton and Williamstown, New Jersey; and Coventry, Devon, Doylestown, Lionville, Malvern, Media, Paoli, Trevose, Warminster and West Chester, Pennsylvania; and Palm Beach, Florida. With $3.78 billion in assets as of December 31, 2024, First Bank offers a full range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia corridor. 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 information regarding First Bank’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry 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 factors that could affect our 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 and consummating suitable acquisitions, integrate acquired entities and realize 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 declines in housing market values; the impact of public health emergencies, on First Bank, its operations and its customers and employees; 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 and reduce earning asset yields thus reducing margin; the impact of changes in interest rates 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; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank's operations, including 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 First Bank’s 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, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks 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 proxy statement, 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 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 Tangible book value per share is a non-GAAP financial measure and is calculated by dividing common shares outstanding by tangible equity (equity 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. iii 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. FIRST BANKCONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(in thousands, except for share data, unaudited) December 31, 2024 December 31, 2023 Assets Cash and due from banks $18,252 $25,652 Restricted cash 14,270 13,770 Interest bearing deposits with banks 239,392 188,529 Cash and cash equivalents 271,914 227,951 Interest bearing time deposits with banks 743 996 Investment securities available for sale, at fair value (amortized cost of $84,083 and $101,683, respectively) 77,413 94,142 Investment securities held to maturity, net of allowance for credit losses of $206 and $200, respectively (fair value of $42,770 and $38,486, respectively) 47,123 44,059 Equity securities, at fair value 1,860 1,888 Restricted investment in bank stocks 14,333 10,469 Other investments 11,622 9,841 Loans, net of deferred fees and costs 3,144,266 3,021,501 Less: Allowance for credit losses (37,773) (42,397) Net loans 3,106,493 2,979,104 Premises and equipment, net 21,351 21,627 Other real estate owned, net 5,637 - Accrued interest receivable 14,267 14,763 Bank-owned life insurance 85,553 86,435 Goodwill 44,166 44,166 Other intangible assets, net 8,827 10,812 Deferred income taxes, net 25,528 30,875 Other assets 43,516 32,199 Total assets $3,780,346 $3,609,327 Liabilities and Stockholders' Equity Liabilities: Non-interest bearing deposits $519,320 $501,763 Interest bearing deposits 2,536,576 2,465,806 Total deposits 3,055,896 2,967,569 Borrowings 246,933 179,140 Subordinated debentures 29,954 55,261 Accrued interest payable 3,820 2,813 Other liabilities 34,587 33,644 Total liabilities 3,371,190 3,238,427 Stockholders' Equity: Preferred stock, par value $2 per share; 10,000,000 shares authorized; no shares issued and outstanding - - Common stock, par value $5 per share; 40,000,000 shares authorized; 27,375,439 shares issued and 25,100,829 shares outstanding and 27,149,186 shares issued and 24,968,122 shares outstanding at, respectively 135,495 134,552 Additional paid-in capital 124,524 122,881 Retained earnings 176,779 140,563 Accumulated other comprehensive loss (4,925) (5,718) Treasury stock, 2,274,610 shares at December 31, 2024 and 2,181,064 December 31, 2023 (22,717) (21,378) Total stockholders' equity 409,156 370,900 Total liabilities and stockholders' equity $3,780,346 $3,609,327 FIRST BANKCONSOLIDATED STATEMENTS OF INCOME (LOSS)(in thousands, except for share data, unaudited) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Interest and Dividend Income Investment securities—taxable $1,119 $989 $4,780 $4,117 Investment securities—tax-exempt 48 36 157 194 Interest bearing deposits with banks, Federal funds sold and other 4,088 2,831 14,567 8,860 Loans, including fees 51,584 49,310 202,623 160,846 Total interest and dividend income 56,839 53,166 222,127 174,017 Interest Expense Deposits 22,440 19,707 88,693 60,281 Borrowings 2,365 1,439 9,224 6,378 Subordinated debentures 440 1,021 1,664 2,842 Total interest expense 25,245 22,167 99,581 69,501 Net interest income 31,594 30,999 122,546 104,516 Credit loss expense (benefit) 234 (294) 1,178 7,943 Net interest income after credit loss expense 31,360 31,293 121,368 96,573 Non-Interest Income Service fees on deposit accounts 369 337 1,425 1,078 Loan fees 436 150 873 409 Income from bank-owned life insurance 825 591 4,038 1,882 Losses on sale of investment securities, net - (916) (555) (1,650) Gains (losses) on sale of loans, net 38 (3,799) (498) (4,192) Gains on recovery of acquired loans 61 127 270 222 Other non-interest income 447 510 1,755 1,536 Total non-interest income 2,176 (3,000) 7,308 (715) Non-Interest Expense Salaries and employee benefits 10,512 9,019 40,693 34,339 Occupancy and equipment 2,262 1,997 8,450 7,104 Legal fees 230 271 1,031 942 Other professional fees 1,151 992 3,779 2,872 Regulatory fees 635 843 2,605 2,188 Directors' fees 288 246 1,072 877 Data processing 791 887 3,146 3,093 Marketing and advertising 372 468 1,355 1,161 Travel and entertainment 269 224 1,031 743 Insurance 250 259 990 883 Other real estate owned expense, net 139 27 1,018 65 Merger-related expenses - 338 - 8,048 Other expense 2,225 2,365 8,361 6,385 Total non-interest expense 19,124 17,936 73,531 68,700 Income Before Income Taxes 14,412 10,357 55,145 27,158 Income tax expense 3,915 1,977 12,901 6,261 Net Income $10,497 $8,380 $42,244 $20,897 Basic earnings per common share $0.42 $0.34 $1.68 $0.95 Diluted earnings per common share $0.41 $0.33 $1.67 $0.95 Basic weighted average common shares outstanding 25,160,097 24,949,114 25,126,100 21,942,174 Diluted weighted average common shares outstanding 25,323,401 25,089,495 25,283,771 22,072,616 FIRST BANKAVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES(dollars in thousands, unaudited) Three Months Ended December 31, 2024 2023 Average Average Average Average Balance Interest Rate (5) Balance Interest Rate (5)Interest earning assets Investment securities (1) (2) $126,400 $1,177 3.70% $140,620 $1,033 2.91%Loans (3) 3,101,750 51,584 6.62% 3,013,393 49,310 6.49%Interest bearing deposits with banks, Federal funds sold and other 301,565 3,648 4.81% 170,021 2,353 5.49%Restricted investment in bank stocks 13,181 291 8.78% 8,362 252 11.96%Other investments 13,199 149 4.49% 10,554 226 8.50%Total interest earning assets (2) 3,556,095 56,849 6.36% 3,342,950 53,174 6.31%Allowance for credit losses (37,895) (43,247) Non-interest earning assets 270,689 261,558 Total assets $3,788,889 $3,561,261 Interest bearing liabilities Interest bearing demand deposits $629,374 $4,244 2.68% $654,623 $4,251 2.58%Money market deposits 1,087,031 9,706 3.55% 1,024,388 9,205 3.57%Savings deposits 148,265 695 1.86% 176,001 541 1.22%Time deposits 696,803 7,795 4.45% 614,486 5,710 3.69%Total interest bearing deposits 2,561,473 22,440 3.49% 2,469,498 19,707 3.17%Borrowings 215,699 2,365 4.36% 122,912 1,439 4.64%Subordinated debentures 29,936 440 5.88% 55,261 1,021 7.39%Total interest bearing liabilities 2,807,108 25,245 3.58% 2,647,671 22,167 3.32%Non-interest bearing deposits 531,836 500,024 Other liabilities 43,366 46,616 Stockholders' equity 406,579 366,950 Total liabilities and stockholders' equity $3,788,889 $3,561,261 Net interest income/interest rate spread (2) 31,604 2.78% 31,007 2.99%Net interest margin (2) (4) 3.54% 3.68%Tax equivalent adjustment (2) (10) (8) Net interest income $31,594 $30,999 (1) Average balance of investment securities available for sale is based on amortized cost.(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.(3) Average balances of loans include loans on nonaccrual status.(4) Net interest income divided by average total interest earning assets.(5) Annualized. FIRST BANKAVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES(dollars in thousands, unaudited) Year Ended December 31, 2024 2023 Average Average Average Average Balance Interest Rate Balance Interest RateInterest earning assets Investment securities (1) (2) $139,222 $4,970 3.57% $151,471 $4,352 2.87%Loans (3) 3,022,503 202,623 6.70% 2,697,024 160,846 5.96%Interest bearing deposits with banks, Federal funds sold and other 248,866 13,052 5.24% 150,500 7,756 5.15%Restricted investment in bank stocks 11,893 990 8.32% 9,084 706 7.77%Other investments 12,498 525 4.20% 9,319 398 4.27%Total interest earning assets (2) 3,434,982 222,160 6.47% 3,017,398 174,058 5.77%Allowance for credit losses (37,224) (36,080) Non-interest earning assets 266,705 196,253 Total assets $3,664,463 $3,177,571 Interest bearing liabilities Interest bearing demand deposits $606,654 $15,697 2.59% $498,075 $10,743 2.16%Money market deposits 1,056,996 40,627 3.84% 886,991 29,382 3.31%Savings deposits 154,367 2,475 1.60% 160,570 1,743 1.09%Time deposits 684,369 29,894 4.37% 593,798 18,413 3.10%Total interest bearing deposits 2,502,386 88,693 3.54% 2,139,434 60,281 2.82%Borrowings 190,354 9,224 4.85% 142,456 6,378 4.48%Subordinated debentures 33,031 1,664 5.04% 41,565 2,842 6.84%Total interest bearing liabilities 2,725,771 99,581 3.65% 2,323,455 69,501 2.99%Non-interest bearing deposits 504,238 492,683 Other liabilities 42,322 34,142 Stockholders' equity 392,132 327,291 Total liabilities and stockholders' equity $3,664,463 $3,177,571 Net interest income/interest rate spread (2) 122,579 2.82% 104,557 2.78%Net interest margin (2) (4) 3.57% 3.47%Tax equivalent adjustment (2) (33) (41) Net interest income $122,546 $104,516 (1) Average balance of investment securities available for sale is based on amortized cost.(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.(3) Average balances of loans include loans on nonaccrual status.(4) Net interest income divided by average total interest earning assets.(5) Annualized. FIRST BANK QUARTERLY FINANCIAL HIGHLIGHTS(in thousands, except for share and employee data, unaudited) As of or For the Quarter Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023EARNINGS Net interest income $31,594 $30,094 $30,540 $30,318 $30,999 Credit loss (benefit) expense 234 1,579 63 (698) (294)Non-interest income 2,176 2,479 689 1,964 (3,000)Non-interest expense 19,124 18,644 17,953 17,810 17,936 Income tax expense 3,915 4,188 2,140 2,658 1,977 Net income 10,497 8,162 11,073 12,512 8,380 PERFORMANCE RATIOS Return on average assets (1) 1.10% 0.88% 1.23% 1.41% 0.93%Adjusted return on average assets (1) (2) 1.12% 0.93% 1.31% 1.39% 1.38%Return on average equity (1) 10.27% 8.15% 11.52% 13.36% 9.06%Adjusted return on average equity (1) (2) 10.46% 8.56% 12.26% 13.17% 13.38%Return on average tangible equity (1) (2) 11.82% 9.42% 13.40% 15.64% 10.67%Adjusted return on average tangible equity (1) (2) 12.04% 9.89% 14.26% 15.41% 15.75%Net interest margin (1) (3) 3.54% 3.48% 3.62% 3.64% 3.68%Yield on loans (1) 6.62% 6.73% 6.81% 6.66% 6.49%Total cost of deposits (1) 2.89% 3.06% 3.01% 2.83% 2.63%Efficiency ratio (2) 56.98% 58.49% 55.88% 55.56% 53.79% SHARE DATA Common shares outstanding 25,100,829 25,186,920 25,144,983 25,096,449 24,968,122 Basic earnings per share $0.42 $0.32 $0.44 $0.50 $0.34 Diluted earnings per share 0.41 0.32 0.44 0.50 0.33 Adjusted diluted earnings per share (2) 0.42 0.34 0.47 0.49 0.49 Book value per share 16.30 15.96 15.61 15.23 14.85 Tangible book value per share (2) 14.19 13.84 13.46 13.06 12.65 MARKET DATA Market value per share $14.07 $15.20 $12.74 $13.74 $14.70 Market value / Tangible book value 99.16% 109.83% 94.65% 105.20% 116.18%Market capitalization $353,169 $382,841 $320,347 $344,825 $367,031 CAPITAL & LIQUIDITY Stockholders' equity / assets 10.82% 10.70% 10.86% 10.64% 10.28%Tangible stockholders' equity / tangible assets (2) 9.56% 9.41% 9.50% 9.27% 8.89%Loans / deposits 102.89% 101.23% 101.02% 100.75% 101.82% ASSET QUALITY Net (recoveries) charge-offs $(155) $386 $175 $5,293 $209 Net (recoveries) charge-offs, excluding PCD loan charge-off (4) (155) 386 175 (201) 209 Nonperforming loans 11,677 12,014 14,227 17,054 24,989 Nonperforming assets 17,314 17,651 20,226 23,053 24,989 Net (recoveries) charge offs / average loans (1) (0.02%) 0.05% 0.02% 0.72% 0.03%Net (recoveries) charge offs, excluding PCD loan charge-off / average loans (1) (4) (0.02%) 0.05% 0.02% (0.03%) 0.03%Nonperforming loans / total loans 0.37% 0.39% 0.47% 0.57% 0.83%Nonperforming assets / total assets 0.46% 0.47% 0.56% 0.64% 0.69%Allowance for credit losses on loans / total loans 1.20% 1.21% 1.21% 1.22% 1.40%Allowance for credit losses on loans / nonperforming loans 323.48% 311.59% 254.81% 213.42% 169.66% OTHER DATA Total assets $3,780,346 $3,757,653 $3,615,731 $3,591,398 $3,609,327 Total loans 3,144,266 3,087,488 2,998,029 2,992,423 3,021,501 Total deposits 3,055,896 3,050,070 2,967,634 2,970,262 2,967,569 Total stockholders' equity 409,156 402,070 392,489 382,254 370,900 Number of full-time equivalent employees 318 313 294 288 286 (1) Annualized.(2) Non-GAAP financial measure that we believe provides management and investors with information that is useful in understanding our financial performance and condition. See the accompanying table, "Non-GAAP Financial Measures," for calculation and reconciliation.(3) Tax equivalent using a federal income tax rate of 21%.(4) Excludes $5.5 million in a PCD loan charge-off in first quarter of 2024, which was reserved for through purchase accounting marks at the time of the Malvern acquisition. FIRST BANKQUARTERLY FINANCIAL HIGHLIGHTS(dollars in thousands, unaudited) As of the Quarter Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023LOAN COMPOSITION Commercial and industrial $576,625 $546,541 $530,996 $508,911 $506,849 Commercial real estate: Owner-occupied 671,357 688,988 647,625 625,643 612,352 Investor 1,181,684 1,170,508 1,143,954 1,172,311 1,221,702 Construction and development 205,096 193,460 190,108 184,816 186,829 Multi-family 287,843 267,861 270,238 279,668 271,058 Total commercial real estate 2,345,980 2,320,817 2,251,925 2,262,438 2,291,941 Residential real estate: Residential mortgage and first lien home equity loans 142,769 144,081 144,978 154,704 156,024 Home equity–second lien loans and revolving lines of credit 51,020 49,763 46,882 45,869 44,698 Total residential real estate 193,789 193,844 191,860 200,573 200,722 Consumer and other 31,324 29,518 26,321 23,702 25,343 Total loans prior to deferred loan fees and costs 3,147,718 3,090,720 3,001,102 2,995,624 3,024,855 Net deferred loan fees and costs (3,452) (3,232) (3,073) (3,201) (3,354)Total loans $3,144,266 $3,087,488 $2,998,029 $2,992,423 $3,021,501 LOAN MIX Commercial and industrial 18.3% 17.7% 17.7% 17.0% 16.8%Commercial real estate: Owner-occupied 21.4% 22.3% 21.6% 20.9% 20.3%Investor 37.6% 37.9% 38.2% 39.2% 40.4%Construction and development 6.5% 6.3% 6.3% 6.2% 6.2%Multi-family 9.1% 8.7% 9.0% 9.3% 9.0%Total commercial real estate 74.6% 75.2% 75.1% 75.6% 75.9%Residential real estate: Residential mortgage and first lien home equity loans 4.6% 4.7% 4.8% 5.2% 5.1%Home equity–second lien loans and revolving lines of credit 1.6% 1.6% 1.6% 1.5% 1.5%Total residential real estate 6.2% 6.3% 6.4% 6.7% 6.6%Consumer and other 1.0% 0.9% 0.9% 0.8% 0.8%Net deferred loan fees and costs (0.1%) (0.1%) (0.1%) (0.1%) (0.1%)Total loans 100.0% 100.0% 100.0% 100.0% 100.0% FIRST BANKQUARTERLY FINANCIAL HIGHLIGHTS(dollars in thousands, unaudited) As of the Quarter Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023DEPOSIT COMPOSITION Non-interest bearing demand deposits $519,320 $519,079 $499,765 $470,749 $501,763 Interest bearing demand deposits 629,099 597,802 574,515 580,864 629,110 Money market and savings deposits 1,198,039 1,235,637 1,199,382 1,219,634 1,171,440 Time deposits 709,438 697,552 693,972 699,015 665,256 Total Deposits $3,055,896 $3,050,070 $2,967,634 $2,970,262 $2,967,569 DEPOSIT MIX Non-interest bearing demand deposits 17.0% 17.0% 16.8% 15.8% 16.9%Interest bearing demand deposits 20.6% 19.6% 19.4% 19.6% 21.2%Money market and savings deposits 39.2% 40.5% 40.4% 41.1% 39.5%Time deposits 23.2% 22.9% 23.4% 23.5% 22.4%Total Deposits 100.0% 100.0% 100.0% 100.0% 100.0% FIRST BANKNON-GAAP FINANCIAL MEASURES(in thousands, except for share data, unaudited) As of or For the Quarter Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023Return on Average Tangible Equity Net income (numerator) $10,497 $8,162 $11,073 $12,512 $8,380 Average stockholders' equity $406,579 $398,535 $386,644 $376,542 $366,950 Less: Average Goodwill and other intangible assets, net 53,278 53,823 54,347 54,790 55,324 Average Tangible stockholders' equity (denominator) $353,301 $344,712 $332,297 $321,752 $311,626 Return on Average Tangible equity (1) 11.82% 9.42% 13.40% 15.64% 10.67% Tangible Book Value Per Share Stockholders' equity $409,156 $402,070 $392,489 $382,254 $370,900 Less: Goodwill and other intangible assets, net 52,993 53,484 54,026 54,483 54,978 Tangible stockholders' equity (numerator) $356,163 $348,586 $338,463 $327,771 $315,922 Common shares outstanding (denominator) 25,100,829 25,186,920 25,144,983 25,096,449 24,968,122 Tangible book value per share $14.19 $13.84 $13.46 $13.06 $12.65 Tangible Equity / Tangible Assets Stockholders' equity $409,156 $402,070 $392,489 $382,254 $370,900 Less: Goodwill and other intangible assets, net 52,993 53,484 54,026 54,483 54,978 Tangible stockholders' equity (numerator) $356,163 $348,586 $338,463 $327,771 $315,922 Total assets $3,780,346 $3,757,653 $3,615,731 $3,591,398 $3,609,327 Less: Goodwill and other intangible assets, net 52,993 53,484 54,026 54,483 54,978 Tangible total assets (denominator) $3,727,353 $3,704,169 $3,561,705 $3,536,915 $3,554,349 Tangible stockholders' equity / tangible assets 9.56% 9.41% 9.50% 9.27% 8.89% Efficiency Ratio Non-interest expense $19,124 $18,644 $17,953 $17,810 $17,936 Less: Merger-related expenses - - - - 338 Adjusted non-interest expense (numerator) $19,124 $18,644 $17,953 $17,810 $17,598 Net interest income $31,594 $30,094 $30,540 $30,318 $30,999 Non-interest income 2,176 2,479 689 1,964 (3,000)Total revenue 33,770 32,573 31,229 32,282 27,999 Add: Losses on sale of investment securities, net - 555 - - 916 (Subtract) Add: (Gains) losses on sale of loans, net (38) (135) 900 (229) 3,799 Less: Bank Owned Life Insurance Incentive (168) (1,116) - - - Adjusted total revenue (denominator) $33,564 $31,877 $32,129 $32,053 $32,714 Efficiency ratio 56.98% 58.49% 55.88% 55.56% 53.79% (1) Annualized. FIRST BANKNON-GAAP FINANCIAL MEASURES(dollars in thousands, except for share data, unaudited) Adjusted diluted earnings per share, Adjusted return on average assets, and For the Quarter EndedAdjusted return on average equity 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Net income $10,497 $8,162 $11,073 $12,512 $8,380 Add: Merger-related expenses (1) - - - - 267 Add (subtract): Losses (gains) on sale of loans, net (1) (30) (107) 711 (181) 3,001 Add: Losses on sale of investment securities, net (1) - 438 - - 724 Add: Net Impact of Bank Owned Life Insurance Restructuring (2) 227 79 - - - Adjusted net income $10,694 $8,572 $11,784 $12,331 $12,372 Diluted weighted average common shares outstanding 25,323,401 25,343,820 25,258,785 25,199,381 25,089,495 Average assets $3,788,889 $3,672,843 $3,618,912 $3,575,748 $3,561,261 Average equity $406,579 $398,535 $386,644 $376,542 $366,950 Average Tangible Equity $353,301 $344,712 $332,297 $321,752 $311,626 Adjusted diluted earnings per share $0.42 $0.34 $0.47 $0.49 $0.49 Adjusted return on average assets (3) 1.12% 0.93% 1.31% 1.39% 1.38%Adjusted return on average equity (3) 10.46% 8.56% 12.26% 13.17% 13.38%Adjusted return on average tangible equity (3) 12.04% 9.89% 14.26% 15.41% 15.75% (1) Items are tax-effected using a federal income tax rate of 21%.(2) Includes the net impact of the new Bank Owned Life Insurance enhancement and the increased tax expense on the terminated policies.(3) Annualized. FIRST BANKNON-GAAP FINANCIAL MEASURES(dollars in thousands, except for share data, unaudited) Adjusted diluted earnings per share, Adjusted return on average assets, andYear Ended December 31,Adjusted return on average equity2024 2023 Net income$42,244 $20,897 Add: Merger-related expenses (1) - 6,358 Add: Credit loss expense on acquired loan portfolio (1) - 4,323 Add (subtract): Losses (gains) on sale of loans, net (1) 393 3,312 Add: Losses on sale of investment securities, net (1) 437 1,303 Add: Net Impact of Bank Owned Life Insurance Restructuring (2) 306 - Adjusted net income$43,380 $36,193 Diluted weighted average common shares outstanding 25,283,771 22,072,616 Average assets$3,664,463 $3,177,571 Average equity$392,132 $327,291 Average Tangible Equity$338,075 $291,276 Adjusted diluted earnings per share$1.72 $1.64 Adjusted return on average assets 1.18% 1.14%Adjusted return on average equity 11.06% 11.06%Adjusted return on average tangible equity 12.83% 12.43% (1) Items are tax-effected using a federal income tax rate of 21%.(2) Includes the net impact of the new Bank Owned Life Insurance enhancement and the increased tax expense on the terminated policies. CONTACT: Andrew Hibshman, Chief Financial Officer(609) 643-0058, andrew.hibshman@firstbanknj.com

First Bank Announces Fourth Quarter 2024 Net Income of $10.5 Million and Full Year Net Income of $42.2 Million

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