First Bank (FRBA) investor relations material

Executive summary

• Net income for Q3 2025 was $11.7 million ($0.47 per diluted share), up 43% year-over-year, with EPS rising 46% and return on average assets improving to 1.16%.

• Achieved $4.03 billion in assets, $3.37 billion in loans, and $3.22 billion in deposits as of Q3 2025, with 27 branches across key Northeast markets.

• Tangible book value per share grew to $15.33, up 12.4% annualized from the previous quarter.

• Focused on evolving from a community bank to a middle market commercial bank, expanding digital and treasury management capabilities.

• Maintains a relationship-driven model with specialized business units and a disciplined M&A strategy.

Financial highlights

• Net interest income rose to $35.5 million, up 18.1% year-over-year, with net interest margin at 3.71%, ranking in the top quartile among peers.

• Loans grew $47 million in Q3 (5.6% annualized) and $286 million (9%) year-over-year, led by C&I and owner-occupied CRE.

• Deposits increased $55 million in Q3 (7% annualized), with average non-interest-bearing deposits up $21 million.

• Efficiency ratio improved to 51.81%, below 60% for 25 consecutive quarters.

• Nonperforming assets to total assets declined to 0.36% from 0.47% a year ago.

Outlook and guidance

• Management expects continued organic growth, supported by a clean balance sheet, strong asset quality, and recent investments in business diversification.

• Margins expected to remain stable as deposit costs are pushed lower and higher-yielding loans replace runoff assets.

• Loan growth target for the year remains in the 6%-7% range, with Q3 pipeline supporting this outlook.

• Management anticipates healthy balance sheet growth in the 5% range for 2026, supported by strong pipelines and new branch locations.

• Private Equity, Small Business, and ABL units are nearing scale, expected to drive C&I lending and reduce CRE exposure.