First Bank (FRBA) investor relations material

Executive summary

• Q2 2026 net income was $10.9 million ($0.43 per diluted share), with a 1.09% ROAA and 9.62% ROAE, driven by strong loan and deposit growth, improved efficiency, and a growing tangible book value per share of $16.27.

• Loans increased by $68 million and deposits by $96 million in Q2, supporting the bank's annual growth targets and reflecting robust performance in core markets.

• Asset quality trends improved overall, especially in the small business portfolio, though nonperforming loans rose to 0.97% of total loans due to two CRE credits moving to non-accrual.

• Non-interest expense decreased to $20.1 million, reflecting lower salaries and occupancy costs, and efficiency ratio improved to 54.52%.

• The bank continues to evolve into a middle market commercial bank, expanding commercial capabilities and digital banking.

Financial highlights

• Net interest income rose to $34.8 million, up $798,000 sequentially and year-over-year, with a stable net interest margin of 3.68%.

• Diluted EPS increased $0.13 (43%) from Q1 and 6.6% year-over-year.

• Non-interest income was $2.1 million, down from $2.4 million in Q1 and $2.7 million in Q2 2025, mainly due to lower investment fund earnings and absence of prior year asset sale gains.

• Efficiency ratio was 54.52%, marking the 28th consecutive quarter below 60%.

• Tangible book value per share grew at a 7.5% CAGR since 2019; EPS at a 14.9% CAGR.

Outlook and guidance

• Management expects continued loan and deposit growth, with a strong pipeline supporting the $200 million annual loan growth target and ongoing focus on efficiency.

• Net interest margin is expected to remain flat to slightly down, with deposit pricing pressure offset by higher loan yields.

• Expense growth is targeted to remain flat to low single digits.

• Effective tax rate is projected at 23% to 25% going forward.

• Recent investments in private equity and ABL units are expected to enhance loan portfolio diversification and future financial upside.