First Bank (FRBA) investor relations material

Executive summary

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

• Assets reached $4.09B, loans $3.37B, and deposits $3.32B, with a network of 26 branches in the NYC-Philadelphia corridor and Palm Beach County, FL.

• Asset quality remained stable, with a slight uptick in non-performing assets due to CRE loans, but full recovery is expected.

• Non-interest expense normalized at $20.1 million, down from Q1, reflecting lower salaries and occupancy costs.

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

Financial highlights

• Net interest income rose to $34.8 million, up 2.3% year-over-year and sequentially, with net interest margin stable at 3.68%.

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

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

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

• Tangible book value per share grew to $16.27, up 9.4% annualized from Q2 2025.

Outlook and guidance

• Management expects continued loan and deposit growth, with a strong pipeline and robust commercial opportunities.

• Net interest margin is expected to remain flat or decline slightly, with ongoing deposit pricing pressure.

• Expense growth is targeted to remain flat to single digits, with ongoing focus on efficiency.

• 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.