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Q2 2025 Earnings Release Supplement July 22, 2025 1
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Legal Disclaimer 2 Forward Looking StatementsThis presentation contains certain forward-looking statements, either express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-lookingstatements include information regarding First Bank’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration ofacquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are inherently unreliable due tothe 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 importantassumptions, 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. Statementspreceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future orconditional 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 includethe 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, butare not limited to: whether First Bank can: successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions, integrate acquiredentities and realize anticipated efficiencies, sustain its internal growth rate, and provide competitive products and services that appeal to its customers and target markets; difficultmarket 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 areconcentrated, including the effects of declines in housing market values; the impact of public health emergencies, on First Bank’s operations, customers and employees; an increase inunemployment levels and slowdowns in economic growth; First Bank's level of nonperforming assets and the costs associated with resolving any problem loans including litigation andother 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 creditquality 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 withcomplying 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 capitaland 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 capitalmarkets; and changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these andother risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in First Bank’s Annual Reporton Form 10-K and any updates to those sections 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 moreevents 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 Bankanticipates. 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. Accordingly, you should not place undue reliance on any such forward-looking statements.All forward-looking statements expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statementshould 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.Non-GAAP Financial InformationThis presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America(“GAAP”). These non-GAAP measures include tangible book value per share and return on average tangible equity and adjusted measures, which exclude the effects of certain merger-related expenses and other one-time gains or expenses. Management uses these “non-GAAP” measures in its analysis of the company’s performance. Management believes these non-GAAP financial measures allow for better comparability of period to period operating performance. Additionally, the company believes this information is utilized by regulators andmarket 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 operatingresults determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation ofthe non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided in the Appendix to this presentation.
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3 Investment Considerations Clean, well-positioned balance sheet•Limited interest rate risk:Small bond portfolio and short-duration loan portfolio •Strong asset quality profile:Low levels of non-performing loans and delinquencies•Enhanced capital through recent subordinated debt offering and ample earnings available to fund organic growth, dividends and share buybacks Recent investments create diversification benefits and future financial upside•Private Equity, Small Business, and ABL units getting close to scale; will help to grow C&I lending and reduce CRE exposure Strong earnings profile•Top quartile1Net Interest Margin and efficiency ratios•Best in class efficiency and ability to succeed in challenging rate environment Board and management team that thinks like owners•Experienced team with significant ownership stake and shareholder mindset•Comprehensive, 360-degree M&A strategy•Employee incentives aligned with shareholders – risk management is an integral part of the strategy Attractive entry point•Highlighted as a top investment idea by multiple investment bank research groups1. Peer comparisons based on 25 NJ and PA public banks under $10B in assets S&P Capital IQ Pro data.
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427Full-service branches expanded in Philadelphia suburbs to NYC metropolitan regions First Bank Q2 2025 Snapshot For the quarter ending 6/30/23 $4.02Billion in Assets$3.33 Billion in Loans$3.17 Billion in Deposits1. Annualized 2. Non-GAAP financial measures that we believe provides management and investors with information that is useful in understanding our financial performance and condition. See accompanying table, "Non-GAAP Financial Measures," for calculation and reconciliation. 3. Tax equivalent using a federal income tax rate of 21%. 1.04%1ROAA9.77%1ROAE11.16%2ROATE$10.2 millionNet Income$16.96 BV per share$14.872Tangible BV per share$0.41 Diluted EPS3.65%1,3NIM9.42%Tier 1 Leverage Ratio56.24%Efficiency RatioInvestment Grade Credit RatingsKroll Bond Rating Agency BBB+Serving wealthy and densely populated markets that are home to over 3 million small businesses
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5START-UP MODETraditional community bank modelReconnected with banking networkEstablished solid foundationStrong loan growth Our Evolution:From Small Community Bank to Middle Market Commercial Bank 2008-20122013-2018QUEST FOR IMPROVED SCALEMaintained traditional community banking modelGeographic expansionDisciplined M&A2023 and BeyondEVOLUTION INTO MIDDLE MARKET COMMERCIAL BANKContinued commercial focusExpanded middle-market commercial banking capabilitiesImproved digital banking capabilitiesExpanded Treasury Management products and services 2019-2022FOCUSED ON DEPOSITSAND PROFITABILITYTop quartile financial performancePoised for next evolutionary stepImproved treasury managementModerate loan growth yielded high quality assets with low funding costs
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STRONGPERFORMANCE1SPECIALIZEDBUSINESS UNITSA Business Model and Core Values That Generate Results 6 Relationship-driven community bank model, with resiliency and value validated during the recent market turbulenceHighly experienced and invested leadership teamIdeal geographic location in the densely populated, high-wealth New York to Philadelphia corridorDisciplined and successful acquisition strategy – ability to successfully integrate while growing EPS and TBVSEarnings benefits from economies of scale and cost savingsTop quartile results:Efficiency ratio Net Interest Margin Better than peer average performance in other key areas: ROAA, NPAs/Assets,Noninterest expense/Average AssetsProfitability profile improvement driven by significant recent growth led by our newer business units 1. Peer comparisons based on 25 NJ and PA public banks under $10B in assets S&P Capital IQ Pro data. CORECOMMUNITY BANKSTRATEGICM&APrivate Equity Fund BankingAsset-Based LendingSmall-Business and Government BankingConsumer and Residential Lending Core ValuesCustomer Focused Integrity Outcome Orientation
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Central NJ organic expansion7 Track Record of Profitable Organic Growth and Accretive M&A (1) Employees shown as full-time equivalents (FTEs).(2) Q2 2025 Net Income and Diluted EPS are annualized YTD. 2023 Net income and Diluted EPS are adjusted. These adjusted numbers are non-GAAP financial measures that we believe provides management and investors with information that is useful in understanding our financial performance and condition. See accompanying table, "Non-GAAP Financial Measures," for calculation and reconciliation.* Dollars in thousands Paycheck Protection Program (PPP) IPO and Heritage acquisition05001,0001,5002,0002,5003,0003,500$4,000 2012$3512013$4672014$6772015$8562016$1,0732017$1,4522018$1,7112019$2,0122020$2,3462021$2,5242022$2,7332023$3,6092024$3,780Q2 2025$4,01921.5%CAGR5994 99108150186 216 20421723828631833548Employees (1)$1,708 $5,836 $3,887 $6,406 $6,993 $17,589 $13,445 $19,448 $35,429 $36,287$36,193$42,244$39,240$2,588Net Income (2)$0.33 $0.63 $0.41 $0.61 $0.48 $0.95 $0.69 $0.97 $1.79 $1.84 $1.64$1.67$1.54$0.63Diluted EPS (2)*
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Disciplined M&A Strategy Has Driven Growth and Franchise Value 8 July2023September 2019April2018September 2017March2014DATE CLOSED$953.8$190.2$118.1$196.0$132.3ASSETS ACQUIRED(MILLIONS)82243BRANCHES ACQUIREDSoutheastern PAMercer County, NJBurlington County, NJBucks County, PAMorris County, NJPRIMARY MARKET LOCATION Heritage Community Bank
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Specialized Business Units Diversify Loan Mix 9 SMALL BUSINESS LENDING•Over $110 million in Small Business Loan portfolio•48% deposit to loan ratio in small Business loan portfolio•“Preferred lender” status with the Small Business Administration (SBA) accelerates SBA loan decisionsPRIVATE EQUITY BANKING•Providing resources and solutions for private equity funds and their portfolio companies •Offering financing and comprehensive cash management products and deposit accounts•Loans primarily based on max cash flow leverage of 2.5x to 3.0x or lowerASSET BASED LENDING•ABL loans are typically higher-yielding, with comprehensive collateralization •Flexible asset-based solutions provided for: financing of inventory, receivables, capital improvements, recapitalizations, acquisitions, equipment and real estate020406080Total Loans Regional Community BankingTeams $1,805 (54%)CREI Specialist Group $1,018(31%)Specialized Lending Teams$508 (15%)$3,331M*Specialized Lending Teams Private Equity Banking $140(28%)Small Business Lending $111(22%)Asset Based Lending $99 (19%)Residential Mortgage $92(18%)Consumer $66 (13%)$508M100%17508*Total loans excluding deferred loan fees and costs. Certain percentage totals may not total 100% due to rounding.CONSUMER/RESIDENTAIL LENDING•Providing lending resources and solutions for consumers•Offering comprehensive cash management products to individuals
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10 Continued Strong EPS Drove TBV Expansion During Q2 2025 EPS is diluted earnings per share. Annualized adjusted diluted EPS would have been $1.64 in 2023. Adjusted EPS is a non-GAAP financial measure that we believe provides management and investors with information that is useful in understanding our financial performance and condition. See accompanying table, "Non-GAAP Financial Measures," for calculation and reconciliation.Tangible book value per share is a non-GAAP financial measure that we believe provides management and investors with information that is useful in understanding our financial performance and condition. See accompanying table, "Non-GAAP Financial Measures," for calculation and reconciliation. CAGR7.7%CAGR7.1%
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Strong Financial Performance Compared to Peers 11 Exceptional expense managementSuperior net interest marginConsistently low credit costs2018, 2019 and 2023 results impacted by acquisition costsPeer banks include 25 public NJ and PA public banks under $10 Billion in assets, source S&P Capital IQ Pro. ROAA outperformed our peers in 5 of the last 7 years and in Q1 2025First Bank results were impacted by merger-related expenses in both years in which peers outperformed PERFORMANCE HIGHLIGHTSDRIVERS OF PERFORMANCE
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Solid Geographic Diversification Within Our Footprint 12Northern NJ(50%)(19%)(31%)$742Central NJ(42%)(17%)(41%)$1,056Southern NJ(21%)(21%)(58%)$272Eastern PA(57%)(42%)$713Florida(90%)$23 As of June 30, 2025 ($ in Millions) (2%)(10%)CommercialGovernmentalConsumerDeposits totals in the table above do not include deposits maintained in our on-line and internal administrative branches.Deposit market share, rank, population and Median HH data in the table above as of 6/30/24. Data sources are Claritas & S&P Global Market Intelligence. Wealthy, densely populated markets in the New York – Philadelphia corridorTremendous opportunities for growth in our marketsOne of the most attractive markets for small businesses in the countryFootprint offers the potential to reach over 5 million new customers Deposits in DepositMarket Market Market MedianMarket 6/30/2025 Share Population HHICounty Rank Branches ($000) (%) (Actual) ($)Mercer6 5 772,640 5.38 381,870 98,025 Morris17 3 407,965 1.27 518,793 136,627 Somerset12 1 216,297 1.32 351,557 137,931 Hunterdon8 1 181,500 3.13 130,941 146,648 Burlington13 2 154,542 1.08 473,928 103,385 Middlesex29 1 103,728 0.21 866,972 106,408 Gloucester14 1 117,016 1.05 311,766 99,890 Essex28 1 108,916 0.27 850,910 77,978 Union29 1 8,844 0.00 574,569 100,028 NJChester 12 6 499,327 2.82 557,019 122,404 Bucks 23 3 168,451 0.63 647,007 110,468 Delaware 21 1 45,564 0.22 578,207 86,402 PAFLPalm Beach 47 1 23,050 0.01 1,555,331 83,321
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Growing Core Deposits 13 Deposit initiatives are at the forefront of our growth strategy, with sales teams focused on core deposit generationDeposits increased $48 million during Q2 2025 as we continued to focus on building new deposit relationships and optimizing the existing portfolioThe percentage of non-interest bearing deposits to total deposits increased during Q2 2025CAGR13.5% Certain percentage totals may not total 100% due to rounding.
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Stable and Relationship-Driven Core Deposit Base 14 AVERAGE DEPOSIT ACCOUNT SIZE BY CUSTOMER TYPE As of June 30, 2025Commercial: $125,000Consumer: $43,000Government Banking: $1.4 million
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15 Growing C&I loans to further diversify the loan portfolio, creating new deposit growth channelsContinually building out enterprise risk management function, including enhanced stress testing capabilitiesCommitment to proven lending model has resulted in steady and stable growthPortfolio Is Well Diversified Across Key Commercial Categories $05001,0001,5002,0002,5003,000$3,350201839%24%13%12%6%6%$1,464201939%23%14%11%7%6%$1,725202038%20%19%9%7%7%$2,053202140%22%17%8%8%5%$2,130202241%23%15%6%9%6%$2,341202340%20%17%7%9%6%$3,025202438%21%18%7%9%7%$3,148Q2 202536%21%21%8%9%5%$3,331 Loan Portfolio Composition(in Millions) CREICREOC&I (excl. PPP Loans)Consumer and Res MortMulti-FamilyACD*Total loans excluding deferred loan fees and costs. Certain percentage totals may not total 100% due to rounding. CAGR13.5%
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Balanced Geographic Diversification Within Our Footprint 16 TOTAL LOANS BY GEOGRAPHY As of June 30, 2025 ($ in Millions) *CREI includes multi-family. Consumer and other includes residential, consumer and all other loans. Geographic diversification is based on the location of business for C&I. Certain percentage totals may not total 100% due to rounding. Total loans excluding deferred loan fees and costs. Total Loans$3,331
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NPAs/Assets below peers in 7 of the last 9 years and in Q1 2025NCOs/Average Loans below peers in 7 of the last 9 yearsNCOs/Average Loans YTD annualized returned to a normalized rate of 5 basis points 3296 17Peers include 25 public NJ and PA banks under $10B in assets, source S&P Capital IQ Pro. NCOs for 2024 exclude a $5.5 million PCD loan charge-off which was reserved for through purchase accounting marks at the time of the Malvern acquisition. Strong Credit Quality Despite Acquired Non-Performing Loans Conservative underwriting continues to result in pristine credit qualityMinimal exposure to highest risk industriesStrong portfolio management identifies early warning indicators and proactively engages the loan workout group early in the credit review process CREDIT QUALITY HIGHLIGHTSDRIVERS OF CREDIT QUALITY
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C&I and CREO loans represent 42% of total loansBusiness loan breakdown:50% CREO vs. 50% C&IC&I includes working capital lines of credit, machinery and equipment loans, acquisition financing, commercial mortgages, among othersReal Estate, Rental and Leasing includes companies engaged in renting real estate and companies engaged in leasing fixed assets (equipment, trailers, etc.) Well Diversified Across Industry Segments 18*Loan data as of 6/30/25. Commercial (C&I and CREO) Loan Segments ($ in millions)Real Estate, Rental and Leasing191 Manufacturing160 Retail Trade124 Accomodations and Food Services115 Wholesale Trade111 Transportation and Warehousing101 Other Services, Except Public Admin97 Finance and Insurance92 C onstruction88 Professional, Scientific, Tech76 Arts, Entertainment, and Recreation62 Healthcare56 Administrative and Support49 Educational Services41 All other Sectors15 Agriculture, Forestry, Fishing and Hunting15 Information11 Public Administration4 Management of C ompanies4 Mining3 Total 1,415$
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19 Well Diversified CREI PortfolioRetail, Multi-Family and Industrial Comprise the Largest Segments 020406080100%Multi-Family (21%)Retail Multi-Tenant (17%)Industrial (16%)Hotel (6%)Mixed Use (6%)Office (10%)Retail - Single Tenant (13%)Medical (6%)Other (4%)1.502M No direct office exposure in downtown business districts in NYC or PhiladelphiaNo NYC rent-controlled multi-familyLoans as of 6/30/25. “Other” include loans to restaurants (only $12.4 million in outstanding balances at 6/30/25). Percentage total may not agree to 100% due to rounding. $ in millionsOffice Loans By Region 78.4Eastern PA48.5Central New Jersey19.5Northen New Jersey2.2Southern New Jersey0.8All Other Areas$149.4Total
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Ample Available Liquidity 20 AVAILABLE LIQUIDITYRigorous stress testing is performed quarterly and includes both systemic and bank-specific scenariosRecent stress testing demonstrates a strong liquidity position with sufficient liquidity in the most severe scenariosMalvern acquisition added balance sheet management flexibility, improved our ability to manage margin pressures and provided opportunities for efficiency gainsAdditional commercial loans available to be pledged at the FHLB and FRB if needed to boost available liquidity1. Cash and cash equivalents exclude restricted cash. June 30, 2025December 31, 2024Cash and cash equivalents1$334,991 $257,645 Borrowing capacity with FHLBNY $181,153 $234,786 Borrowing capacity with FRB $38,013 $40,667 Borrowing capacity with other banks $85,000 $85,000 Unpledged securities (market value) $77,131 $64,190 Available liquidity $716,288 $682,287 ($ in thousands)
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Net interest income has limited exposure to changes in interest rates 21 Strong and Stable Net Interest Margin in Varying Rate Environments (1) The table above sets forth the Company’s exposure to interest rate risk as measured by the change in net interest income for the next twelve months with a static balance sheet under various interest rate shocks as of June 30, 2025. (2) Peers include 25 public NJ and PA banks under $10B in assets, source S&P Capital IQ Pro. (1)(1)(2)
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Risk Mitigation is an Integral Part of Our Strategy 22 Prudent underwriting is resulting in limited credit issues and credit metrics remain strong•NPAs are down over the last five quarters•Recent third-party loan review rated credit quality and risk assessment as excellentLimited interest rate risk•Q2 2025 IRR models show minimal interest rate risk while management has focused on positioning the balance sheet for expected fed rate cuts Stable Capital Stress Test Results•Under a severely adverse case scenario with a static balance sheet, the Bank maintained capital ratios well above all minimum capital ratios •Stress test losses mitigated by limited exposure to highest risk asset classes •The Bank’s strong core earnings offset credit losses in severely adverse stress scenario, minimizing capital impactSubordinated Debt Issuance enhanced capital levels•Successfully completed a new $35 million Subordinated Debt issuance at a coupon rate of 7.125%
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Appendix
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24 Non-GAAP Financial Measures For the quarter end 6/30/25. (1) Annualized. (Dollars in thousands, except per share amounts)
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25 Non-GAAP Financial MeasuresYear E nded 12/31/2023Adjusted diluted earnings per share, Adjusted return on average assets, and Adjusted return on av erage equityNet income 20,897$ 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)3,312 Add: Losses on sale of investment securities, net(1)1,303 Adjusted net income 36,193$ Diluted weighted average common shares outstanding 22,072,616 Average assets 3,177,571$ Average equity 327,291$ Average Tangible Equity 291,276$ Adjusted diluted earnings per share 1.64$ Annualized adjusted diluted earnings per share 1.64$ Adjusted return on average assets 1.14%Adjusted return on average equity 11.06%Adjusted return on average tangible equity 12.43%(1) Tax -effected using a federal income tax rate of 21% (Dollars in thousands, except per share amounts)