First Bank
Annual Report 2024

Plain-text annual report

A clear vision for future success 2O2 4 A N N U A L R E P O R T In 2024, First Bank ranked in the top quartile of our peers in numerous key performance metrics by staying true to our vision of success. We took stock of our recent growth, assessed where we could do even better, and executed to ensure our company with community bank roots is well-equipped to thrive as an emerging middle market commercial bank. Having grown at a 21% average annual rate over the past 11 years, we used 2024 — a year of economic unease and industry apprehension — to position ourselves for future success. Highlights from our 19th year include relationship-driven loan and deposit growth, opportunistic balance sheet optimization, technological enhancements, and continued expansion of our community banking network and specialty banking teams. We produced top quartile profitability with best-in-class efficiency and a clean, well-positioned balance sheet. Our robust earnings generated ample returns to fund organic growth, dividends, and share buybacks. Our branches sit within the New York City to Philadelphia corridor — one of the country’s wealthiest and most densely populated markets — with an outpost in the vibrant West Palm Beach, Florida market. Most importantly, we have an experienced, engaged, and incentivized team leading the way. First Bank has a clear vision for our future success. 2 Letter to Shareholders 4 Charitable Foundation 6 Performance Overview 7 Selected Financial Information 8 Operations Review 13 Market Area & Branch Listing 14 Board of Directors 15 Executive Management 16 Bank Officers 17 Investment Profile 17 Corporate & Shareholder Information A clear vision for future success Contents 1 Efficiency ratio below 60% for 22 consecutive quarters through 2024 Robust earnings per share growth with 19% CAGR from 2019 through 2024 Both assets and deposits grew at 13% CAGR from 2019 through 2024 Consistently strong credit metrics, with NCOs/Avg Loans of 0.01% for 2024* and 0.07% average over the preceding 7 years Balance sheet is positioned to generate stable net interest income in almost any interest rate scenario Kroll Bond Rating Agency Affirmed Investment Grade Rating Expanding technology platform to support evolution into middle market franchise We are a relationship focused commercial bank with branch locations in New Jersey, Pennsylvania and Florida with $3.78 billion in assets at the end of 2024 Fast Facts * 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. Total net revenue growth in 2024 25% 2 To our shareholders, stakeholders, employees and friends: 2024 — DELIVERING STRONG RESULTS IN A DIFFICULT OPERATING ENVIRONMENT In 2024, First Bank again demonstrated how the community bank model — with a focus on relationships, service, and prudent risk management — can perform well in any environment. Our model has delivered steady and strong earnings in the face of varied industry challenges, largely because our vision of success does not include generating blockbuster annual returns. Instead, we believe banking can and should be a boring business, where boring means producing top tier returns in any environment. Our team’s ability to achieve continued financial outperformance is impressive when viewed in the context of the broader operating landscape for banks. Banks generally earn higher profits when longer term interest rates are higher than short term interest rates, forming an upward-sloping “yield curve.” When long term rates are lower than short term rates, the yield curve is inverted. This phenomenon presents a serious challenge for banks, which earn money primarily on the spread between rates paid on shorter term deposits, borrowed funds, and other liabilities and yields earned on longer-term earning assets. Unfortunately, 2024 saw the continuation of the longest period of inverted interest rates in modern US history. In total, the yield curve remained inverted for 793 days, only moving to neutral in December 2024. Furthermore, interest rates moved higher leading up to 2024, and they remained at the highest level we’ve seen since before the Great Recession. Higher rates make business more difficult for borrowers (our customers), which can put pressure on credit quality. Add a cautious regulatory climate to the mix, and you can see how difficult the environment has been for banks. First Bank navigated these choppy seas quite successfully in 2024. We earned a 1.15% return on average assets (ROAA), our preferred metric to assess financial performance. An ROAA above 1% is the community banking industry benchmark for strong performance, and at 1.15%, we realized one of the highest levels of ROAA for banks our size and in our markets. Those returns equated to $42.2 million in net income for the year, or $1.67 per fully diluted share. Importantly, we generated a 12.5% return on tangible capital. We have been clear about our goal of achieving top-quartile financial performance and we achieved that goal again in 2024. We managed interest rates effectively at a time when many banks were stuck in neutral (or worse) because of poor earnings and balance sheets weighed down by assets with market values well below book values. With rates seemingly set up to be “higher for longer,” our well-managed balance sheet should allow for continued strong performance in 2025 and beyond. While we would prefer the yield curve to get steeper, we don’t need rates to move lower to sustain our profitability levels and grow our future earnings. 3 To be successful, banks need a viable business model, great people, a clean balance sheet, adequate capital, and solid regulatory relationships. I’m proud to say we have all of these. We have a clear vision for future success, especially as the prospects for a better interest rate environment and a more favorable regulatory climate emerge in 2025. LOOKING AHEAD IN 2025: ORGANIC GROWTH Today, First Bank is a relationship driven community bank that is evolving into a relationship driven middle market commercial bank. We have a clear roadmap to achieve our strategic vision, and organic growth is a key component of our plan. We are committed to our essential core businesses of deposit generation and lending to consumers and small businesses. At the same time, we’re expanding “up-market” to service larger middle market commercial customers, within our existing geographic footprint. We are targeting larger businesses with a combination of our existing products and services alongside our expanding Treasury Management offerings. Additionally, we continue to build out niche commercial lending units, including Private Equity/Fund Banking (PE) and Asset-Based Lending (ABL). Much like the smaller, neighborhood businesses that we have always served, these middle market businesses are eager to rediscover a relationship-based banking model. Many of these businesses ended up with a big bank because of mergers, but they would prefer local, flexible, and responsive banking. We’re working to fill that void in the market. As we continue to grow and serve larger customers, we remain deeply loyal to our business banking customers. Our Business Express product (loans under $500,000) continues to gain traction, and with a revamp of our Small Business Administration (SBA) unit, we’re looking to gain market share in small business lending as well. We are also doing essential work to build out our technological capabilities. We believe this is critical to thriving as a bank of the future. We expect to drive new sources of fee income and deposits via fintech partnerships, and we are excited for the potential of our developing “Banking as a Service” (BaaS) model. Our initial BaaS programs should launch in the first half of 2025, and if successful, we hope to run several more throughout the year. We cannot achieve our goals without strong asset quality and solid capital, and we are well positioned in both areas. Our credit quality metrics are strong and improved throughout 2024. Net charge offs during 2024 were negligible, our level of non-performing assets was modest, and our allowance for credit losses stood at 323% of non-performing loans at year-end, higher than any peer bank in our region. Deposits remain the fuel for our business. We continue to invest in people, branches, and technology to help us compete and grow our core deposit base. Our branch network is both efficient and convenient, providing coverage throughout most of the New York City to Philadelphia corridor. We recently expanded our coverage with the opening of two new locations — one in Trenton, NJ and the other in Media, PA. The Trenton location fills an important gap in the center of our footprint, and Media opens up a new and contiguous market in Southeastern PA. As always, our branches remain staffed with the most dedicated, service-focused bankers in the market. 4 In addition to our outstanding branch banking team, we have a re-tooled Business Banking group made up of seasoned, relationship bankers. This group drives new business across all product categories with a special focus on deposit generation. Additionally, we leverage our great Treasury Management team and our new online account opening functionality to help build and grow deposits. As we tell our bankers every day — community banking is all about deposits, deposits, deposits. Our C&I lending teams are very relationship focused, and most customers have meaningful deposit relationships. Even our investor real estate and ABL teams — two areas not normally known for deposit growth — are generating notable levels of new deposits. Likewise, our loan pipelines show opportunity for growth in 2025. If we can effectively leverage all our deposit- generating vehicles, 2025 should be another year of solid asset growth. The FirstBank Charitable Foundation (FBCF) is committed to driving positive community transformation through innovative partnerships and reimagined community investment approaches. • In 2024, FBCF distributed nearly $160,000 to 44 organizations focused on housing, education, and community well-being, marking our largest year of giving • Since our inception, we have invested over $1 million in organizations aligned with our vision of lasting positive change • FBCF hosted the inaugural Better Giving for Greater Impact Summit in May 2024, bringing together nonprofit leaders, donors, foundations, and corporations to foster collaboration and maximize community impact Invigorating Our Communities 5 M&A LANDSCAPE Many are predicting a coming “M&A wave” in 2025. I have my doubts. I do expect bank consolidation to continue and likely accelerate off a low level of activity in the past two years. However, buyers on the sidelines, balance sheet marks, and thorny social issues could all work to slow down the wave. I have little doubt that — while the community bank model will survive and thrive — there will be hundreds (maybe even thousands) that disappear in the next 20 years. It just won’t happen in the next five years. What role First Bank will play in the future consolidation of the banking industry remains to be seen. Our M&A strategy will remain thoughtful and opportunistic. We know how to use M&A to create value, but we don’t need M&A to create value. Since initiating our M&A strategy in 2013, we’ve grown assets and earnings per share at compound average annual rates of 21% and 16%, respectively, through a mix of both M&A and organic growth, complemented by efficient balance sheet and operational management. Your management team and board of directors here at First Bank do not believe in deviating from prudent, conservative banking practices. We remain focused on proven businesses and new opportunities with strong risk/reward characteristics. We won’t be looking to “stretch” to find growth. With our core businesses performing well, and our newer ventures scaling up, we have the raw materials and unique ingredients we need to grow while staying focused on profitability. A BRIGHT FUTURE We are proud of what we achieved in a challenging environment in 2024. Following our largest-ever acquisition in 2023, 2024 was a year for settling into our growing size and optimizing our franchise for the future. Today, First Bank is a nearly $4 billion franchise that can serve clients of varying sizes and complexity through our extensive coverage in New Jersey and Pennsylvania, and a growing presence in South Florida. In 2024, our franchise generated more than $40 million in earnings, and we believe that we are well-positioned for continuing success. We are excited about 2025 and beyond as our newer ventures reach scale, our core businesses continue to perform, and an upward-sloping yield curve should drive net interest margin expansion. With these catalysts in place, plus an experienced and talented team, a knowledgeable and effective board, and our vibrant banking markets — First Bank’s future looks bright. Patrick L. Ryan President and CEO SA F E - H A R B O R STAT E M E N T NOTE: This document contains forward-looking statements concerning the financial condition, results of operations and business of the Bank. We caution that such statements are subject to a number of uncertainties, including but not limited to those set forth under the caption “Item 1A – Risk Factors” in the Bank's 2024 annual report on Form 10-K, as well as changes in economic activity in our markets, changes in interest rates and changes in regulation and the regulatory environment. 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. 6 Total Stockholders’ Equity At 12-31, $ in Millions Performance Overview * Total net revenue is the sum of net interest income and non-interest income Total Loans At 12-31, $ in Billions Book Value Per Share At 12-31 Total Net Revenue* For Year Ended 12-31, $ in Millions Total Deposits At 12-31, $ in Billions Tangible Book Value Per Share At 12-31 2019 2019 2019 2019 2019 2019 226.4 1.72 $11.07 1.64 $10.17 62.4 2020 2020 2020 2020 2020 2020 238.1 2.05 $12.08 1.90 $11.17 75.9 2021 2021 2021 2021 2021 2021 266.7 2.11 $13.69 2.11 $12.67 89.6 2022 2022 2022 2022 2022 2022 289.6 2.34 $14.89 2.29 $13.89 97.5 2023 2023 2023 2023 2023 2023 370.9 3.02 $14.85 2.97 $12.65 103.8 2024 2024 2024 2024 2024 2024 409.2 3.14 $16.30 3.06 $14.19 129.9 5-year CAGR = 12.6% 5-year CAGR = 12.8% 5-year CAGR = 8.0% 5-year CAGR = 13.2% 5-year CAGR = 6.9% 5-year CAGR = 15.8% 7 Selected Financial Information IN THOUSANDS, EXCEPT COMMON SHARE DATA AT OR FOR THE YEAR ENDED DECEMBER 31, 2024 2019 5-YR CAGR Selected Balance Sheet Data Total assets $ 3,780,346 $ 2,011,587 13.4% Total loans 3,144,266 1,723,574 12.8% Allowance for loan losses 37,773 17,245 17.0% Total deposits 3,055,896 1,640,867 13.2% Total borrowings 246,933 105,476 18.5% Total subordinated debentures 29,954 21,964 6.4% Total stockholders’ equity 409,156 226,393 12.6% Average total assets 3,664,463 1,858,291 14.5% Average stockholders’ equity 392,132 207,338 13.6% Selected Income Statement Data Interest and dividend income $ 222,127 $ 84,170 21.4% Interest expense 99,581 25,804 31.0% Net interest income 122,546 58,366 16.0% Credit loss expense 1,178 3,984 (21.6%) Net interest income after credit loss expense 121,368 54,382 17.4% Non-interest income 7,308 3,995 12.8% Non-interest expense 73,531 39,364 13.3% Income before income taxes 55,145 19,013 23.7% Income tax expense 12,901 5,568 18.3% Net income $ 42,244 $ 13,445 25.7% Common Share Data Diluted earnings per share $ 1.67 $ 0.69 19.3% Adjusted diluted earnings per share1 1.72 0.85 15.1% Cash dividends paid 0.24 0.12 14.9% Diluted weighted average common shares outstanding 25,283,771 19,392,429 5.4% Book value per common share 16.30 11.07 8.0% Common shares outstanding 25,100,829 20,458,665 4.2% Selected Performance Ratios Return on average assets 1.15% 0.72% Adjusted return on average assets1 1.18% 0.88% Return on average equity 10.77% 6.48% Adjusted return on average equity1 11.06% 7.93% Net interest margin, tax equivalent2 3.57% 3.32% Efficiency ratio1 56.73% 58.00% Selected Asset Quality Ratios Nonperforming loans to total loans3 0.37% 1.32% Allowance for credit losses on loans to nonperforming loans 323.48% 75.82% Net loan charge offs to average loans 0.19% 0.12% Capital Ratios Stockholders’ equity to assets 10.82% 11.25% Tier 1 leverage capital 9.50% 10.27% Common equity tier 1 capital 9.70% 10.74% Tier 1 risk-based capital 9.70% 10.74% Total risk-based capital 11.56% 12.79% 1 This measure is not recognized under U.S. GAAP and is therefore a non-U.S. GAAP financial measure. See our annual report on Form 10-K for a reconciliation of the 2024 calculation. 2 The tax equivalent adjustment is calculated using a federal income tax rate of 21% in 2019 and 2024. 3 Nonperforming loans consist of nonaccrual loans (including nonaccrual purchased credit deteriorated loans) and loans past due 90 days or more and still accruing. 8 Core Community Banking Relationship-driven community bank model, with resiliency and value validated during recent market turbulence Highly experienced and invested leadership team In 2024 we continued to optimize our branch network, deepening and expanding our presence in the densely populated and high-wealth NYC – Philadelphia corridor DEPOSITS • Deposit initiatives are at the forefront of our growth strategy, with sales teams focused on core deposit generation • Deposits grew $88 million during 2024 as we focused on building new relationships and optimizing the existing portfolio • The percentage of non-interest bearing deposits to total deposits remained stable in 2024 LOANS Our loan portfolio is well-diversified across our footprint and key commercial categories In 2024 we grew C&I loans to further diversify the portfolio, creating new deposit growth channels Our conservative underwriting continues to result in excellent credit quality, with NPAs/Assets and NCOs/Average Loans that have been below our peers in 7 of the past 9 years, including 2024 Complementary Community Banking and Specialty Banking Teams Total Deposits At 12-31, $ in Millions Total Loans* At 12-31, $ in Millions Time Money Market Savings Interest Checking Noninterest Checking CREI CREO C&I Consumer and Residential Mortgage Multi-Family ACD 8% 5% 2019 2024 41% 24% 10% 17% 23% 34% 21% 17% $1,641 $3,056 2019 2024 39% 23% 14% 11% 7% 6% 38% 21% 18% 7% 9% 7% $1,725 $3,148 Total Loans by Geography At 12-31-2024 Total Loans* — $3,148M Central NJ Northern NJ Eastern PA Southern NJ All Other 30% 27% 24% 13% 6% * Total loans excluding deferred loan fees and costs 9 Specialized Business Units We’re focused on expanding our middle market commercial banking capabilities Private Equity Fund Banking, Small Business and Government Banking, and Asset-Based Lending teams are in place and getting close to scale Recent investments create diversification benefits and future financial upside SMALL BUSINESS LENDING • Over $100 million in Small Business Express loans to local businesses since 2018 • “Preferred Lender” status with the Small Business Administration accelerates SBA loan decisions PRIVATE EQUITY BANKING • Providing resources and solutions for private equity funds and their portfolio companies • Offering financing and comprehensive cash management products and deposit accounts ASSET-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 estate 100% 80% 60% 40% 20% SPECIALIZED LENDING TEAMS TOTAL LOANS* Asset-Based Lending $55 | 14% Residential Mortgage $79 | 21% Consumer $54 | 14% Private Equity Banking $121 | 31% Small Business Lending $76 | 20% Specialized Lending Team $385 | 12% Regional Community Banking Teams $1,735 | 55% CREI Specialist Group $1,028 | 33% $385M $3,148M 10 We are committed to producing top-tier returns as an evolving middle market commercial bank. First Bank’s track record of profitable organic growth and accretive M&A has driven significant franchise value in recent years. Following our largest-ever acquisition of Malvern Bank in 2023, in 2024 we took actions to optimize our balance sheet and franchise, ensuring the Bank is positioned to thrive in any interest rate and economic environment. STRATEGIC M&A Disciplined and successful acquisition strategy was initiated in 2013 as part of our quest for improved scale, with five acquisitions completed over ten years Proven ability to successfully integrate while growing EPS and tangible book value per share Significant earnings benefits from economies of scale and cost savings Success of past acquisitions leaves us positioned to grow organically, through additional M&A, or through a combination of both BALANCE SHEET OPTIMIZATION Opportunistic balance sheet repositioning improved our profitability profile Ample available liquidity as of December 31, 2024 Balance sheet is positioned to generate stable net interest income in up or down rate scenarios Commitment to Returns ACQUISITIONS ACCELERATE EARNINGS GROWTH 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $0.33 $0.63 $0.41 $0.61 $0.48 $0.95 $0.69 $0.97 $1.79 $1.84 $1.64 $1.67 Heritage Community Bank Acquisition Bucks County Bank Acquisition Delanco Federal Savings Bank Acquisition Grand Bank Acquisition Malvern Bank Acquisition Total Assets AT 12-31, IN MILLIONS 11-YEAR CAGR = 21% EPS AT 12-31 11-YEAR CAGR = 16% $1,711 $1,452 $1,073 $856 $677 $467 $2,012 $2,346 $2,524 $2,733 $3,609 $3,780 1 Adjusted EPS. This measure is not recognized under U.S. GAAP and is therefore a non-U.S. GAAP financial measure. See our annual report on Form 10-K for a reconciliation of the 2023 calculation. 1 Improved geographic and asset diversification driven by successful M&A and new business units 11 Our performance places us among the top tier of our peers Top quartile results for ROAA, ROTCE, and Efficiency Ratio Performance driven by : • Exceptional expense management • Superior net interest margin • Consistently low credit costs • Prudent capital stewardship ROAA ROTCE1 2019 2019 2018 2018 0.72 6.46 0.94 11.95 1.09 9.92 0.91 12.10 2020 2020 0.87 8.84 0.72 9.90 2021 2021 1.46 14.36 0.98 13.46 2022 2022 1.48 13.43 0.95 13.96 2023 2023 0.66 6.61 0.94 10.87 2024 2024 1.15 11.86 0.89 9.63 Peer banks include publicly traded NJ and PA banks under $10 billion in assets. Source: S&P Capital IQ Pro 1 This measure is not recognized under U.S. GAAP and is therefore a non-U.S. GAAP financial measure. See our annual report on Form 10-K for a reconciliation of the 2024 calculation. ROAA outperformed peers in 5 of the last 7 years First Bank Peers 0.5% 5.0% 1.0% 10.0% 1.5% 15.0% 12 In recent years, we invested in middleware, software that enables the Bank to more easily integrate with other third-party software applications. We have multiple use cases under implementation in 2025: BANKING AS A SERVICE (BaaS) First Bank is afforded the opportunity to act as a BaaS provider due to our solid financial position and excellent regulatory compliance track record Using middleware already in place (and financially justified by other use cases) lessens the financial risk of our BaaS initiative Our first anticipated program is at the lower end of the BaaS risk spectrum, offering prepaid debit cards that will generate deposits and fee income ARTIFICIAL INTELLIGENCE (AI) • Through third-party software, AI is enhancing our ability to identify suspicious activity and stop fraudulent transactions Initiatives are in place to identify areas where additional use of AI can improve our internal operations and customer experience CUSTOMER RELATIONSHIP MANAGEMENT (CRM) We recently implemented a leading CRM tool that provides myriad opportunities to enhance our sales culture and our customer experience ONLINE ACCOUNT OPENING Marketing campaigns launched in third quarter 2024 Continued roll-out should generate relationship-based deposits and support bank funding initiatives Advancing Technology for the Future BUCKS CHESTER DELAWARE HUNTERDON MORRIS SOMERSET ESSEX MIDDLESEX MERCER GLOUCESTER BURLINGTON TRENTON NEW YORK CITY PHILADELPHIA PALM BEACH NEW YORK CONNECTICUT NEW JERSEY PENNSYLVANIA 13 First Bank serves the attractive New York City to Main Line Philadelphia corridor, offering a full range of deposit and loan products to individuals and businesses. Our 26-branch banking franchise spans eleven counties across New Jersey and eastern Pennsylvania, with an additional office in West Palm Beach, Florida. With total assets of $3.78 billion, we serve highly desirable markets marked by strong income and business activity, with customers who have sophisticated banking needs and desire personalized service. Our unique value proposition includes providing a superior customer experience, access to our decision makers, and competitive interest rates and fees. FIRST BANK MARKET AREA BRANCH LOCATIONS NEW JERSEY CINNAMINSON DELANCO DENVILLE EWING FAIRFIELD FLEMINGTON HAMILTON LAWRENCE MONROE MORRISTOWN PENNINGTON RANDOLPH SOMERSET TRENTON WILLIAMSTOWN HEADQUARTERS + FIRST BANK BRANCH FIRST BANK BRANCH PENNSYLVANIA COVENTRY DEVON DOYLESTOWN LIONVILLE MALVERN MEDIA PAOLI TREVOSE WARMINSTER WEST CHESTER FLORIDA PALM BEACH 14 First Bank extends its sincere gratitude and appreciation to John E. Strydesky for his exceptional guidance to the Company during his tenure as a director. Mr. Strydesky will step down in April following 15 years of dedicated service. As a certified public accountant, Mr. Strydesky brought extensive experience and expertise to our Compliance Committee, which he chaired, and to the Asset/Liability and Audit and Risk Management Committees. The entire First Bank team thanks Mr. Strydesky for his service and commitment to the Company. Patrick M. Ryan CHAIRMAN Owner of North Buffalo Advisors, LLC; former President and Chief Executive Officer of Yardville National Bank DIRECTOR SINCE 2011 BOARD COMMITTEES ASSET/LIABILITY, COMPLIANCE, INFORMATION TECHNOLOGY Leslie E. Goodman VICE CHAIRMAN | LEAD INDEPENDENT DIRECTOR Principal of The Eagle Group of Princeton, Inc.; Director of Wawa, Inc. DIRECTOR SINCE 2008 BOARD COMMITTEES ASSET/LIABILITY (CHAIR), COMPENSATION AND PERSONNEL, AUDIT AND RISK MANAGEMENT Patrick L. Ryan President and Chief Executive Officer of First Bank DIRECTOR SINCE 2008 BOARD COMMITTEES ASSET/LIABILITY, COMPLIANCE, INFORMATION TECHNOLOGY Zaid Alsikafi Private Investor; Former Managing Director of Madison Dearborn Partners DIRECTOR SINCE 2024 BOARD COMMITTEES ASSET/LIABILITY, AUDIT, COMPLIANCE Douglas C. Borden Northeast President of CBIZ Borden Perlman DIRECTOR SINCE 2017 BOARD COMMITTEES NOMINATING AND GOVERNANCE (CHAIR), COMPENSATION AND PERSONNEL, INFORMATION TECHNOLOGY Andrew Fish Director of The Real Estate Equity Company DIRECTOR SINCE 2023 BOARD COMMITTEES ASSET/LIABILITY, COMPENSATION AND PERSONNEL, COMPLIANCE, INFORMATION TECHNOLOGY Scott R. Gamble Principal of Patriot Financial Partners LP DIRECTOR SINCE 2020 BOARD COMMITTEES ASSET/LIABILITY, COMPENSATION AND PERSONNEL, AUDIT AND RISK MANAGEMENT, COMPLIANCE Glenn M. Josephs Former Partner of Friedman, LLP DIRECTOR SINCE 2008 BOARD COMMITTEES AUDIT AND RISK MANAGEMENT (CHAIR), NOMINATING AND GOVERNANCE Deborah Paige Hanson Principal, Executive Vice President and Fund Manager of The Hampshire Companies DIRECTOR SINCE 2016 BOARD COMMITTEES COMPENSATION AND PERSONNEL (CHAIR), NOMINATING AND GOVERNANCE, INFORMATION TECHNOLOGY Michael E. Salz President of Linden Bulk Transportation Co., LLC DIRECTOR SINCE 2017 BOARD COMMITTEES ASSET/LIABILITY (CHAIR), AUDIT AND RISK MANAGEMENT, COMPENSATION AND PERSONNEL, NOMINATING AND GOVERNANCE Neha Shah President and Co-Founder of GEP DIRECTOR SINCE 2024 BOARD COMMITTEES INFORMATION TECHNOLOGY (CHAIR), NOMINATING AND GOVERNANCE, COMPLIANCE ALL DIRECTORS ALSO SERVE ON THE STRATEGIC PLANNING AND BOARD LOAN COMMITTEES. Thank You Board of Directors 15 Executive Management Patrick L. Ryan PRESIDENT Chief Executive Officer William Boylan Manager Investor Real Estate Gabriel Dragos Chief Technology Officer Peter J. Cahill EXECUTIVE VICE PRESIDENT Chief Lending Officer Darleen R. Gillespie EXECUTIVE VICE PRESIDENT Chief Retail Banking Officer Joseph Calabro Pennsylvania Regional President Paula Huergo Strategic Planning and Operations Officer Michael Maiorino Asset Based Lending President Andrew L. Hibshman EXECUTIVE VICE PRESIDENT Chief Financial Officer Kimberly Cerasi Director of Human Resources Arlene Pedovitch Chief Credit Officer Maria E. Mayshura EXECUTIVE VICE PRESIDENT Chief Risk Officer Anthony DeSenzo Market Executive Michael Smith Director of Small Business & Corporate Development John F. Shepardson EXECUTIVE VICE PRESIDENT Chief Operating Officer Marianne DeSimone Lending Group Manager David DiStefano New Jersey Regional President Parwinder Virk Chief Accounting Officer 16 SENIOR VICE PRESIDENTS Scott Bachman Team Leader Michael Baymor Team Leader Belinda Blazic Loan Administration Manager Donna Calderaro ABL Market Executive Scott Civil Market Executive Michael Cook Manager Investor Real Estate Tiffany Craddock Credit Officer Ramzi Dagher Team Leader Keryn Dettlinger Consumer Lending Manager Gregory Dittrich Director of Government Banking Jason Fischer Team Leader/Market Executive Michael Giacobello Business Banking Team Leader Denise Goetting Regional Branch Manager NJ Ashwini Hiremath Head of Financial Reporting Lisa James Facilities & Security Director Larry Lee Loan Workout Manager Lauretta Lucchesi Commercial Lending Relationship Manager Jamie Paucar Market Executive Lisa Perez Director of Internal Audit William Pounds Manager Investor Real Estate Cassandra Reid BSA Officer George Robostello Senior Credit Officer Sherri Schulz Regional Branch Manager SNJ/PA Stacy Schwartz Head of Deposit Operations Philip Smith Business Banking Team Leader Carrie Squeo Chief Administrative Officer of Asset Based Lending John Stack Senior Mortgage Sales Manager Donald Theobald, Jr. Controller Casi Tiernan Director of Treasury Management Richard Tocci Manager Investor Real Estate Stacy Valent Credit Officer Karen Walter Director of Community Development & Charitable Giving Gregory Weckel Director Information Technology Operations Caryn Wilson Head of Retail Branch Administration FIRST VICE PRESIDENTS Nadine Barron Credit Manager Michael Cahill Commercial Lending Relationship Manager Edward Caporellie Market Manager Cori Cubberley Lending Data Integrity Manager Brent Gardner Consumer Loan Officer Philip Heberling Commercial Lending Relationship Manager Anthony Janglee Market Manager Jose Jurado Construction Lending Manager Michael Kahn Market Manager Christopher Kelly Commercial Lending Relationship Manager Juan Luna Market Manager Andrew Mitchell Market Manager Sevan Montano Treasury Management Sales & Escrow - Team Leader Sarah Pearson Chief Compliance & CRA Officer Adam Regnery Commercial Lending Relationship Manager Terrence Ryan ABL Relationship Manager Elizabeth Scozzari Market Manager Joseph Stefans Business Banker VICE PRESIDENTS Rosemarie Abate Portfolio Manager Shatha Abbasi Internal Auditor John Alfredsen Senior Credit Underwriter Vanessa Aviles Branch Manager Thomas Bay Commercial Lending Relationship Manager Donna Bencivengo Executive Assistant and Corporate Secretary Keysha Berry Branch Manager Michael Borkowski Branch Manager Marjorie Callahan Commercial Lending Relationship Manager Karen Carr SBA Closing Manager Joseph Cavalchire Commercial Lending Relationship Manager Alissa Christensen Branch Manager Louis Ciarlante Commercial Lending Relationship Manager Zoe Combs SBA Relationship Manager Joan Costa Loan Administration Assistant Manager Razie Dauti Business Banker Samantha Dayton Loan Accounting Manager Jessica DiRocco Branch Manager Alan Dolnick Portfolio Manager Ryan Earley Business Banker Jon Edwards Branch Manager Gwendelyn Fisher Corporate Training & Development Specialist Daniel Fuchs Portfolio Manager Derrick Futch Branch Manager Arnaldo Galassi MIS/Small Business & Corporate Development Laurie Gibeau ABL Collateral Control Manager Michele Green SBA Senior Underwriter Stephen Helhowski Commercial Real Estate Administrator Joseph Kerr Business Banker Kenneth Klein Business Banker Gordon Kline Branch Manager Pradeep Kohli Branch Manager Olesya Komyagina Senior Credit Underwriter Ashwin Lakhraj Business Banker Brett Lawrence Commercial Lending Relationship Manager Andrea Lazarus Branch Manager Darcy Lowe SBA Relationship Manager Christina Maguire Branch Manager David Marshall Branch Manager Christopher McDaniel Branch Manager Patrick McDermott Business Banker William Mellon Senior Credit Underwriter Elizabeth Mertes Branch Manager Carol Monaghan Branch Manager James Muzio Director of Marketing Sannia Naz Branch Manager Eveliesse Nieves Branch Manager Quinal Ojageer Commercial Lending Relationship Manager I Ruth Powell Branch Manager Robert Pullia Business Banker Meher Rafiq SBA Portfolio Manager Anubha Raj Sales & Training Manager Frank Riker Commercial Lending Relationship Manager Rebecca Robotin Lorie Sales Support Manager Katherine Rowley Retail Escrow Rent Security Specialist Sandra Ryan Branch Manager Tamantha Schaeffer Treasury Management Operations Manager Bethany Schaffer Consumer Loan Officer Brian Seeber Branch Manager Julianne Silletti Human Resources Supervisor Eugene Slickers Commercial Lending Relationship Manager Diane Smith Senior Credit Underwriter Kyle Smith Commercial Lending Relationship Manager Elena Spaho Portfolio Manager Ernest Springer Compliance Officer Brian Sweeney Business Banker Peter Thomas Branch Manager John Thompson Treasury Management Sales Officer Maria Tramo Retail Operations Manager NNJ/CNJ Sharon Unger Deposit Operations Analyst Andrew Varsallona System Application Administrator Steven Walker Portfolio Manager Jennifer Wallace-Dressner Assistant Controller Thomas Waller Commercial Lending Relationship Manager Tara White Branch Manager Bank Officers 17 STOCK REGISTRAR AND TRANSFER AGENT FIRST CLASS/REGISTERED/ CERTIFIED MAIL Computershare Investor Services P.O. Box 505000 Louisville, KY 40233-5000 COURIER SERVICES Computershare Investor Services 462 South 4th Street, Suite 1600 Louisville, KY 40202 SHAREHOLDER SERVICES NUMBER 1 800 368 5948 INVESTOR CENTER PORTAL computershare.com/investor STOCK LISTING First Bank’s common stock is traded on the NASDAQ Global Market under the symbol FRBA. ANALYST COVERAGE The following analysts published research on First Bank in 2024: David Bishop Hovde Group 443 610 7379 dbishop@hovdegroup.com Justin Crowley Piper Sandler & Co. 212 466 7921 justin.crowley@psc.com Manuel Navas D.A. Davidson & Co. 212 223 5405 mnavas@dadco.com First Bank is a member of the FDIC, an Equal Opportunity Employer and an Equal Housing Lender. CORPORATE HEADQUARTERS FIRST BANK 2465 Kuser Road Hamilton, NJ 08690 877 821 2265 myfirstbank.com ANNUAL SHAREHOLDER MEETING INFORMATION The Annual Shareholders’ Meeting will be held on April 25, 2025 at 10:00 a.m. EST The Stone Terrace 2275 Kuser Road Hamilton, New Jersey 08690 INVESTOR RELATIONS Shareholders seeking information about us may obtain press releases and FDIC filings by visiting myfirstbank.com. Additional inquiries can be directed to: Chief Financial Officer 2465 Kuser Road Hamilton, NJ 08690 or by calling 609 643 0058 SHAREHOLDER ACCOUNT INQUIRIES Shareholders who wish to change the name, address or ownership of their stock or replace lost certificates or require additional services should contact our Stock Registrar and Transfer Agent. Corporate and Shareholder Information LISTING Nasdaq SYMBOL FRBA SHARE PRICE $15.28 MARKET CAPITALIZATION $383.9 M PRICE/2024 EARNINGS 9.1 X PRICE/TANGIBLE BOOK 1.07 X ANNUALIZED DIVIDEND $0.24 DIVIDEND YIELD 1.6% 52-WEEK HIGH $15.87 52-WEEK LOW $11.20 AVERAGE 3M DAILY TRADING VOLUME 53,104 SHARES OUTSTANDING 25.1 M Investment Profile AT 2/28/25 2465 KUSER ROAD | HAMILTON, NJ 08690 1395 YARDVILLE-HAMILTON SQUARE RD | HAMILTON, NJ 08691 877 821 BANK | MYFIRSTBANK.COM | NASDAQ: FRBA

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