AI Analysis | Feedback

• A regional bank, similar to a smaller, more localized PNC Bank.
• A traditional commercial bank, like a scaled-down version of M&T Bank.

AI Analysis | Feedback

• Deposit Services: Offers various deposit accounts, including checking, savings, money market, and certificates of deposit, to individuals and businesses.
• Lending Services: Provides a range of loan products such as commercial real estate, commercial and industrial, residential mortgages, and consumer loans.
• Treasury & Digital Services: Delivers treasury management solutions, online and mobile banking, and other financial technology services to businesses and consumers.

AI Analysis | Feedback

First Bank (FRBA) is a regional commercial bank that primarily serves a diverse base of customers rather than a few specific large corporate clients. Therefore, its major customers are best described by categories rather than named companies.

Here are the primary categories of customers that First Bank serves:

• Individuals and Families (Retail Banking): This category includes consumers utilizing the bank for a wide range of personal financial needs such as checking and savings accounts, certificates of deposit, mortgages, home equity loans, personal loans, and credit cards. They are typically residents within the bank's operational footprint in New Jersey, Pennsylvania, and North Carolina.
• Small to Medium-sized Businesses (Commercial Banking): First Bank provides comprehensive banking services to local and regional businesses across various industries. These services include commercial checking and savings accounts, business loans, lines of credit, term loans, equipment financing, treasury management solutions, and other tailored financial products to support their growth and operations.
• Commercial Real Estate (CRE) Investors and Developers: A significant portion of First Bank's business involves providing financing for commercial real estate projects. This includes loans for the acquisition, development, and construction of properties such as multi-family residential, office buildings, retail centers, and industrial facilities for investors and developers operating in their service areas.

AI Analysis | Feedback

null

AI Analysis | Feedback

Adam Currie, President & CEO

Adam Currie was appointed as President of First Bank in November 2023 and became its Chief Executive Officer in February 2025. He possesses over 20 years of experience in financial services, with prior roles in retail banking, commercial banking, and capital markets. Before joining First Bank, Currie served as the Managing Director of the Financial Institutions Group at PNC Capital Markets. Earlier in his career, he held various positions at RBC Bank, including Chief Operating Officer of Commercial Markets. He holds a Bachelor of Arts in Economics from the University of North Carolina at Chapel Hill and is a graduate of the Graduate School of Banking at Louisiana State University.

Elizabeth B. Bostian, EVP & Chief Financial Officer

Elizabeth B. Bostian is an Executive Vice President of First Bank and has served as its Chief Financial Officer since November 2021. She joined First Bank in 2012, initially as Senior Counsel from 2012 to 2017, and then as General Counsel from 2017 until her appointment as CFO. Before her tenure at First Bank, Ms. Bostian practiced as a Creditor's Rights attorney at a private law firm for several years.

Richard H. Moore, Chief Executive Officer, First Bancorp

Richard H. Moore has served as a director of First Bancorp and First Bank since 2010. His career has provided him with extensive financial and accounting experience. He is a former trustee of Wake Forest University and served on its Investment Committee.

Michael G. Mayer, President of First Bancorp

Michael G. Mayer serves as the President of First Bancorp.

Christian Wilson, EVP & Chief Operating Officer, First Bank

Christian Wilson joined First Bank in May 2024 as the Chief Operating Officer.

AI Analysis | Feedback

AI Analysis | Feedback

• Digital Disruption and Competition: First Bank, as a regional institution, faces an emerging threat from more agile fintech companies and larger banks with extensive resources for digital innovation. These competitors offer superior mobile experiences, faster processing, and potentially lower fees, which could erode First Bank's market share in deposits, lending, and payments, particularly among younger, digitally-native customer segments.
• Intensified Deposit Competition: The prolonged higher interest rate environment is creating significant competition for deposits. Customers are increasingly rate-sensitive, shifting funds to higher-yielding alternatives such as money market funds, online-only banks, and larger institutions. This intensifies pressure on First Bank's cost of funds, potentially compressing its Net Interest Margin (NIM) and impacting profitability as it must pay more to attract and retain deposits.
• Vulnerability in Commercial Real Estate (CRE) Lending: Regional banks, including First Bank, often have substantial exposure to commercial real estate loans. The confluence of higher interest rates, economic uncertainty, and structural changes (e.g., remote work impacting office properties) is generating distress in certain CRE sectors. This could lead to increased loan defaults, higher loan loss provisions, and reduced property values, negatively affecting First Bank's asset quality and profitability.

AI Analysis | Feedback

First Bank (FRBA) operates primarily in New Jersey, Eastern Pennsylvania, and the New York City to Philadelphia corridor. The addressable markets for its main products and services can be identified as follows:

Community Banking

The North American community banking market, where the U.S. is the largest contributor, was estimated at $16.76 billion in 2024 and is projected to grow to $30.46 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.58%. North America holds approximately 60% of the global market share. Community banks play a critical role in providing loan and deposit services to customers throughout the United States.

Small Business Lending

In New Jersey, reporting banks issued $12.2 billion in loans to businesses with revenues of $1 million or less in 2021. The global small business loan market was valued at $2.5 trillion in 2023 and is projected to reach $7.2 trillion by 2032, with North America expected to lead this market. Community banks hold a larger percentage share of total small business loans compared to larger institutions.

Commercial Real Estate (CRE) Lending

The total U.S. commercial real estate mortgage market for income-producing properties is approximately $4.5 trillion, with an additional $467 billion in construction loans, as of March 2023. Total U.S. commercial real estate mortgage borrowing and lending was estimated at $498 billion in 2024. Regional and community banks hold 31.5% of all commercial real estate mortgages in the U.S. In the national and Philadelphia commercial real estate market, commercial banks hold the largest share of commercial real estate mortgages, accounting for $1.3 trillion or 40% of the total in 2018.

AI Analysis | Feedback

Here are 3-5 expected drivers of future revenue growth for First Bank (FRBA) over the next 2-3 years:

1. Continued Loan and Deposit Growth: First Bank anticipates sustained growth in its loan and deposit portfolios. The bank has demonstrated solid loan growth, with a focus on diversifying its loan portfolio, particularly in Commercial & Industrial (C&I) and owner-occupied commercial real estate loans. Deposit growth has also been strong, with an increase in noninterest-bearing deposits. This ongoing expansion of both sides of the balance sheet is expected to drive net interest income.
2. Net Interest Margin (NIM) Expansion/Stability: First Bank has seen improvements in its net interest margin and management expects continued strong net interest income generation. The bank's ability to effectively manage its asset and liability positions, including deposit costs, contributes to a stable or expanding net interest margin, which directly boosts revenue.
3. Strategic Branch Expansion and Market Penetration: The bank is actively expanding its physical presence with new branch openings in strategic geographical markets within New Jersey, such as Summit and Oceanport, and has a presence in the New York City to Philadelphia corridor and Florida. These expansions are aimed at extending the bank's reach and customer base, leading to growth in deposits and loans in new areas.
4. Transition to a Middle-Market Commercial Bank with Diversified Lending: First Bank is strategically transitioning towards becoming a middle-market commercial bank. This involves a focus on new business units contributing significantly to loan growth, particularly in C&I and owner-occupied commercial real estate. This diversification and targeted lending in higher-growth segments are expected to enhance revenue.

AI Analysis | Feedback

Share Repurchases

• First Bank's Board of Directors authorized a new share repurchase program in October 2024, allowing for the repurchase of up to 1.0 million shares of common stock for an aggregate amount of up to $16.0 million, expiring on September 30, 2025.
• During the first quarter of 2025, First Bank repurchased 256,454 shares of common stock at an average price of $15.06 per share, totaling $5.2 million under the October 2024 authorized program.
• Through September 30, 2025, a total of 662,678 shares had been repurchased under the October 2024 program at an average cost of $14.83 per share, amounting to $9.8 million.

Share Issuance

• On June 18, 2025, First Bank completed a $35.0 million private placement of fixed-to-floating rate subordinated notes, maturing on June 30, 2035, with a fixed interest rate of 7.125% for the first five years.
• The proceeds from this subordinated debt offering were used to redeem $30.0 million of existing subordinated notes and for general corporate purposes.
• The subordinated notes are structured to qualify as Tier 2 capital for regulatory purposes.

Outbound Investments

• First Bank is strategically growing its asset-based lending (ABL) portfolio, which had increased to over $90 million in outstandings as of Q1 2025.
• The bank has expanded its private equity fund banking portfolio, reaching $128 million by Q1 2025, focusing on financing acquisitions for private equity funds.
• First Bank plans to continue expanding asset-based lending to $150-$200 million and private equity fund banking to a similar range over the next few years, alongside small business lending to $125-$150 million.

Capital Expenditures

• First Bank has been undertaking branch expansions, including opening a new de novo branch in Trenton, New Jersey, and has approvals for two additional de novo branches in New Jersey.
• A Florida branch relocation and expansion is planned for the third quarter of 2025.
• The company is investing in technology, exemplified by the rollout of the Salesforce CRM tool, to enhance customer data aggregation and sales team effectiveness.