Form 10-Q Quarterly Report

(Mark One)

Federal Deposit Insurance Corporation Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

or

• TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

FDIC Certificate Number: 58481

FIRST BANK

(Exact Name of Registrant as Specified in its Charter)

New Jersey 20-8164471

(State or Other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

2465 Kuser Road, Hamilton, New Jersey 08690

(Address of Principal Executive Offices) (Zip Code)

(877) 821-2265

(Registrant's Telephone Number, Including Area Code)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $5.00 per share	FRBA	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☒

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 8, 2025, there were 25,005,834 shares of the registrant's Common Stock, par value $5.00 per share, outstanding.

‌TABLE OF CONTENTS

Page

PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (unaudited)

Consolidated Statements of Financial Condition3

Consolidated Statements of Income4

Consolidated Statements of Comprehensive Income5

Consolidated Statements of Changes in Stockholders' Equity6

Consolidated Statements of Cash Flows7

Notes to Condensed Consolidated Financial Statements (unaudited)9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations36

Item 3. Quantitative and Qualitative Disclosures about Market Risk56

Item 4. Controls and Procedures57

PART II - OTHER INFORMATION

Item 1. Legal Proceedings57

Item 1A. Risk Factors57

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities57

Item 3. Defaults Upon Senior Securities58

Item 4. Mine Safety Disclosures58

Item 5. Other Information58

Item 6. Exhibits58

Exhibit Index58

Signatures58

‌PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (unaudited)

FIRST BANK CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data, unaudited)
	March 31, 2025		December 31, 2024
Assets
Cash and due from banks $	32,396	$	18,252
Restricted cash	11,910		14,270
Interest bearing deposits with banks	243,778		239,392
Cash and cash equivalents	288,084		271,914
Interest bearing time deposits with banks	743		743
Investment securities available for sale, at fair value (amortized cost of $90,393 and $84,083, respectively)	85,059		77,413
Equity securities, at fair value	1,898		1,870
Investment securities held to maturity, net of allowance for credit losses of $209 and $206, respectively (fair value of $42,565 and $42,770, respectively)	46,387		47,123
Restricted investment in bank stocks	15,933		14,333
Other investments	13,350		11,612
Loans held for sale	618		-
Loans, net of deferred fees and costs	3,236,039		3,144,266
Less: Allowance for credit losses	(39,223)		(37,773)
Net loans	3,196,816		3,106,493
Premises and equipment, net	21,267		21,351
Other real estate owned, net	4,822		5,637
Accrued interest receivable	14,889		14,267
Bank-owned life insurance	86,258		85,553
Goodwill	44,166		44,166
Other intangible assets, net	8,341		8,827
Deferred income taxes, net	25,178		25,528
Other assets	26,950		43,516
Total assets $	3,880,759	$	3,780,346
Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing deposits $	535,584	$	519,320
Interest bearing deposits	2,584,210		2,536,576
Total deposits	3,119,794		3,055,896
Borrowings	281,867		246,933
Subordinated debentures	29,981		29,954
Accrued interest payable	4,887		3,820
Other liabilities	29,315		34,587
Total liabilities	3,465,844		3,371,190
Stockholders' Equity:
Preferred stock, par value $2 per share; 10,000,000 shares authorized; no shares issued and outstanding	-		-
Common stock, par value $5 per share; 40,000,000 shares authorized; 27,576,676 shares issued and 25,045,612 shares outstanding and 27,375,439 shares issued and 25,100,829 shares outstanding, respectively	136,220		135,495
Additional paid-in capital	124,555		124,524
Retained earnings	184,657		176,779
Accumulated other comprehensive loss	(3,938)		(4,925)
Treasury stock, 2,531,064 and 2,274,610 shares, respectively	(26,579)		(22,717)
Total stockholders' equity	414,915		409,156
Total liabilities and stockholders' equity $	3,880,759	$	3,780,346

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

‌FIRST BANK CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except for share data, unaudited)

Three Months Ended March 31,

		2025				2024
Interest and Dividend Income
Investment securities-taxable	$		1,188		$		1,182
Investment securities-tax-exempt			51				38
Interest bearing deposits with banks, Federal funds sold and other			2,997				3,025
Loans, including fees			51,552				49,319
Total interest and dividend income			55,788				53,564

Interest Expense
Deposits	20,844	20,786
Borrowings	2,412	2,116
Subordinated debentures	440	344
Total interest expense	23,696	23,246
Net interest income	32,092	30,318
Credit loss expense (benefit)	1,544	(698)
Net interest income after credit loss expense (benefit)	30,548	31,016
Non-Interest Income
Service fees on deposit accounts	356	344
Loan fees	326	102
Income from bank-owned life insurance	793	785
Gains on sale of loans, net	29	229
Gains on recovery of acquired loans	24	118
Other non-interest income	443	386
Total non-interest income	1,971	1,964
Non-Interest Expense
Salaries and employee benefits	11,118	10,038
Occupancy and equipment	2,464	2,026
Legal fees	368	316
Other professional fees	726	756
Regulatory fees	684	602
Directors' fees	282	242
Data processing	805	806
Marketing and advertising	399	296
Travel and entertainment	236	244
Insurance	214	244
Other real estate owned expense, net	920	88
Other expense	2,168	2,152
Total non-interest expense	20,384	17,810
Income Before Income Taxes	12,135	15,170
Income tax expense	2,754	2,658
Net Income	$ 9,381	$ 12,512
Basic earnings per common share	$ 0.37	$ 0.50
Diluted earnings per common share	$ 0.37	$ 0.50
Basic weighted average common shares outstanding	25,118,062	25,039,949
Diluted weighted average common shares outstanding	25,269,002	25,199,381

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

‌FIRST BANK

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, unaudited)

Three Months Ended March 31,

	2025			2024
Net income	$	9,381		$	12,512
Other comprehensive income (loss):
Unrealized holding gains (losses) on investments arising during the period		1,336			(299)
Income tax effect		(349)			157
Total other comprehensive income (loss), net of tax		987			(142)
Total comprehensive income	$	10,368		$	12,370

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

‌FIRST BANK

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(in thousands, except share data, unaudited)

	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Treasury Stock	Total Stockholders' Equity
Balance-December 31, 2024	$ 135,495	$ 124,524	$ 176,779	$ (4,925)	$ (22,717)	$ 409,156
Net income	-	-	9,381	-	-	9,381
Other comprehensive income, net of tax	-	-	-	987	-	987
Vesting of restricted stock, 114,104 shares	570	(570)	-	-	-	-
Exercise of stock options, 30,950 shares	155	47	-	-	-	202
Stock-based compensation expense	-	554	-	-	-	554
Cash dividends - common, $0.06 per share	-	-	(1,503)	-	-	(1,503)
Purchase of 256,454 shares of common stock	-	-	-	-	(3,862)	(3,862)
Balance-March 31, 2025	$ 136,220	$ 124,555	$ 184,657	$ (3,938)	$ (26,579)	$ 414,915
Balance-December 31, 2023	$ 134,552	$ 122,881	$ 140,563	$ (5,718)	$ (21,378)	$ 370,900
Net income	-	-	12,512	-	-	12,512
Other comprehensive loss, net of tax	-	-	-	(142)	-	(142)
Vesting of restricted stock, 90,306 shares	452	(452)	-	-	-	-
Stock-based compensation expense	-	484	-	-	-	484
Cash dividends - common, $0.06 per share	-	-	(1,500)	-	-	(1,500)
Balance-March 31, 2024	$ 135,004	$ 122,913	$ 151,575	$ (5,860)	$ (21,378)	$ 382,254

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

‌FIRST BANK

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

Three Months Ended March 31,

	2025		2024
Cash flows from operating activities:
Net income	$	9,381	$	12,512
Adjustments to reconcile net income to net cash provided by operating activities:
Credit loss expense (benefit)		1,544		(698)
Depreciation and amortization of premises and equipment		626		508
Accretion and amortization of discounts/premiums on investment securities, net		(7)		64
Accretion and amortization of fair value adjustments, net		(2,771)		(4,478)
Accretion and amortization of deferred loan fees and costs, net		(771)		(676)
Amortization of core deposit intangible assets and loan servicing rights		494		556
Amortization of subordinated debentures issuance cost		27		28
Noncash operating lease expense		653		581
Stock-based compensation		554		484
Net (gain) loss on equity securities		(27)		19
Originations of loans held for sale		(618)		(3,171)
Proceeds from sale of loans held for sale		-		3,803
Gains on sale of loans		(29)		(229)
Loss on sale of premises and equipment		22		-
Increase in other real estate owned valuation allowance		815		-
Income from bank-owned life insurance		(793)		(785)
Changes in assets and liabilities:
Increase in accrued interest receivable		(622)		(430)
Decrease (increase) in intangible and other assets		18,427		(480)
Increase in accrued interest payable		1,068		1,200
(Decrease) increase in other liabilities		(7,814)		1,289
Net cash provided by operating activities		20,159		10,097

Cash flows from investing activities:

Net (increase) decrease in loans	(88,653)		22,138
Proceeds from sale of loans not originated for sale	517		-
Purchases of investment securities available for sale	(12,547)		(8,540)
Purchases of investment securities held to maturity	(157)		(669)
Proceeds from maturities, calls and paydowns of investment securities available for sale	6,253		7,468
Proceeds from maturities, calls and paydowns of investment securities held to maturity	880		1,591
Purchase of restricted stocks	(3,850)		(5,400)
Redemption of restricted stocks	2,250		5,739
Purchases of other investments	(1,738)		(256)
Proceeds from other investments	-		57
Purchases of premises and equipment	(545)		(350)
Redemption of bank-owned life insurance	-		323
Benefit proceeds on bank-owned life insurance	-		187
Net cash (used in) provided by investing activities	(97,590)		22,288
Cash flows from financing activities:
Net increase in deposits		63,815		2,654
Proceeds from borrowings		85,000		120,000
Repayments of borrowings		(50,051)		(127,526)
Redemption of subordinated debentures		-		(25,000)
Proceeds from stock option exercises		202		-
Cash dividends paid on common stock		(1,503)		(1,500)
Purchase of treasury stock		(3,862)		-
Net cash provided by (used in) financing activities		93,601		(31,372)
Net increase in cash and cash equivalents		16,170		1,013
Cash and cash equivalents at beginning of year		271,914		227,951
Cash and cash equivalents at end of period		$ 288,084		$ 228,964
	7

FIRST BANK

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited) continued

Three Months Ended March 31,
		2025		2024
Supplemental disclosures of cash flow information:
Cash paid for interest on deposits and borrowings	$		22,519 $		21,980
Cash paid for income taxes	$		705 $		80
Supplemental schedule of non-cash activities:
Vesting of restricted stock	$	570 $		452
Transfer of loans to other real estate owned	$	- $		5,999

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

‌NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 1 - Summary of Significant Accounting Policies

Basis of Financial Statement Presentation

The condensed consolidated financial statements of First Bank have been prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP"). The condensed consolidated financial statements are prepared on an accrual basis and include the accounts of First Bank's wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated from the accompanying condensed consolidated financial statements. As used in this Quarterly Report on Form 10-Q, "the Bank" and "the Company" refer to First Bank and its consolidated subsidiaries unless otherwise noted.

The Consolidated Statement of Financial Condition as of March 31, 2025, the Consolidated Statements of Income, the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2025 and 2024, and the Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 are unaudited. The Consolidated Statement of Financial Condition as of December 31, 2024 was derived from the audited Consolidated Statement of Financial Condition as of that date.

In the opinion of management, all adjustments and disclosures which are generally routine and recurring in nature and necessary for a fair statement of interim results have been made. In preparing the unaudited condensed consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and results of operations for the periods indicated. Material estimates that are particularly susceptible to change are: the determination of the fair value of acquired loans; the allowance for credit losses and the evaluation of goodwill for impairment. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual results could differ from those estimates.

The interim unaudited condensed consolidated financial statements included herein have been prepared in accordance with instructions for the Quarterly Report on Form 10-Q and the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP and industry practice have been condensed or omitted from interim reporting pursuant to SEC rules. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results which may be expected for the entire year. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the condensed consolidated financial statements in this Quarterly Report on Form 10-Q were available to be issued. Interim financial statements should be read in conjunction with the condensed consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as filed with the FDIC.

Segment Reporting

The Company's operations are solely in the financial services industry and provides a range of regional community banking services to retail and commercial customers. The Company operates throughout New Jersey, Pennsylvania and in Florida. Operating segments are defined as components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker ("CODM"). The Company's CODM is the Chief Executive Officer. The CODM makes operating decisions and manages the activities of the business on a consolidated basis. Therefore, management concluded the Company has a single operating segment, and therefore one reportable segment.

Further, the CODM allocates resources and assesses performance based on an ongoing review of the Company's consolidated financial results. Specifically, the CODM reviews net income, reported within the consolidated statements of income, along with information in consolidated statement of financial condition to decide whether to reinvest profits into the Company or other strategic investments. Refer to the Consolidated Statements of Financial Condition and Consolidated Statements of Income for net income and all significant expenses regularly provided to and reviewed by the CODM.

9

Note 1 - Summary of Significant Accounting Policies (continued)

Recent Accounting Standards Not Yet Adopted

In December 2023, the "Financial Accounting Standards Board (FASB)" issued "Accounting Standard Update (ASU)" 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"). The amendments in this ASU require public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for the Company for annual periods beginning after December 15, 2024. The Company will update additional income tax disclosures in its Form 10-K for the year ended December 31, 2025.

In November 2024, the FASB issued ASU 2024-03, "Disaggregation of Income Statement Expenses (DISE)." ("ASU 2024-03") requires additional disclosure of the nature of expenses included in the income statement to be presented in a tabular format in the footnotes to the financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The amendments in ASU 2024-03 should be applied on a prospective basis, although retrospective application is permitted. ASU 2024-03 is not expected to have a material impact on the Company's financial statements.

Note 2 - Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss included in stockholders' equity are as follows:

March 31, 2025 December 31, 2024

		(in thou		sands)
Net unrealized losses on investment securities available for sale	$	(5,334)		$	(6,670)
Income tax effect		1,396			1,745
Accumulated other comprehensive loss	$	(3,938)		$	(4,925)
Note 3 - Earnings Per Share

Basic earnings per share represent the effect of earnings upon the weighted average number of shares and participating securities outstanding for the period. Diluted earnings per share reflects the effect of earnings upon weighted average shares including the potential dilution that could occur if securities or contracts to issue common stock were converted or exercised, utilizing the treasury stock method. Unvested stock awards, which contain non-forfeitable rights to dividends whether paid or unpaid (i.e., participating securities), are included in the number of shares outstanding for both basic and diluted earnings per share. There are no securities that could potentially dilute basic earnings per share that were not included in the computation of diluted earnings per share.

10

Note 3 - Earnings Per Share- (Continued)

The following table presents a reconciliation of the calculation of basic and diluted earnings per share for the periods indicated:

Three Months Ended March 31,

2025		2024
	(in thousands, exce			pt per	share data)
Net income available to common stockholders	$	9,381		$	12,512
Basic weighted average common shares outstanding		25,118			25,040
Effect of dilutive common stock equivalents		151			159
Diluted weighted average common shares outstanding		25,269			25,199
Basic earnings per common share	$	0.37		$	0.50
Diluted earnings per common share	$	0.37		$	0.50
Number of common stock equivalents excluded from the calculation of diluted earnings per share as the exercise prices were greater than the average price of the common stock		505			576
Note 4 - Stock-Based Compensation

On April 24, 2024, the Company's shareholders approved the First Bank 2024 Equity Incentive Plan. Consistent with prior equity plans, the 2024 Equity Incentive Plan allows for the grant of incentive options, non-qualified options and restricted stock to officers, employees and members of the Board of Directors. The 2024 Equity Incentive Plan increased the number of awards available for grant to 1,300,000, at which time all awards available for grant under predecessor plans were cancelled.

The following table presents the number of awards authorized, cumulative granted awards, net of cancellations, and awards available for grant at March 31, 2025:

Awards authorized	3,483,683
Cumulative granted awards, net of cancellations	2,391,085
Awards available for grant	1,092,598
The Company issues shares from its authorized but unissued common stock to satisfy stock option exercises and restricted stock grants. Stock-based compensation expense recognized in earnings for the three months ended March 31, 2025 and 2024 was $554,000 and $484,000, respectively.

11

The Company's stock option activity for the three months ended March 31, 2025 and 2024 is summarized in the following tables:

				Weighted		Weighted Average Remaining			Aggregate
	Shares			Average Exercise Price		Contractual Life (years)			Intrinsic Value
Outstanding-December 31, 2024	678,366		$	11.02
Exercised	(30,950)			6.54
Expired	(199)			11.57
Outstanding - March 31, 2025	647,217		$	11.23			4.4		$ 2,316,693
Exercisable- March 31, 2025	609,466		$	11.08			4.1		$ 2,276,314
				Weighted		Weighted Average Remaining			Aggregate
	Shares			Average Exercise Price		Contractual Life (years)			Intrinsic Value
Outstanding-December 31, 2023	722,017		$	10.61
Granted	29,432			13.75
Expired	(91)			14.25
Outstanding - March 31, 2024	751,358		$	10.73			5.0		$ 2,363,915
Exercisable-March 31, 2024	639,422		$	10.33			4.3		$ 2,268,610

No options were granted in the first quarter of 2025. All options granted in 2024 and previous years have a term that shall not exceed ten years and a vesting period of one to three years. The exercise price of the options granted under the Plan and previous plans must be at least 100% of the fair market value of the Company's common stock on the date of grant. Terms and conditions of restricted stock awards are determined by the Board of Directors at the time of grant.

The aggregate intrinsic values in the preceding tables represents the pre-tax intrinsic values calculated by multiplying the number of in-the-money shares by the difference between the Company's closing stock price on the last trading day of the current reporting period and the exercise price.

Unrecognized compensation expense related to unvested stock options was $162,000 as of March 31, 2025 which is expected to be recognized over a weighted average period of 1.4 years.

12

Restricted stock activity under the Company's stock-based compensation plans for the three months ended March 31, 2025 and 2024 is summarized in the following tables:

			Weighted	Weighted Average
	Restricted		Average Grant Date	Remaining Contractual
	Shares		Fair Value	Life (years)
Outstanding-December 31, 2024	276,378	$	12.29
Granted	170,766		13.86
Vested	(114,104)		12.39
Forfeited	(479)		12.37
Outstanding - March 31, 2025	332,561	$	13.06		2.1
			Weighted	Weighted Average
	Restricted		Average Grant Date	Remaining Contractual
	Shares		Fair Value	Life (years)
Outstanding-December 31, 2023	238,751	$	12.17
Granted	133,844		12.13
Vested	(90,306)		12.30
Forfeited	(5,517)		12.42
Outstanding - March 31, 2024	276,772	$	12.10		2.1

All restricted stock awards granted have a vesting period of one to three years. Unrecognized compensation expense related to restricted stock was $3.7 million as of March 31, 2025 which is expected to be recognized over a weighted average period of 2.4 years.

Note 5 - Investment Securities Available-for-Sale ("AFS") Securities

The amortized cost and estimated fair value of investment securities available for sale are as follows as of the dates indicated, with gross unrealized gains and losses therein:

March 31, 2025

	Gross	Gross
Amortized	Unrealized	Unrealized	Fair
Cost	Gains	Losses	Value

Investment securities available for sale (in thousands)

Residential mortgage-backed securities:

Issued by FNMA and FHLMC		57,046			236		(4,333)	52,949
Issued by GNMA		20,686			36		(1,272)	19,450
U.S. Treasury securities		5,937			26		-	5,963
SBA pools		2,816			5		(18)	2,803
Asset-backed securities		408			-		(4)	404
Corporate obligations		1,000			-		(9)	991
Total	$	90,393		$	303		$ (5,637)	$ 85,059
	13

December 31, 2024

Amortized Cost		Gross Unrealized Gains			Gross Unrealized Losses	Fair Value
Investment securities available for sale				(in thousands)
U.S. Government-sponsored agency securities	$ 2,500		$	- $ (2)		$ 2,498
Residential mortgage-backed securities:
Issued by FNMA and FHLMC	53,876			45 (5,178)		48,743
Issued by GNMA	20,437			7 (1,506)		18,938
SBA Pools	2,832			- (20)		2,812
Asset-backed securities	437			- (8)		429
Corporate obligations	4,001			2 (10)		3,993
Total	$ 84,083		$	54 $ (6,724)		$ 77,413

The Company did not record an Allowance for Credit Losses ("ACL") on the AFS securities at March 31, 2025 and December 31, 2024. The Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. In addition, the Company has the intent and ability to hold these AFS securities until the amortized cost is recovered and it is more likely than not that any of AFS securities in an unrealized loss position would not be required to be sold.

The Company does not estimate an allowance for credit losses on accrued interest receivable from AFS securities as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. Accrued interest receivable totaled $336,000 and

$277,000 at March 31, 2025 and December 31, 2024, respectively, for AFS securities and was reported in accrued interest receivable on the accompanying Consolidated Statements of Financial Condition.

HTM Securities

The amortized cost, estimated fair value and allowance for credit losses of investment securities held to maturity are as follows as of the dates indicated, with gross unrealized gains and losses therein:

					March 31, 2025
	Amortized			Gross Unrealized	Gross Unrealized		Fair			Allowance for
	Cost			Gains	Losses		Value			Credit Losses
Investment securities held to maturity					(in thousands)
Residential mortgage-backed securities:
Issued by FNMA and FHLMC	$ 9,754	$			- $ (1,667)		$ 8,087		$		-
Issued by GNMA	2,144				- (74)		2,070				-
Obligations of state and political subdivisions	8,198			10		(262)		7,946		(5)
Corporate obligations	26,500			37		(2,075)		24,462		(204)
Total	$ 46,596		$	47		$ (4,078)		$ 42,565	$	(209)
			14

				December 31, 2024
	Amortized		Gross Unrealized	Gross Unrealized	Fair		Allowance for
	Cost		Gains	Losses	Value		Credit Losses
Investment securities held to maturity				(in thousands)
Residential mortgage-backed securities:
Issued by FNMA and FHLMC	$ 9,882	$		- $ (1,830)	$ 8,052	$		-
Issued by GNMA	2,153			- (106)	2,047			-
Obligations of state and political subdivisions	8,794		15		(293)	8,516		(4)
Corporate obligations	26,500		37		(2,382)	24,155		(202)
Total	$ 47,329	$	52		$ (4,611)	$ 42,770	$	(206)

The following table presents the activity in the ACL for the held to maturity debt securities:

Obligations of state and

political subdivisions Corporate obligations ACL Total

(in thousands)

Balance-beginning of period $ 4 $ 202 $ 206

Credit loss expense 1 2 $ 3

Balance-end of period $ 5 $ 204 $ 209

Obligations of state and

political subdivisions Corporate obligations ACL Total

(in thousands)

Balance-beginning of period $ 4 $ 196 $ 200

Credit loss benefit - (6) (6)

Balance-end of period $ 4 $ 190 $ 194

The Company segments its HTM portfolio into agency residential mortgage-backed securities, obligations of state and political subdivisions and corporate obligations to determine the ACL. The ACL is determined based on the Company's historical losses, adjusted for qualitative factors including economic forecasts over a two-year reasonable and supportable forecast period. The Company has determined that for agency residential mortgage-backed securities it would be appropriate to assume the expected credit loss to be zero because these securities are guaranteed by enterprises that have credit ratings on par with the U.S. government or are guaranteed by the

U.S. government. This assumption is reviewed and attested quarterly.

The Company does not estimate an allowance for credit losses on accrued interest receivable from HTM securities as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. Accrued interest receivable totaled $341,000 and

$260,000 at March 31, 2025 and December 31, 2024, respectively, for HTM securities and was reported in accrued interest receivable on the accompanying Consolidated Statements of Financial Condition.

At March 31, 2025, the Company had no HTM securities that were past due 30 days or more as to principal or interest payments. The Company had no HTM securities classified as nonaccrual at March 31, 2025.

15

The amortized cost, fair value and contractual maturities of investment securities available for sale and held to maturity are shown in the tables below. Certain of these securities have call features which allow the issuer to redeem the security prior to maturity at the issuer's discretion. Expected maturities may differ from contractual maturities because the underlying mortgages supporting mortgage-backed securities may be prepaid without penalties. Consequently, residential mortgage-backed securities are not presented by maturity category.

March 31, 2025

Available for Sale Held to Maturity

Amortized Cost		Fair Value			Amortized Cost	Fair Value
			(in thousands)
Due within one year	$ 1,935		$ 1,935		$ 2,776		$ 2,774
Due after one year through five years	7,910		7,921		5,991		5,873
Due after five years through ten years	-		-		25,931		23,761
Due after ten years	2,816		2,804		-		-
Residential mortgage-backed securities:
Issued by FNMA and FHLMC	57,046		52,949		9,754		8,087
Issued by GNMA	20,686		19,450		2,144		2,070
Total investment securities	$ 90,393		$ 85,059		$ 46,596		$ 42,565
(1) Tax equivalent using federal income tax rate of 21%.

The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related investment securities available for sale are as follows, as of the dates indicated:

March 31, 2025

Less than 12 months12 months or longerTotal Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized

of IssuesValueLossesof IssuesValueLossesof IssuesValueLosses

Investment securities available for sale (dollars in thousands)

Residential mortgage-backed securities:

Issued by FNMA and FHLMC	2	4,196	(11)	24	24,575	(4,322)	26	28,771	(4,333)
Issued by GNMA	-	-	-	11	11,675	(1,272)	11	11,675	(1,272)
SBA pools	-	-	-	1	1,332	(18)	1	1,332	(18)
Asset-backed securities	-	-	-	1	404	(4)	1	404	(4)
Corporate obligations	-	-	-	1	991	(9)	1	991	(9)
Total	3	$ 6,695	$ (12)	38	$ 38,977	$ (5,625)	41	$ 45,672	$ (5,637)

16

December 31, 2024

Less than 12 months12 months or longerTotal Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized

of IssuesValueLossesof IssuesValueLossesof IssuesValueLosses

Investment securities available for sale (dollars in thousands)

Residential mortgage-backed securities:

Issued by FNMA and FHLMC	6	13,561	(134)	24	24,649	(5,044)	30	38,210	(5,178)
Issued by GNMA	3	5,636	(18)	11	12,269	(1,488)	14	17,905	(1,506)
SBA pools	1	1,471	(3)	1	1,341	(17)	2	2,812	(20)
Asset-backed securities	-	-	-	1	429	(8)	1	429	(8)
Corporate obligations	-	-	-	1	990	(10)	1	990	(10)
Total	11	$ 23,166	$ (157)	38	$ 39,678	$ (6,567)	49	$ 62,844	$ (6,724)

The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related investment securities held to maturity are as follows, as of the dates indicated.

March 31, 2025

Less than 12 months12 months or longerTotal Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized

of IssuesValueLossesof IssuesValueLossesof IssuesValueLosses

Investment securities held to maturity (dollars in thousands)

Residential mortgage-backed securities:

Issued by FNMA and FHLMC - $ - $ - 15 $ 8,087 $ (1,667) 15 $ 8,087 $ (1,667) Issued by GNMA 1 1,663 (28) 1 407 (46) 2 2,070 (74)

Obligations of state and political subdivisions 4 1,664 (28) 8 2,896 (234) 12 4,560 (262)

Corporate obligations - - - 22 22,925 (2,075) 22 22,925 (2,075)

Total5$ 3,327$ (56)46$ 34,315$ (4,022)51$ 37,642$ (4,078)

December 31, 2024

Less than 12 months12 months or longerTotal Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized

of IssuesValueLossesof IssuesValueLossesof IssuesValueLosses

Investment securities held to maturity (dollars in thousands)

Residential mortgage-backed securities:
Issued by FNMA and FHLMC	-	$ -	$ -	15	$ 8,052	$ (1,830)	15	$ 8,052	$ (1,830)
Issued by GNMA	1	1,646	(51)	1	401	(55)	2	2,047	(106)
Obligations of state and political subdivisions	3	1,132	(32)	10	3,723	(261)	13	4,855	(293)
Corporate obligations	-	-	-	22	22,618	(2,382)	22	22,618	(2,382)
Total	4	$ 2,778	$ (83)	48	$ 34,794	$ (4,528)	52	$ 37,572	$ (4,611)

During the three months ended March 31, 2025 and 2024, there were no securities sold.

Investment securities with a market value of $6.7 million, $603,000 and $47.4 million, respectively, were pledged as collateral for municipal deposits, Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") borrowings at March 31, 2025. Investment securities with a market value of $1.3 million, $622,000 and $49.9 million, respectively, were pledged as collateral for municipal deposits, FHLB and FRB borrowings at December 31, 2024.

17

The composition of loans is as follows as of the dates indicated:

March 31, 2025 December 31, 2024

		(in thou		sands)
Commercial and industrial	$	651,690		$	576,625
Commercial real estate:
Owner-occupied		694,113			671,357
Investor		1,160,549			1,181,684
Construction and development		200,262			205,096
Multi-family		308,217			287,843
Residential real estate:
Residential mortgage and first lien home equity loans		142,298			142,769
Home equity-second lien loans and revolving lines of credit		52,438			51,020
Consumer and other		29,760			31,324
		3,239,327			3,147,718
Net deferred loan fees and costs		(3,288)			(3,452)
Total loans	$	3,236,039		$	3,144,266

As of March 31, 2025 loans held for sale were $618,000. There were no loans held for sale as of December 31, 2024. Mortgage and Small Business Administration ("SBA") loans originated and intended for sale in the secondary market are included in loans held for sale and are reported at the lower of cost or fair value, as determined by the aggregate commitments from investors or current investor yield requirements.

Accrued interest receivable is not included in the amortized cost basis of the Company's loans. Additionally, the Company does not estimate an allowance for credit losses on accrued interest receivable as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. When a loan is placed on nonaccrual status, which occurs when a borrower becomes delinquent by 90 days, interest previously accrued but not collected is reversed against current period interest income. Accrued interest receivable for loans totaled $13.9 million and $13.4 million at March 31, 2025 and December 31, 2024, respectively, with no related ACL and was reported in accrued interest receivable on the accompanying Consolidated Statements of Financial Condition.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The following tables summarizes the Company's loans by year of origination and internally assigned credit risk rating at March 31, 2025 and December 31, 2024. See the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as filed with the FDIC for additional information about asset classifications. There were no loans classified as "doubtful" or "loss" as of March 31, 2025 and December 31, 2024.

18

Loans by Year of Origination at March 31, 2025

20252024202320222021PriorRevolvingTotal

Commercial and industrial (in thousands)

Special Mention - - 4,768 - 1,956 3,315 2,900 12,939

7,607

-

7,015

-

206

244

142

Total Commercial and industrial $ 22,356 $ 95,501 $ 64,324 $ 54,292 $ 31,972 $ 55,950 $ 327,295 $ 651,690

Owner-occupied

Pass $ 31,945 $ 120,925 $ 62,656 $ 81,771 $ 83,712 $ 245,635 $ 14,086 $ 640,730

694,113

18,836

262,315

Substandard - - 270 842 - 15,503 - 16,615

Total Owner-occupied $ 31,945 $ $ Investor

$ $ $ $ $

1,160,549

8,194

622,064

Substandard - - - - - 2,539 - 2,539

Total Investor $ 4,458 $ $

Construction and development

$ $ $ $ $

200,262

15,845

17,415

10,776

50,836

44,636

54,269

$ $ $ $ $ $ $

Total Construction and development $ 6,485 $ 54,269 $ 44,636 $ 50,836 $ 10,776 $ 17,415 $ 15,845 $ 200,262

Multi-family

308,217

507

112,563

Pass $ 2,981 $ 29,887 $ 28,284 $ 75,451 $ 58,544 $ 112,563 $ 507 $ 308,217

Total Multi-family $ 2,981 $ $

Residential mortgage and first lien home equity loans

$ $ $ $ $

142,298

243

92,451

Substandard - - - - - 3,074 - 3,074

Total Residential mortgage and first lien home equity loans $ 6,242 $ $ Home equity-second lien loans and revolving lines of credit

$ $ $ $ $

52,438

40,034

6,504

Substandard - - - - - 423 - 423

Total Home equity-second lien loans and revolving lines of credit $ 675 $ $ Consumer and other

$ $ $ $ $

Total Consumer and other

$

22 $

$

$

$

$

$

$

29,760

15,555

2,748

Substandard - - - - - 3 - 3

Pass $ 75,164 $ 389,550 $ 271,886 $ 485,156 $ 379,783 $ 1,138,961 $ 418,859 $ 3,159,359

Total Loans

$ 75,164 $

$

$

$

$

$

$

3,239,327

426,509

1,172,010

Substandard - 142 514 1,048 - 28,557 - 30,261

19

Loans by Year of Origination at December 31, 2024

20242023202220212020PriorRevolvingTotal

Commercial and industrial (in thousands)

Special Mention - 4,707 - 1,965 680 2,655 - 10,007

7,107

-

7,042

-

-

65

-

Total Commercial and industrial $ 97,820 $ 65,238 $ 57,511 $ 34,096 $ 10,596 $ 40,793 $ 270,571 $ 576,625

Owner-occupied

Pass $ 121,187 $ 62,690 $ 94,752 $ 84,726 $ 61,417 $ 191,739 $ 11,576 $ 628,087

671,357

16,326

Substandard - 273 842 - 3,200 12,496 - 16,811

Total Owner-occupied $ 121,187 $ $ Investor

$ $ $ $ $

1,178,880

6,719

523,539

121,946

181,136

205,247

64,733

$ $ $ $ $ $ $

1,181,684

6,719

Substandard - - - - - 2,804 - 2,804

Total Investor $ 75,560 $ $

Construction and development

$ $ $ $ $

204,984

18,228

17,675

-

11,879

71,928

42,880

$ $ $ $ $ $ $

205,096

18,228

Substandard - - - - - 112 - 112

Total Construction and development $ 42,394 $ $ Multi-family

$ $ $ $ $

287,843

347

Substandard - - - - - 194 - 194

Total Multi-family $ 29,879 $ $

Residential mortgage and first lien home equity loans

$ $ $ $ $

142,769

97

Substandard - - - - - 3,174 - 3,174

Total Residential mortgage and first lien home equity loans $ 7,776 $ $ Home equity-second lien loans and revolving lines of credit

$ $ $ $ $

51,020

40,882

Substandard - - - - - 411 - 411

Total Home equity-second lien loans and revolving lines of credit $ 1,579 $ $ Consumer and other

$ $ $ $ $

Total Consumer and other

$ 3,186 $

$

$

$

$

$

$

31,324

16,782

Substandard - - - - - 3 - 3

Pass $ 379,381 $ 271,876 $ 505,185 $ 388,427 $ 269,000 $ 901,565 $ 365,202 $ 3,080,636

Total Loans

$ 379,381 $

$

$

$

$

$

$

3,147,718

369,952

Substandard - 273 907 - 3,200 26,236 - 30,616

20

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First Bank published this content on May 12, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2025 at 19:22 UTC.