First Central Bancorp, Inc. Reports Third Quarter 2026 Result Highlighted by Issuance of Subordinated Debentures, 7% Net Interest Income Growth and Strong Deposit Growth

Performance Highlights

• Net Income: Net income for the quarter ended September 30, 2026, was $619 thousand, or $0.06 per share, compared to $2.3 million, or $0.22 per share for the second quarter of 2026 and $2.8 million, or $0.26 per share, recorded in the prior year quarter ended September 30, 2025.
• Cash Net Income: Cash net income for the quarter ended September 30, 2026, was $2.2 million, or $0.21 per share, compared to $2.8 million, or $0.26 per share for the second quarter of 2026 and $3.2 million or $0.30 per share, recorded in the comparable 2025 quarter.
• Net Interest Margin and Spread: The Company’s net interest margin increased 1 basis point to 3.64% during the quarter ended September 30, 2026, from 3.63% for the quarter ended June 30, 2026, and 34 basis points from the prior year quarter 2025. The Company’s net interest spread increased to 2.82% during the quarter ended September 30, 2026, from 2.77% for the second quarter of 2026 and 2.44% for the prior year quarter 2025.
• Net Interest Income: Net interest income for the quarter ended September 30, 2026, was $9.4 million, an increase of $593 thousand, or 6.8%, from the second quarter 2026 and $1.3 million, or 16.4%, from the quarter ended September 30, 2025.
• Financial Performance Metrics: Return on average assets and average stockholders’ equity were 0.23% and 2.45%, respectively, for the quarter ended September 30, 2026, compared to 0.93% and 9.38% for the quarter ended June 30, 2026, and 1.12% and 11.99% in the comparable quarter ended 2025.
• Regulatory Capital: The Bank’s Tier 1 leverage ratio was 10.99%, and the Total Risk based capital ratio was 16.52% at September 30, 2026, each above the regulatory minimum for a well-capitalized institution.
• Deposit Growth: Quarter over quarter deposits increased by $44.1 million, or 4.99%, and $74.3 million or 8.7% from the prior year quarter.
• Subordinated Debentures: At September 30, 2026, the holding company raised $15 million of subordinated debt at a cost of 7.75% fixed for 5 years and floating afterwards. The holding company moved $12.5 million of the proceeds to the Bank as capital to support future loan and asset growth.

GLEN COVE, N.Y., Oct. 30, 2026 (GLOBE NEWSWIRE) -- Joseph Pistilli, Executive Chairman of the Board, of First Central Bancorp, Inc. (“First Central”, or “the Company”), the holding company for First Central Savings Bank (“FCSB”, “the Bank”) today reported continued performance achievements for the quarter ended September 30, 2026.

Joseph Pistilli, Executive Chairman of the Board noted, “I am pleased to report that during the third quarter of 2026 First Central continued to execute our strategic plan with strong balance sheet growth of 6.1% quarter over quarter and 9.5% year over year. I am extremely proud of the management team and the Board of Directors that we have assembled at the Company and the expertise they have in managing net interest income and asset quality during the current market conditions. To support this ongoing momentum and optimize our balance sheet, the Company completed its offering of $15 million of subordinated debt at September 30 ,2026. A significant portion of these funds will be leveraged at the Bank level as equity to facilitate loan originations and other asset growth. Additionally, First Central Bancorp has much to be excited about with its strategic initiatives to expand the Bank’s presence into the Florida market and to establish a merchant services business line. These initiatives are intended to diversify the Bank’s geographic footprint, strengthen deposit and loan relationships, and enhance non-interest income opportunities.”

Paul Hagan, President and Chief Operating Officer, reflected on the Company’s results, “During the quarter ended September 30, 2026, the Bank increased its net interest income as a result of loan growth. Our net interest income is expected to continue to grow in line with our planned long-term growth strategy. However, during the quarter ended September 30, 2026, the Bank incurred a provision for loan loss of $1.9 million as a result of management partially charging off a single legacy commercial loan participation and replenishing our allowance for credit losses. The Bank exited this commercial loan participation line of business in 2019, and this one loan represents the remainder of this portfolio. However, our overall profitability is expected to continue to improve for the remainder of calendar year 2026 through loan growth and increased loan sale income. Management will continue to rigorously manage non-interest expenses to strengthen profitability and maintain flexibility to address potential credit quality challenges.”

Cash and GAAP Basis Earnings

The Company’s cash earnings for the quarter ended September 30, 2026, was $2.2 million, or $0.21 per share, compared to $2.8 million, or $0.26 per share for the second quarter of 2026 and $3.2 million or $0.30 per share, recorded in the comparable 2025 quarter.

On a GAAP basis, net income for the quarter ended September 30, 2026, was $619 thousand, or $0.06 per share, compared to $2.3 million, or $0.22 per share for the second quarter of 2026 and $2.8 million, or $0.26 per share, recorded in the prior year quarter ended September 30, 2025.

Balance Sheet

On a year-over-year basis, total assets grew by $94.6 million, or 9.5%, driven by the Bank’s loan originations offset by non-conforming loan sales of $227.7 million during the period. Total assets for the quarter ended September 30, 2026, increased by $66.0 million to $1.09 billion as the Bank continues to originate commercial real estate and non-conforming loans while continuing to actively sell non-conforming loans to the secondary market. The Bank sold $41.0 million of non-conforming loans during the quarter ended September 30, 2026. As of September 30, 2026, the Bank has been able to generate a non-conforming loan pipeline of $81.5 million with a weighted average interest rate of 6.69% and a commercial loan pipeline of $59.1 million with a weighted average interest rate of 6.81%.   

Total deposits were $928.5 million as of September 30, 2026, an increase of $44.1 million, or 5.0%, from June 30, 2026.   The deposit growth was mostly due to an increase in lower cost demand deposit accounts and other deposit relationships through our Business Development Officers.   The Bank continues to be successful in maintaining non-interest-bearing deposits from our retail branches as well as from downpayment deposits for non-conforming loan originations. Year over year, non-interest-bearing deposits increased by $36.5 million, or 26.9%, to $172.3 million as of September 30, 2026, representing 18.6% of the total deposit base.  

Total FHLB advances at September 30, 2026 and 2025, were $25.0 million, with a weighted average cost of 3.76%.

The Bank’s overall average cost of funds was 2.65% for the quarter ended September 30, 2026, a decrease of 4 basis points from 2.69% from the prior linked quarter and a decrease of 46 bps compared to September 30, 2025. Management remains focused on attracting non-interest-bearing and lower-cost demand deposits while maintaining disciplined pricing for the Bank’s certificates of deposit in the current interest rate environment.

Loan Portfolio and Asset Quality

Total loans as of September 30, 2026, increased by $45.1 million, or 5.0%, to $941.1 million from $896.0 million at June 30, 2026, due to growth of the commercial real estate and non-conforming loan portfolio. For the first nine months of 2026, commercial loan originations of $115.7 million have exceeded the total commercial loan originations in all of 2025. We expect the growth of the commercial portfolio to continue through the remainder of 2026 due to a current pipeline of about $59.1 million. Since September 2025, originations of the non-conforming product amounted to $321.2 million. At September 30, 2026, the entire non-conforming loan portfolio amounted to $515.3 million, with an average loan balance of $570.6 thousand and a weighted average loan-to-value ratio of 61.5%. Management continues to employ a strategy of concentrating its loan growth in these products, which provides the Bank with traditionally safe credit quality at acceptable credit spreads, greater liquidity and an enhanced interest-rate-risk profile.

As a result of the Bank’s robust non-conforming loan generation capabilities, the Bank has been able to generate additional income by strategically originating and selling its non-conforming loans to other financial institutions at premiums. The Bank expects that it will continue to originate, in the near term, for its own portfolio and, in the long term, for others, which will result in a continued increase in interest income while also realizing gains on sales of loans. For the nine months ended September 30, 2026, the Bank earned $4.6 million in premiums on loans sold, net of FASB 91 fees and costs.

The Bank’s asset quality ratios remain adequate. During the second quarter of 2026, the Bank foreclosed on 24 residential cooperative units in one building with a previous loan balance of $5.8 million located in Astoria, New York. and such amount is now included in real estate owned, net. After the foreclosure, during the third quarter of 2026 the Bank incurred a $1.1 million special assessment to satisfy past due maintenance charges, however, the Bank expects to fully recover the $5.8 million real estate owned, net balance plus the costs associated with the special assessment upon the sale of these coop units.

In 2019, the Bank exited the business of commercial participation loans as part of its plan to de-risk the balance sheet due to the higher risk profile associated with these loans. During the third quarter of 2026, the Bank charged off 50%, or $1.4 million, of the remaining single legacy commercial participation loan on the Bank’s balance sheet.

The total allowance for credit losses at September 30, 2026, was $8.3 million, or 0.90%, of total loans held for investment as compared to $7.2 million, or 0.87%, at December 31, 2025. At September 30, 2026, the loan portfolio had non-performing loans of $12.1 million, or 1.30%, of total loans and 1.11% of total assets as compared to $14.7 million, or 1.77%, of total loans and 1.51% of total assets at December 31, 2025.

About First Central Savings Bank and First Central Bancorp, Inc.

First Central Bancorp, Inc., is the bank holding company for First Central Savings Bank. With assets of $1.09 billion at September 30, 2026, First Central Savings Bank is a locally owned and operated community savings bank, focusing on highly personalized and efficient services and products responsive to local needs. Management and the Board of Directors are comprised of a select group of successful local businessmen who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, First Central offers a full range of modern financial services. First Central employs a complete suite of consumer and commercial banking products and services, including multi-family and commercial mortgages, ADC and bridge loans, residential loans, middle market business loans and lines of credit. First Central also offers customers 24-hour ATM service with no fees attached, free checking with interest, mobile banking, the most advanced technologies in internet banking for our consumer and business customers, safe deposit boxes and much more. The Bank continues to roll out mobile banking software products as well as our “Zelle” money transfer product to our customers. The Company maintains its corporate office in Glen Cove, New York where it also operates a full-service branch office along with additional six branch locations throughout Queens New York, one branch in Nassau County, New York, and one branch in Suffolk County, New York.

First Central Savings Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call 516-399-6010 or visit the Bank’s state-of-the-art website at www.myfcsb.com. 

Forward-Looking Statements

This release may contain certain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of First Central Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by First Central Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions First Central Bancorp, Inc. might make or by known or unknown risks and uncertainties. Consequently, no forward-looking statement can be guaranteed. First Central Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

First Central Bancorp, Inc.
Statements of Condition - (unaudited)
(dollars in thousands)
		9/30/2026				6/30/2026				9/30/2025
Assets
Cash and cash equivalents		$	63,472			$	59,813			$	53,507
Certificates of deposit			4,000				4,000				4,000
Investments available-for-sale			41,133				27,465				29,371
Investments held-to-maturity			2,000				3,000				3,000
Loans held-for-sale			11,663				10,842				16,018
Loans receivable			929,444				885,172				857,345
Less: allowance for credit losses			(8,342	)			(7,923	)			(9,369	)
Loans, net			921,102				877,249				847,976
Real estate owned, net			5,833				5,833				-
Other assets			38,205				37,173				38,899
Total assets		$	1,087,408			$	1,025,375			$	992,771
Liabilities and stockholders' equity
Deposits		$	928,521			$	884,405			$	854,199
FHLB advances and other borrowings			25,000				25,000				25,000
Subordinated Debentures			14,624				-				-
Other liabilities			19,333				16,344				18,794
Total liabilities			987,478				925,749				897,993
Total stockholders' equity			99,930				99,626				94,778
Total liabilities and stockholders' equity		$	1,087,408			$	1,025,375			$	992,771

First Central Bancorp, Inc.
Statements of Income - (unaudited)
(dollars in thousands, except per share data)
									9 Months				9 Months
	Quarter Ended				Quarter Ended				Ended				Ended
	9/30/2026				9/30/2025				9/30/2026				9/30/2025
Total Interest income	$	15,582			$	14,939			$	44,352			$	43,935
Total interest expense		6,214				6,888				17,974				20,657
Net interest income		9,368				8,051				26,378				23,278
Provision for credit losses		1,897				197				2,476				1,593
Net interest income after provision for credit losses		7,471				7,854				23,902				21,685
Net gain on loans sold		1,358				2,198				4,606				6,050
Other non-interest income		649				283				1,307				737
Total non-interest income		2,007				2,481				5,913				6,787
Compensation and benefits		4,112				3,963				12,410				11,923
Occupancy and equipment		1,076				929				2,981				2,869
Data processing		536				459				1,527				1,417
Federal insurance premium		105				153				387				511
Professional fees		511				349				1,243				1,057
Other		2,317				948				4,414				2,933
Total non-interest expense		8,657				6,801				22,962				20,710
Income before income taxes		821				3,534				6,853				7,762
Income tax expense		202				733				1,450				1,596
Net income	$	619			$	2,801			$	5,403			$	6,166
Basic earnings per share-GAAP basis	$	0.06			$	0.26			$	0.51			$	0.58
Diluted earnings per share-GAAP basis	$	0.06			$	0.26			$	0.51			$	0.58
Supplementary information:
Net income	$	619			$	2,801			$	5,403			$	6,166
Add back non-cash items
Provision for credit losses		1,897				197				2,476				1,593
Depreciation expense		262				257				770				783
Tax on add back of non-cash items		(531	)			(94	)			(687	)			(489	)
Cash net income	$	2,247			$	3,161			$	7,962			$	8,053
Basic earnings per share-GAAP basis	$	0.21			$	0.30			$	0.75			$	0.76
Diluted earnings per share-GAAP basis	$	0.21			$	0.30			$	0.75			$	0.76

First Central Bancorp, Inc.
Statements of Income - (unaudited)
(dollars in thousands, except per share data)
	Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
	9/30/2026				6/30/2026				3/31/2026				12/31/2025
Total Interest income	$	15,582			$	14,636			$	14,134			$	14,474
Total interest expense		6,214				5,861				5,899				6,515
Net interest income		9,368				8,775				8,235				7,959
Provision for credit losses		1,897				372				207				1,020
Net interest income after provision for credit losses		7,471				8,403				8,028				6,939
Net gain on loans sold		1,358				1,395				1,853				3,112
Other non-interest income		649				366				292				273
Total non-interest income		2,007				1,761				2,145				3,385
Compensation and benefits		4,112				4,156				4,142				4,114
Occupancy and equipment		1,076				971				934				978
Data processing		536				508				483				442
Federal insurance premium		105				135				147				152
Professional fees		511				381				351				285
Other		2,317				1,108				989				1,050
Total non-interest expense		8,657				7,259				7,046				7,021
Income before income taxes		821				2,905				3,127				3,303
Income tax expense		202				603				645				684
Net income	$	619			$	2,302			$	2,482			$	2,619
Basic earnings per share-GAAP basis	$	0.06			$	0.22			$	0.23			$	0.25
Diluted earnings per share-GAAP basis	$	0.06			$	0.22			$	0.23			$	0.25
Supplementary information:
Net income	$	619			$	2,302			$	2,482			$	2,619
Add back non-cash items
Provision for credit losses		1,897				372				207				1,020
Depreciation expense		262				263				245				243
Tax on add back of non-cash items		(531	)			(132	)			(93	)			(262	)
Cash net income	$	2,247			$	2,805			$	2,841			$	3,620
Basic earnings per share-GAAP basis	$	0.21			$	0.26			$	0.27			$	0.34
Diluted earnings per share-GAAP basis	$	0.21			$	0.26			$	0.27			$	0.34

First Central Bancorp, Inc.
Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
	Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
	9/30/2026				6/30/2026				3/31/2026				9/30/2025
Asset quality:
Allowance for credit losses	$	8,342			$	7,923			$	7,458			$	9,369
Allowance for credit losses to total loans (1)		0.90	%			0.90	%			0.88	%			1.09	%
Non-performing loans	$	12,089			$	10,629			$	10,775			$	8,361
Net (recovery) charge-off		1,431				(13	)			(13	)			-
Non-performing loans/total loans (1)		1.30	%			1.20	%			1.27	%			0.98	%
Non-performing loans/total assets		1.11	%			1.04	%			1.12	%			0.84	%
Allowance for credit losses/non-performing loans		69.00	%			74.54	%			69.22	%			112.06	%
Capital: (Bank only)
Tier 1 capital	$	115,720			$	102,597			$	100,444			$	98,042
Tier 1 leverage ratio		10.99	%			10.30	%			10.31	%			9.86	%
Common equity tier 1 capital ratio		15.37	%			14.32	%			14.61	%			14.14	%
Tier 1 risk based capital ratio		15.37	%			14.32	%			14.61	%			14.14	%
Total risk based capital ratio		16.52	%			15.47	%			15.75	%			15.39	%
Equity data:
Common shares outstanding		10,648,345				10,648,345				10,648,345				10,648,345
Stockholders' equity	$	99,930			$	99,626			$	97,488			$	94,778
Book value per common share		9.38				9.36				9.16				8.90
Tangible common equity		99,930				99,626				97,488				94,778
Tangible book value per common share		9.38				9.36				9.16				8.90
(1) Calculation excludes loans held-for-sale

First Central Bancorp, Inc.
Selected Financial Data - (unaudited)
(dollars in thousands)
	Quarter Ended					Quarter Ended				Quarter Ended				Quarter Ended
	9/30/2026					6/30/2026				3/31/2026				9/30/2025
Other:
Average interest-earning assets	$	1,022,021				$	968,770			$	947,939			$	968,888
Average interest-bearing liabilities		764,701					715,453				705,643				743,760
Average deposits and borrowings		930,025					875,082				856,586				877,534
Profitability:
Return on average assets		0.23	%	(3	)		0.93	%			1.04	%			1.12	%
Return on average equity		2.45	%	(3	)		9.38	%			10.47	%			11.99	%
Yield on average interest earning assets		6.05	%				6.06	%			6.05	%			6.12	%
Cost of average interest bearing liabilities		3.22	%				3.29	%			3.39	%			3.67	%
Cost of funds		2.65	%				2.69	%			2.79	%			3.11	%
Net interest rate spread (1)		2.82	%				2.77	%			2.66	%			2.44	%
Net interest margin (2)		3.64	%				3.63	%			3.52	%			3.30	%
Non-interest expense to average assets		2.81	%				2.93	%			2.94	%			2.73	%
Efficiency ratio		66.61	%	(4	)		68.89	%			67.88	%			64.57	%
(1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities
(2) Net interest margin represents net interest income divided by average interest earning assets
(3) ROA and ROE excluding a $1.4 million charge-off of a legacy C&I loan and a $1.1 million one time REO expense as of September 30, 2026 would have been 0.98% and 10.31%
(4) Excludes one-time special assessment fee of $1.1 million related to the Bank's REO property

Investor and Press Contact:
Joseph Pistilli Executive Chairman of the Board
Ray Ciccone, E.V.P. & Chief Financial Officer
Paul Hagan, President & Chief Operating Officer
516-399-6071