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 | ||||||||||||||||
CONTACT: 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
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