First Central Savings Bank Reports Fourth Quarter 2025 Net Income of $2.6 Million ($0.25 EPS), Non-Interest Income Growth Quarter over Quarter and Special Cash Dividend of $0.25 per share
Performance Highlights
- Net Income: Net income for the quarter ended December 31, 2025, was $2.6 million, or $0.25 per share, compared to $2.0 million, or $0.19 per share, recorded in the prior year quarter ended December 31, 2024.
- Cash Net Income: Cash net income for the quarter ended December 31, 2025, was $3.6 million, or $0.34 per share, compared to $2.2 million or $0.21 per share, recorded in the comparable 2024 quarter.
- Net Interest Margin and Spread: The Bank’s net interest margin and spread for the current quarter was 3.26% and 2.40% compared to 2.88% and 1.93% in the prior year quarter.
- Non-Interest Income Growth: Due to an increase in loan sale volume and loan sale premiums received for the quarter ended December 31, 2025, non-interest income increased by $489 thousand or 16.9% from the prior year quarter and $904 thousand or 36.4% on a linked quarter basis.
- Net Interest Income: Net interest income for the quarter ended December 31, 2025, was $8.0 million an increase of $1.0 million, or 14.9%, from the quarter ended December 31, 2024.
- Financial Performance Metrics: Return on average assets and average stockholders’ equity were 1.05% and 10.79%, respectively, for the quarter ended December 31, 2025, compared to 0.82% and 9.08% in the comparable quarter ended 2024.
- Regulatory Capital: The Bank’s Tier 1 leverage ratio was 9.86% and the Total Risk based capital ratio was 15.56% at December 31, 2025, each above the regulatory minimum for a well-capitalized institution.
- Strong and Stable Liquidity: The Uninsured deposits base remains stable at 19.32% of total deposits. The Bank has significant available funding capacity to provide 208% coverage of our uninsured deposits.
GLEN COVE, N.Y., Jan. 30, 2026 (GLOBE NEWSWIRE) -- Joseph Pistilli, Executive Chairman of the Board, of First Central Savings Bank (“FCSB”, “the Bank”) today reported continued performance achievements for the quarter ended December 31, 2025.
Cash and GAAP Basis Earnings
The Bank’s cash earnings were $3.6 million, or $0.34 per share, for the quarter ended December 31, 2025, which represents an increase of $460 thousand, or 14.5%, on a linked quarter basis and an increase of $1.4 million, or 63.4%, from the prior year quarter ended December 31, 2024.
On a GAAP basis, net income for the quarter ended December 31, 2025, was $2.6 million, or $0.25 per share, compared with net income of $2.0 million, or $0.19, from the comparable 2024 quarter.
Joseph Pistilli, Executive Chairman of the Board noted, “In the fourth quarter of 2025, First Central continued to build shareholder value by generating strong earnings, primarily due to gains on non-conforming residential loan sales. In addition, we increased our book value from $8.20 per share at December 31, 2024, to $8.92 at December 31, 2025, an increase of $0.72 or 8.8%. I am also proud to announce that we have increased our special dividend payment to our shareholders to $0.25 per share which was payable on January 15, 2026. In calendar year 2026, we will look to provide quarterly dividend payments as we are now more comfortable with our consistent future earnings projections. We remain cautiously optimistic about overall credit quality. While we expect to see some early signs of stress within certain segments of the commercial portfolio, these developments are consistent with the broader economic environment and are being actively addressed and closely monitored by management. I am extremely proud of the management team and the Board of Directors that we have assembled at the Bank and the expertise they have in managing net interest income and asset quality during the current market conditions. Additionally, First Central Savings Bank has much to be excited about and the future is bright. We believe the Bank is well positioned for success in 2026 and for years to come.
Paul Hagan, President and Chief Operating Officer, reflected on the Bank’s results, “During the quarter ended December 31, 2025, the Bank substantially increased our non-interest income as a result of additional loan sales. Due to favorable pricing in the secondary market for our non-conforming loan product, management made a strategic decision to sell more loans thereby increasing gain on loan sale income. As a result of cash generated from these loan sales, management was able to effectively lower our deposit pricing on various savings and CD products as our higher cash balances were sufficient to meet loan production. We expect a modest increase in our net margin during the first half of 2026, reflecting, less competitive deposit pricing and favorable asset repricing of earning assets. We expect our overall profitability to continue to improve in calendar year 2026 through loan growth, net interest margin expansion and increased loan sale income. We are actively monitoring potential credit quality deterioration, particularly with the commercial and industrial loan portfolio. Management will continue to rigorously manage non-interest expenses to strengthen profitability and provide flexibility to address potential credit quality challenges.”
Balance Sheet
Total assets at December 31, 2025, were $970.1 million compared to $964.9 million as of December 31,2024. The slight increase in total assets was primarily driven by higher cash balances as a result of proceeds from non-conforming loan sales of $296.4 million during the year. The Bank continues to originate commercial real estate and non-conforming loans while continuing to actively sell most of the non-conforming loans to the secondary market. The Bank sold a quarterly record of $95.2 million non-conforming loans during the quarter ended December 31, 2025. As of December 31, 2025, the Bank has been able to generate a non-conforming loan pipeline of $92.1 million with a weighted average interest rate of 6.77%.
Total deposits were $831.8 million as of December 31, 2025, an increase of $2.8 million, or 0.3%, from December 31, 2024. The Bank has been 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 $14.43 million or 11.2% to $143.3 million as of December 31, 2025, representing 17.2% of the total deposit base. Due to excess cash levels from loan sales, the Bank was able to strategically reduce higher costing CDs which contributed to the reduction in deposit balances quarter over quarter.
Total borrowings at December 31, 2025, were $25.0 million, with a weighted average cost of 3.76% compared to $30 million and a weighted average cost of 4.24% at December 31, 2024, respectively.
The Bank’s overall average cost of funds was 2.96% for the quarter ended December 31, 2025, a decrease of 15 basis points from 3.11% from the prior linked quarter and a decrease of 55 bps compared to December 31, 2024. Three overnight rate cuts by the Federal Reserve totaling 100 bps in the fourth quarter of 2024 and 50 bps in 2025 contributed to the Bank’s ability to lower deposit costs while maintaining their retail deposit base. Management continues to be proactive in securing non-interest-bearing deposits in the current interest rate environment to improve the Bank’s interest-rate-risk profile. Management believes this strategy will better protect and enhance future earnings as interest rates may decline, and our deposits reprice downward in the future.
Loan Portfolio and Asset Quality
Total loans as of December 31, 2025, decreased by $6.0 million or 0.70% to $847.1 million from $853.1 million at December 31, 2024 due to a lower balance of non-conforming residential loans as a result of increased loan sales. 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. Over the past twelve months, originations of the non-conforming product amounted to $363.7 million. At December 31, 2025, the entire non-conforming loan portfolio amounted to $467.3 million, with an average loan balance of $552.3 thousand and a weighted average loan-to-value ratio of 62.5%.
As a result of the Bank’s robust non-conforming loan generation capabilities, the Bank had 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 twelve months ending December 31, 2025, the Bank earned $9.2 million in premiums on loans sold, net of FASB 91 fees and costs.
The Bank’s asset quality ratios remain adequate. The total allowance for credit losses at December 31, 2025, was $7.2 million, or 0.87%, of total loans held for investment as compared to $8.8 million, or 1.05%, at December 31, 2024. During the quarter, the Bank charged off $3.2 million of legacy loans as follows, $1.6 million in its taxi medallion portfolio, $435 thousand in its commercial real estate portfolio and $1.2 million in its C&I portfolio. Management made a strategic decision to rid the portfolio of these loans due to its strong earnings for the year as well as negotiated settlements with the borrowers. The Bank will now focus its efforts on any possible recoveries on loans still in dispute. At December 31, 2025, the loan portfolio had non-performing loans of $14.7 million, or 1.77%, of total loans and 1.51% of total assets as compared to $11.6 million, or 1.39%, of total loans and 1.21% of total assets at December 31, 2024. Management expects the first quarter of 2026 to see improved asset quality ratios as a result of a $3.7 million non-performing loan sale and the partial payoff of existing non-performing C&I loan of $720,000, both of which were partially charged-off at year end.
About First Central Savings Bank
With assets of $970.1 million at December 31, 2025, 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. First Central Savings Bank maintains its corporate office in Glen Cove, New York with an additional six branches 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 Savings Bank. Any or all of the forward-looking statements in this release and in any other public statements made by First Central Savings Bank may turn out to be incorrect. They can be affected by inaccurate assumptions First Central Savings Bank might make or by known or unknown risks and uncertainties. Consequently, no forward-looking statement can be guaranteed. First Central Savings Bank 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 Savings Bank | ||||||||||||
| Statements of Condition - (unaudited) | ||||||||||||
| (dollars in thousands) | ||||||||||||
| 12/31/2025 | 9/30/2025 | 12/31/2024 | ||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 56,936 | $ | 53,507 | $ | 49,156 | ||||||
| Certificates of deposit | 4,000 | 4,000 | 2,000 | |||||||||
| Investments available-for-sale | 28,962 | 29,371 | 29,802 | |||||||||
| Investments held-to-maturity | 3,000 | 3,000 | 1,000 | |||||||||
| Loans held-for-sale | 16,367 | 16,018 | 14,892 | |||||||||
| Loans receivable | 830,705 | 857,345 | 838,183 | |||||||||
| Less: allowance for credit losses | (7,207 | ) | (9,369 | ) | (8,787 | ) | ||||||
| Loans, net | 823,498 | 847,976 | 829,396 | |||||||||
| Other assets | 37,386 | 38,899 | 38,684 | |||||||||
| Total assets | $ | 970,149 | $ | 992,771 | $ | 964,930 | ||||||
| Liabilities and stockholders' equity | ||||||||||||
| Deposits | $ | 831,761 | $ | 854,199 | $ | 829,003 | ||||||
| FHLB advances and other borrowings | 25,000 | 25,000 | 30,000 | |||||||||
| Other liabilities | 18,433 | 18,794 | 18,568 | |||||||||
| Total liabilities | 875,194 | 897,993 | 877,571 | |||||||||
| Total stockholders' equity | 94,955 | 94,778 | 87,359 | |||||||||
| Total liabilities and stockholders' equity | $ | 970,149 | $ | 992,771 | $ | 964,930 | ||||||
| First Central Savings Bank | ||||||||||||||||
| Statements of Income - (unaudited) | ||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| 12 Months | 12 Months | |||||||||||||||
| Quarter Ended | Quarter Ended | Ended | Ended | |||||||||||||
| 12/31/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 | |||||||||||||
| Total Interest income | $ | 14,474 | $ | 14,599 | $ | 58,409 | $ | 58,610 | ||||||||
| Total interest expense | 6,515 | 7,673 | 27,172 | 31,605 | ||||||||||||
| Net interest income | 7,959 | 6,926 | 31,237 | 27,005 | ||||||||||||
| Provision for credit losses | 1,020 | 1 | 2,613 | 1,258 | ||||||||||||
| Net interest income after provision for credit losses | 6,939 | 6,925 | 28,624 | 25,747 | ||||||||||||
| Net gain on loans sold | 3,112 | 2,649 | 9,162 | 6,449 | ||||||||||||
| Other non-interest income | 273 | 247 | 1,010 | 1,034 | ||||||||||||
| Total non-interest income | 3,385 | 2,896 | 10,172 | 7,625 | ||||||||||||
| Compensation and benefits | 4,114 | 4,355 | 16,037 | 15,361 | ||||||||||||
| Occupancy and equipment | 978 | 912 | 3,847 | 3,672 | ||||||||||||
| Data processing | 442 | 454 | 1,859 | 1,798 | ||||||||||||
| Federal insurance premium | 152 | 161 | 663 | 666 | ||||||||||||
| Professional fees | 285 | 291 | 1,342 | 1,348 | ||||||||||||
| Other | 1,050 | 1,116 | 3,983 | 3,867 | ||||||||||||
| Total non-interest expense | 7,021 | 7,289 | 27,731 | 26,712 | ||||||||||||
| Income before income taxes | 3,303 | 2,532 | 11,065 | 6,660 | ||||||||||||
| Income tax expense | 684 | 524 | 2,280 | 1,349 | ||||||||||||
| Net income | $ | 2,619 | $ | 2,008 | $ | 8,785 | $ | 5,311 | ||||||||
| Basic earnings per share-GAAP basis | $ | 0.25 | $ | 0.19 | $ | 0.83 | $ | 0.50 | ||||||||
| Diluted earnings per share-GAAP basis | $ | 0.25 | $ | 0.19 | $ | 0.83 | $ | 0.50 | ||||||||
| Supplementary information: | ||||||||||||||||
| Net income | $ | 2,619 | $ | 2,008 | $ | 8,785 | $ | 5,311 | ||||||||
| Add back non-cash items | ||||||||||||||||
| Provision for credit losses | 1,020 | 1 | 2,613 | 1,258 | ||||||||||||
| Depreciation expense | 243 | 261 | 1,026 | 1,031 | ||||||||||||
| Tax on add back of non-cash items | (262 | ) | (54 | ) | (750 | ) | (464 | ) | ||||||||
| Cash net income | $ | 3,620 | $ | 2,216 | $ | 11,674 | $ | 7,136 | ||||||||
| Basic earnings per share-GAAP basis | $ | 0.34 | $ | 0.21 | $ | 1.10 | $ | 0.67 | ||||||||
| Diluted earnings per share-GAAP basis | $ | 0.34 | $ | 0.21 | $ | 1.10 | $ | 0.67 | ||||||||
| First Central Savings Bank | |||||||||||||||
| Statements of Income - (unaudited) | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||||
| 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | ||||||||||||
| Total Interest income | $ | 14,474 | $ | 14,939 | $ | 14,717 | $ | 14,279 | |||||||
| Total interest expense | 6,515 | 6,888 | 6,799 | 6,970 | |||||||||||
| Net interest income | 7,959 | 8,051 | 7,918 | 7,309 | |||||||||||
| Provision for credit losses | 1,020 | 197 | 1,303 | 93 | |||||||||||
| Net interest income after provision for credit losses | 6,939 | 7,854 | 6,615 | 7,216 | |||||||||||
| Net gain on loans sold | 3,112 | 2,198 | 2,062 | 1,790 | |||||||||||
| Other non-interest income | 273 | 283 | 231 | 223 | |||||||||||
| Total non-interest income | 3,385 | 2,481 | 2,293 | 2,013 | |||||||||||
| Compensation and benefits | 4,114 | 3,963 | 3,938 | 4,022 | |||||||||||
| Occupancy and equipment | 978 | 929 | 972 | 968 | |||||||||||
| Data processing | 442 | 459 | 476 | 482 | |||||||||||
| Federal insurance premium | 152 | 153 | 175 | 183 | |||||||||||
| Professional fees | 285 | 349 | 373 | 335 | |||||||||||
| Other | 1,050 | 948 | 993 | 992 | |||||||||||
| Total non-interest expense | 7,021 | 6,801 | 6,927 | 6,982 | |||||||||||
| Income before income taxes | 3,303 | 3,534 | 1,981 | 2,247 | |||||||||||
| Income tax expense | 684 | 733 | 404 | 459 | |||||||||||
| Net income | $ | 2,619 | $ | 2,801 | $ | 1,577 | $ | 1,788 | |||||||
| Basic earnings per share-GAAP basis | $ | 0.25 | $ | 0.26 | $ | 0.15 | $ | 0.17 | |||||||
| Diluted earnings per share-GAAP basis | $ | 0.25 | $ | 0.26 | $ | 0.15 | $ | 0.17 | |||||||
| Supplementary information: | |||||||||||||||
| Net income | $ | 2,619 | $ | 2,801 | $ | 1,577 | $ | 1,788 | |||||||
| Add back non-cash items | |||||||||||||||
| Provision for credit losses | 1,020 | 197 | 1,303 | 93 | |||||||||||
| Depreciation expense | 243 | 257 | 260 | 266 | |||||||||||
| Tax on add back of non-cash items | (262 | ) | (94 | ) | (319 | ) | (73 | ) | |||||||
| Cash net income | $ | 3,620 | $ | 3,161 | $ | 2,821 | $ | 2,074 | |||||||
| Basic earnings per share-GAAP basis | $ | 0.34 | $ | 0.30 | $ | 0.26 | $ | 0.19 | |||||||
| Diluted earnings per share-GAAP basis | $ | 0.34 | $ | 0.30 | $ | 0.26 | $ | 0.19 | |||||||
| First Central Savings Bank | |||||||||||||||
| Selected Financial Data - (unaudited) | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||||
| 12/31/2025 | 9/30/2025 | 6/30/2025 | 12/31/2024 | ||||||||||||
| Asset quality: | |||||||||||||||
| Allowance for credit losses | $ | 7,207 | $ | 9,369 | $ | 9,191 | $ | 8,787 | |||||||
| Allowance for credit losses to total loans (1) | 0.87 | % | 1.09 | % | 1.08 | % | 1.05 | % | |||||||
| Non-performing loans | $ | 14,692 | $ | 8,361 | $ | 8,781 | $ | 11,649 | |||||||
| Net charge-off (recovery) | 3,198 | - | 1,140 | (41 | ) | ||||||||||
| Non-performing loans/total loans (1) | 1.77 | % | 0.98 | % | 1.03 | % | 1.39 | % | |||||||
| Non-performing loans/total assets | 1.51 | % | 0.84 | % | 0.89 | % | 1.21 | % | |||||||
| Allowance for credit losses/non-performing loans | 49.05 | % | 112.06 | % | 104.67 | % | 75.43 | % | |||||||
| Capital: (dollars in thousands) | |||||||||||||||
| Tier 1 capital | $ | 97,999 | $ | 98,042 | $ | 95,241 | $ | 91,913 | |||||||
| Tier 1 leverage ratio | 9.86 | % | 9.86 | % | 9.64 | % | 9.36 | % | |||||||
| Common equity tier 1 capital ratio | 14.43 | % | 14.14 | % | 13.86 | % | 13.42 | % | |||||||
| Tier 1 risk based capital ratio | 14.43 | % | 14.14 | % | 13.86 | % | 13.42 | % | |||||||
| Total risk based capital ratio | 15.55 | % | 15.39 | % | 15.11 | % | 14.67 | % | |||||||
| Equity data | |||||||||||||||
| Common shares outstanding | 10,648,345 | 10,648,345 | 10,648,345 | 10,648,345 | |||||||||||
| Stockholders' equity | $ | 94,955 | $ | 94,778 | $ | 91,462 | $ | 87,359 | |||||||
| Book value per common share | 8.92 | 8.90 | 8.59 | 8.20 | |||||||||||
| Tangible common equity | 94,955 | 94,778 | 91,462 | 87,359 | |||||||||||
| Tangible book value per common share | 8.92 | 8.90 | 8.59 | 8.2 | |||||||||||
| (1) Calculation excludes loans held-for-sale | |||||||||||||||
| First Central Savings Bank | ||||||||||||||||
| Selected Financial Data - (unaudited) | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||
| 12/31/2025 | 9/30/2025 | 6/30/2025 | 12/31/2024 | |||||||||||||
| Other: (in thousands) | ||||||||||||||||
| Average interest-earning assets | $ | 968,287 | $ | 968,888 | $ | 962,414 | $ | 956,169 | ||||||||
| Average interest-bearing liabilities | 732,312 | 743,760 | 733,943 | 736,731 | ||||||||||||
| Average deposits and borrowings | 872,904 | 877,534 | 874,149 | 868,871 | ||||||||||||
| Profitability: | ||||||||||||||||
| Return on average assets | 1.05 | % | 1.12 | % | 0.64 | % | (3 | ) | 0.82 | % | ||||||
| Return on average equity | 10.79 | % | 11.99 | % | 7.01 | % | (3 | ) | 9.08 | % | ||||||
| Yield on average interest earning assets | 5.93 | % | 6.12 | % | 6.13 | % | 6.07 | % | ||||||||
| Cost of average interest bearing liabilities | 3.53 | % | 3.67 | % | 3.72 | % | 4.14 | % | ||||||||
| Cost of funds | 2.96 | % | 3.11 | % | 3.12 | % | 3.51 | % | ||||||||
| Net interest rate spread (1) | 2.40 | % | 2.44 | % | 2.42 | % | 1.93 | % | ||||||||
| Net interest margin (2) | 3.26 | % | 3.30 | % | 3.30 | % | 2.88 | % | ||||||||
| Non-interest expense to average assets | 2.81 | % | 2.73 | % | 2.83 | % | 2.97 | % | ||||||||
| Efficiency ratio | 61.90 | % | 64.57 | % | 67.84 | % | 74.21 | % | ||||||||
| (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 $1.1 million charge-off of a legacy ADC loan as of June 30, 2025 would have been 1.01% and 11.05% | ||||||||||||||||
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
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
