David DiStefano, Regional President – New Jersey, First Bank
In an interview with Invest:, David DiStefano, New Jersey regional president of First Bank, discussed how the bank is navigating a competitive deposit environment, strategic expansion, and evolving client needs in New Jersey’s banking landscape. “We’ve built a business banking group that has helped us identify prospective customers,” he said, highlighting First Bank’s focus on high-touch service and niche industries like professional services.
What have been the most significant market or operational changes shaping how First Bank has operated in New Jersey over the past year?
The demand for deposits in the community banking marketplace has significantly increased in the past 18 months to two years. First Bank is strategically going after opportunities for large deposits by targeting deposit-rich industries. We’ve built a business banking group that has helped us identify prospective customers. We’ve also opened several de novo bank branches over the past couple of years to expand our reach to the communities we serve. Our bank is built primarily around the commercial bank, but we also serve households. A combination of those things has allowed us to achieve success in a competitive environment for deposits. We are still in that space and competing every day.
What sectors or industries show the strongest demand for your service in New Jersey?
We’ve found a niche in professional services, like title insurance, boutique law firms, and medical and dental practices. This works because of our high-touch model, bringing sophisticated bankers to sophisticated clients, which creates good outcomes for the bank and the client. We’ve also invested in new geographies. We opened a de novo branch in Summit, which is doing well. We have an upcoming branch and loan office in the Fort Monmouth redevelopment, near the new Netflix campus. We also opened a new location in Trenton, and we are proud to be one of the first banks to do so in a long time. These are some of the areas where we’ve had success from an industry and a geography standpoint.
How has the M&A trend in banking developed over the years, and what opportunities does that create for First Bank?
As banks get larger, they manage more by procedure than by putting local decision-makers in positions of authority. This has presented an opportunity for us to take advantage of consolidation. For example, after Investors Bank sold to Citizens Bank, we invested in talent and services to help us grow.
The opportunity to find people who want to deal with a commercially focused community bank is there. We’re also open to additional M&A; we acquired Malvern Bank in the Philadelphia market in a $900 million deal, which expanded our footprint. We’re finding opportunities for talent and client acquisition from the ongoing consolidation. We are also looking to acquire other banks that fit our expansion plans.
How have inflation and tariffs affected clients’ financial strategies, and how is First Bank managing credit risk and lending across sectors?
The tariff impact is just getting started. A few customers experienced significant challenges after Liberation Day in April, with slow ports, delayed shipments, and increasing costs. It felt a little bit like COVID; trade cycles slowed down in April and May. We helped them weather the storm by facilitating access to working capital and short-term liquidity. The good news is that most of that appears to be in the rearview mirror.
People are feeling more optimistic about the broader economy and tariffs, but there’s still a “wait and see” feel. Trade deals with the European Union and hopes for one with China would relieve a lot of fear and provide additional confidence to business owners. In the meantime, they’re being more conservative, holding onto their liquidity and maybe not fully utilizing their line of credit so they can weather the storm and fight another day. We’ve certainly seen that happen this year, with a lot of businesses sitting on larger amounts of cash than they were last year at this time.
With tighter lending standards, what creative solutions is First Bank offering to help small and mid-sized businesses access capital today?
What you’re hearing about people being credit-conscious is largely around real estate. We’ve been hearing about the real estate market collapse for the last three years. While we’ve seen softness in sectors like suburban office and industrial, it hasn’t been a huge problem for our bank or other bankers I speak with. A lot of the credit concerns are largely around real estate. For me, credit concerns are an opportunity: you have to look at the bigger picture and the longer term.
Our entire business is built around doing business with the right people. We tend to look at the people first and the credit profile second. Some may say that’s flawed, but that’s the way I like to do business.
With AI advancing, how is First Bank using technology to improve decision-making and client service?
We’ve launched an online account-opening platform and a fully online loan application. Our expedited online loan applications, called Business Express and SBA Express, provide decisions within 24 to 36 hours. We have also leveraged technology in our treasury management space, building out personnel and a platform to advance our digital offerings.
Fraud has become a crucial component of banking, and services like positive pay for wires and ACH (Automated Clearing House) are now a main part of our sales pitch. We also offer Promontory services, a digital solution that provides FDIC insurance for deposits over $250,000. We’ve invested significantly in digital to help grow the bank and our staff, and it’s worked well for us.
Looking ahead, what are First Bank’s top priorities and growth goals for the next two to three years?
Our primary goal is to expand our brand and reach among commercial and consumer clients in the markets we serve. Our nucleus is in Central New Jersey, but we are gradually investing more toward the eastern part of the state, in Essex, Union, and Monmouth counties. We’re strategically looking to continue to push east. It’s not just about geography; it’s about what creates better brand awareness and shareholder value.
The business is driven by the bankers who want to work for us. It’s both a geography-focused and people-focused strategy. There has been a war for talent in this industry, and we’ve both lost and acquired good people. This will continue until perhaps the regulatory environment changes.
