First Bank (FRBA) AI Stock Analysis

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First Bank

(NASDAQ:FRBA)

74Outperform

First Bank's strong financial performance, as evidenced by revenue and profit growth, and a sound balance sheet are key strengths. Positive earnings call sentiment and strategic initiatives add to its appeal. However, technical indicators suggest caution due to bearish trends. Despite these challenges, the stock's undervaluation and growth potential make it an attractive proposition for investors.

First Bank (FRBA) vs. S&P 500 (SPY)

Market Cap

$340.57M

Dividend Yield1.77%

Average Volume (3M)55.37K

Price to Earnings (P/E)8.1

Beta (1Y)0.72

Revenue Growth31.85%

EPS Growth69.42%

CountryUS

Employees311

SectorFinancial

Sector Strength76

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.67

Shares Outstanding25,134,403

10 Day Avg. Volume53,860

30 Day Avg. Volume55,368

Financial Highlights & Ratios

PEG Ratio0.12

Price to Book (P/B)N/A

Price to Sales (P/S)2.83

Price to Cash Flow (P/CF)-2.90

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$17.00

Price Target Upside20.31% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

First Bank Business Overview & Revenue Model

Company DescriptionFirst Bank provides various banking products and services to individuals, businesses, and governmental entities. The company accepts various deposits, including non-interest bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. Its loan products include commercial and industrial loans; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans that include auto, personal, and traditional installment loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone, as well as ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services. As of December 31, 2021, it operated 18 full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington, Hamilton, Hamilton, Lawrence, Mercerville, Pennington, Randolph, Somerset, and Williamstown counties in New Jersey, as well as Doylestown, Trevose, Warminster, and West Chester counties in Pennsylvania. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.

How the Company Makes MoneyFirst Bank generates revenue through a mix of interest income and non-interest income. Interest income primarily comes from the interest charged on loans provided to individuals and businesses, such as mortgages, personal loans, and commercial loans. Non-interest income includes fees from various banking services, such as account maintenance fees, transaction fees, and investment advisory fees. The bank also earns from its investment portfolio, consisting of government and corporate securities. Strategic partnerships with financial technology firms further enhance their service offerings and contribute to their revenue streams.

First Bank Financial Statement Overview

Summary

First Bank shows a strong financial trajectory with consistent revenue and profit growth, indicating solid business performance. The balance sheet reflects a stable financial position with manageable leverage, though the equity ratio suggests potential for strengthening equity further. Cash flow shows strength in prior years, but missing data for 2024 poses a challenge for a comprehensive assessment. Overall, the financial statements depict a well-managed bank with strong profitability and a solid financial foundation.

Income Statement

Very Positive

The income statement shows strong growth with a consistent increase in revenue from $62.4M in 2019 to $128.7M in 2024. The gross profit margin remains high at 100% due to the nature of banking operations. Net profit margin has improved significantly to 32.8% in 2024 from 21.6% in 2019, indicating enhanced profitability. EBIT margin also improved to 52.2% in 2024 from 30.5% in 2019. The lack of EBITDA data for 2024 is a limitation.

Balance Sheet

Positive

The balance sheet shows a stable financial position with stockholders' equity increasing from $226.4M in 2019 to $409.2M in 2024. The debt-to-equity ratio is manageable at 0.68, down from 0.56 in 2019, indicating controlled leverage. The equity ratio is moderate at 10.8% in 2024, reflecting a solid equity base but with room for improvement. The bank's cash position is strong, with significant cash reserves.

Cash Flow

Positive

Cash flow analysis indicates variability, with operating cash flow peaking at $143.8M in 2023 but unavailable for 2024. Free cash flow was robust in 2023 at $140.7M but missing in 2024. The free cash flow to net income ratio was strong at 6.74 in 2023, demonstrating efficient cash conversion. However, missing data for 2024 limits a complete evaluation.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
128.68M	103.80M	97.49M	89.64M	75.91M
	Gross Profit
128.68M	103.80M	97.49M	89.64M	75.91M
	EBIT
67.13M	43.15M	62.78M	46.72M	25.98M
	EBITDA
0.00	46.00M	49.44M	48.30M	27.86M
	Net Income Common Stockholders
42.24M	20.90M	36.29M	35.43M	19.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
257.64M	215.18M	212.59M	251.26M	161.57M
	Total Assets
3.78B	3.61B	2.73B	2.51B	2.35B
	Total Debt
276.89M	234.40M	120.66M	111.45M	190.64M
	Net Debt
19.24M	19.22M	7.03M	-45.22M	90.80M
	Total Liabilities
3.37B	3.24B	2.44B	2.24B	2.11B
	Stockholders Equity
409.16M	370.90M	289.56M	266.67M	238.11M
Cash Flow		Free Cash Flow
24.72M	140.72M	34.97M	27.85M	24.15M
	Operating Cash Flow
27.63M	143.84M	36.88M	28.04M	24.51M
	Investing Cash Flow
-107.20M	20.33M	-233.07M	7.04M	-327.18M
	Financing Cash Flow
123.53M	-62.13M	167.60M	23.95M	316.36M

First Bank Technical Analysis

Technical Analysis Sentiment

Negative

Last Price14.13

Price Trends

50DMA

14.60

Negative

100DMA

14.48

Negative

200DMA

14.51

Negative

Market Momentum

MACD

-0.38

Positive

RSI

42.15

Neutral

STOCH

46.69

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRBA, the sentiment is Negative. The current price of 14.13 is above the 20-day moving average (MA) of 13.98, below the 50-day MA of 14.60, and below the 200-day MA of 14.51, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 46.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRBA.

First Bank Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USCB	79 Outperform	$343.51M	13.77	12.11%	1.47%	32.79%	48.96%
HBCP	78 Outperform	$346.10M	9.48	9.54%	2.36%	11.26%	-8.61%
BSVN	75 Outperform	$338.44M	7.60	22.26%	2.67%	1.20%	46.86%
FRBA	74 Outperform	$340.57M	8.11	10.83%	1.77%	31.85%	69.42%
CARE	63 Neutral	$341.88M	13.89	6.60%	―	13.23%	8.42%
Sector *	63 Neutral	$12.07B	9.35	8.15%	79.57%	12.85%	-5.13%
MSBI	54 Neutral	$341.78M	12.51	-1.83%	7.89%	3.95%	-135.44%

* Financial Sector Average

Performance Comparison

FRBA

First Bank

14.13

2.02

16.68%

HBCP

Home Bancorp

47.75

12.61

35.89%

MSBI

Midland States Bancrop

16.54

-6.48

-28.15%

CARE

Carter Bankshares

15.27

3.72

32.21%

BSVN

Bank7

35.82

8.97

33.41%

USCB

USCB Financial Holdings, Inc. Class A

17.67

7.28

70.07%

First Bank Earnings Call Summary

Earnings Call Date: Apr 22, 2025 | % Change Since: 0.00% | Next Earnings Date: Jul 23, 2025

Earnings Call Sentiment Positive

The earnings call reflected a positive sentiment with strong financial performance, loan and deposit growth, and improved net interest margin outweighing the minor concerns about noninterest income and expenses.

Highlights

Strong Annual Financial Performance

First Bank earned $42.2 million or $1.67 per diluted share in 2024, representing a 13% annualized increase in core EPS over the last 10 years. Tangible book value also more than doubled in the same period.

Loan Portfolio Growth

Loans were up over 7% annualized from the third quarter, with a year-over-year growth of $123 million or 4%. This growth was driven by commercial and industrial and owner-occupied commercial real estate loans.

Improved Net Interest Margin

Net interest margin increased to 3.54% in the fourth quarter from 3.48% in the prior quarter, with interest-bearing deposit costs declining by 20 basis points.

Successful Deposit Growth

Total deposits grew by $88.3 million or 3% from the end of 2023, driven by new deposit relationships and retaining existing balances.

High Coverage Ratio for Nonperforming Loans

Allowance for credit loss to total loans stands at a 323% coverage ratio for nonperforming loans, the highest in the local peer bank survey.

Lowlights

Decline in Noninterest Income

Noninterest income totaled $2.2 million in Q4 2024 compared to $2.5 million in Q3 2024, with no significant increase expected as 2025 begins.

Increased Noninterest Expenses

Noninterest expenses rose to $19.1 million in the fourth quarter from $18.6 million in Q3 2024, primarily due to an increase in salaries, benefits, and occupancy costs.

Company Guidance

During the Fourth Quarter 2024 Earnings Call for First Bank, executives provided comprehensive guidance on the bank's financial performance and future outlook. The bank reported a net income of $10.5 million, or $0.41 per diluted share, with a return on average assets (ROAA) of 1.10%, an improvement from prior periods. The bank's loan portfolio grew by 7% on an annualized basis, with commercial and industrial (C&I) and owner-occupied commercial real estate loans driving this growth. The net interest margin increased to 3.54%, supported by a reduction in deposit and borrowing costs. The bank's efficiency ratio improved to 57%, and tangible book value per share expanded by 10% annualized from Q3 2024. First Bank's strategic initiatives, including its Banking as a Service unit and new fintech partnerships, are expected to drive future growth. Additionally, the bank has maintained a strong asset quality, with nonperforming assets to total assets declining to 0.46%, and a robust coverage ratio for credit losses at 323%. Looking ahead, the bank plans to continue its focus on profitable relationship growth, expense management, and strategic investments, including a share buyback program with 900,000 shares remaining under its approved plan.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.