First Bank (FRBA)
NASDAQ:FRBA
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First Bank
(NASDAQ:FRBA)
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Rating:65Neutral
Price Target:
$18.50
▲(9.14% Upside)
Action:DowngradedDate:03/16/26
The score is driven primarily by solid underlying financial performance and a constructive earnings-call outlook (growth, margin/expense initiatives, and capital returns), balanced by clear credit-risk pockets. The largest near-term drag is weak technical momentum (below key moving averages with negative MACD), while valuation is supportive due to a low P/E and modest dividend yield.
Positive Factors
Sustained Revenue and Profitability Growth
The company delivered clear revenue expansion and solid 2025 profitability, indicating improving scale and earnings power. Combined with YoY NIM improvement and growing noninterest income, this supports durable internal cash generation and reinvestment capacity to fund loan growth and shareholder returns over the medium term.
Negative Factors
Concentrated Small Business Credit Risk
Concentrated deterioration in the small business portfolio increases the risk of higher ongoing charge-offs and reserve volatility. Even with targeted corrective actions, persistent pockets of weakness can raise funding for loan loss provisioning, reduce net income stability, and constrain the pace of safe loan growth and capital returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue and Profitability Growth
The company delivered clear revenue expansion and solid 2025 profitability, indicating improving scale and earnings power. Combined with YoY NIM improvement and growing noninterest income, this supports durable internal cash generation and reinvestment capacity to fund loan growth and shareholder returns over the medium term.
Read all positive factors
First Bank (FRBA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$427.54M
Dividend Yield1.41%
Average Volume (3M)62.62K
Price to Earnings (P/E)9.4
Beta (1Y)0.58
Revenue Growth9.76%
EPS Growth4.43%
CountryUS
Employees315
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.49
Shares Outstanding25,134,403
10 Day Avg. Volume92,400
30 Day Avg. Volume62,617
Financial Highlights & Ratios
PEG Ratio2.26
Price to Book (P/B)0.93
Price to Sales (P/S)1.66
P/FCF Ratio6.55
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit2.88
Enterprise Value/Ebitda6.53
Forecast
1Y Price Target
$19.00Price Target Upside12.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.93
Revenue Forecast (FY)$152.61M
First Bank Business Overview & Revenue Model
Company Description
First 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 a...
How the Company Makes Money
null...
First Bank Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call presented a majority of positive operational and financial developments: margin expansion, improved profitability ratios, strong full-year loan production and disciplined expense and deposit optimization. However, materially negative items were concentrated in the small business lending portfolio (elevated charge-offs/delinquency and higher reserves), a large $23 million C&I downgrade, and unusual Q4 payoff activity that temporarily reduced loans and deposits. Management has taken corrective actions on small business credit, approved shareholder-friendly capital actions (50% dividend increase and a $20 million buyback authorization), and set achievable 2026 targets (including $200 million net loan growth and continued deposit-cost reduction). On balance, the positive momentum and contained, identifiable credit issues suggest cautious optimism.Positive Updates
Net Interest Margin Expansion
Fourth-quarter net interest margin of 3.7% (reported also as 3.74% vs Q3) — up ~20 basis points year-over-year; full-year NIM 3.69% vs 3.57% in 2024, driving stronger net interest income and profitability.
Negative Updates
Small Business Credit Underperformance
Small business loan portfolio experienced elevated delinquency and charge-offs concentrated in 2025; charge-offs for the quarter were $1.7 million (in line with prior quarter) and charge-off rates in the small business portfolio were described as elevated (~3% annualized in commentary vs desired 1–2%), prompting credit parameter changes and staffing reorganization.
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Q4-2025 Updates
Positive
Negative
Net Interest Margin Expansion
Fourth-quarter net interest margin of 3.7% (reported also as 3.74% vs Q3) — up ~20 basis points year-over-year; full-year NIM 3.69% vs 3.57% in 2024, driving stronger net interest income and profitability.
Read all positive updates
Company Guidance
Management’s guidance for 2026 is focused on targeted growth and continued margin/expense improvement: they expect $200 million of net loan growth while keeping net interest margin relatively stable (Q4 NIM ~3.74%; FY2025 NIM 3.69% vs 3.57% in FY2024) by pushing deposit costs lower and replacing run‑off assets with higher‑yielding loans, expect acquisition‑accounting accretion to decline, and target modestly higher noninterest income (fee income was ~+$2M in 2025; Q4 noninterest income $2.3M). They reiterated goals to reduce noninterest expense to average assets (FY2025 1.97% vs 2.01% in FY2024) and close the cost‑of‑funds gap with peers while maintaining capital returns (50% quarterly dividend increase; approved buyback up to 1.2M shares/$20M). Key metrics cited alongside the guidance include Q4 ROA 1.21%, ROTCE 12.58%, loans up $149M (~5% YoY) despite $135M of Q4 payoffs, NPAs 46 bps, ALLL 1.38%, efficiency ratio 49.46%, and tangible book value per share $15.81 (>12% annualized); they also expect an effective tax rate of ~24–25%.First Bank Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
69
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 246.78M | 229.44M | 173.30M | 112.38M | 98.87M |
| Gross Profit | 136.26M | 128.68M | 95.86M | 94.62M | 89.88M |
| EBITDA | 57.30M | 59.47M | 30.01M | 49.44M | 48.30M |
| Net Income | 43.66M | 42.24M | 20.90M | 36.29M | 35.43M |
Balance Sheet | |||||
| Total Assets | 3.96B | 3.78B | 3.61B | 2.73B | 2.52B |
| Cash, Cash Equivalents and Short-Term Investments | 399.66M | 326.07M | 309.32M | 212.59M | 250.36M |
| Total Debt | 271.06M | 276.89M | 234.40M | 120.66M | 124.90M |
| Total Liabilities | 3.51B | 3.37B | 3.24B | 2.44B | 2.26B |
| Stockholders Equity | 443.50M | 409.16M | 370.90M | 289.56M | 266.67M |
Cash Flow | |||||
| Free Cash Flow | 62.66M | 24.72M | 140.72M | 34.97M | 27.85M |
| Operating Cash Flow | 65.56M | 27.63M | 143.84M | 36.88M | 28.04M |
| Investing Cash Flow | -155.11M | -107.20M | 20.33M | -233.07M | 7.04M |
| Financing Cash Flow | 126.85M | 123.53M | -62.13M | 167.60M | 23.95M |
First Bank Technical Analysis
Positive
16.95
Price Trends
16.29
Positive
16.36
Positive
16.04
Positive
Market Momentum
0.27
Negative
68.09
Neutral
87.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRBA, the sentiment is Positive. The current price of 16.95 is above the 20-day moving average (MA) of 16.12, above the 50-day MA of 16.29, and above the 200-day MA of 16.04, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 68.09 is Neutral, neither overbought nor oversold. The STOCH value of 87.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRBA.
First Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $465.49M | 8.58 | 16.51% | 2.00% | 8.90% | 18.23% | |
70 Outperform | $651.30M | 9.59 | 9.79% | 2.12% | 32.03% | 170.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $428.32M | 9.53 | 2.24% | 3.76% | 23.93% | ― | |
65 Neutral | $427.54M | 9.41 | 10.03% | 1.41% | 9.76% | 4.43% | |
64 Neutral | $497.85M | 9.14 | 10.02% | 2.96% | 3.49% | 33.86% | |
54 Neutral | $514.76M | -3.72 | -21.66% | 5.87% | 12.76% | -401.62% |
* Financial Sector Average
FRBA
First Bank
16.95
3.77
28.58%
BMRC
Bank Of Marin Bancorp
26.69
7.01
35.63%
CWBC
Community West Bancshares
24.15
8.53
54.64%
CIVB
Civista Bancshares
23.93
5.05
26.73%
MSBI
Midland States Bancrop
23.71
9.50
66.80%
OBT
Orange County Bancorp
35.33
13.79
64.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.