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First Bank (FRBA)
NASDAQ:FRBA
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First Bank
(NASDAQ:FRBA)
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Rating:72Outperform
Price Target:
$18.50
▲(9.21% Upside)
Overall score is driven by solid underlying financial performance and an attractive valuation (low P/E), supported by generally constructive earnings-call guidance and capital return actions. Offsetting factors are credit-risk pressure highlighted on the call (small business charge-offs/reserves and a large downgrade) and only neutral technical momentum.
Positive Factors
Net Interest Income Growth
The increase in net interest income and margin expansion indicates strong core banking operations, enhancing profitability and financial stability.
Loan and Deposit Growth
Robust loan and deposit growth reflects strong customer demand and market position, supporting future revenue and interest income.
Credit Quality Improvement
Improved credit quality reduces risk and enhances the bank's ability to manage economic downturns, ensuring long-term financial health.
Negative Factors
Increased Leverage
Higher leverage can strain financial flexibility and increase risk, potentially impacting the bank's ability to withstand economic stress.
Cash Flow Challenges
Significant decline in free cash flow growth suggests liquidity issues, which could affect the bank's ability to fund operations and growth.
Small Business Segment Weakness
Weakness in the small business segment could lead to increased charge-offs and affect profitability, highlighting a potential area of concern.
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)9.7
Beta (1Y)0.57
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 Ratio0.11
Price to Book (P/B)0.86
Price to Sales (P/S)1.54
P/FCF Ratio14.30
Enterprise Value/Market Cap1.63
Enterprise Value/Revenue2.88
Enterprise Value/Gross Profit5.17
Enterprise Value/Ebitda11.77
Forecast
1Y Price Target
$20.00Price Target Upside18.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 primarily through interest income from loans, including personal, business, and mortgage loans. This interest income is earned as borrowers repay their loans over time, typically at higher rates than the interest paid to depositors. Additionally, the bank earns non-interest income through various fees associated with account maintenance, ATM transactions, overdrafts, and other banking services. Strategic partnerships with local businesses and community organizations further enhance revenue opportunities through referral programs and co-branded financial products. The bank also benefits from investment income derived from its securities portfolio, which includes government and corporate bonds.
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.Q4-2025 Updates
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.
Improved Profitability Metrics
Q4 net income of $12.3 million ($0.49 diluted EPS); return on average assets 1.21% vs 1.10% in prior-year Q4; return on tangible common equity 12.58% vs 11.82% in prior-year Q4.
Loan Growth and Production Activity
Loans up $149 million (~5%) year-over-year despite heavy Q4 payoffs; average loan growth for the year was $267 million and new loans funded during the year totaled $429 million.
Improving Efficiency and Capital Returns
Efficiency ratio improved to 49.46% and remained below 60% for the 26th consecutive quarter; tangible book value per share rose more than 12% annualized to $15.81; quarterly cash dividend increased 50% and a share repurchase plan approved (up to 1.2 million shares / $20 million).
Noninterest Income and SBA Gains
Total fee income increased by almost $2.0 million year-over-year; gains from SBA loan sales were higher in 2025 and technology/staff enhancements should support continued SBA performance improvement.
Deposit Mix Optimization
Management reduced higher-cost deposits (brokered deposits declined $27.1 million in Q4), reduced time deposits by $38 million (18% annualized) and lowered money market/savings by $23.5 million (8% annualized), while relationship-based interest-bearing demand deposits grew $47 million (33% annualized vs Sept 30).
CRE & Community Banking Credit Strength
Core commercial real estate (CRE) portfolio credit metrics improved during the year with CRE delinquency at a very low 0.02% and overall criticized loans (past watch/special mention/substandard) declined from 4.86% of total loans at end of 2024 to 4.20% at end of 2025.
Expense Management and One-Time Gains
Noninterest expense to average assets fell to 1.97% for 2025 vs 2.01% in 2024; Q4 noninterest expenses benefited from a $1.9 million gain on the sale of an OREO asset (zero carrying value) and lower bonus accruals, helping manage expense ratios.
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.
Specific Large Downgrade to Substandard
One $23 million C&I loan was downgraded to substandard late in the year, driving an increase in the substandard loan category and requiring elevated specific reserves.
Elevated Quarterly Payoffs & Q4 Loan Decline
Q4 payoffs totaled $135 million (nearly as much as first three quarters combined), causing total loans to decline about $81 million from Q3 despite +$149 million YoY growth; six of the ten largest payoffs occurred in Q4 and contributed to slowdown in net loan growth for the quarter.
Deposit Balances Declined Quarter-over-Quarter
Total deposits decreased $21 million in the quarter as management allowed higher-cost balances to roll off (including a $27.1 million decline in brokered deposits); deposit runoff required active deposit optimization to preserve margins.
Rising Credit Reserves and NPAs
Allowance for credit losses to total loans increased to 1.38% (from 1.25% at Sept 30) reflecting Q4 charge-offs and elevated specific reserves in small business; NPAs to total assets rose to 0.46% from 0.36% at Sept 30.
Muted Residential Mortgage Fee Income
Fee income from residential mortgage sales remained muted due to a slow mortgage market, limiting noninterest income diversification potential.
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
Solid profitability and scale with steady ~10% ROE and improving equity base, but tempered by margin compression versus 2021–2022 and uneven operating cash flow consistency despite decent TTM cash conversion.Income Statement
FRBA shows a solid earnings profile in TTM (Trailing-Twelve-Months) with revenue of ~$242.2M and net income of ~$41.8M. Profitability is healthy for the recent period (net margin ~17.6%, operating margin ~23.1%), and revenue growth is strong in TTM (~2.09). However, profitability has compressed versus earlier years (notably 2021–2022 margins were materially higher), and net income is roughly flat from 2024 (~$42.2M) despite higher revenue—suggesting weaker incremental profitability and/or a less favorable operating environment.78
Positive
Balance Sheet
The balance sheet appears reasonably positioned with equity rising over time (~$289.6M in 2022 to ~$431.9M in TTM) and a moderate leverage profile for the period (debt-to-equity ~0.61 in TTM, improved from ~0.68 in 2024). Returns on equity are steady around ~10% in 2024 and TTM, indicating consistent profitability relative to capital. Key watchouts are the upward trend in absolute debt (to ~$336.1M TTM) and the large asset base (~$4.03B) relative to equity, which can amplify results in either direction if credit quality or funding conditions weaken.72
Positive
Cash Flow
Cash generation is positive but more volatile than earnings. TTM operating cash flow is ~$37.5M with free cash flow ~$33.6M, and free cash flow tracks net income well (free cash flow is ~89.5% of net income in TTM). Free cash flow growth is exceptionally strong in TTM (~117%), rebounding from a slight decline in 2024. The main weakness is inconsistency in operating cash flow across years (e.g., very high in 2023 vs. much lower in 2024 and TTM), which reduces confidence in near-term cash-flow stability even though overall conversion from earnings remains decent.66
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 242.24M | 229.44M | 173.30M | 112.38M | 98.87M | 95.55M |
| Gross Profit | 135.18M | 128.68M | 95.86M | 94.62M | 89.88M | 66.37M |
| EBITDA | 59.37M | 59.47M | 30.01M | 49.44M | 48.30M | 27.86M |
| Net Income | 41.83M | 42.24M | 20.90M | 36.29M | 35.43M | 19.45M |
Balance Sheet | ||||||
| Total Assets | 4.03B | 3.78B | 3.61B | 2.73B | 2.52B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 387.42M | 326.07M | 309.32M | 212.59M | 250.36M | 161.57M |
| Total Debt | 336.09M | 276.89M | 234.40M | 120.66M | 124.90M | 190.64M |
| Total Liabilities | 3.60B | 3.37B | 3.24B | 2.44B | 2.26B | 2.11B |
| Stockholders Equity | 431.88M | 409.16M | 370.90M | 289.56M | 266.67M | 238.11M |
Cash Flow | ||||||
| Free Cash Flow | 33.58M | 24.72M | 140.72M | 34.97M | 27.85M | 24.15M |
| Operating Cash Flow | 37.51M | 27.63M | 143.84M | 36.88M | 28.04M | 24.51M |
| Investing Cash Flow | -258.46M | -107.20M | 20.33M | -233.07M | 7.04M | -327.18M |
| Financing Cash Flow | 227.53M | 123.53M | -62.13M | 167.60M | 23.95M | 316.36M |
First Bank Technical Analysis
Positive
16.94
Price Trends
16.62
Positive
16.20
Positive
15.70
Positive
Market Momentum
0.05
Positive
54.90
Neutral
53.14
Neutral
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 16.94 is above the 20-day moving average (MA) of 16.77, above the 50-day MA of 16.62, and above the 200-day MA of 15.70, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 53.14 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $435.22M | 10.61 | 15.69% | 2.00% | 8.90% | 18.23% | |
74 Outperform | $483.61M | 12.52 | 8.91% | 2.12% | 32.03% | 170.90% | |
72 Outperform | $427.54M | 9.74 | 10.03% | 1.41% | 9.76% | 4.43% | |
70 Outperform | $443.89M | -12.29 | 2.24% | 3.76% | 23.93% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $516.59M | -3.91 | -17.52% | 5.87% | 12.76% | -401.62% | |
60 Neutral | $478.57M | 9.30 | 9.73% | 2.96% | 3.49% | 33.86% |
* Financial Sector Average
FRBA
First Bank
17.01
1.87
12.35%
BMRC
Bank Of Marin Bancorp
27.58
2.73
10.99%
CWBC
Community West Bancshares
25.24
6.31
33.33%
CIVB
Civista Bancshares
24.78
4.07
19.65%
MSBI
Midland States Bancrop
23.97
5.92
32.80%
OBT
Orange County Bancorp
32.56
5.86
21.95%
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.