First Bank (FRBA) AI Stock Analysis

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First Bank

(NASDAQ:FRBA)

Rating:79Outperform

Price Target:

$18.50

▲(19.12%Upside)

The overall stock score for First Bank is 78.8, driven primarily by strong financial performance and solid valuation. Technical indicators suggest a positive trend, though caution is advised due to overbought conditions. The earnings call highlighted both growth and challenges, contributing to a mixed but slightly positive outlook.

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

Market Cap

$390.59M

Dividend Yield1.55%

Average Volume (3M)48.59K

Price to Earnings (P/E)10.1

Beta (1Y)0.74

Revenue Growth18.63%

EPS Growth37.17%

CountryUS

Employees315

SectorFinancial

Sector Strength78

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.41

Shares Outstanding25,134,403

10 Day Avg. Volume44,753

30 Day Avg. Volume48,592

Financial Highlights & Ratios

PEG Ratio-1.20

Price to Book (P/B)0.88

Price to Sales (P/S)0.00

P/FCF Ratio10.60

Enterprise Value/Market Cap1.03

Enterprise Value/Revenue0.45

Enterprise Value/Gross Profit3.13

Enterprise Value/Ebitda1.88

Forecast

1Y Price Target

$17.00

Price Target Upside9.47% 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 primarily through interest income from loans and mortgages offered to customers, as well as from fees associated with its various banking services. The bank earns interest by lending out deposits from customers at higher interest rates than it pays on those deposits. Additionally, First Bank earns non-interest income from service charges, account maintenance fees, and transaction fees. Wealth management and investment products also contribute to its revenue stream, as the bank charges fees for managing assets and providing financial advice. Strategic partnerships with financial technology companies and other financial institutions may also enhance its service offerings and revenue potential.

First Bank Earnings Call Summary

Earnings Call Date:Jul 22, 2025

(Q1-2025)

% Change Since: -0.32%|

Next Earnings Date:Oct 28, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment. While the bank demonstrated strong loan and deposit growth, improved net interest margin, and efficient cost management, challenges such as the OREO asset write-down and increased provisions for credit losses impacted profitability. However, the overall sentiment is slightly positive due to strong asset quality and shareholder value enhancement.

Q1-2025 Updates

Positive Updates

Strong Loan Growth

Loans grew by $92 million in the first quarter, with a 12% annualized growth rate, primarily driven by asset-based lending, private equity, and community bank C&I lending.

Improved Net Interest Margin

Net interest margin increased by 11 basis points to 3.65%, supported by a reduction in deposit costs and strategic loan growth.

Efficient Cost Management

The efficiency ratio remained below 60% for the 23rd consecutive quarter, indicating strong cost management.

Successful Deposit Growth

Deposits grew by $64 million or 8% annualized, with non-interest bearing customer deposits increasing by $16 million.

Strong Asset Quality

NPAs to total assets declined to 0.42%, and the allowance for credit losses to total loans increased slightly to 1.21%.

Shareholder Value Enhancement

Continued buyback program and stable cash dividend, contributing to an 8% annualized growth in tangible book value per share.

Negative Updates

OREO Asset Write-Down

An $815,000 write-down on a New York City OREO asset negatively impacted quarterly profitability.

Higher Provision for Credit Losses

A $1.5 million credit loss expense was recorded in the current quarter, up from $234,000 in the previous quarter due to high loan growth.

Increased Non-Interest Expenses

Non-interest expenses rose to $20.4 million, up from $19.1 million in the previous quarter, driven by higher salaries, employee benefits, and occupancy costs.

Company Guidance

In First Bank's first quarter 2025 earnings call, the company reported a 12% annualized growth in loans, with a $92 million increase, while deposits grew $64 million or 8.5% annualized. The net interest margin improved by 11 basis points to 3.65%, aided by a 14 basis point reduction in deposit costs. The bank's return on average assets was 1%, and the return on tangible common equity exceeded 10%. A write-down of $815,000 in New York City OREO assets impacted profitability, with net income recorded at $9.4 million or $0.37 per diluted share. Excluding this write-down, EPS would have been $0.40. The efficiency ratio was maintained below 60% for the 23rd consecutive quarter, and non-interest expenses rose to $20.4 million, including higher payroll taxes and branch expansion costs. The allowance for credit losses increased slightly to 1.21% of total loans. Despite challenges, the bank remains optimistic about growth, supported by new branches and customer relationship management initiatives.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.67M	229.44M	173.30M	112.38M	98.87M	95.55M
Gross Profit	128.28M	128.68M	95.86M	94.62M	89.64M	66.37M
EBITDA	56.58M	59.47M	30.01M	49.44M	48.30M	27.86M
Net Income	39.11M	42.24M	20.90M	36.29M	35.43M	19.45M
Balance Sheet
Total Assets	3.88B	3.78B	3.61B	2.73B	2.51B	2.35B
Cash, Cash Equivalents and Short-Term Investments	351.25M	326.07M	309.32M	212.59M	251.26M	161.57M
Total Debt	311.85M	276.89M	234.40M	120.66M	124.90M	190.64M
Total Liabilities	3.47B	3.37B	3.24B	2.44B	2.24B	2.11B
Stockholders Equity	414.92M	409.16M	370.90M	289.56M	266.67M	238.11M
Cash Flow
Free Cash Flow	34.58M	24.72M	140.72M	34.97M	27.85M	24.15M
Operating Cash Flow	37.69M	27.63M	143.84M	36.88M	28.04M	24.51M
Investing Cash Flow	-227.08M	-107.20M	20.33M	-233.07M	7.04M	-327.18M
Financing Cash Flow	248.51M	123.53M	-62.13M	167.60M	23.95M	316.36M

First Bank Technical Analysis

Technical Analysis Sentiment

Positive

Last Price15.53

Price Trends

50DMA

15.15

Positive

100DMA

14.73

Positive

200DMA

14.61

Positive

Market Momentum

MACD

0.16

Positive

RSI

51.16

Neutral

STOCH

35.94

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 15.53 is below the 20-day moving average (MA) of 15.69, above the 50-day MA of 15.15, and above the 200-day MA of 14.61, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 35.94 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBT	79 Outperform	$373.99M	11.83	14.76%	2.19%	6.08%	-23.52%
FRBA	79 Outperform	$390.59M	10.05	9.81%	1.55%	18.63%	37.17%
CWBC	76 Outperform	$389.80M	14.74	7.23%	2.85%	48.19%	36.25%
CIVB	73 Outperform	$401.10M	9.41	9.07%	3.86%	9.51%	-2.12%
Sector *	68 Neutral	$16.89B	11.69	9.78%	3.90%	11.76%	-7.55%
BMRC	66 Neutral	$403.78M	―	-1.47%	5.03%	-15.92%	-147.11%
MSBI	58 Neutral	$397.60M	13.60	5.03%	6.69%	14.75%	-48.47%

* Financial Sector Average

Performance Comparison

FRBA

First Bank

15.58

0.89

6.06%

BMRC

Bank Of Marin Bancorp

24.87

4.37

21.32%

CWBC

Community West Bancshares

21.07

0.03

0.14%

CIVB

Civista Bancshares

21.27

3.85

22.10%

MSBI

Midland States Bancrop

18.49

-6.04

-24.62%

OBT

Orange County Bancorp

28.07

-1.60

-5.39%

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.Date of analysis: Jul 03, 2025