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First Bank (FRBA)
NASDAQ:FRBA
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First Bank
(NASDAQ:FRBA)
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Rating:67Neutral
Price Target:
$16.50
▲(6.25% Upside)
First Bank's overall stock score reflects solid financial performance and attractive valuation, offset by bearish technical indicators and challenges highlighted in the earnings call. The company's strategic initiatives and strong loan and deposit growth are positive, but increased leverage and liquidity concerns warrant caution.
First Bank (FRBA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$388.58M
Dividend Yield1.55%
Average Volume (3M)51.39K
Price to Earnings (P/E)9.9
Beta (1Y)0.73
Revenue Growth11.18%
EPS Growth24.61%
CountryUS
Employees315
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)N/A
Shares Outstanding25,134,403
10 Day Avg. Volume44,334
30 Day Avg. Volume51,386
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 Cap1.92
Enterprise Value/Revenue3.15
Enterprise Value/Gross Profit5.70
Enterprise Value/Ebitda13.48
Forecast
1Y Price Target
$18.50Price Target Upside19.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
First Bank Business Overview & Revenue Model
Company DescriptionFirst Bank (FRBA) is a community bank headquartered in the United States, primarily serving the local markets through a range of financial products and services. The bank operates in the retail banking sector, focusing on personal banking, business banking, and wealth management services. Core offerings include savings and checking accounts, loans (such as mortgages, auto loans, and small business loans), and investment services, aimed at catering to both individual and commercial customers.
How the Company Makes MoneyFirst Bank generates revenue through various channels primarily centered around interest income and fee-based services. The bank earns interest income by lending money to consumers and businesses at rates higher than the interest it pays on deposits. Key revenue streams include mortgage loans, personal loans, and commercial loans, which typically have longer repayment terms and higher interest rates. Additionally, First Bank collects fees from account maintenance, overdrafts, ATM usage, and transaction services. Strategic partnerships with local businesses and financial technology firms also enhance its service offerings and customer base, contributing to overall earnings.
First Bank Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view. While there were strong growth metrics in loans, deposits, and net interest income, challenges such as elevated noninterest expenses and a high loan-to-deposit ratio persisted.Q2-2025 Updates
Positive Updates
Strong Loan and Deposit Growth
Loans grew over $90 million during the quarter, and deposits increased by $50 million. The growth was primarily in the C&I and owner-occupied segments.
Net Interest Income and Profitability
Net interest income was up $1.9 million compared to the first quarter, marking a 6% linked quarter growth. Pre-provision net revenue also increased by $2.9 million, a 21% linked quarter growth.
Successful Subordinated Debt Offering
Completed a $35 million subordinated debt offering at a 7.18% interest rate, one of the lowest coupons for a community bank this year.
Asset Quality and Coverage
Allowance to nonperforming loans sits at 255% coverage, which is well above the industry average. NPAs to total assets declined from 42 to 40 basis points.
Negative Updates
Elevated Noninterest Expenses
Noninterest expenses were $20.9 million for the second quarter, up from $20.4 million in Q1, mainly due to executive severance payments.
Loan-to-Deposit Ratio Concerns
Loan-to-deposit ratio increased to 105%, which the bank aims to move lower in the back half of the year.
Impact of Sub Debt on Q3 Results
The $30 million in sub debt issued in 2020 will impact Q3 results due to extra interest expense.
Credit Loss Expense Increase
Recorded a $2.6 million credit loss expense during the quarter, up from $1.5 million in the first quarter.
Company Guidance
During the Second Quarter 2025 Earnings Call, First Bank reported robust financial growth and strategic developments. Loans increased by over $90 million, primarily driven by the strategic Commercial & Industrial (C&I) and owner-occupied segments, while deposits grew by $50 million, with a significant contribution from noninterest-bearing deposits. The loan-to-deposit ratio rose to 105%, prompting a focus on lowering it in the year's second half. Net interest income rose by $1.9 million, a 6% increase from the previous quarter, while pre-provision net revenue saw a 21% rise, amounting to $2.9 million. The bank achieved a 1.65% annualized return on assets, with credit quality remaining strong, as evidenced by a 255% allowance to nonperforming loans coverage. Despite some noncore items, including a $397,000 gain from a property sale and $862,000 in severance costs, the bank maintained robust profitability with a return on assets exceeding 1%. Looking forward, First Bank aims to leverage its newer business units, contain expenses, and capitalize on a successful $35 million subordinated debt offering at a 7.18% interest rate, one of the year's lowest for community banks.First Bank Financial Statement Overview
Summary
First Bank demonstrates strong financial health with consistent revenue and profit growth, manageable debt levels, and solid cash flow generation. While there is some pressure on margins, the bank's growth trajectory remains positive, supported by a robust balance sheet and efficient cash management.Income Statement
First Bank has shown strong revenue growth with a consistent rise in total revenue from $95.55 million in 2020 to $231.67 million TTM. The gross profit margin remains healthy at approximately 55.4% TTM. The net profit margin is solid at 16.9% TTM, indicating efficient cost management. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, suggesting increased operational costs.75
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.75, indicating manageable leverage. The equity ratio stands at 10.7%, showing a stable equity base. Return on equity is robust at 9.4% TTM, but there is room for improvement. The growth in total assets over the years demonstrates expanding operations.70
Positive
Cash Flow
First Bank's cash flow performance is commendable with a growing free cash flow from $24.15 million in 2020 to $34.58 million TTM. The operating cash flow to net income ratio is 0.96, suggesting strong cash generation relative to earnings. The free cash flow to net income ratio is 0.88, reflecting good conversion of earnings into free cash flow, although there is a notable increase in investing cash outflows.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 237.22M | 229.44M | 173.30M | 112.38M | 98.87M | 95.55M |
| Gross Profit | 131.20M | 128.68M | 95.86M | 94.62M | 89.64M | 66.37M |
| EBITDA | 55.48M | 59.47M | 30.01M | 49.44M | 48.30M | 27.86M |
| Net Income | 38.28M | 42.24M | 20.90M | 36.29M | 35.43M | 19.45M |
Balance Sheet | ||||||
| Total Assets | 4.02B | 3.78B | 3.61B | 2.73B | 2.52B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 407.19M | 326.07M | 309.32M | 212.59M | 251.26M | 161.57M |
| Total Debt | 391.14M | 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 | 422.38M | 409.16M | 370.90M | 289.56M | 266.67M | 238.11M |
Cash Flow | ||||||
| Free Cash Flow | 15.45M | 24.72M | 140.72M | 34.97M | 27.85M | 24.15M |
| Operating Cash Flow | 18.87M | 27.63M | 143.84M | 36.88M | 28.04M | 24.51M |
| Investing Cash Flow | -276.26M | -107.20M | 20.33M | -233.07M | 7.04M | -327.18M |
| Financing Cash Flow | 361.52M | 123.53M | -62.13M | 167.60M | 23.95M | 316.36M |
First Bank Technical Analysis
Neutral
15.53
Price Trends
16.19
Negative
15.68
Negative
15.04
Positive
Market Momentum
-0.26
Positive
44.93
Neutral
39.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRBA, the sentiment is Neutral. The current price of 15.53 is below the 20-day moving average (MA) of 15.75, below the 50-day MA of 16.19, and above the 200-day MA of 15.04, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 39.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $404.03M | 7.90 | 10.02% | 3.20% | 6.20% | 18.80% | |
71 Outperform | $402.31M | 11.62 | 8.91% | 2.28% | 32.03% | 170.90% | |
70 Outperform | $323.78M | 9.47 | 13.74% | 2.13% | 6.60% | -16.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $388.58M | 9.94 | 9.40% | 1.55% | 11.18% | 24.61% | |
62 Neutral | $375.72M | 52.68 | 1.58% | 4.25% | 23.26% | ― | |
55 Neutral | $341.03M | 10.95 | -16.48% | 7.54% | 14.49% | -380.35% |
* Financial Sector Average
FRBA
First Bank
15.53
0.80
5.43%
BMRC
Bank Of Marin Bancorp
23.52
2.70
12.97%
CWBC
Community West Bancshares
21.05
2.82
15.47%
CIVB
Civista Bancshares
20.78
3.14
17.80%
MSBI
Midland States Bancrop
16.58
-5.22
-23.94%
OBT
Orange County Bancorp
24.39
-2.75
-10.13%
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.