First Bank (FRBA) AI Stock Analysis

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First Bank

(NASDAQ:FRBA)

Rating:80Outperform

Price Target:

$19.00

▲(12.29% Upside)

First Bank's overall stock score is driven by its strong financial performance and attractive valuation. The technical indicators suggest positive momentum, although the stock appears overbought. The earnings call provided a balanced view with notable growth and strategic initiatives, despite some operational challenges.

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

Market Cap

$427.03M

Dividend Yield1.43%

Average Volume (3M)49.37K

Price to Earnings (P/E)11.1

Beta (1Y)0.75

Revenue Growth11.18%

EPS Growth24.61%

CountryUS

Employees315

SectorFinancial

Sector Strength77

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.41

Shares Outstanding25,134,403

10 Day Avg. Volume49,773

30 Day Avg. Volume49,369

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.75

Enterprise Value/Revenue3.23

Enterprise Value/Gross Profit5.83

Enterprise Value/Ebitda13.22

Forecast

1Y Price Target

$18.50

Price Target Upside9.34% 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:Jul 22, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 28, 2025

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 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 Price16.92

Price Trends

50DMA

15.72

Positive

100DMA

15.07

Positive

200DMA

14.76

Positive

Market Momentum

MACD

0.41

Negative

RSI

73.64

Negative

STOCH

88.99

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 16.92 is above the 20-day moving average (MA) of 16.16, above the 50-day MA of 15.72, and above the 200-day MA of 14.76, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 73.64 is Negative, neither overbought nor oversold. The STOCH value of 88.99 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRBA	80 Outperform	$427.03M	11.06	9.40%	1.43%	11.18%	24.61%
CWBC	77 Outperform	$404.99M	15.09	7.23%	2.27%	48.19%	36.25%
OBT	77 Outperform	$360.13M	10.32	13.74%	1.87%	6.60%	-16.86%
CIVB	76 Outperform	$409.24M	8.21	10.02%	3.19%	6.20%	18.80%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
BMRC	64 Neutral	$400.88M	56.00	1.58%	4.02%	23.26%	―
MSBI	60 Neutral	$402.06M	10.95	-16.46%	6.89%	14.49%	-379.97%

* Financial Sector Average

Performance Comparison

FRBA

First Bank

16.92

2.42

16.69%

BMRC

Bank Of Marin Bancorp

24.79

4.78

23.89%

CWBC

Community West Bancshares

21.22

1.77

9.10%

CIVB

Civista Bancshares

21.02

4.90

30.40%

MSBI

Midland States Bancrop

18.14

-2.57

-12.41%

OBT

Orange County Bancorp

26.75

-0.73

-2.66%

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: Aug 23, 2025