First Bank (FRBA) AI Stock Analysis

• Market Cap: $413.96M
• Dividend Yield: 1.41%
• Average Volume (3M): 62.62K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.58
• Revenue Growth: 9.76%
• EPS Growth: 4.43%
• Country: US
• Employees: 315
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.47
• Shares Outstanding: 25,134,403
• 10 Day Avg. Volume: 92,400
• 30 Day Avg. Volume: 62,617
• PEG Ratio: 0.11
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 14.30
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: 12.76
• 1Y Price Target: $19.00
• Price Target Upside: 15.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $17.00 ▲(2.91% Upside)

First Bank's overall stock score is driven by strong earnings performance and attractive valuation, despite mixed technical indicators and financial performance. The earnings call provided positive insights into strategic execution and profitability improvements, while valuation metrics suggest the stock is undervalued. However, increased leverage and cash flow concerns slightly dampen the outlook.

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 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 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 Money

First 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 Financial Statement Overview

Summary

First Bank demonstrates solid revenue growth and operational efficiency, though profitability margins have slightly declined. The balance sheet is stable but shows increased leverage, which could be a risk factor. Cash flow performance is mixed, with a significant drop in free cash flow growth, indicating potential liquidity concerns. Overall, the company is performing well but should monitor leverage and cash flow closely.

Income Statement

First Bank shows a consistent revenue growth trajectory with a TTM revenue growth rate of 2.4%. The gross profit margin remains stable at around 55%, indicating efficient cost management. However, there is a slight decline in net profit margin from 18.4% to 16.1% in the TTM, suggesting increased expenses or competitive pressures. EBIT and EBITDA margins are healthy, though slightly reduced in the TTM, reflecting solid operational performance.

Balance Sheet

The debt-to-equity ratio increased to 0.93 in the TTM, indicating higher leverage, which could pose risks if not managed properly. Return on equity decreased to 9.3% in the TTM from 10.3%, suggesting reduced profitability on equity. The equity ratio remains stable, reflecting a balanced asset structure. Overall, the balance sheet shows stability but with increased leverage.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow growth, down by 55.3% in the TTM, which is concerning. The operating cash flow to net income ratio is low at 0.006, indicating potential cash flow challenges. However, the free cash flow to net income ratio remains strong at 0.82, suggesting that the company still generates sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	237.29M	229.44M	173.30M	112.38M	98.87M	95.55M
Gross Profit	131.20M	128.68M	95.86M	94.62M	89.88M	66.37M
EBITDA	56.55M	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	250.36M	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

• Technical Analysis Sentiment: Positive
• Last Price: 16.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 16.52 is below the 20-day moving average (MA) of 16.92, above the 50-day MA of 16.23, and above the 200-day MA of 15.46, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 52.09 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBT	80 Outperform	$388.57M	9.58	15.69%	2.00%	8.90%	18.23%
CWBC	73 Outperform	$425.55M	12.59	8.91%	2.12%	32.03%	170.90%
FRBA	70 Outperform	$413.96M	9.96	10.03%	1.41%	9.76%	4.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BMRC	67 Neutral	$415.89M	41.68	2.24%	3.76%	23.93%	―
CIVB	64 Neutral	$427.97M	8.35	9.73%	2.96%	3.49%	33.86%
MSBI	61 Neutral	$471.77M	-3.62	-17.52%	5.87%	12.76%	-401.62%