First Bank (FRBA) AI Stock Analysis

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First Bank

(NASDAQ:FRBA)

Rating:74Outperform

Price Target:

$17.00

▲(5.72% Upside)

First Bank's overall stock score reflects strong financial performance and stable valuation, offset by technical analysis indicating bearish momentum. The earnings call's balanced sentiment also supports the score, acknowledging both growth and challenges. The stock's pricing appears attractive, with potential upside from improved market conditions.

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

Market Cap

$400.39M

Dividend Yield1.49%

Average Volume (3M)47.14K

Price to Earnings (P/E)10.5

Beta (1Y)0.74

Revenue Growth11.18%

EPS Growth24.61%

CountryUS

Employees315

SectorFinancial

Sector Strength70

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.41

Shares Outstanding25,134,403

10 Day Avg. Volume56,717

30 Day Avg. Volume47,143

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 Cap1.87

Enterprise Value/Revenue3.23

Enterprise Value/Gross Profit5.83

Enterprise Value/Ebitda13.22

Forecast

1Y Price Target

$18.00

Price Target Upside11.94% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

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: 3.61%|

Next Earnings Date:Oct 28, 2025

Earnings Call Sentiment Neutral

The earnings call showcased strong loan and deposit growth, increased net interest income, and a successful debt offering. However, challenges like an elevated loan-to-deposit ratio, rising noninterest expenses, and increased credit loss expense were noted. The sentiment appears balanced between positive financial growth and underlying challenges.

Q2-2025 Updates

Positive Updates

Strong Loan and Deposit Growth

Loans grew over $90 million, and deposits increased by $50 million during the quarter. Three-fourths of net loan growth was from strategic C&I and owner-occupied segments.

Increased Net Interest Income

Net interest income rose by $1.9 million compared to the previous quarter, marking a 6% linked quarter growth.

Improved Efficiency Ratio

The efficiency ratio improved to 56.24%, remaining below 60% for the 24th consecutive quarter.

Successful Subordinated Debt Offering

Completed a $35 million subordinated debt offering at a 7.18% interest rate, one of the lowest for a community bank this year.

Asset Quality and Profitability

Allowance to nonperforming loans coverage at 255%, well above industry average, and achieved over 1% ROA in the quarter.

Negative Updates

Elevated Loan-to-Deposit Ratio

Loan growth in excess of deposit growth pushed the loan-to-deposit ratio up to 105%.

Increased Noninterest Expenses

Noninterest expenses rose to $20.9 million, partly due to an $862,000 severance cost related to management changes.

Rising Credit Loss Expense

Credit loss expense increased to $2.6 million from $1.5 million in the previous quarter.

Decreased Lending Pipeline

Lending pipeline at the end of the second quarter was $301 million, down 8% from March 31.

Company Guidance

During the Second Quarter 2025 Earnings Call, First Bank provided guidance reflecting strong balance sheet growth, with loans increasing by $90 million and deposits by $50 million. The loan-to-deposit ratio rose to 105% due to loan growth outpacing deposits, a trend the bank plans to address in the second half of the year. Net interest income grew by $1.9 million, or 6% from the previous quarter, while pre-provision net revenue increased by $2.9 million, marking a 21% quarterly growth. The bank reported a 1.04% return on average assets, supported by a $10.2 million net income. Asset quality remained robust, with nonperforming assets declining to 40 basis points of total assets, and an allowance to nonperforming loans coverage of 255%. The bank completed a $35 million subordinated debt offering at a 7.18% interest rate, intending to pay off $30 million of older, higher-rate sub debt. Guidance for the remainder of the year includes a focus on expense management and maintaining stable margins, with potential upside expected from lowering deposit costs and replacing lower-yielding assets with higher-yielding loans.

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 Price16.08

Price Trends

50DMA

15.16

Positive

100DMA

14.72

Positive

200DMA

14.59

Positive

Market Momentum

MACD

-0.08

Positive

RSI

51.68

Neutral

STOCH

74.98

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 16.08 is above the 20-day moving average (MA) of 15.14, above the 50-day MA of 15.16, and above the 200-day MA of 14.59, indicating a bullish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 74.98 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
CIVB	78 Outperform	$395.72M	8.11	10.02%	3.25%	6.20%	18.80%
CWBC	77 Outperform	$383.38M	14.43	7.23%	2.40%	48.19%	36.25%
OBT	75 Outperform	$331.80M	9.71	13.74%	2.01%	6.60%	-16.86%
FRBA	74 Outperform	$400.39M	10.52	9.40%	1.49%	11.18%	24.61%
Sector *	68 Neutral	$17.48B	11.72	10.44%	3.82%	10.01%	1.29%
BMRC	59 Neutral	$370.88M	53.35	1.58%	4.27%	23.26%	―
MSBI	57 Neutral	$390.22M	10.95	-16.46%	6.84%	14.49%	-379.97%

* Financial Sector Average

Performance Comparison

FRBA

First Bank

16.08

1.75

12.21%

BMRC

Bank Of Marin Bancorp

23.40

5.09

27.80%

CWBC

Community West Bancshares

20.32

1.66

8.90%

CIVB

Civista Bancshares

20.61

4.93

31.44%

MSBI

Midland States Bancrop

18.18

-2.11

-10.40%

OBT

Orange County Bancorp

25.40

-2.37

-8.53%

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 05, 2025