First Bank (FRBA) AI Stock Analysis

• Market Cap: $396.87M
• Dividend Yield: 1.52%
• Average Volume (3M): 45.68K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.68
• 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: 43,749
• 30 Day Avg. Volume: 45,678
• 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: 1.79
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 5.41
• Enterprise Value/Ebitda: 12.55
• 1Y Price Target: $19.00
• Price Target Upside: 20.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.69
• Revenue Forecast (FY): $144.23M

• Rating: 70 Outperform
• Price Target: $17.00 ▲(7.87% 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.

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 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 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.

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	237.22M	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	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	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

• Technical Analysis Sentiment: Positive
• Last Price: 15.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 15.76 is above the 20-day moving average (MA) of 15.56, below the 50-day MA of 16.01, and above the 200-day MA of 15.14, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 57.08 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
CWBC	71 Outperform	$404.42M	11.87	8.91%	2.24%	32.03%	170.90%
FRBA	70 Outperform	$396.87M	9.50	10.03%	1.52%	9.76%	4.43%
OBT	70 Outperform	$335.41M	8.30	15.69%	2.02%	8.90%	18.23%
BMRC	70 Neutral	$420.06M	42.24	2.24%	3.79%	23.93%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CIVB	63 Neutral	$420.25M	8.13	9.73%	3.11%	3.49%	33.86%
MSBI	55 Neutral	$348.36M	-2.68	-17.50%	7.73%	12.76%	-401.34%

First Bank Corporate Events

First Bank Reports Strong Q3 2025 Earnings Growth

First Bank is a New Jersey state-chartered bank operating primarily in the New York to Philadelphia corridor, with a branch in Florida, offering a range of deposit and loan products. In the third quarter of 2025, First Bank reported a net income of $11.7 million, a significant increase from the $8.2 million reported in the same quarter of 2024, driven by strong net interest margin and operating efficiency. Key financial highlights include a 5.6% annualized growth in total loans to $3.37 billion and a 6.9% annualized increase in total deposits to $3.22 billion. The net interest margin improved to 3.71%, and the efficiency ratio decreased to 51.81%, indicating improved operational efficiency. The bank also reported a tangible book value per share increase to $15.33, reflecting a 12.4% annualized growth. Looking forward, First Bank anticipates continued balance sheet growth and plans to enhance shareholder returns through strategic capital management initiatives.

First Bank Reports Strong Earnings Amid Challenges

First Bank’s recent earnings call painted a picture of robust financial health, underscored by significant growth in net interest income, profitability, and loan and deposit expansion. Despite encountering challenges in the small business segment, increased charge-offs, and higher subordinated debt expenses, the overall sentiment was positive, reflecting solid strategic execution.