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First Bank (FRBA)
NASDAQ:FRBA
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First Bank
(NASDAQ:FRBA)
77Outperform
First Bank (FRBA) vs. S&P 500 (SPY)
Market Cap
$372.99M
Dividend Yield1.62%
Average Volume (3M)50.56K
Price to Earnings (P/E)8.9
Beta (1Y)0.79
Revenue Growth31.85%
EPS Growth69.42%
CountryUS
Employees286
SectorFinancial
Sector Strength84
IndustryBanking
Share Statistics
EPS (TTM)1.67
Shares Outstanding25,134,403
10 Day Avg. Volume53,875
30 Day Avg. Volume50,560
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)N/A
Price to Sales (P/S)2.83
Price to Cash Flow (P/CF)-2.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.00Price Target Upside14.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
First Bank Business Overview & Revenue Model
Company DescriptionFirst Bank (FRBA) is a regional bank that provides a range of financial products and services to individuals, businesses, and public entities. The bank operates primarily in the retail and commercial banking sectors, offering services such as personal and business checking and savings accounts, loans, mortgages, and investment services. With a focus on community engagement and personalized customer service, First Bank aims to meet the banking needs of its local communities.
How the Company Makes MoneyFirst Bank generates revenue through interest income from loans and mortgages, which is a primary source of earnings. The bank also earns money from fees associated with various banking services, including account maintenance fees, transaction fees, and service charges. Additionally, First Bank benefits from non-interest income streams such as investment advisory services, insurance products, and wealth management services. The bank's financial performance may also be influenced by its strategic partnerships with other financial institutions and its ability to manage operational costs effectively.
First Bank Financial Statement Overview
Summary
First Bank presents a solid overall financial standing with strengths in profitability and cash flow generation. The income statement reflects significant revenue growth and profitability, while the balance sheet maintains a healthy leverage level. Cash flow metrics indicate effective management and conversion of profits into cash, supporting future growth and stability. While some improvement in equity ratios could enhance the financial position further, the overall analysis reveals a well-managed financial structure with strong growth prospects.Income Statement
First Bank shows a strong income statement with consistent revenue growth and improving profitability. The most recent TTM data indicates a gross profit margin of 126.16% and a net profit margin of 20.66%, which are exceptional for the banking industry. The EBIT margin stands at 44.73%, demonstrating effective cost management. However, the EBITDA margin is notably lower at 21.54%, suggesting some depreciation or amortization impacts. Overall, the income statement reflects a robust financial performance with solid growth trends.78
Positive
Balance Sheet
The balance sheet of First Bank reveals a strong equity position with a debt-to-equity ratio of 0.66, indicating a moderate level of leverage. The return on equity (ROE) is impressive at 9.98%, showcasing efficient use of equity to generate profits. The equity ratio is 10.70%, suggesting a stable capital structure, though slightly lower than optimal for the banking sector. Overall, the balance sheet demonstrates financial stability with manageable debt levels, although there is room for improvement in equity positioning.72
Positive
Cash Flow
First Bank's cash flow statement reflects a healthy cash generation capability. The operating cash flow to net income ratio is 1.15, indicating strong cash conversion from profits. The free cash flow to net income ratio is an impressive 1.10, showing efficient capital expenditure management. The free cash flow growth rate has been positive, suggesting robust cash flow generation capabilities. These metrics highlight a strong cash flow position with effective cash management strategies.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 124.08M | 103.80M | 97.49M | 89.64M | 75.91M | 62.36M | Gross Profit |
| 124.08M | 103.80M | 97.49M | 89.64M | 75.91M | 62.36M | EBIT |
| 52.08M | 43.15M | 62.78M | 46.72M | 25.98M | 19.01M | EBITDA |
| 56.40M | 46.00M | 49.44M | 48.30M | 27.86M | 20.68M | Net Income Common Stockholders |
| 40.13M | 20.90M | 36.29M | 35.43M | 19.45M | 13.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| -39.42M | 215.18M | 212.59M | 251.26M | 161.57M | 95.34M | Total Assets |
| 3.61B | 3.61B | 2.73B | 2.51B | 2.35B | 2.01B | Total Debt |
| 245.00M | 234.40M | 120.66M | 111.45M | 190.64M | 127.44M | Net Debt |
| 29.82M | 19.22M | 7.03M | -45.22M | 90.80M | 79.56M | Total Liabilities |
| 3.24B | 3.24B | 2.44B | 2.24B | 2.11B | 1.79B | Stockholders Equity |
| 370.90M | 370.90M | 289.56M | 266.67M | 238.11M | 226.39M |
| Cash Flow | Free Cash Flow | ||||
| 44.20M | 140.72M | 34.97M | 27.85M | 24.15M | 19.78M | Operating Cash Flow |
| 46.28M | 143.84M | 36.88M | 28.04M | 24.51M | 20.81M | Investing Cash Flow |
| -69.25M | 20.33M | -233.07M | 7.04M | -327.18M | -81.17M | Financing Cash Flow |
| 155.05M | -62.13M | 167.60M | 23.95M | 316.36M | 86.73M |
First Bank Technical Analysis
Negative
14.83
Price Trends
14.84
Negative
14.60
Positive
14.35
Positive
Market Momentum
-0.03
Positive
46.25
Neutral
60.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRBA, the sentiment is Negative. The current price of 14.83 is below the 20-day moving average (MA) of 14.85, below the 50-day MA of 14.84, and above the 200-day MA of 14.35, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRBA.
First Bank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $372.99M | 8.88 | 10.83% | 1.62% | 31.85% | 69.42% | |
74 Outperform | $585.05M | 11.99 | 7.39% | 4.67% | 6.97% | -16.70% | |
67 Neutral | $473.53M | 9.46 | 9.17% | 3.16% | 11.48% | -6.49% | |
65 Neutral | $227.62M | 9.58 | 11.53% | 2.61% | 9.39% | -6.09% | |
64 Neutral | $14.59B | 10.31 | 8.70% | 4.21% | 16.52% | -11.97% | |
61 Neutral | $927.27M | 12.94 | 10.25% | 3.83% | 41.65% | 668.73% |
* Financial Sector Average
Performance Comparison
FRBA
First Bank
14.83
1.32
9.77%
CCNE
Cnb Financial
22.83
3.05
15.42%
TMP
Tompkins Financial Corporation
64.60
16.34
33.86%
TRST
TrustCo Bank
30.97
4.06
15.09%
CHMG
Chemung Financial
47.32
5.95
14.38%
First Bank Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: 6.77% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment with strong financial performance, loan and deposit growth, and improved net interest margin outweighing the minor concerns about noninterest income and expenses.Highlights
Strong Annual Financial Performance
First Bank earned $42.2 million or $1.67 per diluted share in 2024, representing a 13% annualized increase in core EPS over the last 10 years. Tangible book value also more than doubled in the same period.
Loan Portfolio Growth
Loans were up over 7% annualized from the third quarter, with a year-over-year growth of $123 million or 4%. This growth was driven by commercial and industrial and owner-occupied commercial real estate loans.
Improved Net Interest Margin
Net interest margin increased to 3.54% in the fourth quarter from 3.48% in the prior quarter, with interest-bearing deposit costs declining by 20 basis points.
Successful Deposit Growth
Total deposits grew by $88.3 million or 3% from the end of 2023, driven by new deposit relationships and retaining existing balances.
High Coverage Ratio for Nonperforming Loans
Allowance for credit loss to total loans stands at a 323% coverage ratio for nonperforming loans, the highest in the local peer bank survey.
Lowlights
Decline in Noninterest Income
Noninterest income totaled $2.2 million in Q4 2024 compared to $2.5 million in Q3 2024, with no significant increase expected as 2025 begins.
Increased Noninterest Expenses
Noninterest expenses rose to $19.1 million in the fourth quarter from $18.6 million in Q3 2024, primarily due to an increase in salaries, benefits, and occupancy costs.
Company Guidance
During the Fourth Quarter 2024 Earnings Call for First Bank, executives provided comprehensive guidance on the bank's financial performance and future outlook. The bank reported a net income of $10.5 million, or $0.41 per diluted share, with a return on average assets (ROAA) of 1.10%, an improvement from prior periods. The bank's loan portfolio grew by 7% on an annualized basis, with commercial and industrial (C&I) and owner-occupied commercial real estate loans driving this growth. The net interest margin increased to 3.54%, supported by a reduction in deposit and borrowing costs. The bank's efficiency ratio improved to 57%, and tangible book value per share expanded by 10% annualized from Q3 2024. First Bank's strategic initiatives, including its Banking as a Service unit and new fintech partnerships, are expected to drive future growth. Additionally, the bank has maintained a strong asset quality, with nonperforming assets to total assets declining to 0.46%, and a robust coverage ratio for credit losses at 323%. Looking ahead, the bank plans to continue its focus on profitable relationship growth, expense management, and strategic investments, including a share buyback program with 900,000 shares remaining under its approved plan.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.