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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on FRBA

First Bank's recent performance has been driven by several positive factors. The bank's Q2 2025 earnings call highlighted robust loan growth, strong net interest margin, and continued operating efficiency. A $35 million subordinated debt offering was completed in June, which will be used to redeem outstanding notes and support general corporate purposes. Additionally, the appointment of a new Chief Credit Officer, Larry Jackson, in April, is expected to enhance the bank's credit quality. Furthermore, First Bank Texas launched a mobile banking branch to expand its reach across North and West Texas.

1.c. Company Highlights

2. First Bank's Q3 2025 Earnings: Strong Revenue Growth and Improved Profitability

First Bank reported a net income of $3.5 million, up 43% compared to Q3 2024, driven by strong revenue growth and expense control. Earnings per share (EPS) came in at $0.47, beating analyst estimates of $0.46. The bank's net interest income increased by $1.5 million compared to the previous quarter, primarily due to margin expansion on a growing balance sheet. The net interest margin (NIM) grew 6 basis points to 3.71% in Q3. Revenue growth was robust, with loan growth at an annualized 9% for the quarter and 9% year-to-date.

Publication Date: Oct -28

📋 Highlights
  • Net Income Surge: Net income jumped $3.5M (+43%) YoY to Q3 2025, with ROAA at 1.16% and EPS at $0.47.
  • Net Interest Margin Expansion: NIM rose 6 bps to 3.71%, driven by margin expansion and a growing balance sheet.
  • Deposit Growth: Noninterest-bearing deposits grew $21M, while overall deposit cost fell 3 bps to 2.69%.
  • Loan Portfolio Growth: Loans grew 9% annually, with C&I loans at 65% of new originations and investor CRE down to 49.8%.
  • Cost Control & Capital Allocation: Noninterest expenses capped at ≤2% of average assets; capital target of 11.5% total risk-based ratio, considering buybacks/M&A.

Loan Portfolio Diversification and Credit Quality

The bank's loan portfolio is diversified, with investor commercial real estate loans decreasing to 49.8% of total loans. Credit quality remains strong, with nonperforming assets declining to 36 basis points of total assets. According to Peter Cahill, Chief Lending Officer, the regional commercial banking teams generated most of the loan growth, with C&I lending representing 65% of new loans.

Deposit Growth and Cost Control

Deposit growth was driven by increased business development activities and targeted promotions, with average noninterest-bearing deposits growing by $21 million during the quarter. The bank's average cost of interest-bearing deposits declined by 2 basis points to 3.27%, and the overall cost of deposits declined by 3 basis points to 2.69%. The company has been focused on cost control, investing in new teams, branches, and technology, with Andrew Hibshman, CFO, stating that the company is now digesting the moves made in the last couple of years and not expecting any big new costs on the horizon.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) of approximately 0.93, the stock appears reasonably valued. The Dividend Yield stands at 1.52%, providing a relatively stable source of return. Analysts estimate next year's revenue growth at 6.1%. Given the bank's strong revenue growth, improved profitability, and reasonable valuation, the outlook remains positive. The company's ability to manage its asset and liability position effectively, as well as its focus on cost control, should result in continued strong net interest income generation.

3. NewsRoom

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Klarna Becomes First Bank To Issue Stablecoin On Stripe's Tempo Network

Nov -26

Source: benzinga.com

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First Bank Appoints New Chief Risk Officer: Bridget Welborn

Nov -20

Source: prnewswire.com

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Dream First Bank Enters Agreement to Acquire Lakin Branch from Bank of the Plains

Nov -19

Source: businesswire.com

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First Bank (FRBA) Upgraded to Strong Buy: Here's What You Should Know

Nov -18

Source: zacks.com

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Digital Commerce Bank Becomes First Bank in Canada to Launch Interac e-Transfer® Cards

Nov -17

Source: businesswire.com

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Discovery partners with Luno to offer first bank app crypto trading in South Africa

Nov -13

Source: reuters.com

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Best Value Stocks to Buy for Nov.5

Nov -05

Source: zacks.com

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First Bank (FRBA) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.00%)

6. Segments

Community Banking

Expected Growth: 15%

First Bank's Community Banking segment growth of 15% is driven by strategic expansion into underserved markets, increased adoption of digital banking channels, and targeted marketing efforts to attract small business and retail customers. Additionally, the segment benefits from a strong brand reputation, competitive pricing, and a focus on customer-centric services.

7. Detailed Products

Current Account

A type of deposit account that allows customers to deposit and withdraw money as needed

Savings Account

A type of deposit account that earns interest and allows limited withdrawals

Fixed Deposit

A type of deposit account that earns a fixed interest rate for a specific period

Personal Loan

A type of loan that allows customers to borrow money for personal use

Mortgage Loan

A type of loan that allows customers to borrow money to purchase a home

Credit Card

A type of payment card that allows customers to borrow money to make purchases

Debit Card

A type of payment card that allows customers to make purchases using their own money

Internet Banking

A digital platform that allows customers to manage their accounts and make transactions online

Mobile Banking

A mobile application that allows customers to manage their accounts and make transactions on-the-go

8. First Bank's Porter Forces

Forces Ranking

Threat Of Substitutes

First Bank operates in a highly competitive industry, and customers have various alternatives to choose from. However, the bank's strong brand and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

First Bank's customers have significant bargaining power due to the availability of alternative banking services. The bank's customers can easily switch to competitors, which puts pressure on the bank to maintain competitive pricing and services.

Bargaining Power Of Suppliers

First Bank has a strong bargaining position with its suppliers, as it is a large and established institution. The bank can negotiate favorable terms with its suppliers, reducing its costs and improving its profitability.

Threat Of New Entrants

The banking industry has significant barriers to entry, including regulatory hurdles and high capital requirements. This limits the threat of new entrants and allows First Bank to maintain its market share.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. First Bank faces intense rivalry from its competitors, which puts pressure on the bank to innovate and improve its services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.98%
Debt Cost 4.89%
Equity Weight 61.02%
Equity Cost 8.54%
WACC 7.12%
Leverage 63.89%

11. Quality Control: First Bank passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Guaranty Bancshares

A-Score: 7.2/10

Value: 4.9

Growth: 5.6

Quality: 7.8

Yield: 8.0

Momentum: 9.5

Volatility: 7.3

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Ames National

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Growth: 3.6

Quality: 6.2

Yield: 8.0

Momentum: 7.5

Volatility: 8.7

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FirstBank

A-Score: 6.2/10

Value: 6.4

Growth: 6.7

Quality: 5.9

Yield: 4.0

Momentum: 6.0

Volatility: 8.3

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Value: 6.9

Growth: 5.2

Quality: 3.4

Yield: 6.0

Momentum: 6.0

Volatility: 9.0

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Pathward Financial

A-Score: 5.7/10

Value: 8.7

Growth: 4.2

Quality: 8.2

Yield: 0.0

Momentum: 5.0

Volatility: 8.0

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HomeStreet

A-Score: 4.6/10

Value: 9.4

Growth: 1.9

Quality: 3.8

Yield: 3.0

Momentum: 4.0

Volatility: 5.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.64$

Current Price

15.64$

Potential

-0.00%

Expected Cash-Flows