First Bank

FRBA

$18.15

+1.23%

N/A+$0.22

Financial Services

Banks - Regional

NASDAQ

Active Trading

First Bank offers a comprehensive array of financial products and services tailored for individuals, businesses, and governmental bodies. Its diverse deposit options ...

Fundamental Analysis of FRBA

Key Strengths

Strong capital ratios: Tier 1 leverage, risk-based capital, and CET1 ratios exceed regulatory requirements, indicating financial stability.

Consistent profitability with ROE of 9.6% and ROA of 1.0%, above industry averages for community banks.

Risk Factors

Interest rate risk: Fluctuations in interest rates can impact net interest margin and valuation of securities.

Regional concentration: Operations concentrated in New Jersey and Pennsylvania, making the bank vulnerable to local economic downturns.

Profitability

Net Margin17.31%

Operating Margin22.93%

Valuation

P/E Ratio10.55x

Current Ratio0.39

Efficiency

ROE9.57%

ROA1.04%

Fundamental Analysis of FRBA

First Bank (NASDAQ: FRBA) is a community bank headquartered in Hamilton, New Jersey, operating 18 branches across New Jersey and Pennsylvania. As of the latest TTM data, the bank exhibits a market capitalization of approximately $466.7 million, with shares trading at $18.57. The bank demonstrates a solid profitability profile with a net margin of 17.3%, ROE of 9.6%, and ROA of 1.0%, underpinned by a healthy interest income stream. The P/E ratio stands at 10.8, indicating a reasonable valuation relative to earnings, while the price-to-book ratio of 1.02 suggests shares are fairly valued relative to tangible book value. The bank maintains a moderate leverage with a debt-to-equity ratio of 0.609, though the interest coverage ratio is low at 0.599 (which is typical for banks due to the nature of their operations). Revenue per share is $9.865, and the bank has a dividend yield of 1.8% with a payout ratio of 12.3%, suggesting room for dividend growth. The bank's beta of 0.527 indicates lower volatility compared to the broader market. Growth metrics show a revenue growth rate of 7.8% TTM, and EPS growth of 11.2% year-over-year, reflecting steady expansion. Free cash flow growth is positive, with a yield of 9.3%. The bank's asset quality appears stable, as suggested by a 5-star Bauer rating, though specific NPL data is not available. Overall, First Bank presents a fundamentally sound community bank with a focus on relationship banking, diversified loan portfolio, and a strong capital position (Tier 1 leverage ratio of 9.54%). The bank's valuation is attractive, and the fundamentals support a buy rating for long-term investors, though investors should monitor interest rate sensitivity, regional economic conditions, and competitive pressures.

Key Strengths of FRBA

Strong capital ratios: Tier 1 leverage, risk-based capital, and CET1 ratios exceed regulatory requirements, indicating financial stability.
Consistent profitability with ROE of 9.6% and ROA of 1.0%, above industry averages for community banks.
Attractive valuation: P/E of 10.8 and P/B of 1.02, lower than many peers, offering potential upside.
Strong asset quality: Bauer 5-star rating reflects excellence in capital, loan quality, and profitability.
Diversified loan portfolio: commercial, real estate (residential and commercial), and consumer loans spread risk.
Low beta (0.527) provides stability, making it a defensive addition to a portfolio.
Growing dividend with a low payout ratio, supporting future dividend increases.
Digital banking initiatives and comprehensive product offerings enhance customer engagement.

Risk Factors of FRBA

Interest rate risk: Fluctuations in interest rates can impact net interest margin and valuation of securities.
Regional concentration: Operations concentrated in New Jersey and Pennsylvania, making the bank vulnerable to local economic downturns.
Regulatory changes: Increased compliance burden and potential changes in banking regulations could affect profitability.
Operational risks: As with any bank, risks related to fraud, cybersecurity, and operational failures exist.
Competition: Intense competition from larger banks, fintech companies, and credit unions in the region.
Credit risk: Deterioration in loan quality due to borrower defaults, especially in commercial real estate, could elevate NPLs.
Liquidity risk: Dependency on wholesale funding or sudden deposit outflows may pose challenges.
Small market cap: Limited liquidity in trading, making the stock less attractive to large institutional investors.

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$456.19M

10.6x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin55.39%

Net Profit Margin17.31%

Debt/Equity Ratio0.61

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of FRBA

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of FRBA

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	18.27%	—	—	Flat
Operating Margin	—	24.53%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of FRBA

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	0.394	—	—	Flat
Quick Ratio	—	0.394	—	—	Flat
Debt / Equity	—	0.609	—	—	Flat

Valuation of FRBA

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	10.07x	—	—	Flat
P/B	—	0.97x	—	—	Flat

Supply Chain of FRBA

RELATIONS

Upstream

Federal Home Loan Bank of New York (FHLBNY)OTC:FHLBNFederal Reserve Bank (FRB)Federal Deposit Insurance Corporation (FDIC)Fiserv, Inc.NYSE:FI Jack Henry & Associates, Inc.NASDAQ:JKHYBackbaseVisa Inc. / Mastercard Inc.NYSE:VSmall Business Administration (SBA)FHLB Office of FinanceOTC:FHLBO CoStar Group, Inc.NASDAQ:CSGP

Downstream

Commercial Real Estate Investors (Small-to-Mid-Scale)Owner-Occupied Commercial Real Estate BorrowersCommercial & Industrial (C&I) BorrowersMulti-Family Property OwnersConstruction & Development CompaniesResidential Mortgage BorrowersSmall Business Borrowers (SBA Loans)Atlantic Merchant Services

Proxies

Provident Financial Services, Inc.NYSE:PFS First Bancorp (Southern Pines, NC)NASDAQ:FBNC OceanFirst Financial Corp.NASDAQ:OCFC Peoples Bancorp (Marietta, OH)NASDAQ:PEBO

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Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer