First Bank (FRBA) Stock Forecast & Price Target

First Bank is a full-service commercial bank with a positive outlook due to its strong pipeline for loan growth, positioning in the Northeast/Mid-Atlantic market, and potential for strategic M&A opportunities. While 1Q loan growth was slow, management's target of $200M for the full year and strong activity through April indicate potential for future growth. Additionally, the company's conservative valuation, taking into consideration credit performance, investor concentration, and deposit franchise, supports a neutral rating and a price target of $16 in the short term.

First Bank is experiencing a challenging quarter, with a decline in credit, net interest income, and higher expenses leading to a significant reduction in EPS estimates for this year and the next. While the stock may appear undervalued at 93% of TBVPS and trading at just 8x the 2027E EPS, missed growth and profitability expectations, along with potential losses in small business lending, create risks for achieving the current price target of $18. With concerns around credit quality and funding reliance on higher cost sources, the bank's shares lack an incremental catalyst for outperformance and may be expected to trade at peer multiples.