NasdaqCM:FCBP

Stock Analysis Report

Executive Summary

First Choice Bancorp operates as the bank holding company for First Choice Bank that provides retail, personal, and commercial banking products and services to individuals, families, and small and medium-sized businesses.

Rewards

PE ratio (10.4x) is below the US market (18.9x)

Earnings grew by 205% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -0.1% per year for the next 3 years

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has First Choice Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FCBP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

FCBP

-4.2%

US Banks

-2.7%

US Market


1 Year Return

16.1%

FCBP

10.1%

US Banks

21.2%

US Market

Return vs Industry: FCBP exceeded the US Banks industry which returned 17% over the past year.

Return vs Market: FCBP underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

FCBPIndustryMarket
7 Day-3.2%-4.2%-2.7%
30 Day-4.7%-6.3%0.09%
90 Day11.5%0.5%6.9%
1 Year20.7%16.1%13.3%10.1%23.8%21.2%
3 Year37.4%23.8%26.6%17.7%48.1%38.6%
5 Year103.4%83.2%79.7%59.6%72.5%53.4%

Price Volatility Vs. Market

How volatile is First Choice Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Choice Bancorp undervalued compared to its fair value and its price relative to the market?

10.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FCBP ($25.52) is trading above our estimate of fair value ($22.25)

Significantly Below Fair Value: FCBP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FCBP is good value based on its PE Ratio (10.4x) compared to the Banks industry average (12.8x).

PE vs Market: FCBP is good value based on its PE Ratio (10.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FCBP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FCBP is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Choice Bancorp forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCBP's earnings are forecast to decline over the next 3 years (-0.1% per year).

Earnings vs Market: FCBP's earnings are forecast to decline over the next 3 years (-0.1% per year).

High Growth Earnings: FCBP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FCBP's revenue (2.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: FCBP's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FCBP's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

  • Explore growth companies in the Banks industry.

Past Performance

How has First Choice Bancorp performed over the past 5 years?

36.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCBP has high quality earnings.

Growing Profit Margin: FCBP's current net profit margins (33.6%) are higher than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: FCBP's earnings have grown significantly by 36.2% per year over the past 5 years.

Accelerating Growth: FCBP's earnings growth over the past year (205%) exceeds its 5-year average (36.2% per year).

Earnings vs Industry: FCBP earnings growth over the past year (205%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: FCBP's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is First Choice Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FCBP has a low level of unsold assets or inventory.

Debt Coverage by Assets: FCBP's debt is covered by short term assets (assets are 4.6x debt).


Financial Institutions Analysis

Asset Level: FCBP's level of assets compared to its equity is low.

Allowance for Bad Loans: FCBP has a sufficient allowance for bad loans.

Low Risk Liabilities: FCBP's liabilities are made up of primarily low risk sources of funding.

Loan Level: FCBP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FCBP's loans are broadly funded by customer deposits.

Level of Bad Loans: FCBP has an appropriate level of bad loans (0.56%)


Next Steps

Dividend

What is First Choice Bancorp's current dividend yield, its reliability and sustainability?

3.99%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: FCBP's dividend (3.92%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: FCBP's dividend (3.92%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: FCBP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FCBP's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.7%), FCBP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCBP's dividends in 3 years are forecast to be well covered by earnings (35.8% payout ratio).


Next Steps

Management

What is the CEO of First Choice Bancorp's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Bob Franko (71yo)

2.3yrs

Tenure

US$693,900

Compensation

Mr. Robert M. Franko, also known as Bob, serves as President, Chief Executive Officer and Director of First Choice Bancorp since September 2017 and has served as President and Chief Executive Officer and a ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD693.90K) is below average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

59.5yo

Average Age

Experienced Management: FCBP's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

66yo

Average Age

Experienced Board: FCBP's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: FCBP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$3,77116 Dec 19
Leonard May
EntityIndividual
Shares150.95
Max PriceUS$25.50
SellUS$75,44116 Dec 19
Thomas Iino
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$25.15
BuyUS$3,54916 Dec 19
James Gray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares143.72
Max PriceUS$24.69
BuyUS$43,43216 Dec 19
Pravin Pranav
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,703.23
Max PriceUS$25.50
BuyUS$8,87616 Dec 19
Robert Franko
EntityIndividual
Role
Chief Executive Officer
President
Shares351.47
Max PriceUS$25.50
BuyUS$191,96816 Dec 19
Peter Hui
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares7,774.02
Max PriceUS$25.50
BuyUS$28,47116 Dec 19
Roshan Bhakta
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,151.06
Max PriceUS$25.50
BuyUS$9,13716 Dec 19
Luis Maizel
EntityIndividual
Shares361.17
Max PriceUS$25.50
BuyUS$3,23516 Dec 19
Maria Salinas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares126.84
Max PriceUS$25.50
BuyUS$30,27716 Dec 19
Phillip Thong
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board & Corporate Secretary
Shares1,201.07
Max PriceUS$25.50
BuyUS$34,42703 Sep 19
Pravin Pranav
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,599.77
Max PriceUS$21.52
BuyUS$2,81303 Sep 19
James Gray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares131.86
Max PriceUS$21.33
BuyUS$20,02303 Sep 19
Phillip Thong
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board & Corporate Secretary
Shares933.92
Max PriceUS$21.52
BuyUS$152,15603 Sep 19
Peter Hui
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares7,133.14
Max PriceUS$21.52
BuyUS$2,83603 Sep 19
Phillip Thong
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board & Corporate Secretary
Shares136
Max PriceUS$20.85
BuyUS$7,24203 Sep 19
Luis Maizel
EntityIndividual
Shares337.27
Max PriceUS$21.52
BuyUS$22,56603 Sep 19
Roshan Bhakta
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,057.43
Max PriceUS$21.52
BuyUS$7,03503 Sep 19
Robert Franko
EntityIndividual
Role
Chief Executive Officer
President
Shares327.83
Max PriceUS$21.52
BuyUS$2,98903 Sep 19
Leonard May
EntityIndividual
Shares139.69
Max PriceUS$21.52
BuyUS$8,83003 Sep 19
Yolanda Su
EntityIndividual
Role
Chief Executive Officer
Executive VP & Chief Operations Administrator
Shares410.31
Max PriceUS$21.52
BuyUS$2,56403 Sep 19
Maria Salinas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares119.14
Max PriceUS$21.52
SellUS$68,51730 Aug 19
Thomas Iino
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,152
Max PriceUS$21.86
SellUS$85,00730 Aug 19
Thomas Iino
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,152
Max PriceUS$20.47
BuyUS$16820 Aug 19
Phillip Thong
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board & Corporate Secretary
Shares8
Max PriceUS$21.00
BuyUS$80,18216 Aug 19
Phillip Thong
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board & Corporate Secretary
Shares3,776
Max PriceUS$21.23
BuyUS$153,15812 Aug 19
Phillip Thong
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board & Corporate Secretary
Shares7,210
Max PriceUS$21.25
BuyUS$145,70109 Aug 19
Phillip Thong
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board & Corporate Secretary
Shares6,868
Max PriceUS$21.25
BuyUS$2,78728 May 19
James Gray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares128.44
Max PriceUS$21.70
BuyUS$34,11728 May 19
Pravin Pranav
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,574.9
Max PriceUS$21.66
BuyUS$19,84228 May 19
Phillip Thong
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board & Corporate Secretary
Shares915.29
Max PriceUS$21.70
BuyUS$150,77428 May 19
Peter Hui
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares6,948.59
Max PriceUS$21.70
BuyUS$22,36128 May 19
Roshan Bhakta
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,030.64
Max PriceUS$21.70
BuyUS$15,13128 May 19
Homer Wai Chan
EntityIndividual
Shares698.38
Max PriceUS$21.70
BuyUS$6,97228 May 19
Robert Franko
EntityIndividual
Role
Chief Executive Officer
President
Shares321.67
Max PriceUS$21.70
BuyUS$2,96228 May 19
Leonard May
EntityIndividual
Shares136.6
Max PriceUS$21.70
BuyUS$8,75028 May 19
Yolanda Su
EntityIndividual
Role
Chief Executive Officer
Executive VP & Chief Operations Administrator
Shares403.93
Max PriceUS$21.66
BuyUS$7,17728 May 19
Luis Maizel
EntityIndividual
Shares331.16
Max PriceUS$21.70
BuyUS$2,54128 May 19
Maria Salinas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares117.29
Max PriceUS$21.66
BuyUS$33,65826 Feb 19
Pravin Pranav
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,536.91
Max PriceUS$21.90
BuyUS$14,88926 Feb 19
Homer Wai Chan
EntityIndividual
Shares679.75
Max PriceUS$21.95
BuyUS$19,48926 Feb 19
Phillip Thong
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board & Corporate Secretary
Shares889.03
Max PriceUS$21.95
BuyUS$2,76626 Feb 19
James Gray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares126
Max PriceUS$21.95
BuyUS$5,42926 Feb 19
Thomas Iino
EntityIndividual
Role
Member of the Board of Directors
Director
Shares247.45
Max PriceUS$21.95
BuyUS$22,04526 Feb 19
Roshan Bhakta
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,004.44
Max PriceUS$21.95
BuyUS$2,86926 Feb 19
Leonard May
EntityIndividual
Shares130.8
Max PriceUS$21.95
BuyUS$6,89226 Feb 19
Robert Franko
EntityIndividual
Role
Chief Executive Officer
President
Shares314.47
Max PriceUS$21.95
BuyUS$2,51726 Feb 19
Maria Salinas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares114.95
Max PriceUS$21.90
BuyUS$8,65226 Feb 19
Yolanda Su
EntityIndividual
Role
Chief Executive Officer
Executive VP & Chief Operations Administrator
Shares395.05
Max PriceUS$21.90
BuyUS$7,11326 Feb 19
Luis Maizel
EntityIndividual
Shares324.63
Max PriceUS$21.95
BuyUS$177,94926 Feb 19
Peter Hui
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares8,104.1
Max PriceUS$22.00
SellUS$19,44706 Feb 19
Thomas Iino
EntityIndividual
Role
Member of the Board of Directors
Director
Shares870
Max PriceUS$22.36

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 46.6%.


Management Team

  • Bob Franko (71yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$693.90k
  • John Harelson

    Regional Vice President for Solana Beach Office

    • Tenure: 3.9yrs
  • Gene May (67yo)

    Chief Credit Officer & Executive VP

    • Tenure: 8.2yrs
    • Compensation: US$382.15k
  • Yolanda Su (56yo)

    Executive VP & Chief Operations Administrator

    • Tenure: 14.4yrs
    • Compensation: US$305.21k
  • Phillip Thong (63yo)

    Vice Chairman of the Board & Corporate Secretary

    • Tenure: 2.3yrs
    • Compensation: US$46.25k
  • Yvonne Chen (54yo)

    Executive Vice President of Finance

    • Tenure: 1.3yrs
    • Compensation: US$422.82k
  • Nicole Swain

    Chief Banking Officer

    • Tenure: 3.9yrs
  • Lorraine Lee

    Chief Strategy Officer

    • Tenure: 2yrs
  • Khoi Dang (44yo)

    Executive VP & General Counsel

    • Tenure: 0.8yrs
  • Diana Hanson

    Interim Chief Financial Officer

    • Tenure: 0.2yrs

Board Members

  • Bob Franko (71yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$693.90k
  • Fred Jensen (81yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$40.25k
  • Tom Iino (76yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$12.25k
  • Maria Salinas (52yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$6.00k
  • Jim Gray (81yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$44.13k
  • Peter Hui (66yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$53.75k
  • Max Freifeld (55yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$13.75k
  • Phillip Thong (63yo)

    Vice Chairman of the Board & Corporate Secretary

    • Tenure: 2.3yrs
    • Compensation: US$46.25k
  • Roshan Bhakta (47yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$38.00k
  • Pravin Pranav (66yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$37.75k

Company Information

First Choice Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Choice Bancorp
  • Ticker: FCBP
  • Exchange: NasdaqCM
  • Founded: 2005
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$292.097m
  • Shares outstanding: 11.66m
  • Website: https://www.firstchoicebankca.com

Number of Employees


Location

  • First Choice Bancorp
  • 17785 Center Court Drive North
  • Suite 750
  • Cerritos
  • California
  • 90703
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCBPNasdaqCM (Nasdaq Capital Market)YesNew Common StockUSUSDMar 2014

Biography

First Choice Bancorp operates as the bank holding company for First Choice Bank that provides retail, personal, and commercial banking products and services to individuals, families, and small and medium-sized businesses. It offers interest and noninterest-bearing demand deposit, money market and savings accounts, remote deposit products, and time certificates of deposit; and loan products, such as construction and land development, residential real estate, commercial real estate, commercial and industrial, and small business administration (SBA) and consumer loans, as well as startup funds to entrepreneurs. The company also provides treasury management, online and mobile banking, commercial credit cards, debit cards, and automated teller machines, as well as bank-by-mail, courier, commercial cash vault, domestic and international wires, and international services. First Choice Bancorp operates through 11 branches located in Alhambra, Anaheim, Carlsbad, Cerritos, Chula Vista, Downtown Los Angeles, Pasadena, Rowland Heights, San Diego, and West Los Angeles, California and 1 loan production office located in Manhattan Beach, California. The company was founded in 2005 and is headquartered in Cerritos, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/28 00:50
End of Day Share Price2020/01/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.