FIRST RESOURCE BANCORP, INC. ANNOUNCES 2024 FIRST QUARTER RESULTS; CONTINUED BALANCE SHEET GROWTH OFFSETS MARGIN COMPRESSION
- Total interest income grew by 31% over the previous year
- Net interest income increased by 7% year-over-year
- Total loans grew by 4% in the first quarter of 2024
- No non-accrual or non-performing loans as of March 31, 2024
- Book value per share increased by 3% to $15.34
- Net income for the quarter was $1.3 million
- Provision for credit losses decreased year-over-year
- Non-interest income increased significantly
- Total deposits grew by 3% in the first quarter
- Loan portfolio expanded by 4% in the first quarter
- Company's financial performance remained resilient
- None.
Lauren C. Ranalli, President and CEO, stated, "In a market where many of our peers are reducing lending, we've seized the chance to further expand the Bank. Our robust loan growth and disciplined pricing strategies have helped offset rising deposit costs to some extent. Net interest income remained largely steady compared to the previous quarter, despite the ongoing margin compression."
Highlights for the first quarter of 2024 included:
- Total interest income grew
31% over the prior year - Net interest income grew
7% over the prior year - Total loans grew
4% during the first quarter, or14% annualized - Total deposits grew
3% during the first quarter, or11% annualized - Swap loan referral income totaled
during the first quarter, more than double the entire prior year$182 thousand - There were no non-accrual or non-performing loans as of March 31, 2024
- Book value per share grew
3% to$15.34
Net income for the quarter ended March 31, 2024 was
Total interest income increased quarterly by
Total interest income increased
Total interest expense increased
Total interest expense increased by
"Rising deposit costs are one of the biggest challenges facing the industry at the moment," commented Ranalli. "To address this, we've allocated substantial internal resources towards optimizing our cost of funds while simultaneously growing our deposit portfolio to support loan growth. Our management team has been bolstered by the addition of an experienced retail banking executive and our lending and deposit teams are collaborating closely, creating synergies via joint calling efforts in the pursuit of new deposit relationships."
In the first quarter of 2024, net interest income saw a slight decrease of
The provision for credit losses was
As of March 31, 2024, the allowance for credit losses to total loans stood at
Non-interest income in the first quarter of 2024 amounted to
Non-interest expenses increased
Non-interest expenses increased
Deposits increased a net
The loan portfolio expanded by
Ranalli added "Commercial real estate loans represent a significant concentration for the Bank which we monitor very closely. This type of lending is a core competency for us and we have the proper risk management tools in place to continuously track this exposure."
The following table illustrates the composition of the loan portfolio:
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |||
Commercial real estate | $ 444,909,373 | $ 413,221,898 | $ 383,875,127 | ||
Commercial construction | 35,337,226 | 48,838,199 | 39,761,445 | ||
Commercial business | 51,780,407 | 50,224,869 | 42,682,372 | ||
Consumer | 17,979,804 | 19,099,155 | 16,793,036 | ||
Total loans | $ 550,006,810 | $ 531,384,121 | $ 483,111,980 |
Investment securities totaled
Total stockholders' equity saw a
Selected Financial Data: Balance Sheets (unaudited) | |||
March 31, | December 31, | ||
Cash and due from banks | $ 22,314,437 | $ 23,820,615 | |
Time deposits at other banks | 100,000 | 100,000 | |
Investments | 17,382,019 | 25,840,840 | |
Loans | 550,006,810 | 531,384,121 | |
Allowance for credit losses | (4,383,877) | (4,311,306) | |
Premises & equipment | 7,683,039 | 7,639,939 | |
Other assets | 17,923,286 | 18,142,682 | |
Total assets | |||
Noninterest-bearing deposits | $ 96,439,591 | $ 95,384,366 | |
Interest-bearing checking | 36,493,267 | 39,760,054 | |
Money market | 234,873,774 | 231,407,653 | |
Time deposits | 145,383,468 | 132,738,973 | |
Total deposits | 513,190,100 | 499,291,046 | |
Short term borrowings | 28,000,000 | 35,000,000 | |
Long term borrowings | 9,530,000 | 9,530,000 | |
Subordinated debt | 5,981,258 | 5,978,134 | |
Other liabilities | 6,842,893 | 6,682,220 | |
Total liabilities | 563,544,251 | 556,481,400 | |
Common stock | 3,096,138 | 3,093,414 | |
Surplus | 19,796,666 | 19,767,634 | |
Accumulated other comprehensive loss | (1,055,206) | (1,038,486) | |
Retained earnings | 25,643,865 | 24,312,929 | |
Total stockholders' equity | 47,481,463 | 46,135,491 | |
Total liabilities & stockholders' equity |
Performance Statistics | |||||
Qtr Ended Mar. 31, 2024 | Qtr Ended Dec. 31, 2023 | Qtr Ended Sep. 30, 2023 | Qtr Ended Jun. 30, 2023 | Qtr Ended Mar. 31, 2023 | |
Net interest margin | 3.35 % | 3.39 % | 3.57 % | 3.64 % | 3.57 % |
Nonperforming loans/ total loans | 0.00 % | 0.00 % | 0.14 % | 0.15 % | 0.16 % |
Nonperforming assets/ total assets | 0.00 % | 0.00 % | 0.13 % | 0.14 % | 0.14 % |
Allowance for credit losses/ total loans | 0.80 % | 0.81 % | 0.88 % | 0.89 % | 0.91 % |
Average loans/average assets | 92.4 % | 91.1 % | 92.2 % | 91.6 % | 91.6 % |
Non-interest expenses*/ average assets | 2.28 % | 2.15 % | 2.19 % | 2.29 % | 2.29 % |
Efficiency ratio | 65.5 % | 63.1 % | 60.1 % | 62.5 % | 63.6 % |
Earnings per share – basic and diluted** | |||||
Book value per share** | |||||
Total shares outstanding** | 3,096,138 | 3,093,414 | 3,090,838 | 3,088,019 | 3,085,576 |
Weighted average shares | 3,094,951 | 3,092,277 | 3,089,441 | 3,086,782 | 3,084,634 |
* Annualized |
** Per share data for prior periods was restated to reflect the |
Income Statements (unaudited) | |||||||||
Qtr. Ended Mar. 31, 2024 | Qtr. Ended Dec. 31, 2023 | Qtr. Ended Sep. 30, 2023 | Qtr. Ended Jun. 30, 2023 | Qtr. Ended Mar. 31, 2023 | |||||
INTEREST INCOME | |||||||||
Loans, including fees | |||||||||
Securities | 120,713 | 133,125 | 125,882 | 120,133 | 131,350 | ||||
Other | 31,735 | 105,679 | 33,221 | 67,207 | 28,174 | ||||
Total interest income | 8,380,550 | 8,180,287 | 7,792,266 | 7,110,517 | 6,382,677 | ||||
INTEREST EXPENSE | |||||||||
Deposits | 3,519,176 | 3,277,096 | 2,696,301 | 2,267,015 | 1,819,643 | ||||
Borrowings | 105,860 | 98,901 | 195,150 | 64,267 | 126,620 | ||||
Subordinated debt | 93,124 | 93,124 | 93,124 | 93,123 | 93,124 | ||||
Total interest expense | 3,718,160 | 3,469,121 | 2,984,575 | 2,424,405 | 2,039,387 | ||||
Net interest income | 4,662,390 | 4,711,166 | 4,807,691 | 4,686,112 | 4,343,290 | ||||
Provision for credit losses | 63,651 | (263,073) | 71,017 | 20,327 | 66,299 | ||||
Net interest income after provision for credit losses | 4,598,739 | 4,974,239 | 4,736,674 | 4,665,785 | 4,276,991 | ||||
NON-INTEREST INCOME | |||||||||
Service charges and other fees | 100,164 | 94,656 | 109,894 | 107,841 | 99,570 | ||||
BOLI income | 51,356 | 50,730 | 50,237 | 49,281 | 47,691 | ||||
Swap referral fee income | 182,060 | - | 75,649 | - | - | ||||
Other | 62,548 | 62,701 | 61,527 | 55,740 | 53,013 | ||||
Total non-interest income | 396,128 | 208,087 | 297,307 | 212,862 | 200,274 | ||||
NON-INTEREST EXPENSE | |||||||||
Salaries & benefits | 2,045,083 | 1,873,831 | 1,893,558 | 1,844,356 | 1,834,921 | ||||
Occupancy & equipment | 289,202 | 289,361 | 282,025 | 260,284 | 257,741 | ||||
Professional fees | 137,482 | 123,336 | 119,258 | 119,447 | 115,303 | ||||
Advertising | 81,745 | 83,506 | 58,354 | 65,917 | 67,195 | ||||
Data processing | 176,685 | 167,921 | 172,288 | 159,795 | 147,808 | ||||
Other | 584,926 | 567,428 | 543,465 | 611,336 | 468,225 | ||||
Total non-interest expense | 3,315,123 | 3,105,383 | 3,068,948 | 3,061,135 | 2,891,193 | ||||
Income before federal income tax expense | 1,679,744 | 2,076,943 | 1,965,033 | 1,817,512 | 1,586,072 | ||||
Federal income tax expense | 348,807 | 429,920 | 401,490 | 366,371 | 321,784 | ||||
Net income |
About First Resource Bancorp, Inc.
First Resource Bancorp, Inc. is the holding company of First Resource Bank. First Resource Bank is a locally owned and operated
This press release contains statements that are not of historical facts and may pertain to future operating results or events or management's expectations regarding those results or events. These are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts. When used in this press release, the words "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", or words of similar meaning, or future or conditional verbs, such as "will", "would", "should", "could", or "may" are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are either beyond our control or not reasonably capable of predicting at this time. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements. Readers of this press release are accordingly cautioned not to place undue reliance on forward-looking statements. First Resource Bank disclaims any intent or obligation to update publicly any of the forward-looking statements herein, whether in response to new information, future events or otherwise.
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SOURCE First Resource Bank
FAQ
What was the total interest income growth for First Resource Bancorp, Inc. in the first quarter of 2024?
Did First Resource Bancorp, Inc. report any non-accrual or non-performing loans as of March 31, 2024?
What was the net income for First Resource Bancorp, Inc. in the first quarter of 2024?
How much did the provision for credit losses decrease by in the first quarter of 2024?