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FIRST RESOURCE BANCORP, INC. ANNOUNCES 2024 FIRST QUARTER RESULTS; CONTINUED BALANCE SHEET GROWTH OFFSETS MARGIN COMPRESSION

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First Resource Bancorp, Inc. announced its financial results for the first quarter of 2024, showcasing growth in total interest income, net interest income, and total loans. Despite challenges with rising deposit costs and margin compression, the company reported positive metrics such as no non-accrual loans, a 3% increase in book value per share, and net income of $1.3 million. The provision for credit losses decreased, and non-interest income saw a notable increase. Total deposits and the loan portfolio also experienced growth, albeit with some fluctuations in different deposit categories. Overall, the company's financial performance remained resilient in a challenging market environment.
First Resource Bancorp, Inc. ha annunciato i risultati finanziari per il primo trimestre del 2024, evidenziando una crescita dei ricavi totali da interessi, del reddito netto da interessi e del totale dei prestiti. Nonostante le difficoltà legate all'aumento dei costi dei depositi e alla compressione del margine, l'azienda ha registrato indicatori positivi come l'assenza di prestiti non riscossi, un aumento del 3% del valore nominale per azione e un reddito netto di 1,3 milioni di dollari. Il provisionamento per le perdite su crediti è diminuito e i ricavi non derivanti da interessi hanno registrato un notevole aumento. Anche i depositi totali e il portafoglio di prestiti hanno mostrato una crescita, sebbene con alcune fluttuazioni nelle diverse categorie di depositi. Complessivamente, la performance finanziaria della società è rimasta resiliente in un contesto di mercato sfidante.
First Resource Bancorp, Inc. anunció sus resultados financieros para el primer trimestre de 2024, mostrando crecimiento en el ingreso total por intereses, el ingreso neto por intereses y el total de préstamos. A pesar de enfrentar desafíos con el aumento de los costos de depósito y la compresión de márgenes, la compañía reportó métricas positivas como cero préstamos no acumulativos, un aumento del 3% en el valor en libros por acción, y un ingreso neto de 1,3 millones de dólares. La provisión para pérdidas crediticias disminuyó y el ingreso no derivado de intereses experimentó un aumento notable. Los depósitos totales y la cartera de préstamos también experimentaron crecimiento, aunque con algunas fluctuaciones en diferentes categorías de depósitos. En general, el desempeño financiero de la compañía se mantuvo resiliente en un entorno de mercado desafiante.
First Resource Bancorp, Inc.는 2024년 첫 분기에 대한 재무 결과를 발표하였으며 총 이자 수익, 순이자 수익 및 총 대출액이 성장했습니다. 예금 비용 상승과 마진 압박에도 불구하고, 회사는 비수납 대출이 없으며 주당 순자산가치가 3% 증가하고 순수익이 130만 달러를 기록하는 등 긍정적인 지표를 보고했습니다. 신용손실 충당금은 감소했으며, 비이자 수입은 뚜렷한 증가를 보였습니다. 총 예금과 대출 포트폴리오도 성장을 경험했지만, 다양한 예금 카테고리에서 일부 변동성이 있었습니다. 전반적으로, 회사의 재무 성과는 도전적인 시장 환경에서도 꾸준히 유지되었습니다.
First Resource Bancorp, Inc. a annoncé ses résultats financiers pour le premier trimestre de 2024, montrant une croissance des revenus d'intérêts totaux, du revenu net d'intérêts et du total des prêts. Malgré les défis liés à la hausse des coûts des dépôts et à la compression des marges, la société a rapporté des indicateurs positifs tels que l'absence de prêts non-performants, une augmentation de 3% de la valeur comptable par action et un revenu net de 1,3 million de dollars. La provision pour pertes sur crédits a diminué et le revenu non intéressant a connu une augmentation notable. Les dépôts totaux et le portefeuille de prêts ont également connu une croissance, bien qu'avec des fluctuations dans différentes catégories de dépôts. Globalement, la performance financière de l'entreprise est restée résiliente dans un environnement de marché difficile.
First Resource Bancorp, Inc. hat seine Finanzergebnisse für das erste Quartal 2024 bekannt gegeben, die ein Wachstum der gesamten Zinserträge, des Nettorenditen und der Gesamtdarlehen zeigen. Trotz Herausforderungen durch steigende Einlagenkosten und Margendruck verzeichnete das Unternehmen positive Kennzahlen wie keine ausgefallenen Kredite, einen 3%igen Anstieg des Buchwerts pro Aktie und ein Nettoeinkommen von 1,3 Millionen Dollar. Die Rückstellungen für Kreditverluste verringerten sich und die nicht zinsabhängigen Einkünfte nahmen deutlich zu. Die Gesamteinlagen und das Kreditportfolio verzeichneten ebenfalls Wachstum, wobei es in verschiedenen Einlagenkategorien zu Schwankungen kam. Insgesamt blieb die finanzielle Leistung des Unternehmens in einem herausfordernden Marktumfeld widerstandsfähig.
Positive
  • 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
Negative
  • None.

EXTON, Pa., April 25, 2024 /PRNewswire/ -- First Resource Bancorp, Inc. (OTCQX: FRSB), the holding company for First Resource Bank, announced financial results for the three months ended March 31, 2024. 

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, or 14% annualized
  • Total deposits grew 3% during the first quarter, or 11% annualized
  • Swap loan referral income totaled $182 thousand during the first quarter, more than double the entire prior year
  • 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 $1.3 million, or $0.43 per common share, compared to $1.6 million, or $0.53 per common share, for the previous quarter and $1.3 million, or $0.41 per common share, for the first quarter of the prior year. Annualized return on average assets was 0.92% for the first quarter of 2024 compared to 1.00% for the first quarter of 2023. Annualized return on average equity was 11.39% for the first quarter of 2024 compared to 12.57% for the same period a year prior. 

Total interest income increased quarterly by $200 thousand, or 2%, from $8.2 million for the fourth quarter of 2023 to $8.4 million for the first quarter of 2024. This increase was driven by 4% growth in loans during the first quarter.

Total interest income increased $2.0 million, marking a 31% rise from $6.4 million in the first quarter of 2023 to $8.4 million in the corresponding period of 2024. This increase was driven by a 14% expansion in loans compared to the previous year, complemented by an increased rate environment, favorably affecting interest-earning assets. 

Total interest expense increased 7% when comparing the first quarter of 2024 to the fourth quarter of 2023. This increase stemmed from an 8 basis point rise in the cost of money market accounts and a 29 basis point increase in the cost of time deposits, alongside a higher volume of time deposits quarter over quarter. Additionally, interest expense on FHLB borrowings increased by 7% due to a rise in the average balance and cost of advances during the first quarter of 2024 compared to the fourth quarter of 2023.

Total interest expense increased by 82%, climbing from $2.0 million in the first quarter of 2023 to $3.7 million for the first quarter of 2024. The primary driver of this increased expense was a 114 basis point rise in the cost of money market deposits and a 198 basis point increase in the cost of time deposits, coupled with a greater volume of money market accounts and time deposits year over year.

"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 $49 thousand, or 1%, compared to the previous quarter. The net interest margin also contracted by 4 basis points, declining from 3.39% in the fourth quarter of 2023 to 3.35% in the first quarter of 2024. The overall yield on interest-earning assets rose by 13 basis points during the first quarter, primarily driven by a 12 basis point increase in the yield on loans and an expanded loan volume, resulting in a total yield on loans of 6.14% for the first quarter of 2024. Conversely, due to increases in costs for money market and time deposit accounts, alongside a rise in the volume of time deposit accounts, the cost of interest-bearing deposits increased by 20 basis points to 3.45% during the first quarter. Consequently, the total cost of deposits increased by 18 basis points, climbing from 2.59% in the fourth quarter of 2023 to 2.77% in the first quarter of 2024.

The provision for credit losses was $64 thousand in the first quarter of 2024 compared to a negative $263 thousand in the fourth quarter of 2023. The negative reserve observed in the fourth quarter of 2023 was unusual, partly due to specific reserves established as of September 30, 2023, for credits that were resolved during the fourth quarter and became unnecessary as of December 31, 2023. Year over year, the provision for credit losses decreased to $64 thousand in the first quarter of 2024 from $66 thousand in the first quarter of 2023. 

As of March 31, 2024, the allowance for credit losses to total loans stood at 0.80%, slightly lower than the 0.81% recorded at December 31, 2023, and lower than the 0.91% reported at March 31, 2023. At both March 31, 2024 and December 31, 2023, there were no non-performing assets.

Non-interest income in the first quarter of 2024 amounted to $396 thousand, a notable increase compared to $208 thousand in the previous quarter and $200 thousand in the first quarter of the prior year. Specifically, swap referral fee income totaled $182 thousand in the first quarter of 2024, compared to none in the fourth and first quarters of 2023.

Non-interest expenses increased $210 thousand, or 7%, in the first quarter of 2024 compared to the prior quarter. Increases in salaries & employee benefits, professional fees, data processing, and other costs were partially offset by decreases in occupancy & equipment and advertising. 

Non-interest expenses increased $424 thousand, or 15%, when comparing the first quarter of 2024 to the first quarter of 2023. Non-interest expenses to average assets were 2.28% for the first quarter of 2024 compared to 2.15% for the previous quarter and 2.29% for the first quarter of the prior year.

Deposits increased a net $13.9 million, or 3%, from $499.3 million at December 31, 2023 to $513.2 million at March 31, 2024. During the first quarter, non-interest-bearing deposits increased $1.1 million, or 1%, from $95.4 million at December 31, 2023 to $96.4 million at March 31, 2024. Interest-bearing checking balances decreased $3.3 million, or 8%, from $39.8 million at December 31, 2023 to $36.5 million at March 31, 2024. Money market deposits increased $3.5 million, or 1%, from $231.4 million at December 31, 2023 to $234.9 million at March 31, 2024. Certificates of deposit increased $12.6 million, or 10%, from $132.7 million at December 31, 2023 to $145.4 million at March 31, 2024. Between March 31, 2023 and March 31, 2024, total deposits grew 10%, with strong non-interest-bearing checking, money market, and time deposit growth partially offset by a decline in interest-bearing checking. At March 31, 2024, approximately 81% of total deposits were insured or otherwise collateralized, slightly up from 80% in the prior quarter.

The loan portfolio expanded by $18.6 million, representing a 4% increase, from $531.4 million at December 31, 2023 to $550.0 million at March 31, 2024. While there was robust growth in commercial real estate loans and commercial business loans, this was partially offset by decreases in construction loans and consumer loans when comparing loan balances at December 31, 2023 to loan balances at March 31, 2024. The decrease in construction loans was largely attributed to projects reaching completion and transitioning to permanent financing within the commercial real estate portfolio.

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 $17.4 million at March 31, 2024 as compared to $25.8 million at December 31, 2023. At March 31, 2024, the held-to-maturity investment portfolio book value was $8.7 million, with a fair market value of $7.7 million, resulting in an unrealized loss of $998 thousand. This unrealized loss, net of tax, of $788 thousand is less than 1.7% of total equity at March 31, 2024. The remainder of the investment portfolio was classified as available for sale with a book value of $10.0 million and a fair value of $8.7 million, resulting in an unrealized loss of $1.3 million. This unrealized loss, net of tax, of $1.1 million is included in accumulated other comprehensive loss on the balance sheet.

Total stockholders' equity saw a $1.3 million increase, representing a 3% rise, from $46.1 million at December 31, 2023 to $47.5 million at March 31, 2024, primarily due to net income generated. During the quarter ended March 31, 2024, book value per share increased by 43 cents, or 3%, reaching $15.34.

Selected Financial Data:

Balance Sheets (unaudited)






March 31,
2024


December 31,
2023





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

$ 611,025,714


$ 602,616,891





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

$ 611,025,714


$ 602,616,891

 

Performance Statistics
(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







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**

$0.43

$0.53

$0.51

$0.47

$0.41







Book value per share**

$15.34

$14.91

$14.31

$13.85

$13.43







Total shares outstanding**

3,096,138

3,093,414

3,090,838

3,088,019

3,085,576







Weighted average shares
outstanding**

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 5% stock dividend paid in June 2023.

 

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

$8,228,102


$7,941,483


$7,633,163


$6,923,177


$6,223,153

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

$1,330,937


$1,647,023


$1,563,543


$1,451,141


$1,264,288

 

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 Pennsylvania state-chartered bank with three full-service branches, serving the banking needs of businesses, professionals and individuals in the Delaware Valley. The Bank offers a full range of deposit and credit services with a high level of personalized service. First Resource Bank also offers a broad range of traditional financial services and products, competitively priced and delivered in a responsive manner to small businesses, professionals and residents in the local market. For additional information visit our website at www.firstresourcebank.com. Member FDIC.

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.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/first-resource-bancorp-inc-announces-2024-first-quarter-results-continued-balance-sheet-growth-offsets-margin-compression-302126665.html

SOURCE First Resource Bank

FAQ

What was the total interest income growth for First Resource Bancorp, Inc. in the first quarter of 2024?

Total interest income grew by 31% over the prior year for First Resource Bancorp, Inc.

Did First Resource Bancorp, Inc. report any non-accrual or non-performing loans as of March 31, 2024?

There were no non-accrual or non-performing loans as of March 31, 2024, for First Resource Bancorp, Inc.

What was the net income for First Resource Bancorp, Inc. in the first quarter of 2024?

The net income for First Resource Bancorp, Inc. for the first quarter of 2024 was $1.3 million.

How much did the provision for credit losses decrease by in the first quarter of 2024?

The provision for credit losses decreased in the first quarter of 2024 for First Resource Bancorp, Inc.

What was the percentage increase in book value per share for First Resource Bancorp, Inc. in the first quarter of 2024?

The book value per share increased by 3% to $15.34 for First Resource Bancorp, Inc. in the first quarter of 2024.

FIRST RESOURCE BANCRP INC

OTC:FRSB

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Banks - Regional
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United States of America
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