2014

First Resource Bank Announces 2012 First Quarter Results

EXTON, Pa., April 19, 2012 /PRNewswire/ -- First Resource Bank (OTC Bulletin Board: FRSB) announced net income for the three months ended March 31, 2012 was $243,738 as compared to $232,982 for the quarter ended December 31, 2011 and net income of $174,120 for the quarter ended March 31, 2011. After accounting for preferred stock dividends, net income available to common shareholders for the quarter ended March 31, 2012 was $180,200. This compares to net income available to common shareholders of $168,740 for the quarter ended December 31, 2011 and $101,982 for the quarter ended March 31, 2011.

Glenn B. Marshall, President & CEO, stated, "We are pleased to report the sixth consecutive record quarterly earnings for our common shareholders. During the first quarter we successfully grew the loan portfolio while maintaining our net interest margin in a highly competitive loan market."

Net interest income was $1,302,907 for the quarter ended March 31, 2012 as compared to $1,301,422 for the previous quarter.  The net interest margin widened 1 basis point, from 3.90% for the three months ended December 31, 2011 to 3.91% for the three months ended March 31, 2012. The current interest rate environment and increased competition for quality loan relationships in the Chester County market placed pressure on yields for new loans, with the loan yield falling 20 basis points during the first quarter. The yield on total assets declined only 2 basis points due to lower short term cash balances maintained and a higher yield on the investment portfolio.  The deposit cost of funds declined 7 basis points during the first quarter, led by a 12 basis point decline in the cost of certificates of deposit.

The allowance for loan losses to total loans was 1.17% at March 31, 2012, as compared to 1.24% at December 31, 2011 and 1.27% at March 31, 2011. Non-performing assets, which include non-performing loans of $3.0 million and other real estate owned of $1.2 million, totaled $4.2 million at March 31, 2012. Non-performing assets to total assets increased from 2.20% at December 31, 2011 to 2.93% at March 31, 2012 due to $1.2 million of loans placed on nonaccrual during the first quarter.  Marshall stated, "We are encouraged with our progress in improving credit quality year over year, however, due to the size of the loan portfolio, one individual customer relationship can have an impact on a particular quarter's ratios."

The loan portfolio grew $5.3 million, or 4.5%, during the first quarter from $117.5 million at December 31, 2011 to $122.8 million at March 31, 2012. The vast majority of this loan growth was in the commercial real estate segment of the portfolio.

The following table illustrates the composition of the loan portfolio:


Mar. 31,

2012

Dec. 31,
2011

Dec. 31,
2010







Commercial real estate

$ 75,750,992

$ 71,300,163

$ 71,538,599


Commercial construction

8,428,437

7,165,979

2,840,605


Commercial business

13,285,683

13,507,058

12,276,455


Consumer

25,300,731

25,483,053

26,331,755







Total loans

$122,765,843

$117,456,253

$112,987,414


Deposits increased $5.1 million, or 4.2% from $119.9 million at December 31, 2011 to $125.0 million at March 31, 2012. During the first quarter, certificates of deposit increased $3.5 million, or 5.0%, from $70.6 million at December 31, 2011 to $74.1 million at March 31, 2012. Money market deposits increased $2.0 million, or 4.8%, from $42.0 million at December 31, 2011 to $44.0 million at March 31, 2012.

Non-interest income for the quarter ended March 31, 2012 was $55,179, as compared to $38,944 for the previous quarter. This increase was primarily due to income from the increase in cash surrender value on bank owned life insurance that was purchased during the fourth quarter of 2011.

Non-interest expense decreased $27,895, or 3.2% in the three months ended March 31, 2012 as compared to the three months ended December 31, 2011. This decrease was primarily due to a decrease in other real estate owned expenses, offset by higher employment expenses.

Selected Financial Data:

Balance Sheets (unaudited)


March 31,

2012

December 31,

2011






Cash and due from banks

$   3,377,013

$   1,554,676


Investments

12,884,340

12,904,792


Loans

122,765,843

117,456,253


Allowance for loan losses

(1,439,284)

(1,458,824)


Premises & equipment

179,365

162,080


Other assets

5,397,295

5,400,055






Total assets

$ 143,164,572

$ 136,019,032






Non-interest bearing deposits

$   4,607,126

$   5,799,857


Interest-bearing checking

2,218,101

1,499,933


Money market

44,038,616

42,006,348


Time deposits

74,137,467

70,637,139


  Total deposits

125,001,310

119,943,277


Borrowings

2,220,000

-


Other liabilities

522,524

859,456






Total liabilities

127,743,834

120,802,733






Preferred stock

5,083,000

5,083,000


Common stock

1,453,094

1,453,094


Surplus

9,629,144

9,629,144


Accumulated other comprehensive income (loss)

120,414

96,174


Accumulated deficit

(864,914)

(1,045,113)


Total stockholders' equity

15,420,738

15,216,299






Total Liabilities & Stockholders' Equity

$ 143,164,572

$ 136,019,032


 

Performance Statistics (unaudited)

 

Qtr Ended

Mar. 31,

2012

 

Qtr Ended

Dec. 31,

2011

 

Qtr Ended

Sept. 30,

2011

 

Qtr Ended

June 30,

2011

 

Qtr Ended

Mar. 31,

2011







Net interest margin

3.91%

3.90%

3.77%

3.75%

3.91%

Nonperforming loans/total loans

2.48%

1.56%

2.23%

2.77%

2.35%

Nonperforming assets/Total assets

2.93%

2.20%

2.71%

2.95%

3.32%

Allowance for loan losses/Total loans

1.17%

1.24%

1.24%

1.28%

1.27%

Average loans/Average assets

84.4%

84.4%

84.9%

84.9%

88.0%

Non interest expenses*/Average assets

2.45%

2.55%

2.32%

2.52%

2.58%

Earnings per share – basic and diluted

$0.12

$0.12

$0.09

$0.07

$0.07







* Annualized

 

Income Statements (unaudited)


 

Qtr Ended
Mar. 31,

2012

 

Qtr Ended
Dec. 31,

2011

 

Qtr Ended
Sept. 30,

2011

 

Qtr Ended
June 30,

2011

 

Qtr Ended
Mar. 31,

2011







INTEREST INCOME






Loans

$1,642,566

$1,651,201

$1,628,005

$1,587,688

$1,585,435

Investments

61,572

63,897

71,048

63,007

55,056

Federal funds sold

-

-

-

-

147

Other

1,017

2,563

3,644

1,899

1,016

 Total interest income

1,705,155

1,717,661

1,702,697

1,652,594

1,641,654







INTEREST EXPENSE






Borrowings

4,647

-

2,338

8,867

13,973

Checking

964

881

877

743

708

Money Market

101,742

101,429

111,541

128,543

137,358

Time deposits

294,895

313,929

316,255

306,267

281,783

 Total interest expense

402,248

416,239

431,011

444,420

433,822







Net interest income

1,302,907

1,301,422

1,271,686

1,208,174

1,207,832







Provision for loan losses

159,991

119,904

126,065

151,933

179,756







Net interest income after provision for loan losses

1,142,916

1,181,518

1,145,621

1,056,241

1,028,076







NON INTEREST INCOME

55,179

38,944

39,849

39,053

52,215







NON INTEREST EXPENSE






Salaries & benefits

435,025

408,677

357,253

346,362

343,817

Occupancy & equipment

77,855

83,108

79,946

74,442

78,339

Data processing

55,714

55,301

53,041

51,552

50,909

Professional fees

93,569

77,539

87,042

103,308

91,089

Advertising

13,269

9,799

8,476

8,045

16,203

Other real estate owned expenses

15,243

90,149

52,502

97,676

71,806

Other non interest Expenses

153,171

147,168

153,718

143,943

162,796

Total non interest Expense

843,846

871,741

791,978

825,328

814,959







Pre-tax income

354,249

348,721

393,492

269,966

265,332







Tax expense

(110,511)

(115,739)

(134,142)

(92,919)

(91,212)







Net income

$  243,738

$  232,982

$  259,350

$  177,047

$  174,120







Preferred stock dividends and accretion

 

(63,538)

 

(64,242)

 

(132,455)

 

(72,138)

 

(72,138)







Net income available to common shareholders

 

$  180,200

 

$  168,740

 

$  126,895

 

$  104,909

 

$  101,982


 

About First Resource Bank

First Resource Bank is a locally owned and operated Pennsylvania state-chartered bank, serving the banking needs of businesses, professionals and individuals in Chester County, Pennsylvania. 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.             

SOURCE First Resource Bank



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