2014

First Resource Bank Announces First Quarter Results

EXTON, Pa., April 25, 2011 /PRNewswire/ -- First Resource Bank (OTC Bulletin Board: FRSB) announced net income of $174,120 for the quarter ended March 31, 2011 as compared to net income of $108,861 for the quarter ended December 31, 2010 and net income of $118,604 for the quarter ended March 31, 2010. The first quarter of 2011 results were the most profitable quarter since the First Resource Bank opened and marked the 6th consecutive profitable quarter.

Glenn B. Marshall, President & CEO, stated, "We have worked diligently to achieve the critical mass needed to maintain consistent profitability as demonstrated over the past six quarters. Credit issues continue to arise, but they have become manageable within each quarter due to the growth in core earnings generated by the Bank."

Net interest income was $1,207,832 for the quarter ended March 31, 2011, as compared to $1,188,676 for the previous quarter.  The net interest margin improved 14 basis points, from 3.77% for the three months ended December 31, 2010 to 3.91% for the three months ended March 31, 2011. This net interest margin improvement resulted from lower certificate of deposit costs and the deployment of excess cash balances into investments during the first quarter.

The allowance for loan losses to total loans was 1.27% at March 31, 2011 as compared to 1.24% at December 31, 2010 and 1.32% at March 31, 2010. Non-performing assets, which include non-performing loans of $2.6 million and other real estate owned of $1.7 million, totaled $4.3 million at March 31, 2011. Non-performing assets to total assets decreased from 3.45% at December 31, 2010 to 3.32% at March 31, 2011 due to an increase in total assets. James B. Griffin, Chairman of the Board stated, "We will continue to emphasize the need to reduce the non-performing assets ratio by focusing on resolving the credit problems as they occur.  The Bank continues to work with existing borrowers who have experienced economic troubles, to assist them in finding ways to fulfill their obligations to the Bank, and get these borrowers back on the right track."  Approximately $879 thousand in other real estate owned properties are currently under agreement of sale and scheduled to close during the second quarter of 2011. The provision for loan losses increased from $120,888 for the three months ended December 31, 2010 to $179,756 for the three months ended March 31, 2011 due to a higher level of loan charge-offs during the first quarter.

The loan portfolio declined $866 thousand, or 0.8%, during the first quarter from $113.0 million at December 31, 2010 to $112.1 million at March 31, 2011.  The loan portfolio increased $6.6 million, or 6.2%, from $105.6 million at March 31, 2010 to $112.1 million at March 31, 2011.

The following table illustrates the composition of the loan portfolio:



Mar. 31,
2011

Dec. 31,
2010

Mar. 31,
2010







Commercial real estate

$ 69,577,048

$ 71,538,599

$ 61,693,564


Commercial construction

5,005,791

2,840,605

7,424,092


Commercial business

12,070,933

12,276,455

12,108,467


Consumer

25,467,683

26,331,755

24,333,883







Total loans

$112,121,455

$112,987,414

$105,560,006





Deposits increased $4.9 million, or 4.5% from $109.5 million at December 31, 2010 to $114.4 million at March 31, 2011. During the first quarter, certificates of deposit increased $9.5 million, or 18.1%, from $52.8 million at December 31, 2010 to $62.4 million at March 31, 2011, as liabilities were extended in this historically low interest rate environment. Money market deposits declined $4.3 million, or 8.5%, from $51.1 million at December 31, 2010 to $46.7 million at March 31, 2011.  

During 2009, the Bank participated in the United States Department of the Treasury's Capital Purchase Program. Preferred stock dividends are accrued monthly and all dividend payments have been made in accordance with the terms of the preferred stock issued. Preferred stock dividends and accretion were $72,138 for the fourth quarter resulting in net income available to common shareholders of $101,982. This compares to net income available to common shareholders of $36,723 for the quarter ended December 31, 2010 and $46,467 for the quarter ended March 31, 2010.

Non-interest income for the quarter ended March 31, 2011 was $33,667, as compared to $22,428 for the previous quarter. This increase is primarily attributed to one-time loan referral fee income.

Non-interest expense decreased $127,648, or 13.8% in the three months ended March 31, 2011 as compared to the three months ended December 31, 2010. This decrease was primarily due to lower other real estate owned expenses in the first quarter.

Selected Financial Data:


Balance Sheets (unaudited)



Mar. 31,

2011

Dec. 31,

2010






Cash and due from banks

$   4,281,194

$   1,968,246


Investments

12,420,652

9,333,483


Loans

112,121,455

112,987,414


Allowance for loan losses

(1,426,301)

(1,399,993)


Premises & equipment

114,210

127,419


Other assets

3,412,048

3,341,266






Total assets

$ 130,923,258

$ 126,357,835






Non-interest bearing deposits

$   3,729,108

$   4,393,823


Interest-bearing checking

1,540,630

1,168,134


Money market

46,744,963

51,075,527


Time deposits

62,367,062

52,821,057


  Total deposits

114,381,763

109,458,541


Borrowings

928,000

1,928,000


Other liabilities

918,562

395,402






Total liabilities

116,228,325

111,781,943






Preferred stock

5,073,333

5,066,833


Common stock

1,453,094

1,453,094


Surplus

9,639,831

9,635,586


Accumulated other

 comprehensive income (loss)

(25,667)

(31,982)


Accumulated deficit

(1,445,658)

(1,547,639)


Total stockholders' equity

14,694,933

14,575,892






Total Liabilities &

    Stockholders' Equity

$ 130,923,258

$ 126,357,835






Performance Statistics
(unaudited)


Qtr Ended

Mar. 31,

2011


Qtr Ended

Dec. 31,

2010


Qtr Ended

Sept. 30,

2010


Qtr Ended

June 30,

2010


Qtr Ended

Mar. 31,

2010







Net interest margin

3.91%

3.77%

3.40%

3.25%

3.17%

Nonperforming loans/total loans

2.35%

2.23%

3.08%

2.43%

1.30%

Nonperforming assets/

  Total assets

3.32%

3.45%

3.34%

2.68%

1.88%

Allowance for loan losses/

  Total loans

1.27%

1.24%

1.23%

1.24%

1.32%

Average loans/Average assets

88.0%

87.8%

84.3%

81.7%

82.0%

Non interest expenses/

  Average assets

0.62%

0.71%

0.54%

0.62%

0.52%










Income Statements (unaudited)




Qtr Ended
Mar. 31,

2011


Qtr Ended
Dec. 31,

2010


Qtr Ended
Sept. 30,

2010


Qtr Ended
June 30,

2010


Qtr Ended
Mar. 31,

2010







INTEREST INCOME






Loans

$1,585,435

$1,594,093

$1,575,193

$1,530,023

$1,502,552

Investments

55,056

28,027

39,327

99,889

111,333

Federal funds sold

147

704

822

821

497

Other

1,016

5,047

7,069

2,891

4,661

  Total interest income

1,641,654

1,627,871

1,622,411

1,633,624

1,619,043







INTEREST EXPENSE






Borrowings

13,973

23,060

28,818

33,407

40,050

Checking

708

817

865

819

764

Money Market

137,358

145,307

204,531

223,164

178,761

Time deposits

281,783

270,011

290,097

334,733

405,015

  Total interest expense

433,822

439,195

524,311

592,123

624,590







Net interest income

1,207,832

1,188,676

1,098,100

1,041,501

994,453







Provision for loan losses

179,756

120,888

202,576

84,766

162,466







NON INTEREST INCOME

33,667

22,428

23,332

21,190

22,433







NON INTEREST EXPENSE






Salaries & benefits

343,817

313,127

307,260

317,889

329,024

Occupancy & equipment

78,338

75,080

74,445

76,943

87,543

Data processing

50,909

49,154

46,908

50,704

51,578

Professional fees

88,589

99,816

78,435

189,922

56,541

Advertising

16,203

2,903

4,825

8,194

4,903

Other real estate owned expenses

53,258

237,791

14,387

1,650

3,929

Other non interest

      Expenses

165,297

146,188

160,288

164,072

140,495

Total non interest

      Expense

796,411

924,059

686,548

809,374

674,013







Pre-tax income

265,332

166,157

232,308

168,551

180,407







Tax expense

(91,212)

(57,296)

(79,731)

(58,233)

(61,803)







Net income

$  174,120

$  108,861

$  152,577

$  110,318

$  118,604







Preferred stock dividends and accretion

(72,138)

(72,138)

(72,138)

(72,137)

(72,137)







Net income available to common shareholders

$  101,982

$   36,723

$   80,439

$   38,181

$   46,467




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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