First Resource Bank Announces First Quarter Results

EXTON, Pa., April 23, 2013 /PRNewswire/ -- First Resource Bank (OTC Bulletin Board: FRSB) announced net income for the three months ended March 31, 2013 was $239,704 as compared to $234,255 for the quarter ended December 31, 2012 and net income of $243,738 for the quarter ended March 31, 2012. After accounting for preferred stock dividends, net income available to common shareholders for the quarter ended March 31, 2013 was $226,997. This compares to net income available to common shareholders of $221,458 for the quarter ended December 31, 2012 and $180,200 for the quarter ended March 31, 2012.

Glenn B. Marshall, President & CEO, stated, "The first quarter of 2013 had the highest net income to common shareholders in the Bank's history. The benefit of lower preferred stock dividend costs is a significant savings over the prior year's first quarter."

Preferred stock dividend costs declined slightly from $12,797 for the three months ended December 31, 2012 to $12,707 for the three months ended December 31, 2012. Due to significant growth in qualified small business loans, the first quarter 2013 dividend rate was 1%, the lowest rate possible under the Small Business Lending Fund program. Preferred stock dividend costs declined 80% from $63,538 for the quarter ended March 31, 2012 to $12,707 for the quarter ended March 31, 2013. 

Net interest income was $1,320,752 for the quarter ended March 31, 2013 as compared to $1,364,413 for the previous quarter.  The net interest margin declined 6 basis points from 3.85% for the quarter ended December 31, 2012 to 3.79% for the quarter ended March 31, 2013. The overall yield on interest earning assets fell 8 basis points during the first quarter, including a 4 basis point decline in loan yields. Loan yields continue to experience pressure from intense competition for new loans as well as the scheduled re-pricing of existing loans during a time of historically low interest rates. The cost of interest bearing liabilities declined 3 basis points during the first quarter, led by a 4 basis point decline in the cost of certificates of deposit. 

The allowance for loan losses to total loans was 1.02% at March 31, 2013, as compared to 1.12% at December 31, 2012 and 1.17% at March 31, 2012. Non-performing assets, which include non-performing loans of $3.1 million and other real estate owned of $801 thousand, totaled $3.9 million at March 31, 2013. Non-performing assets to total assets increased from 2.45% at December 31, 2012 to 2.59% at March 31, 2013 due to a slight increase in non-accrual loans and an increase in other real estate owned, coupled with a decline in total assets.  

The loan portfolio grew $2.6 million, or 2.0%, during the first quarter from $128.7 million at December 31, 2012 to $131.3 million at March 31, 2013. Growth in the commercial real estate loan portfolio was offset by declines in the commercial business, commercial construction and consumer portfolios during the first quarter.

The following table illustrates the composition of the loan portfolio:


Mar. 31,

2013

Dec. 31,

2012

Mar. 31,
2012







Commercial real estate

$ 84,753,204

$ 80,500,799

$ 75,750,992


Commercial construction

8,433,410

8,863,677

8,428,437


Commercial business

13,680,515

14,874,480

13,285,683


Consumer

24,411,836

24,433,976

25,300,731







Total loans

$131,278,965

$128,672,932

$122,765,843


 

Deposits decreased $3.4 million, or 2.6% from $131.1 million at December 31, 2012 to $127.7 million at March 31, 2013. During the first quarter, certificates of deposit decreased $1.4 million, or 1.9%, from $75.6 million at December 31, 2012 to $74.1 million at March 31, 2013. Money market deposits increased $2.2 million, or 5.2%, from $43.4 million at December 31, 2012 to $45.6 million at March 31, 2013.

Non-interest income for the quarter ended March 31, 2013 was $93,033, as compared to $91,209 for the previous quarter.

Non-interest expense increased $9,696, or 1%, in the three months ended March 31, 2013 as compared to the three months ended December 31, 2012. This increase was due to higher salaries and employee benefits expenses, higher data processing expenses and higher professional fees, offset by lower other real estate owned expenses.

 

Selected Financial Data:




Balance Sheets (unaudited)




March 31,

2013

December 31,

2012






Cash and due from banks

$   2,619,714

$   5,633,237


Investments

9,455,252

10,688,356


Loans

131,278,965

128,672,932


Allowance for loan losses

(1,340,091)

(1,439,935)


Premises & equipment

2,752,899

2,671,344


Other assets

4,957,218

4,825,042






Total assets

$ 149,723,957

$ 151,050,976






Non-interest bearing deposits

$   5,677,611

$   5,236,362


Interest-bearing checking

2,239,518

6,921,675


Money market

45,598,550

43,363,298


Time deposits

74,139,798

75,567,700


  Total deposits

127,655,477

131,089,035


Borrowings

5,320,000

3,420,000


Other liabilities

463,873

481,168






Total liabilities

133,439,350

134,990,203






Preferred stock

5,083,000

5,083,000


Common stock

1,529,316

1,528,243


Surplus

9,569,485

9,565,547


Accumulated other

  comprehensive income (loss)

171,151

179,324


Accumulated deficit

(68,345)

(295,341)


Total stockholders' equity

16,284,607

16,060,773






Total Liabilities &

     Stockholders' Equity

$ 149,723,957

$ 151,050,976


 


Performance Statistics
(unaudited)

Qtr Ended

Mar. 31,

2013

Qtr Ended

Dec. 31,

2012

Qtr Ended

Sept. 30,

2012

Qtr Ended

June 30,

2012

Qtr Ended

Mar. 31,

2012







Net interest margin

3.79%

3.85%

3.85%

3.76%

3.91%

Nonperforming loans/total loans

2.34%

2.34%

2.61%

2.75%

2.48%

Nonperforming assets/

   Total assets

2.59%

2.45%

3.02%

3.04%

2.93%

Allowance for loan losses/

   Total loans

1.02%

1.12%

1.21%

1.16%

1.17%

Average loans/Average assets

86.7%

87.2%

86.2%

84.9%

84.4%

Non interest expenses*/

   Average assets

2.55%

2.47%

2.43%

2.52%

2.45%

Earnings per share – basic and

   Diluted

$0.15

$0.14

$0.12

$0.11

$0.12







* Annualized

 


Income Statements (unaudited)


 

Qtr Ended
Mar. 31,

2013

 

Qtr Ended
Dec. 31,

2012

 

Qtr Ended
Sept. 30,

2012

 

Qtr Ended
June 30,

2012

 

Qtr Ended
Mar. 31,

2012







INTEREST INCOME






Loans

$1,617,539

$1,671,869

$1,668,250

$1,640,648

$1,642,566

Investments

49,815

53,718

56,433

58,312

61,572

Federal funds sold

-

-

-

-

-

Other

1,513

88

2,414

2,383

1,017

 Total interest income

1,668,867

1,725,675

1,727,097

1,701,343

1,705,155







INTEREST EXPENSE






Borrowings

9,589

10,974

8,358

6,925

4,647

Checking

772

565

801

1,398

964

Money Market

84,065

82,226

87,113

101,368

101,742

Time deposits

253,689

267,497

276,164

287,276

294,895

 Total interest expense

348,115

361,262

372,436

396,967

402,248







Net interest income

1,320,752

1,364,413

1,354,661

1,304,376

1,302,907







Provision for loan losses

131,787

174,979

206,403

149,677

159,991







Net interest income

after provision for

loan losses

1,188,965

1,189,434

1,148,258

1,154,699

1,142,916







NON INTEREST INCOME

93,033

91,209

73,267

59,705

55,179







NON INTEREST EXPENSE






Salaries & benefits

483,200

438,058

454,317

420,646

435,025

Occupancy & equipment

95,357

88,799

80,580

85,686

77,855

Data processing

63,400

35,430

57,384

55,748

55,714

Professional fees

76,786

50,791

59,616

87,868

93,569

Advertising

15,311

15,978

19,071

12,952

13,269

Other real estate owned

expenses

20,000

117,646

36,866

71,100

15,243

Other non interest

     Expenses

179,327

176,983

181,174

170,476

153,171

Total non interest

     Expense

933,381

923,685

889,008

904,476

843,846







Pre-tax income

348,617

356,958

332,517

309,928

354,249







Tax expense

(108,913)

(122,703)

(106,207)

(96,674)

(110,511)







Net income

$  239,704

$  234,255

$  226,310

$  213,254

$  243,738







Preferred stock

dividends and accretion

 

(12,707)

 

(12,797)

 

(38,811)

 

(52,224)

 

(63,538)







Net income available to

common shareholders

 

$  226,997

 

$  221,458

 

$  187,499

 

$  161,030

 

$  180,200

 

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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