2014

First Resource Bank Announces First Quarter Results

EXTON, Pa., April 23, 2014 /PRNewswire/ -- First Resource Bank (OTC Bulletin Board: FRSB) announced net income for the three months ended March 31, 2014 was $295,749 as compared to $291,181 for the quarter ended December 31, 2013 and net income of $239,704 for the quarter ended March 31, 2013. After accounting for preferred stock dividends, net income available to common shareholders for the quarter ended March 31, 2014 was $283,041. This compares to net income available to common shareholders of $278,472 for the quarter ended December 31, 2013 and $226,997 for the quarter ended March 31, 2013.

Glenn B. Marshall, President & CEO, stated, "We have successfully begun a year of evolution at First Resource with our first cash dividend and a strong first quarter.  Construction of the first of two highly visible branded bank locations in 2014 is well on its way.  We are excited about the development of our branch network and the enhanced deposit generation capabilities of the Bank which will in turn, enhance shareholder value."

Net interest income was $1,458,650 for the quarter ended March 31, 2014 as compared to $1,426,007 for the previous quarter.  The net interest margin improved 16 basis points from 3.65% for the quarter ended December 31, 2013 to 3.81% for the quarter ended March 31, 2014. The overall yield on interest earning assets increased 15 basis points during the first quarter, with loan yields up 3 basis points. The cost of interest bearing liabilities declined 2 basis points during the first quarter, led by a 2 basis point decline in the cost of money market deposits and a 3 basis point decline in the cost of certificates of deposit. 

Deposits decreased $919 thousand, or 0.7% from $139.9 million at December 31, 2013 to $139.0 million at March 31, 2014. During the first quarter, certificates of deposit decreased $3.7 million, or 4.9%, from $75.7 million at December 31, 2013 to $72.0 million at March 31, 2014. Most of this decline was due to scheduled maturities of non-core funding sources that were not renewed. Money market deposits increased $3.0 million, or 5.6%, from $54.0 million at December 31, 2013 to $57.0 million at March 31, 2014. Non-interest bearing deposits increased $881 thousand, or 13.7% from $6.4 million at December 31, 2013 to $7.3 million at March 31, 2014. Interest checking balances decreased $1.1 million, or 29.4% from $3.8 million at December 31, 2013 to $2.7 million at March 31, 2014.

The loan portfolio declined $196 thousand, or 0.1%, during the first quarter from $140.0 million at December 31, 2013 to $139.8 million at March 31, 2014. Growth in the commercial real estate portfolio was offset by a high level of loan payoffs in every loan category during the first quarter.  First quarter challenges included an unusually cold and snowy winter plus continued intense competition for loans in Chester County.

The following table illustrates the composition of the loan portfolio:

 


Mar. 31,

2014

Dec. 31,

2013

Mar. 31,

2013





Commercial real estate

$ 93,596,333

$ 92,435,418

$ 84,753,204

Commercial construction

7,455,368

8,119,740

8,433,410

Commercial business

13,696,376

14,199,765

13,680,515

Consumer

25,054,408

25,243,538

24,411,836





Total loans

$139,802,485

$139,998,461

$131,278,965

 

The allowance for loan losses to total loans was 0.96% at March 31, 2014 as compared to 0.89% at December 31, 2013 and 1.02% at March 31, 2013. Non-performing assets, which include non-performing loans of $1.7 million and other real estate owned of $599 thousand, totaled $2.3 million at March 31, 2014. Non-performing assets to total assets decreased from 1.51% at December 31, 2013 to 1.44% at March 31, 2014 due to a decline in non-accrual loans and other real estate owned, offset by a decline in total assets.

Non-interest income for the quarter ended March 31, 2014 was $95,967, as compared to $99,077 for the previous quarter.

Non-interest expense decreased $13 thousand, or 1.2%, in the three months ended March 31, 2014 as compared to the three months ended December 31, 2013. This decrease was due to higher salaries and benefits expenses and higher occupancy expenses, which were more than offset by lower other real estate owned expenses and lower other operating expenses.

 

Selected Financial Data:


Balance Sheets (unaudited)





March 31,

2014

December 31,

2013




Cash and due from banks

$   3,150,945

$     606,230

Investments

11,422,073

16,317,779

Loans

139,802,485

139,998,461

Allowance for loan losses

(1,342,124)

(1,252,853)

Premises & equipment

3,799,488

3,515,038

Other assets

5,665,148

6,458,705




Total assets

$ 162,498,015

$ 165,643,360




Non-interest bearing deposits

$   7,310,013

$   6,429,207

Interest-bearing checking

2,690,081

3,809,040

Money market

56,963,228

53,960,919

Time deposits

71,989,492

75,672,226

  Total deposits

138,952,814

139,871,392

Short term borrowings

-

2,555,000

Long term borrowings

5,599,000

5,599,000

Other liabilities

682,281

610,372




Total liabilities

145,234,095

148,635,764




Preferred stock

5,083,000

5,083,000

Common stock

1,609,547

1,608,595

Surplus

9,509,762

9,505,069

Accumulated other

  comprehensive income

 

117,939

 

102,015

Retained earnings/

  (accumulated deficit)

 

943,672

 

708,917

Total stockholders' equity

17,263,920

17,007,596




Total Liabilities &

     Stockholders' Equity

$ 162,498,015

$ 165,643,360

 

Performance Statistics

(unaudited)

 

 

Qtr Ended

Mar. 31,

2014

Qtr Ended

Dec. 31,

2013

Qtr Ended

Sept. 30,

2013

Qtr Ended

June 30,

2013

Qtr Ended

Mar. 31,

2013







Net interest margin

3.81%

3.65%

3.66%

3.87%

3.78%

Nonperforming loans/total loans

1.24%

1.31%

2.11%

2.19%

2.34%

Nonperforming assets/

   Total assets

1.44%

1.51%

2.25%

2.55%

2.59%

Allowance for loan losses/

   Total loans

0.96%

0.89%

0.93%

1.04%

1.02%

Average loans/Average assets

85.2%

83.5%

84.4%

88.5%

86.7%

Non-interest expenses*/

   Average assets

2.54%

2.53%

2.52%

2.57%

2.55%

Earnings per share – basic and

   Diluted

$0.18

$0.17

$0.16

$0.16

$0.15







* Annualized

 

Income Statements (unaudited)








Qtr. Ended
Mar. 31,

2014

Qtr. Ended
Dec. 31,

2013

Qtr. Ended
Sept. 30,

2013

Qtr. Ended
June 30,

2013

Qtr. Ended
Mar. 31,

2013







INTEREST INCOME






Loans

$1,743,733

$1,727,215

$1,701,342

$1,677,372

$1,617,539

Investments

60,488

57,162

48,632

41,480

49,815

Other

1,904

5,729

4,436

464

1,513

 Total interest income

1,806,125

1,790,106

1,754,410

1,719,316

1,668,867







INTEREST EXPENSE






Borrowings

17,478

17,947

14,527

10,450

9,589

Checking

660

851

695

637

772

Money Market

99,206

97,839

92,181

82,420

84,065

Time deposits

230,131

247,462

254,897

254,972

253,689

 Total interest expense

347,475

364,099

362,300

348,479

348,115







Net interest income

1,458,650

1,426,007

1,392,110

1,370,837

1,320,752







Provision for loan losses

97,250

57,640

87,064

119,002

131,787







Net interest income after provision for loan losses

1,361,400

1,368,367

1,305,046

1,251,835

1,188,965







NON-INTEREST INCOME

95,967

99,077

86,876

88,030

93,033







NON-INTEREST EXPENSE






Salaries & benefits

527,231

500,167

486,315

469,194

483,200

Occupancy & equipment

113,157

96,881

96,004

90,158

95,357

Data processing

66,469

64,230

61,136

65,009

63,400

Professional fees

88,923

93,486

63,585

64,576

76,786

Advertising

17,537

22,794

34,268

31,735

15,311

Other real estate owned expenses

42,730

69,025

68,514

62,075

20,000

Other non-interest

     Expenses

169,786

192,127

197,043

174,718

179,327

Total non-interest

     Expense

1,025,833

1,038,710

1,006,865

957,465

933,381







Pre-tax income

431,534

428,734

385,057

382,400

348,617







Tax expense

(135,785)

(137,553)

(121,691)

(120,993)

(108,913)







Net income

$  295,749

$  291,181

$  263,366

$  261,407

$  239,704







Preferred stock dividends

 

(12,708)

 

(12,709)

 

(12,707)

 

(12,707)

 

(12,707)







Net income available to common shareholders

 

$  283,041

 

$  278,472

 

$  250,659

 

$  248,700

 

$  226,997

 

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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