First Resource Bank Announces First Quarter 2008 Results

Apr 29, 2008, 01:00 ET from First Resource Bank

    EXTON, Pa., April 29 /PRNewswire-FirstCall/ -- First Resource Bank (OTC
 Bulletin Board: FRSB) announced that the Bank achieved over $100 million in
 total assets at its March 31, 2008 quarter-end. Total assets of $104
 million at March 31, 2008 compares to $79 million at March 31, 2007 and $97
 million at December 31, 2007.
 
     The operating performance of the Bank was reported as a net loss of
 $62,774 for the three months ended March 31, 2008, the first quarterly loss
 in the last 6 quarters. The pre-tax loss for the quarter ended March 31,
 2008 was $94,136, which compares to pre-tax income of $35,328 for the
 quarter ended December 31, 2007 and $8,052 for the quarter ended March 31,
 2007.
 
     President & CEO Glenn B. Marshall stated, "While we continue to be
 satisfied with the growth of the Bank in these difficult economic times, we
 struggled in the first quarter with a short sale on one specific consumer
 relationship that required a $123,000 charge-off from our loan loss
 reserve. The Bank has never engaged in any Sub-prime or other high risk
 lending strategies. We continue to execute our Community Bank lending
 strategy within our local Chester County, Pennsylvania market which has
 remained stable and insulated from the nation-wide real estate issues that
 have affected many banks around the country. We continue to focus on the
 growth of the Bank's book of business and achieving an improved net
 interest margin through lowering our deposit cost of funds resulting in
 more consistent long term profitability."
 
     The loan portfolio grew $6.4 million, or 7.8%, during the first quarter
 to $87.9 million at March 31, 2008 as follows:
 
 
Mar. 31, Dec. 31, Mar. 31, 2008 2007 2007 Commercial real estate $45,756,858 $42,312,853 $34,505,463 Commercial construction 14,288,686 14,373,943 10,740,664 Commercial business 9,086,959 7,180,765 4,612,089 Consumer 18,758,857 17,627,362 16,346,702 Total loans $87,891,360 $81,494,923 $66,204,918 Deposits increased $10.3 million, or 14.8%, during the first quarter to a total of $80.0 million at March 31, 2008 as shown below.
Selected Financial Data: Balance Sheets (unaudited) Mar. 31, Dec. 31, Mar. 31, 2008 2007 2007 Cash & cash equivalents $1,296,990 $1,506,236 $827,623 Federal funds sold - 26,000 1,575,000 Cash & cash equivalents 1,296,990 1,532,236 2,402,623 Investments 13,921,435 13,285,659 10,718,156 Loans 87,929,360 81,494,923 66,204,918 Allowance for loan losses (950,796) (908,342) (772,102) Premises & equipment 439,696 381,200 407,934 Other assets 1,564,623 1,516,360 509,899 Total assets $104,201,308 $97,302,036 $79,471,428 Non-interest bearing deposits $3,913,560 $2,500,698 $2,812,111 Checking 1,389,545 1,368,086 885,373 Money market 19,788,429 16,656,631 17,351,051 Time deposits 54,873,459 49,151,653 48,925,769 Total deposits 79,964,993 69,677,068 69,974,304 Borrowings 14,725,200 18,120,700 - Other liabilities 386,145 355,671 1,069,369 Total liabilities 95,076,338 88,153,439 71,043,673 Common stock 1,198,324 1,197,994 1,197,723 Surplus 9,036,923 9,012,240 8,944,051 Accumulated other comprehensive income 14,612 478 (8,983) Accumulated deficit (1,124,889) (1,062,115) (1,705,036) Total equity 9,124,970 9,148,597 8,427,755 Total Liabilities & Equity $104,201,308 $97,302,036 $79,471,428 Performance Statistics (unaudited) Qtr Ended Qtr Ended Qtr Ended Qtr Ended Qtr Ended Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, 2008 2007 2007 2007 2007 Net interest margin 3.23% 3.59% 3.60% 3.71% 3.58% Nonperforming loans/ Total loans 1.03% 0.48% 1.16% 0.79% 0.22% Allowance for loan losses/Total loans 1.08% 1.11% 1.19% 1.17% 1.17% Average loans/Average assets 115.0% 93.6% 90.9% 88.9% 83.5% Non interest expenses/ Average assets 0.74% 0.80% 0.77% 0.79% 0.77% Income Statements (unaudited) Qtr Ended Qtr Ended Qtr Ended Qtr Ended Qtr Ended Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, 2008 2007 2007 2007 2007 INTEREST INCOME Loans $1,533,961 $1,606,329 $1,559,217 $1,439,434 $1,317,359 Investments 37,506 51,293 71,010 69,034 45,322 Federal funds sold 6,616 368 14,335 48,869 117,738 Other 139 145 204 1,214 467 Total interest income 1,578,222 1,658,135 1,644,766 1,558,551 1,480,886 INTEREST EXPENSE Borrowings 65,691 51,502 6,291 1,441 - Checking 2,631 2,447 2,766 2,735 1,945 Money Market 152,605 183,065 214,885 203,405 195,644 Time deposits 631,756 648,941 666,135 621,352 610,082 Total interest expense 852,683 885,955 890,077 828,933 807,671 Net interest income 725,539 772,180 754,689 729,618 673,215 Provision for loan losses 165,738 68,980 72,825 94,676 94,210 NON INTEREST INCOME Mortgage fee income 11,129 7,022 7,818 9,713 12,773 Other income 16,929 18,106 15,436 10,046 7,481 Total non interest income 28,058 25,128 23,254 19,759 20,254 NON INTEREST EXPENSE Salaries & benefits 357,128 342,404 330,995 320,053 329,579 Occupancy & equipment 88,143 89,325 86,212 79,554 88,803 Data processing 49,787 50,184 44,064 41,588 43,494 Professional fees 53,479 54,380 62,836 61,092 41,375 Advertising 19,223 31,023 26,273 27,421 13,825 Other non interest expenses 114,235 125,684 100,733 99,816 74,131 Total non interest expense 681,995 693,000 651,113 629,524 591,207 Pre-tax income (loss) $(94,136) $35,328 $54,005 $25,177 $8,052 Tax benefit (expense) 31,362 (13,642) 542,053 - - Net income $(62,774) $21,686 $596,058 $25,177 $8,052 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. Member FDIC.

SOURCE First Resource Bank
    EXTON, Pa., April 29 /PRNewswire-FirstCall/ -- First Resource Bank (OTC
 Bulletin Board: FRSB) announced that the Bank achieved over $100 million in
 total assets at its March 31, 2008 quarter-end. Total assets of $104
 million at March 31, 2008 compares to $79 million at March 31, 2007 and $97
 million at December 31, 2007.
 
     The operating performance of the Bank was reported as a net loss of
 $62,774 for the three months ended March 31, 2008, the first quarterly loss
 in the last 6 quarters. The pre-tax loss for the quarter ended March 31,
 2008 was $94,136, which compares to pre-tax income of $35,328 for the
 quarter ended December 31, 2007 and $8,052 for the quarter ended March 31,
 2007.
 
     President & CEO Glenn B. Marshall stated, "While we continue to be
 satisfied with the growth of the Bank in these difficult economic times, we
 struggled in the first quarter with a short sale on one specific consumer
 relationship that required a $123,000 charge-off from our loan loss
 reserve. The Bank has never engaged in any Sub-prime or other high risk
 lending strategies. We continue to execute our Community Bank lending
 strategy within our local Chester County, Pennsylvania market which has
 remained stable and insulated from the nation-wide real estate issues that
 have affected many banks around the country. We continue to focus on the
 growth of the Bank's book of business and achieving an improved net
 interest margin through lowering our deposit cost of funds resulting in
 more consistent long term profitability."
 
     The loan portfolio grew $6.4 million, or 7.8%, during the first quarter
 to $87.9 million at March 31, 2008 as follows:
 
 
Mar. 31, Dec. 31, Mar. 31, 2008 2007 2007 Commercial real estate $45,756,858 $42,312,853 $34,505,463 Commercial construction 14,288,686 14,373,943 10,740,664 Commercial business 9,086,959 7,180,765 4,612,089 Consumer 18,758,857 17,627,362 16,346,702 Total loans $87,891,360 $81,494,923 $66,204,918 Deposits increased $10.3 million, or 14.8%, during the first quarter to a total of $80.0 million at March 31, 2008 as shown below.
Selected Financial Data: Balance Sheets (unaudited) Mar. 31, Dec. 31, Mar. 31, 2008 2007 2007 Cash & cash equivalents $1,296,990 $1,506,236 $827,623 Federal funds sold - 26,000 1,575,000 Cash & cash equivalents 1,296,990 1,532,236 2,402,623 Investments 13,921,435 13,285,659 10,718,156 Loans 87,929,360 81,494,923 66,204,918 Allowance for loan losses (950,796) (908,342) (772,102) Premises & equipment 439,696 381,200 407,934 Other assets 1,564,623 1,516,360 509,899 Total assets $104,201,308 $97,302,036 $79,471,428 Non-interest bearing deposits $3,913,560 $2,500,698 $2,812,111 Checking 1,389,545 1,368,086 885,373 Money market 19,788,429 16,656,631 17,351,051 Time deposits 54,873,459 49,151,653 48,925,769 Total deposits 79,964,993 69,677,068 69,974,304 Borrowings 14,725,200 18,120,700 - Other liabilities 386,145 355,671 1,069,369 Total liabilities 95,076,338 88,153,439 71,043,673 Common stock 1,198,324 1,197,994 1,197,723 Surplus 9,036,923 9,012,240 8,944,051 Accumulated other comprehensive income 14,612 478 (8,983) Accumulated deficit (1,124,889) (1,062,115) (1,705,036) Total equity 9,124,970 9,148,597 8,427,755 Total Liabilities & Equity $104,201,308 $97,302,036 $79,471,428 Performance Statistics (unaudited) Qtr Ended Qtr Ended Qtr Ended Qtr Ended Qtr Ended Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, 2008 2007 2007 2007 2007 Net interest margin 3.23% 3.59% 3.60% 3.71% 3.58% Nonperforming loans/ Total loans 1.03% 0.48% 1.16% 0.79% 0.22% Allowance for loan losses/Total loans 1.08% 1.11% 1.19% 1.17% 1.17% Average loans/Average assets 115.0% 93.6% 90.9% 88.9% 83.5% Non interest expenses/ Average assets 0.74% 0.80% 0.77% 0.79% 0.77% Income Statements (unaudited) Qtr Ended Qtr Ended Qtr Ended Qtr Ended Qtr Ended Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, 2008 2007 2007 2007 2007 INTEREST INCOME Loans $1,533,961 $1,606,329 $1,559,217 $1,439,434 $1,317,359 Investments 37,506 51,293 71,010 69,034 45,322 Federal funds sold 6,616 368 14,335 48,869 117,738 Other 139 145 204 1,214 467 Total interest income 1,578,222 1,658,135 1,644,766 1,558,551 1,480,886 INTEREST EXPENSE Borrowings 65,691 51,502 6,291 1,441 - Checking 2,631 2,447 2,766 2,735 1,945 Money Market 152,605 183,065 214,885 203,405 195,644 Time deposits 631,756 648,941 666,135 621,352 610,082 Total interest expense 852,683 885,955 890,077 828,933 807,671 Net interest income 725,539 772,180 754,689 729,618 673,215 Provision for loan losses 165,738 68,980 72,825 94,676 94,210 NON INTEREST INCOME Mortgage fee income 11,129 7,022 7,818 9,713 12,773 Other income 16,929 18,106 15,436 10,046 7,481 Total non interest income 28,058 25,128 23,254 19,759 20,254 NON INTEREST EXPENSE Salaries & benefits 357,128 342,404 330,995 320,053 329,579 Occupancy & equipment 88,143 89,325 86,212 79,554 88,803 Data processing 49,787 50,184 44,064 41,588 43,494 Professional fees 53,479 54,380 62,836 61,092 41,375 Advertising 19,223 31,023 26,273 27,421 13,825 Other non interest expenses 114,235 125,684 100,733 99,816 74,131 Total non interest expense 681,995 693,000 651,113 629,524 591,207 Pre-tax income (loss) $(94,136) $35,328 $54,005 $25,177 $8,052 Tax benefit (expense) 31,362 (13,642) 542,053 - - Net income $(62,774) $21,686 $596,058 $25,177 $8,052 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. Member FDIC. SOURCE First Resource Bank