#United States #financial results #Exton #Net Income #First Resource Bank

First Resource Bancorp Reports Impressive Q1 Results

In a recent announcement, First Resource Bancorp, Inc. (OTCQX: FRSB), the parent company of First Resource Bank, revealed its financial results for the first quarter ending March 31, 2025. The bank recorded a significant leap in profitability, with net income surging by 27% compared to the previous year’s figures, driven by an improved net interest margin and robust deposit growth.

Key Financial Highlights

President and CEO Lauren C. Ranalli provided an optimistic outlook, stating that the bank's disciplined approach to loan and deposit pricing is reinforcing its financial foundation. The first quarter saw net income reach $1.7 million, marking an astonishing 67% increase from the preceding quarter. Additional highlights include:

• - An expansion of the net interest margin to 3.60%, up 10 basis points from the previous quarter.
• - A 16% year-over-year increase in total interest income, totaling $9.7 million.
• - Total deposits rose 4% during the quarter, reflecting a solid annualized growth rate of 16%.
• - Earnings per share climbed by 30% to $0.56 when compared to the previous year, showcasing strong market performance.

The bank's total assets grew by $11.7 million, or 2%, closing the quarter at $675.3 million, while non-performing assets dropped to 0.04%, down from 0.19% the prior quarter, indicating strong credit quality metrics.

Optimistic Projections Ahead

Ranalli noted that the bank is set for a progressive trajectory, primarily due to the upward repricing of loans which were originally issued during periods of low interest rates. The bank successfully managed to reduce deposit costs compared to the prior quarter, despite achieving notable deposit growth. This strategic approach to interest rates and loans is expected to sustain growth.

Detailed Income Overview

For the quarter, First Resource Bancorp posted total interest income of $9.7 million, showcasing a 16% increase from $8.4 million in Q1 2024, and largely attributed to a 10% year-over-year increase in loans. The bank also experienced a 2% reduction in total interest expense, primarily stemming from decreases in the cost of money market accounts and time deposits.

The net interest income reflected a healthy increase of 19% compared to the first quarter of 2024. The overall margin is anticipated to strengthen, given the upward trends in loan yields which increased to 6.47% this quarter.

Credit Loss Provisions and Expense Management

In terms of credit management, the provision for credit losses decreased significantly to $174,000, down from $1.1 million in the previous quarter. Such a decline is promising for investors, signaling that most charge-offs were previously accounted for, thus reducing the current quarter's earnings pressures.

On the expense front, First Resource Bancorp reported non-interest expenses increasing by 9% quarter over quarter due to higher salaries, employee benefits, and marketing costs, although offset by reduced facility and equipment costs.

Deposits and Loan Portfolio Dynamics

The bank's deposit figures show healthy growth, with total deposits increasing by 4% this quarter. Notably, noninterest-bearing deposits rose by 8%, showcasing the bank’s ability to attract and maintain a reliable customer base. Meanwhile, the loan portfolio also saw a 1% increase, primarily fueled by substantial growth in commercial business and construction loans.

Ranalli emphasized that while initial loan funding was buoyant, large payoff amounts in the quarter resulted in a slowed net growth, viewing this as an atypical performance, with expectations for stronger growth in upcoming quarters.

Conclusion

First Resource Bancorp’s first-quarter results for 2025 highlight not only strong financial performance but also the bank's strategic positioning for future growth in the competitive banking landscape. While challenges persist, ongoing positive trends in deposit growth, loan increment, and improved margins exemplify a promising outlook for both the institution and its customers moving forward.