#USA #Financial Growth #Exton #First Resource Bank #banking results

First Resource Bancorp Reports Record Results for Q2 2026

EXTON, Pa., July 23, 2026 – First Resource Bancorp, Inc. (OTCQX: FRSB) has announced remarkable financial outcomes for the second quarter of 2026, concluded on June 30. The company recorded notable growth in various metrics that underscore its robust position in the banking sector.

In a statement, President and CEO Lauren C. Ranalli remarked, "Our performance in the second quarter is a testament to the strength and scalability of our operations. As First Resource Bank continues to expand, we are experiencing progress across nearly every significant financial metric, including earnings, net interest margin, returns on assets and equity, book value per share, and overall credit quality. We believe that sustainable long-term value can only be realized through disciplined growth that enhances profitability and strengthens our capital alongside our balance sheet. This quarter's results reflect our steadfast commitment to that strategy."

Key Highlights of Q2 2026

• - Net Income: Increased to $2.8 million, up 46% from the previous year and 13% from the prior quarter.
• - Earnings per Share: Rose to $0.93, marking a 48% increase year-over-year.
• - Return on Equity: Earned an annualized return of 17.82%.
• - Return on Assets: Achieved an annualized return of 1.36%.
• - Net Interest Margin: Expanded to 4.09%, a growth of 29 basis points.
• - Loans and Deposits: Total loans experienced a 3% growth during the quarter (12% annualized), while deposits increased by 4% (15% annualized).
• - Non-performing Assets: Showed significant improvement, reducing to just 0.10% of total assets.
• - Dividend Payment: The company declared a cash dividend of $0.02 per common share.

Earnings and Profitability

For the second quarter, net income was recorded at $2.8 million, up from $1.9 million the same period last year, and $2.5 million from Q1 2026. Earnings per share rose sharply from $0.63 in Q2 2025 and $0.82 in Q1 2026, reflecting stronger performance across the board. The first half of 2026 showed that net income totaled $5.3 million, compared to $3.6 million for the same six-month period in 2025.

The annualized return on average assets reached 1.36% this quarter, surpassing 1.15% from the previous year. In tandem, the return on average equity improved significantly to 17.82% from 14.38%, indicating enhanced operational leverage and balance sheet momentum.

Net Interest Income and Margins

The net interest income during Q2 was reported at $8.1 million, reflecting a 10% increase quarter-over-quarter and a 36% year-over-year jump. The net interest margin expanded to 4.09%, notably above 3.80% in Q1 2026, driven by favorable loan yields and improved asset quality metrics. This increase was partly attributed to the resolution of previously unpaid interest on a non-accrual loan that was repaid in full this quarter, positively influencing both margin and credit quality.

For the first half of 2026, total interest income grew to $24.8 million, signifying a 24% rise compared to the same timeframe in 2025.

Credit Quality and Asset Management

The bank's careful credit risk management is evident from its strategy of securing loans primarily against real estate, with non-performing assets showing a significant decline. As of June 30, non-performing assets amounted to $881,000, only 0.10% of total assets, down from $3.0 million in March.

Operational Expenses

Non-interest income, although lower by 20% from Q1, still reflected a 17% increase year-over-year, attributed to service charges and loan sales. Total operating expenses rose by 22% compared to Q2 2025, driven by various cost increases, including ongoing renovations.

Balance Sheet Growth

The balance sheet remained strong, with total deposits up by $27.4 million, or 4%, during the second quarter. Year-over-year, deposits surged 24%. Significant growth was witnessed in non-interest-bearing deposits, signaling customer trust and growth potential for the bank.

Overall, the results from Q2 2026 affirm First Resource Bancorp's strategic direction and operational effectiveness in delivering high-quality banking services to its growing clientele.