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