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