FIRST RESOURCE BANCORP, INC. ANNOUNCES 2024 SECOND QUARTER RESULTS; NET INTEREST MARGIN EXPANDS, LOANS GREW 14% AND DEPOSITS GREW 13% OVER THE PAST 12 MONTHS
Highlights for the second quarter of 2024 included:
- Net income of
$1.3 million , exceeding prior quarter by 1% - Total interest income grew 27% over the prior year second quarter
- The net interest margin expanded from 3.35% in the first quarter to 3.43% in the second quarter
- Total loans grew 4% during the second quarter, or 17% annualized (8% year-to-date)
- Total deposits grew 5% during the second quarter, or 18% annualized (7% year-to-date)
- Swap loan referral income was
$62 thousand during the second quarter, totaling$245 thousand year-to-date, more than triple the entire prior year - There were no loans past due greater than 30 days, non-accrual loans or non-performing assets as of
June 30, 2024 - Book value per share grew 3% during the second quarter to
$15.78 - Named a "Best Places to Work" company by the
Philadelphia Business Journal -
Named Best Commercial Bank and Best Community Bank by the readers of the MainLine Times - Recognized as one of the top 100 performing community banks in 2023 with under
$2 billion in assets in the US by American Banker
Net income for the quarter ended
Total interest income rose by
Total interest income increased
Total interest income grew
Total interest expense rose by 8% in the second quarter of 2024 compared to the first quarter. This increase stemmed from a 3 basis point rise in the cost of money market accounts and an 11 basis point increase in the cost of time deposits, alongside a higher volume of money market accounts and time deposits quarter over quarter. Additionally, interest expense on FHLB borrowings increased by 64% due to an increase in the average balance of overnight advances during the second quarter of 2024 compared to the first quarter.
Total interest expense increased by 66%, climbing from
Total interest expense increased by 74%, growing from
In the second quarter of 2024, net interest income increased by
Net interest income for the six months ended
The provision for credit losses was
As of
"Credit quality remains excellent, despite the charge-off recorded during the second quarter. This specific charge-off is considered an anomaly as the loan transitioned from current to charge-off within a quarter. Originating in 2006 as a second-lien home equity loan, it had occasionally shown signs of stress over the years, finally concluding with a sheriff sale in the second quarter. Our current exposure to similar loans is minimal, as we exited this line of business over a decade ago." commented Ranalli.
Non-interest income in the second quarter of 2024 amounted to
Non-interest income for the six months ended
Non-interest expenses increased
"Our outstanding results over the past several years have put us on a growth trajectory. As the bank grows, so does our need for additional office space to support our expanding team. We are excited to share that in April, we relocated our corporate headquarters to a larger space, which we believe will meet our needs for many years to come," commented Ranalli. "This move contributed to the increase in occupancy and equipment for the second quarter; however, we fully expect this number to decline and level out by the end of the fourth quarter with the satisfaction of our former lease."
Non-interest expenses increased
Non-interest expenses for the six months ended
Deposits increased a net
With robust growth across all loan categories, the loan portfolio expanded by
The following table illustrates the composition of the loan portfolio:
|
2024 |
2023 |
2023 |
|
|
|
|
Commercial real estate |
$ 457,437,009 |
$ 413,221,898 |
$ 390,330,435 |
Commercial construction |
42,138,883 |
48,838,199 |
50,482,296 |
Commercial business |
55,316,506 |
50,224,869 |
46,023,011 |
Consumer |
18,697,974 |
19,099,155 |
17,843,210 |
|
|
|
|
Total loans |
$ 573,590,372 |
$ 531,384,121 |
$ 504,678,952 |
Investment securities totaled
Total stockholders' equity increased by
Selected Financial Data: Balance Sheets (unaudited) |
||
|
||
|
2024 |
2023 |
|
|
|
Cash and due from banks |
$ 28,564,047 |
$ 23,820,615 |
Time deposits at other banks |
100,000 |
100,000 |
Investments |
16,956,492 |
25,840,840 |
Loans |
573,590,372 |
531,384,121 |
Allowance for credit losses |
(4,430,320) |
(4,311,306) |
Premises & equipment |
7,724,875 |
7,639,939 |
Other assets |
18,180,562 |
18,142,682 |
|
|
|
Total assets |
$ 640,686,028 |
$ 602,616,891 |
|
|
|
Noninterest-bearing deposits |
$ 104,706,183 |
$ 95,384,366 |
Interest-bearing checking |
36,162,105 |
39,760,054 |
Money market |
235,266,392 |
231,407,653 |
Time deposits |
160,425,520 |
132,738,973 |
Total deposits |
536,560,200 |
499,291,046 |
Short term borrowings |
33,000,000 |
35,000,000 |
Long term borrowings |
9,530,000 |
9,530,000 |
Subordinated debt |
5,984,381 |
5,978,134 |
Other liabilities |
6,733,643 |
6,682,220 |
|
|
|
Total liabilities |
591,808,224 |
556,481,400 |
|
|
|
Common stock |
3,098,431 |
3,093,414 |
Surplus |
19,824,098 |
19,767,634 |
Accumulated other comprehensive loss |
(1,037,024) |
(1,038,486) |
Retained earnings |
26,992,299 |
24,312,929 |
|
|
|
Total stockholders' equity |
48,877,804 |
46,135,491 |
|
|
|
Total liabilities & stockholders' equity |
$ 640,686,028 |
$ 602,616,891 |
Performance Statistics (unaudited) |
Qtr Ended
2024 |
Qtr Ended
2024 |
Qtr Ended
2023 |
Qtr Ended
2023 |
Qtr Ended
2023 |
|
|
|
|
|
|
Net interest margin |
3.43 % |
3.35 % |
3.39 % |
3.57 % |
3.64 % |
|
|
|
|
|
|
Nonperforming loans/ total loans |
0.00 % |
0.00 % |
0.00 % |
0.14 % |
0.15 % |
|
|
|
|
|
|
Nonperforming assets/ total assets |
0.00 % |
0.00 % |
0.00 % |
0.13 % |
0.14 % |
|
|
|
|
|
|
Allowance for credit losses/ total loans |
0.77 % |
0.80 % |
0.81 % |
0.88 % |
0.89 % |
|
|
|
|
|
|
Average loans/average assets |
92.7 % |
92.4 % |
91.1 % |
92.2 % |
91.6 % |
|
|
|
|
|
|
Non-interest expenses*/ average assets |
2.21 % |
2.28 % |
2.15 % |
2.19 % |
2.29 % |
|
|
|
|
|
|
Efficiency ratio |
63.3 % |
65.5 % |
63.1 % |
60.1 % |
62.5 % |
|
|
|
|
|
|
Earnings per share – basic and diluted** |
|
|
|
|
|
|
|
|
|
|
|
Book value per share** |
|
|
|
|
|
|
|
|
|
|
|
Total shares outstanding** |
3,098,431 |
3,096,138 |
3,093,414 |
3,090,838 |
3,088,019 |
|
|
|
|
|
|
Weighted average shares outstanding** |
3,097,433 |
3,094,951 |
3,092,277 |
3,089,441 |
3,086,782 |
|
* Annualized |
Income Statements (unaudited) |
|||||
|
|||||
|
Qtr. Ended
2024 |
Qtr. Ended
2024 |
Qtr. Ended
2023 |
Qtr. Ended
2023 |
Qtr. Ended
2023 |
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
Loans, including fees |
|
|
|
|
|
Securities |
122,082 |
120,713 |
133,125 |
125,882 |
120,133 |
Other |
34,964 |
31,735 |
105,679 |
33,221 |
67,207 |
Total interest income |
9,016,741 |
8,380,550 |
8,180,287 |
7,792,266 |
7,110,517 |
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
Deposits |
3,767,011 |
3,519,176 |
3,277,096 |
2,696,301 |
2,267,015 |
Borrowings |
173,198 |
105,860 |
98,901 |
195,150 |
64,267 |
Subordinated debt |
93,124 |
93,124 |
93,124 |
93,124 |
93,123 |
Total interest expense |
4,033,333 |
3,718,160 |
3,469,121 |
2,984,575 |
2,424,405 |
|
|
|
|
|
|
Net interest income |
4,983,408 |
4,662,390 |
4,711,166 |
4,807,691 |
4,686,112 |
|
|
|
|
|
|
Provision for credit losses |
246,273 |
63,651 |
(263,073) |
71,017 |
20,327 |
|
|
|
|
|
|
Net interest income after provision for credit losses |
4,737,135 |
4,598,739 |
4,974,239 |
4,736,674 |
4,665,785 |
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
Service charges and other fees |
104,748 |
100,164 |
94,656 |
109,894 |
107,841 |
BOLI income |
59,613 |
51,356 |
50,730 |
50,237 |
49,281 |
Swap referral fee income |
62,460 |
182,060 |
- |
75,649 |
- |
Other |
64,085 |
62,548 |
62,701 |
61,527 |
55,740 |
Total non-interest income |
290,906 |
396,128 |
208,087 |
297,307 |
212,862 |
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
Salaries & benefits |
1,944,755 |
2,045,083 |
1,873,831 |
1,893,558 |
1,844,356 |
Occupancy & equipment |
362,850 |
289,202 |
289,361 |
282,025 |
260,284 |
Professional fees |
130,767 |
137,482 |
123,336 |
119,258 |
119,447 |
Advertising |
81,510 |
81,745 |
83,506 |
58,354 |
65,917 |
Data processing |
180,257 |
176,685 |
167,921 |
172,288 |
159,795 |
Other |
636,589 |
584,926 |
567,428 |
543,465 |
611,336 |
Total non-interest expense |
3,336,728 |
3,315,123 |
3,105,383 |
3,068,948 |
3,061,135 |
|
|
|
|
|
|
Income before federal income tax expense |
1,691,313 |
1,679,744 |
2,076,943 |
1,965,033 |
1,817,512 |
|
|
|
|
|
|
Federal income tax expense |
342,880 |
348,807 |
429,920 |
401,490 |
366,371 |
|
|
|
|
|
|
Net income |
|
|
|
|
|
Income Statements (unaudited) |
||
|
||
|
Six Months
Ended 2024 |
Six Months
Ended 2023 |
|
|
|
INTEREST INCOME |
|
|
Loans, including fees |
$ 17,087,797 |
$ 13,146,330 |
Securities |
242,795 |
251,483 |
Other |
66,699 |
95,381 |
Total interest income |
17,397,291 |
13,493,194 |
|
|
|
INTEREST EXPENSE |
|
|
Deposits |
7,286,187 |
4,086,658 |
Borrowings |
279,058 |
190,887 |
Subordinated debt |
186,248 |
186,247 |
Total interest expense |
7,751,493 |
4,463,792 |
|
|
|
Net interest income |
9,645,798 |
9,029,402 |
|
|
|
Provision for credit losses |
309,924 |
86,626 |
|
|
|
Net interest income after provision for credit losses |
9,335,874 |
8,942,776 |
|
|
|
NON-INTEREST INCOME |
|
|
Service charges and other fees |
204,912 |
207,411 |
BOLI income |
110,969 |
96,972 |
Swap referral fee income |
244,520 |
- |
Other |
126,633 |
108,753 |
Total non-interest income |
687,034 |
413,136 |
|
|
|
NON-INTEREST EXPENSE |
|
|
Salaries & benefits |
3,989,838 |
3,679,277 |
Occupancy & equipment |
652,052 |
518,025 |
Professional fees |
268,249 |
234,750 |
Advertising |
163,255 |
133,112 |
Data processing |
356,942 |
307,603 |
Other |
1,221,515 |
1,079,561 |
Total non-interest expense |
6,651,851 |
5,952,328 |
|
|
|
Income before federal income tax expense |
3,371,057 |
3,403,584 |
|
|
|
Federal income tax expense |
691,687 |
688,155 |
|
|
|
Net income |
$ 2,679,370 |
$ 2,715,429 |
About
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.
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