First Resource Bank Announces First Quarter 2008 Results
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EXTON, Pa., April 29 /PRNewswire-FirstCall/ — First Resource Bank (BULLETIN BOARD: FRSB) announced that the Bank achieved over $100 million in total assets at its March 31, 2008 quarter-end. Total assets of $104 million at March 31, 2008 compares to $79 million at March 31, 2007 and $97 million at December 31, 2007.
The operating performance of the Bank was reported as a net loss of $62,774 for the three months ended March 31, 2008, the first quarterly loss in the last 6 quarters. The pre-tax loss for the quarter ended March 31, 2008 was $94,136, which compares to pre-tax income of $35,328 for the quarter ended December 31, 2007 and $8,052 for the quarter ended March 31, 2007.
President & CEO Glenn B. Marshall stated, “While we continue to be satisfied with the growth of the Bank in these difficult economic times, we struggled in the first quarter with a short sale on one specific consumer relationship that required a $123,000 charge-off from our loan loss reserve. The Bank has never engaged in any Sub-prime or other high risk lending strategies. We continue to execute our Community Bank lending strategy within our local Chester County, Pennsylvania market which has remained stable and insulated from the nation-wide real estate issues that have affected many banks around the country. We continue to focus on the growth of the Bank’s book of business and achieving an improved net interest margin through lowering our deposit cost of funds resulting in more consistent long term profitability.”
The loan portfolio grew $6.4 million, or 7.8%, during the first quarter to $87.9 million at March 31, 2008 as follows:
Mar. 31, Dec. 31, Mar. 31,
2008 2007 2007
Commercial real estate $45,756,858 $42,312,853 $34,505,463
Commercial construction 14,288,686 14,373,943 10,740,664
Commercial business 9,086,959 7,180,765 4,612,089
Consumer 18,758,857 17,627,362 16,346,702
Total loans $87,891,360 $81,494,923 $66,204,918
Deposits increased $10.3 million, or 14.8%, during the first quarter to a total of $80.0 million at March 31, 2008 as shown below.
Selected Financial Data:
Balance Sheets (unaudited)
Mar. 31, Dec. 31, Mar. 31,
2008 2007 2007
Cash & cash equivalents $1,296,990 $1,506,236 $827,623
Federal funds sold - 26,000 1,575,000
Cash & cash equivalents 1,296,990 1,532,236 2,402,623
Investments 13,921,435 13,285,659 10,718,156
Loans 87,929,360 81,494,923 66,204,918
Allowance for loan losses (950,796) (908,342) (772,102)
Premises & equipment 439,696 381,200 407,934
Other assets 1,564,623 1,516,360 509,899
Total assets $104,201,308 $97,302,036 $79,471,428
Non-interest bearing deposits $3,913,560 $2,500,698 $2,812,111
Checking 1,389,545 1,368,086 885,373
Money market 19,788,429 16,656,631 17,351,051
Time deposits 54,873,459 49,151,653 48,925,769
Total deposits 79,964,993 69,677,068 69,974,304
Borrowings 14,725,200 18,120,700 -
Other liabilities 386,145 355,671 1,069,369
Total liabilities 95,076,338 88,153,439 71,043,673
Common stock 1,198,324 1,197,994 1,197,723
Surplus 9,036,923 9,012,240 8,944,051
Accumulated other
comprehensive income 14,612 478 (8,983)
Accumulated deficit (1,124,889) (1,062,115) (1,705,036)
Total equity 9,124,970 9,148,597 8,427,755
Total Liabilities & Equity $104,201,308 $97,302,036 $79,471,428
Performance Statistics
(unaudited) Qtr Ended Qtr Ended Qtr Ended Qtr Ended Qtr Ended
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2008 2007 2007 2007 2007
Net interest margin 3.23% 3.59% 3.60% 3.71% 3.58%
Nonperforming loans/
Total loans 1.03% 0.48% 1.16% 0.79% 0.22%
Allowance for loan
losses/Total loans 1.08% 1.11% 1.19% 1.17% 1.17%
Average loans/Average
assets 115.0% 93.6% 90.9% 88.9% 83.5%
Non interest expenses/
Average assets 0.74% 0.80% 0.77% 0.79% 0.77%
Income Statements (unaudited)
Qtr Ended Qtr Ended Qtr Ended Qtr Ended Qtr Ended
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2008 2007 2007 2007 2007
INTEREST INCOME
Loans $1,533,961 $1,606,329 $1,559,217 $1,439,434 $1,317,359
Investments 37,506 51,293 71,010 69,034 45,322
Federal funds sold 6,616 368 14,335 48,869 117,738
Other 139 145 204 1,214 467
Total interest
income 1,578,222 1,658,135 1,644,766 1,558,551 1,480,886
INTEREST EXPENSE
Borrowings 65,691 51,502 6,291 1,441 -
Checking 2,631 2,447 2,766 2,735 1,945
Money Market 152,605 183,065 214,885 203,405 195,644
Time deposits 631,756 648,941 666,135 621,352 610,082
Total interest
expense 852,683 885,955 890,077 828,933 807,671
Net interest income 725,539 772,180 754,689 729,618 673,215
Provision for loan
losses 165,738 68,980 72,825 94,676 94,210
NON INTEREST INCOME
Mortgage fee income 11,129 7,022 7,818 9,713 12,773
Other income 16,929 18,106 15,436 10,046 7,481
Total non interest
income 28,058 25,128 23,254 19,759 20,254
NON INTEREST EXPENSE
Salaries & benefits 357,128 342,404 330,995 320,053 329,579
Occupancy & equipment 88,143 89,325 86,212 79,554 88,803
Data processing 49,787 50,184 44,064 41,588 43,494
Professional fees 53,479 54,380 62,836 61,092 41,375
Advertising 19,223 31,023 26,273 27,421 13,825
Other non interest
expenses 114,235 125,684 100,733 99,816 74,131
Total non interest
expense 681,995 693,000 651,113 629,524 591,207
Pre-tax income
(loss) $(94,136) $35,328 $54,005 $25,177 $8,052
Tax benefit (expense) 31,362 (13,642) 542,053 - -
Net income $(62,774) $21,686 $596,058 $25,177 $8,052
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. Member FDIC.
Source: First Resource Bank
CONTACT: Glenn Marshall, President & CEO of First Resource Bank,
+1-610-561-6013
Web site: http://www.firstresourcebank.com/
