EXTON, PA — First Resource Bancorp, Inc. (OTCQX: FRSB), the holding company for First Resource Bank, announced its financial results for the year ending December 31, 2024, showcasing strong growth in core banking activities despite navigating challenges in a turbulent financial environment.
“Despite the challenges faced by the banking industry in 2024, I am happy to report that First Resource Bancorp’s core banking business had an outstanding year,” said Lauren C. Ranalli, President and CEO. “Our net interest margin consistently improved, positioning us for a successful 2025.”
Financial Highlights
First Resource Bancorp ended 2024 with notable gains across its key metrics, including a 13% increase in total loans and an 11% increase in total deposits. Total assets grew 10% year-over-year (YOY), demonstrating the bank’s robust operational performance. Net interest income for the year climbed 9%, reaching $20.2 million, while total interest income grew 24% to $36.5 million—bolstered by an expanded loan portfolio and an elevated interest rate environment.
“Our sustained balance sheet growth, paired with a stable and rising net interest margin, led to a 9% rise year-over-year in net interest income, despite the challenges posed by higher deposit costs,” explained Ranalli.
Despite these gains, First Resource Bancorp’s annual net income declined by 10%, totaling $5.3 million, or $1.73 per common share, compared to $5.9 million, or $1.92 per common share, in 2023. Much of the decline was attributed to a $1.0 million reserve for a single non-performing loan, which the company proactively managed to mitigate future impacts.
“The loan relationship requiring the $1.0 million specific reserve was originated in 2020. While it had shown weakness in 2022, it regained stability in 2023 before encountering more significant challenges in the fourth quarter of this year,” Ranalli said. “By booking this significant specific reserve in 2024, we expect that continued collection efforts in 2025 will have minimal impact on our results going forward.”
Operational and Recognition Milestones
Key strategic initiatives and recognitions underscored the company’s strong performance in 2024. First Resource was named “Best Bank in Chester County” by The Daily Local News and “Best Commercial Bank and Best Community Bank” by the Main Line Times. Additionally, it was recognized as a “Best Places to Work” company by the Philadelphia Business Journal.
First Resource Bancorp also implemented a 5% stock repurchase program and issued $2.5 million in subordinated debt during the year. Gains in non-interest income, including a fourfold increase in income related to Small Business Administration (SBA) loan sales and swap referral fees, further enhanced its financial health.
Positioned for 2025
Ranalli expressed optimism for First Resource Bancorp’s future, emphasizing the continued expansion of loans and deposits as well as a focus on disciplined pricing strategies. “By focusing on the core fundamentals of banking—originating loans and building deposits—we have laid a solid foundation for strong future performance,” she said.
Looking to 2025, the bank remains poised for continued success, supported by an expanded corporate office designed to foster collaboration and growth, as well as ongoing efforts to manage costs and strengthen portfolio resilience.
With robust growth in loans, deposits, and net interest income, coupled with strategic initiatives, First Resource Bancorp continues to solidify its position as a strong player in the regional banking industry.
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