EXTON, PA — First Resource Bancorp, Inc. (OTCQX: FRSB), the parent company of First Resource Bank, recently announced its financial results for the third quarter ending September 30, 2023. The results were marked by strong growth in net income, total interest income, and assets, alongside a significant decrease in the provision for credit losses.
CEO Glenn B. Marshall noted that despite the challenges posed by rising interest rates, the company continued to increase its book value and profitability for shareholders. He attributed this success to the bank’s strategic focus on managing overhead growth and keeping expense growth aligned with asset growth.
The third quarter of 2023 saw First Resource Bancorp deliver impressive financial results:
- Net income reached $1.6 million, marking an 8% increase over the previous quarter.
- Total interest income grew by 43% compared to the third quarter of the previous year.
- Net interest income rose by 5% over the third quarter of the previous year.
- Provision for credit losses saw a substantial decrease of 56% compared to the same quarter last year.
- Total loans and deposits both experienced growth, with increases of 3% over the quarter and 13% year-to-date.
- Total assets also expanded, growing by $15.8 million or 3%, to end the quarter at $580.8 million.
- The ratio of nonperforming assets to total assets fell by 1 basis point over the quarter to 0.13%.
President and Chief Financial Officer Lauren C. Ranalli pointed out that while the entire industry is experiencing net interest margin compression this year, First Resource Bancorp has managed to outgrow this through earnings. She added that the third quarter of 2023 was the bank’s most profitable quarter to date, despite the challenging interest rate environment.
The bank’s interest income rose by $2.3 million or 43% from the third quarter of 2022 to the same period in 2023, driven by a 16% increase in loans and a more favorable rate environment. Meanwhile, interest expenses climbed by 238% year-over-year due to the increased volume and cost of money market accounts, time deposits, and Federal Home Loan Bank (FHLB) borrowings.
First Resource Bancorp’s non-interest income for the first nine months of 2023 was down 18%, largely due to lower swap referral fee income and no gain on the sale of SBA loans compared to the same period in 2022. However, non-interest income was up $297 thousand compared to both the prior quarter and the previous year’s third quarter.
In summary, First Resource Bancorp’s Q3 2023 results reflect a strong performance amid challenging market conditions. The bank’s continued growth in net income, total interest income, and assets, along with its effective management of credit losses, demonstrate its resilience and strategic focus on profitability. As interest rates continue to rise, First Resource Bancorp’s financial results indicate a promising outlook for its investors.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.