EXTON, PA — First Resource Bancorp, Inc. (OTCQX: FRSB), the parent company of First Resource Bank, announced robust financial results for the third quarter of 2024, showcasing a 20% increase in net income. The company’s net income reached $1.6 million, up from the previous quarter, reflecting its strong financial management amidst a competitive environment.
Lauren C. Ranalli, President and CEO, stated, “During the third quarter we successfully expanded our balance sheet while maintaining pristine credit quality. Our net income has increased, thanks largely to our ability to preserve a strong net interest margin in a highly competitive environment.”
Key financial achievements for the quarter include a 22% rise in total interest income from the previous year, reaching $9.5 million. The net interest margin held steady at 3.43%, supported by a strategic approach to loan pricing that helped grow the portfolio. Total loans increased by 2% during the quarter, contributing to the 10% year-to-date growth.
The company also announced a significant drop in its provision for credit losses, down 81% from the same period last year, signaling strong credit quality with no loans past due greater than 30 days and no non-performing assets.
In a strategic move to enhance shareholder value, First Resource Bancorp initiated a 5% stock repurchase program, resulting in the repurchase of 96,084 shares at an average price of $13.96 per share. Additionally, the company issued $2.5 million in subordinated debt with a 10-year term.
The company’s total assets grew by $11.0 million, or 2%, ending the quarter at $651.7 million. Deposit growth was also strong, increasing by 2% in the third quarter, driven by a rise in interest-bearing checking balances and certificates of deposit.
Ranalli emphasized the company’s commitment to prudent growth, noting, “Credit quality remains excellent as we maintain strict underwriting guidelines while we continue to grow the loan portfolio.”
Overall, the company’s strategic initiatives and disciplined financial management have positioned it well for continued success in the coming quarters.
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