EXTON, PA — First Resource Bancorp (OTCQX: FRSB), a prominent figure in the banking industry, had a robust financial journey in 2023, marking the year with significant growth across key financial matrices. The bank reported a 5% surge in net income, reaching a towering $5.9 million or $1.92 per common share. Displaying a clear testament to customers’ trust and robust operations, total loans and deposits each rose by an impressive 16%.
First Resource’s growth story doesn’t stop there as total assets surpassed the remarkable $600 million threshold. The book value per share, another essential financial indicator, ascended by 15% to $14.91 per share, showcasing the bank’s steady financial vitality and consequential investor allure.
Despite a slight contraction in net interest income and net interest margin by 2% and 18 basis points respectively in the fourth quarter, First Resource’s overall yield on interest-earning assets witnessed an upbeat movement, increasing by 10 basis points. This hike was primarily fueled by a spike in yield on loans and interest-earning cash equivalents and investments.
In a clear nod to First Resource’s robust risk management practices, the provision for credit losses dwindled to a negative $263 thousand in the fourth quarter, signaling an uptick in credit quality. Further, the ratio of the allowance for credit losses to total loans retracted from 0.92% to 0.81% year-over-year. Adding another feather to the bank’s cap, there were zero non-performing assets reported at the year’s end.
Non-interest income for the year settled at $919 thousand, compared to the previous year’s $1.1 million. The bank witnessed non-interest expenses balloon by 16% in the last quarter of 2023, vis-à-vis the same period in 2022.
Deposits showed a healthy growth of 3% to hit $499.3 million by the close of December 2023. In parallel, the loan portfolio experienced a similar 3% ascent reaching $531.4 million. The bank’s investment securities summed up to $25.8 million.
Capping off a year of stalwart performance, the total stockholders’ equity advanced by 4% to touch $46.1 million at the end of December 2023, mainly driven by the generated net income. The book value per share experienced a parallel uptrend growing by 4% to $14.91.
First Resource Bancorp has emerged as a beacon of financial resilience and growth in 2023. The strong progress in net income, total loans, deposits, and total assets coupled with improvements in credit quality and a sturdy stockholders’ equity position are all markers of a prosperous financial voyage. Investors can take solace in the bank’s robust financial health and prospects in the near term.
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