First Resource Bank Announces Strong First Quarter Results; Loans And Deposits Reach Record Highs

EXTON, Pa., April 25, 2016

Highlights for the first quarter of 2016 included:

• Net income of $254,119, which was 3% higher than the prior quarter
• Completely exited the Small Business Lending Fund by redeeming the last 25% of preferred stock outstanding
• Loans outstanding grew 2% to a record high of $180 million at March 31, 2016
• Deposits grew 2% to a record high of $169 million at March 31, 2016
• Net interest margin grew to 3.85%, as compared to 3.68% in the prior quarter

Glenn B. Marshall, President & CEO, stated, "During the first quarter we saw both loans and deposits continue to grow to record levels and our pipelines continue to be strong as we enter the second quarter.  We operate in a very competitive loan and deposit market and our continued growth is a testament to the hard work of our team. Our net interest margin has improved to due to the deployment of excess cash balances into loans during the first quarter."

After accounting for preferred stock dividends, net income available to common shareholders for the quarter ended March 31, 2016 was $251,542. This compares to net income available to common shareholders of $244,297 for the quarter ended December 31, 2015 and $288,328 for the quarter ended March 31, 2015.

Net interest income was $1,815,523 for the quarter ended March 31, 2016 as compared to $1,753,210 for the previous quarter, an improvement of 4%.  The net interest margin increased 17 basis points from 3.68% for the quarter ended December 31, 2015 to 3.85% for the quarter ended March 31, 2016. The overall yield on interest earning assets increased 19 basis points during the first quarter, to 4.84%, mainly due to a lower level of low yielding cash and a higher level of loans. The total cost of interest bearing liabilities increased 1 basis point during the first quarter due to a Federal Home Loan Bank term advance executed. The deposit cost of funds decreased 1 basis point to 0.95%. 

Non-interest income for the quarter ended March 31, 2016 was $72,934, as compared to $75,825 for the previous quarter and $76,290 for the first quarter of the prior year.

Non-interest expense increased $139 thousand, or 10%, in the three months ended March 31, 2016 as compared to the prior quarter. This increase was mainly due to higher salaries & benefits expense.