First Resource Bancorp Reports Strong Annual Earnings with Notable Growth in Loans and Deposits

First Resource Bancorp, Inc. (OTCQX: FRSB), the parent company of First Resource Bank, has released its financial results for the year ending December 31, 2024, showcasing significant growth in both loans and deposits despite the challenges faced by the banking industry over the past year.

For the year, First Resource Bancorp reported a 13% increase in total loans and an 11% rise in total deposits, reflecting a robust demand for banking services. Total assets also grew by 10%, while total interest income surged by 24%. The net interest income saw a 9% increase, reaching a total of $20.2 million for the year, driven by disciplined pricing strategies and an expanding loan portfolio.

The company’s book value per share increased by 12%, reaching $16.73. Additionally, First Resource Bancorp achieved a gain of $334 thousand from the sale of SBA loans and swap loan referral fees, more than quadrupling its performance from the previous year.

Lauren C. Ranalli, President and CEO of First Resource Bancorp, expressed satisfaction with the bank’s performance amid industry challenges. “Our core banking business had an outstanding year,” she stated. She acknowledged a single borrower experiencing financial difficulties in the fourth quarter but emphasized that proactive measures were taken to reserve for potential losses. Ranalli assured stakeholders that this isolated incident did not indicate systemic credit issues within the bank’s portfolio.

In the fourth quarter of 2024, net income stood at $1.0 million, or $0.33 per common share, down from $1.6 million in both the previous quarter and the same period last year. The annualized return on average assets was 0.63%, while return on average equity was 7.98% for the quarter.

The provision for credit losses saw a significant increase to $1.1 million, primarily due to a specific reserve established for a non-accrual commercial loan relationship. This marked a notable rise from just $13 thousand in the third quarter.

The bank’s deposit base experienced a net increase of $5.1 million in the fourth quarter, totaling $552.2 million by year-end. While non-interest-bearing deposits declined, interest-bearing accounts showed resilience with increases in money market deposits and certificates of deposit.

Loan growth was primarily attributed to commercial business and commercial real estate sectors, which offset declines in consumer loans. The total loan portfolio reached $598.5 million, reflecting a healthy demand for financing options.

Looking ahead to 2025, Ranalli emphasized that First Resource Bancorp is positioned for continued success by focusing on core banking fundamentals; originating loans and building deposits. The strategic management of overhead expenses and a commitment to fostering an employee-friendly environment are expected to support ongoing growth as the bank expands its operations.

First Resource Bancorp’s recognition as one of the “Best Places to Work” by the Philadelphia Business Journal and accolades as Best Commercial Bank and Best Community Bank further solidify its reputation within the industry. First Resource Bancorp has demonstrated resilience and growth in a challenging environment, laying a solid foundation for future performance as it navigates through evolving market conditions.

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