FIRST RESOURCE BANCORP, INC. ANNOUNCES 2024 FIRST QUARTER RESULTS; CONTINUED BALANCE SHEET GROWTH OFFSETS MARGIN COMPRESSION
Highlights for the first quarter of 2024 included:
- Total interest income grew 31% over the prior year
- Net interest income grew 7% over the prior year
- Total loans grew 4% during the first quarter, or 14% annualized
- Total deposits grew 3% during the first quarter, or 11% annualized
- Swap loan referral income totaled
$182 thousand during the first quarter, more than double the entire prior year - There were no non-accrual or non-performing loans as of
March 31, 2024 - Book value per share grew 3% to
$15.34
Net income for the quarter ended
Total interest income increased quarterly by
Total interest income increased
Total interest expense increased 7% when comparing the first quarter of 2024 to the fourth quarter of 2023. This increase stemmed from an 8 basis point rise in the cost of money market accounts and a 29 basis point increase in the cost of time deposits, alongside a higher volume of time deposits quarter over quarter. Additionally, interest expense on FHLB borrowings increased by 7% due to a rise in the average balance and cost of advances during the first quarter of 2024 compared to the fourth quarter of 2023.
Total interest expense increased by 82%, climbing from
"Rising deposit costs are one of the biggest challenges facing the industry at the moment," commented Ranalli. "To address this, we've allocated substantial internal resources towards optimizing our cost of funds while simultaneously growing our deposit portfolio to support loan growth. Our management team has been bolstered by the addition of an experienced retail banking executive and our lending and deposit teams are collaborating closely, creating synergies via joint calling efforts in the pursuit of new deposit relationships."
In the first quarter of 2024, net interest income saw a slight decrease of
The provision for credit losses was
As of
Non-interest income in the first quarter of 2024 amounted to
Non-interest expenses increased
Non-interest expenses increased
Deposits increased a net
The loan portfolio expanded by
Ranalli added "Commercial real estate loans represent a significant concentration for the Bank which we monitor very closely. This type of lending is a core competency for us and we have the proper risk management tools in place to continuously track this exposure."
The following table illustrates the composition of the loan portfolio:
|
2024 |
|
2023 |
|
2023 |
|
|
|
|
|
|
Commercial real estate |
$ 444,909,373 |
|
$ 413,221,898 |
|
$ 383,875,127 |
Commercial construction |
35,337,226 |
|
48,838,199 |
|
39,761,445 |
Commercial business |
51,780,407 |
|
50,224,869 |
|
42,682,372 |
Consumer |
17,979,804 |
|
19,099,155 |
|
16,793,036 |
|
|
|
|
|
|
Total loans |
$ 550,006,810 |
|
$ 531,384,121 |
|
$ 483,111,980 |
Investment securities totaled
Total stockholders' equity saw a
Selected Financial Data: Balance Sheets (unaudited) |
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|
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|
Cash and due from banks |
$ 22,314,437 |
|
$ 23,820,615 |
Time deposits at other banks |
100,000 |
|
100,000 |
Investments |
17,382,019 |
|
25,840,840 |
Loans |
550,006,810 |
|
531,384,121 |
Allowance for credit losses |
(4,383,877) |
|
(4,311,306) |
Premises & equipment |
7,683,039 |
|
7,639,939 |
Other assets |
17,923,286 |
|
18,142,682 |
|
|
|
|
Total assets |
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ 96,439,591 |
|
$ 95,384,366 |
Interest-bearing checking |
36,493,267 |
|
39,760,054 |
Money market |
234,873,774 |
|
231,407,653 |
Time deposits |
145,383,468 |
|
132,738,973 |
Total deposits |
513,190,100 |
|
499,291,046 |
Short term borrowings |
28,000,000 |
|
35,000,000 |
Long term borrowings |
9,530,000 |
|
9,530,000 |
Subordinated debt |
5,981,258 |
|
5,978,134 |
Other liabilities |
6,842,893 |
|
6,682,220 |
|
|
|
|
Total liabilities |
563,544,251 |
|
556,481,400 |
|
|
|
|
Common stock |
3,096,138 |
|
3,093,414 |
Surplus |
19,796,666 |
|
19,767,634 |
Accumulated other comprehensive loss |
(1,055,206) |
|
(1,038,486) |
Retained earnings |
25,643,865 |
|
24,312,929 |
|
|
|
|
Total stockholders' equity |
47,481,463 |
|
46,135,491 |
|
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|
|
Total liabilities & stockholders' equity |
|
|
|
Performance Statistics |
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Qtr Ended
2024 |
Qtr Ended
2023 |
Qtr Ended
2023 |
Qtr Ended
2023 |
Qtr Ended
2023 |
|
|
|
|
|
|
Net interest margin |
3.35 % |
3.39 % |
3.57 % |
3.64 % |
3.57 % |
|
|
|
|
|
|
Nonperforming loans/ total loans |
0.00 % |
0.00 % |
0.14 % |
0.15 % |
0.16 % |
|
|
|
|
|
|
Nonperforming assets/ total assets |
0.00 % |
0.00 % |
0.13 % |
0.14 % |
0.14 % |
|
|
|
|
|
|
Allowance for credit losses/ total loans |
0.80 % |
0.81 % |
0.88 % |
0.89 % |
0.91 % |
|
|
|
|
|
|
Average loans/average assets |
92.4 % |
91.1 % |
92.2 % |
91.6 % |
91.6 % |
|
|
|
|
|
|
Non-interest expenses*/ average assets |
2.28 % |
2.15 % |
2.19 % |
2.29 % |
2.29 % |
|
|
|
|
|
|
Efficiency ratio |
65.5 % |
63.1 % |
60.1 % |
62.5 % |
63.6 % |
|
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|
|
Earnings per share – basic and diluted** |
|
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Book value per share** |
|
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|
|
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Total shares outstanding** |
3,096,138 |
3,093,414 |
3,090,838 |
3,088,019 |
3,085,576 |
|
|
|
|
|
|
Weighted average shares |
3,094,951 |
3,092,277 |
3,089,441 |
3,086,782 |
3,084,634 |
|
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|
|
|
|
* Annualized |
** Per share data for prior periods was restated to reflect the 5% stock dividend paid in |
Income Statements (unaudited) |
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Qtr. Ended
2024 |
|
Qtr. Ended
2023 |
|
Qtr. Ended
2023 |
|
Qtr. Ended
2023 |
|
Qtr. Ended
2023 |
|
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INTEREST INCOME |
|
|
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|
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|
Loans, including fees |
|
|
|
|
|
|
|
|
|
Securities |
120,713 |
|
133,125 |
|
125,882 |
|
120,133 |
|
131,350 |
Other |
31,735 |
|
105,679 |
|
33,221 |
|
67,207 |
|
28,174 |
Total interest income |
8,380,550 |
|
8,180,287 |
|
7,792,266 |
|
7,110,517 |
|
6,382,677 |
|
|
|
|
|
|
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INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Deposits |
3,519,176 |
|
3,277,096 |
|
2,696,301 |
|
2,267,015 |
|
1,819,643 |
Borrowings |
105,860 |
|
98,901 |
|
195,150 |
|
64,267 |
|
126,620 |
Subordinated debt |
93,124 |
|
93,124 |
|
93,124 |
|
93,123 |
|
93,124 |
Total interest expense |
3,718,160 |
|
3,469,121 |
|
2,984,575 |
|
2,424,405 |
|
2,039,387 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
4,662,390 |
|
4,711,166 |
|
4,807,691 |
|
4,686,112 |
|
4,343,290 |
|
|
|
|
|
|
|
|
|
|
Provision for credit losses |
63,651 |
|
(263,073) |
|
71,017 |
|
20,327 |
|
66,299 |
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for credit losses |
4,598,739 |
|
4,974,239 |
|
4,736,674 |
|
4,665,785 |
|
4,276,991 |
|
|
|
|
|
|
|
|
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|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
Service charges and other fees |
100,164 |
|
94,656 |
|
109,894 |
|
107,841 |
|
99,570 |
BOLI income |
51,356 |
|
50,730 |
|
50,237 |
|
49,281 |
|
47,691 |
Swap referral fee income |
182,060 |
|
- |
|
75,649 |
|
- |
|
- |
Other |
62,548 |
|
62,701 |
|
61,527 |
|
55,740 |
|
53,013 |
Total non-interest income |
396,128 |
|
208,087 |
|
297,307 |
|
212,862 |
|
200,274 |
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Salaries & benefits |
2,045,083 |
|
1,873,831 |
|
1,893,558 |
|
1,844,356 |
|
1,834,921 |
Occupancy & equipment |
289,202 |
|
289,361 |
|
282,025 |
|
260,284 |
|
257,741 |
Professional fees |
137,482 |
|
123,336 |
|
119,258 |
|
119,447 |
|
115,303 |
Advertising |
81,745 |
|
83,506 |
|
58,354 |
|
65,917 |
|
67,195 |
Data processing |
176,685 |
|
167,921 |
|
172,288 |
|
159,795 |
|
147,808 |
Other |
584,926 |
|
567,428 |
|
543,465 |
|
611,336 |
|
468,225 |
Total non-interest expense |
3,315,123 |
|
3,105,383 |
|
3,068,948 |
|
3,061,135 |
|
2,891,193 |
|
|
|
|
|
|
|
|
|
|
Income before federal income tax expense |
1,679,744 |
|
2,076,943 |
|
1,965,033 |
|
1,817,512 |
|
1,586,072 |
|
|
|
|
|
|
|
|
|
|
Federal income tax expense |
348,807 |
|
429,920 |
|
401,490 |
|
366,371 |
|
321,784 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
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About
This press release contains statements that are not of historical facts and may pertain to future operating results or events or management's expectations regarding those results or events. These are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts. When used in this press release, the words "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", or words of similar meaning, or future or conditional verbs, such as "will", "would", "should", "could", or "may" are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are either beyond our control or not reasonably capable of predicting at this time. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements. Readers of this press release are accordingly cautioned not to place undue reliance on forward-looking statements.
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