With Sizable Increase in Net Income, First Resource Bank Announces Most Profitable Quarter
First Resource Bank, with locations in West Chester and Exton, reported historic financial results for the first quarter ended March 31, 2017.
- Net income of $406,553, which was 60 percent higher than the prior year first quarter and four percent higher than the fourth quarter of 2016
- Total interest income and net interest income grew 15 percent over the prior year
- Gains of $155,337 on the sale of SBA loans were recognized
- Cost of interest bearing deposits declined four basis points
- Book value per share grew $0.22 to $8.61
“The first quarter of 2017 was the fifth consecutive quarter of increasing profitability,” said Glenn B. Marshall, President and CEO. “We remain focused on growing the balance sheet in an efficient way, avoiding short-term pricing decisions to attract loan volume on terms that will hurt us down the road. Our funding mix has improved with organic deposit growth replacing certificates of deposit and non-core sources of funds as they mature.
“We continue to focus on growing checking deposits to improve our deposit mix and lower our cost of funds.”
Net income for the quarter ended March 31, 2017 was $406,553, which compares to $390,990 for the previous quarter and $254,119 for the first quarter of the prior year. The first quarter of 2016 was the last quarter to incur preferred stock dividends due to the redemption of all preferred stock during that quarter.
Net interest income was $2,096,391 for the quarter ended March 31, 2017 as compared to $2,050,560 for the previous quarter, an improvement of two percent. The net interest margin decreased one basis point from 3.71 percent for the quarter ended Dec. 31, 2016 to 3.70 percent for the quarter ended March 31, 2017.
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