FIRST RESOURCE BANCORP, INC. ANNOUNCES 2025 THIRD QUARTER RESULTS; NET INCOME GREW 39% OVER PRIOR YEAR, NET INTEREST MARGIN EXPANDS

Rhea-AI Summary

First Resource Bancorp (OTCQX: FRSB) reported Q3 2025 results for the quarter ended September 30, 2025, showing continued earnings and balance-sheet expansion.

Key highlights: Net income $2.3M (+39% YoY), EPS $0.75 (+42% YoY), net interest margin 3.87% (Q3), total assets $724.9M (surpassed $700M), loans $655.3M (+12% YoY), deposits $630.8M (+15% YoY), and book value per share $18.79.

Positive

• Net income +39% year-over-year to $2.3M
• Earnings per share +42% to $0.75
• Net interest margin expanded to 3.87% in Q3
• Total assets exceeded $700M, reaching $724.9M
• Total loans +12% year-over-year to $655.3M
• Total deposits +15% year-over-year to $630.8M

Negative

• Allowance for credit losses fell to 0.72% of loans
• Provision for credit losses rose to $189K in Q3
• Unrealized investment losses about $1.49M gross ($535K and $638K after tax)
• Non-interest expenses up 14% year-over-year

EXTON, Pa., Oct. 28, 2025 /PRNewswire/ -- First Resource Bancorp, Inc. (OTCQX: FRSB), the holding company for First Resource Bank, announced financial results for the three months ended September 30, 2025. 

Lauren C. Ranalli, President and CEO, stated, "We achieved record net income during the third quarter of 2025, continuing the trend of exceptional performance established in the first half of the year. The net interest margin has steadily climbed this year, accelerating from 3.60% in the first quarter and 3.72% in the second quarter to 3.87% in the third quarter of 2025. We also surpassed the $700 million asset threshold, fueled by strong loan and deposit growth.  These results reflect our unwavering commitment to providing exceptional customer service, fostering a thriving workplace culture, and supporting our local communities, all of which continue to generate exceptional value for our shareholders."

Highlights for the third quarter of 2025 included:

• Net income reached $2.3 million, a remarkable 39% increase year-over-year and 19% growth over the prior quarter
• Net interest margin expanded 15 basis points over the prior quarter to 3.87%
• Total interest income rose 16% compared to the third quarter of 2024
• Net interest income grew 27% over the prior year third quarter
• Earnings per share climbed 42% to $0.75, compared to the same quarter last year
• Total loans grew 5% during the quarter, or 19% annualized
• Total deposits also rose 5%, or 21% annualized
• Book value per share increased 4% to $18.79
• Total assets expanded by $27.6 million, or 4%, ending the quarter at $724.9 million
• There were no non-accrual or non-performing loans as of September 30, 2025

"Our record year to date performance through September 30, 2025, positions us for what we anticipate being our most successful year yet," said Ranalli. "We're seeing sustained growth momentum and consistently strong profitability, which continue to strengthen our balance sheet. Disruption caused by an uptick in bank merger activity across our region will open the door to meaningful new business development opportunities and we are ready to seize them."

The company delivered outstanding financial performance in the third quarter of 2025, reporting net income totaling $2.3 million, or $0.75 per common share, a significant increase from $1.9 million, or $0.63 per share, in the previous quarter, and up considerably from $1.6 million, or $0.53 per common share, in the same period last year. This impressive growth was reflected in key profitability metrics, with the annualized return on average assets climbing to 1.29% for the third quarter of 2025, compared to 1.04% in the third quarter of 2024. Similarly, the annualized return on average equity also improved, reaching 16.19%, up from 13.08% year-over-year, underscoring the Bank's continued strength and strategic execution. 

Total interest income for the third quarter of 2025 reached $11.0 million, reflecting a $720 thousand or 7% increase over the prior quarter. This growth was fueled by a 5% increase in loans during the third quarter, coupled with an overall increase in loan yields.

Total interest income increased by $1.5 million, marking a 16% increase from $9.5 million in the third quarter of 2024 to $11.0 million in the corresponding period of 2025. This growth was driven by a 12% year-over-year expansion in loans, complemented by an overall increase in loan yields. 

Total interest income grew $4.1 million, or 15%, from $26.9 million for the nine months ended September 30, 2024, to $31.0 million for the corresponding period in 2025. This growth was primarily driven by loan portfolio expansion and an increased rate environment, as previously noted.

Total interest expense rose 3% in the third quarter of 2025 compared to the prior quarter, primarily due to greater volumes of interest-bearing deposits. This was partially offset by an 11 basis point reduction in the cost of interest-bearing deposits. Consequently, interest expense on borrowings decreased by 9%, driven by a 34 basis point reduction in the cost of FHLB borrowings during the third quarter.

Total interest expense increased by 2%, climbing from $4.3 million in the third quarter of 2024 to $4.4 million in the third quarter of 2025. This increase was primarily attributable to greater volumes of interest-bearing deposits, partially offset by a 36 basis point decrease in the cost of interest-bearing deposits year-over-year. Interest expense on subordinated debt grew by 11%, while interest expense on borrowings declined by 68% when compared to the third quarter of 2024.

Total interest expense for the nine months ended September 30, 2025 increased by 7%, to $13.0 million, up from $12.1 million in the same period of 2024. Primary factors of this increase include greater volumes of interest-bearing deposits and subordinated debt. These increases were partially offset by a reduction in FHLB borrowings and declines in the cost of funds, including a 14 basis point decrease in the cost of money market accounts, a 48 basis point drop in the cost of time deposits, and a 65 basis point decline in the cost of FHLB borrowings.

In the third quarter of 2025, net interest income grew by $608 thousand, or 10%, compared to the previous quarter. The net interest margin also improved, rising to 3.87% from 3.72% in the second quarter of 2025. The overall yield on interest-earning assets climbed by 7 basis points, primarily driven by a 9 basis point increase in loan yields to 6.64% for the quarter. Meanwhile, the cost of interest-bearing deposits declined 11 basis points to 3.25%, primarily due to a 19 basis point drop in the cost of time deposit accounts. This decrease was partially offset by higher volumes of interest-bearing deposit accounts. As a result, the total cost of deposits fell by 8 basis points for the quarter, from 2.82% to 2.74%.

Net interest income for the nine months ended September 30, 2025, totaled $18.0 million, reflecting a 22% improvement from $14.8 million for the same period in 2024. This growth was fueled by a $4.0 million, or 15%, increase in loan interest income, a $284 thousand, or 54%, decline in interest expense on borrowings, and a $122 thousand, or 133%, increase in other interest income, partially offset by a $1.1 million, or 10%, increase in deposit interest expense and a $97 thousand, or 32%, increase in interest expense on subordinated debt.

The provision for credit losses in the third quarter of 2025 was $189 thousand, up from $130 thousand in the prior quarter. A $215 thousand charge-off for a non-accrual commercial loan relationship was recorded in the third quarter of 2025, bringing total non-accrual loans to zero. Year over year, the provision for credit losses increased $176 thousand from $13 thousand in the third quarter of 2024 to $189 thousand in the third quarter of 2025.

As of September 30, 2025, the allowance for credit losses to total loans stood at 0.72%, down from 0.93% as of December 31, 2024. The reserve decreased due to a first-quarter charge-off of a previously reserved credit. There were no non-performing assets as of September 30, 2025, after the prior quarter end's total of a $215 thousand non-accrual commercial loan relationship was charged off. Non-performing assets to total assets stood at 0.00% as of September 30, 2025, compared to 0.19% as of December 31, 2024, and 0.00% at September 30, 2024.

Non-interest income totaled $349 thousand in the third quarter of 2025, representing a 6% decrease from $372 thousand in the previous quarter, and a 22% increase from $286 thousand in the same period of 2024. Notably, swap referral fee income contributed $97 thousand in the third quarter of 2025, down from $108 thousand in the second quarter of 2025 and up from zero in the third quarter of 2024. No gains on the sale of SBA loans were recorded in the third quarter of 2025, compared to $26 thousand in the previous quarter, and $59 thousand in the third quarter of 2024.

Non-interest income for the nine months ended September 30, 2025, totaled $1.1 million, up from $973 thousand in the same period of 2024. Swap referral fee income was $229 thousand in the first nine months of 2025, compared to $245 thousand in the first nine months of 2024. Gains on the sale of SBA loans totaled $113 thousand in the first nine months of 2025, compared to $59 thousand in the prior year period.

Non-interest expenses increased $80 thousand, or 2%, in the third quarter of 2025 compared to the prior quarter. This increase was driven by higher salaries & benefits, data processing, and other costs, partially offset by decreases in occupancy & equipment, professional fees, and advertising. 

Non-interest expenses increased $486 thousand, or 14%, in the third quarter of 2025 compared to the same period in 2024. Increases in salaries & benefits, professional fees, advertising, data processing, and other costs were partially offset by a decrease in occupancy & equipment costs. The ratio of non-interest expenses to average assets was 2.21% in the third quarter of 2025, down from 2.29% in the previous quarter and up from 2.17% in the third quarter of the prior year.

Non-interest expenses for the nine months ended September 30, 2025, were $11.3 million compared to $10.0 million for the same period in the prior year. The increase of $1.2 million, or 12%, was mostly attributed to increases in salaries & benefits associated with an expanded workforce, along with professional fees, advertising, data processing, and other expenses.

Total deposits increased by $31.0 million, or 5% during the third quarter of 2025, rising from $599.7 million as of June 30, 2025, to $630.8 million on September 30, 2025. Non-interest-bearing deposits rose $278 thousand to $99.7 million, up from $99.4 million in the previous quarter. Interest-bearing checking balances increased by $12.3 million, or 28%, to $55.9 million, up from $43.6 million in the prior quarter. Money market deposits grew $823 thousand, rising from $256.7 million at the end of the second quarter of 2025, to $257.5 million by the close of the third quarter, while time deposits grew $17.7 million, or 9%, from $200.0 million on June 30, 2025, to $217.7 million on September 30, 2025. Year-to-date, total deposits grew $78.6 million, or 14%.

Between September 30, 2024, and September 30, 2025, total deposits grew 15%, driven by increases in all deposit categories. As of September 30, 2025, approximately 82% of total deposits were insured or otherwise collateralized, up from 81% in the prior quarter.

The loan portfolio expanded by $30.5 million, representing a 5% increase, from $624.8 million on June 30, 2025, to $655.3 million on September 30, 2025, with strong growth in commercial real estate, commercial business, and consumer loans, partially offset by a decline in construction loans. Year-to-date, total loans grew $56.9 million, or 10%, reflecting continued strength and diversification in lending activity.

Between September 30, 2024, and September 30, 2025, total loans expanded by 12%, with strong growth noted in all commercial loan categories.

The following table illustrates the composition of the loan portfolio:

	Sep. 30, 2025		Dec. 31, 2024		Sep. 30, 2024
Commercial real estate	$   516,826,603		$   480,933,654		$   469,508,986
Commercial construction	49,287,152		39,760,197		37,500,214
Commercial business	69,578,865		59,862,802		57,963,287
Consumer	19,645,273		17,907,914		18,276,277
Total loans	$   655,337,893		$   598,464,567		$   583,248,764

Investment securities totaled $19.1 million on September 30, 2025, compared to $16.5 million on June 30, 2025. The held-to-maturity investment portfolio had a book value of $9.2 million and a fair market value of $8.5 million, resulting in an unrealized loss of $677 thousand, compared to an unrealized loss of $961 thousand as of June 30, 2025. After tax, this loss amounts to $535 thousand, representing approximately 0.9% of total equity as of September 30, 2025. The remainder of the investment portfolio was classified as available-for-sale, with a book value of $10.7 million and a fair value of $9.9 million, resulting in an unrealized loss of $808 thousand, compared to $970 thousand as of June 30, 2025. This unrealized loss, net of tax, totals $638 thousand and is reflected in accumulated other comprehensive loss on the balance sheet.

On August 12, 2024, the Company announced a stock repurchase program authorizing the repurchase of up to 155,922 shares of its common stock. The Company did not repurchase any shares during the quarter ended September 30, 2025. The stock repurchase program expired on July 16, 2025.

Total stockholders' equity increased by $2.4 million, or 4%, rising from $54.0 million on June 30, 2025, to $56.4 million on September 30, 2025, largely driven by net income. During the quarter ended September 30, 2025, book value increased by 79 cents, or 4%, reaching $18.79 per share. Year-to-date, total stockholders' equity grew $6.1 million, or 12%.

Selected Financial Data: Consolidated Balance Sheets (unaudited)
	September 30, 2025		December 31, 2024
Cash and due from banks	$    29,590,356		$    17,837,920
Time deposits at other banks	100,000		100,000
Investments	19,065,497		26,611,867
Loans	655,337,893		598,464,567
Allowance for credit losses	(4,706,905)		(5,574,679)
Premises & equipment	7,467,535		7,551,410
Other assets	18,030,984		18,593,449
Total assets	$  724,885,360		$  663,584,534
Noninterest-bearing deposits	$    99,688,828		$    86,581,276
Interest-bearing checking	55,875,100		40,119,102
Money market	257,517,175		239,828,130
Time deposits	217,695,517		185,697,340
Total deposits	630,776,620		552,225,848
Short term borrowings	8,000,000		40,000,000
Long term borrowings	13,887,000		6,250,000
Subordinated debt	8,485,386		8,473,216
Other liabilities	7,320,262		6,341,010
Total liabilities	668,469,268		613,290,074
Common stock	3,100,773		3,100,773
Surplus	19,857,275		19,852,352
Treasury stock	(1,375,079)		(1,316,876)
Accumulated other comprehensive loss	(638,426)		(964,821)
Retained earnings	35,471,549		29,623,032
Total stockholders' equity	56,416,092		50,294,460
Total liabilities &      stockholders' equity	$  724,885,360		$  663,584,534

 

Performance Statistics (unaudited)
	Qtr Ended Sep. 30, 2025	Qtr Ended Jun. 30, 2025	Qtr Ended Mar. 31, 2025	Qtr Ended Dec. 31, 2024	Qtr Ended Sep. 30, 2024
Net interest margin	3.87 %	3.72 %	3.60 %	3.50 %	3.43 %
Nonperforming loans/    total loans	0.00 %	0.03 %	0.04 %	0.21 %	0.00 %
Nonperforming assets/    total assets	0.00 %	0.03 %	0.04 %	0.19 %	0.00 %
Allowance for credit losses/    total loans	0.72 %	0.76 %	0.77 %	0.93 %	0.76 %
Average loans/average    assets	92.2 %	93.3 %	93.0 %	93.2 %	92.9 %
Non-interest expenses*/    average assets	2.21 %	2.29 %	2.25 %	2.07 %	2.17 %
Efficiency ratio	56.1 %	60.0 %	61.0 %	58.3 %	62.3 %
Earnings per share – basic    and diluted	$0.75	$0.63	$0.56	$0.33	$0.53
Book value per share	$18.79	$18.00	$17.34	$16.73	$16.45
Total shares outstanding	3,002,485	3,000,028	2,998,977	3,006,039	3,004,689
Weighted average shares outstanding	3,001,454	2,999,200	3,003,194	3,005,408	3,055,157
*  Annualized

 

Consolidated Income Statements (unaudited)
	Qtr. Ended Sep. 30, 2025		Qtr. Ended Jun. 30, 2025		Qtr. Ended Mar. 31, 2025		Qtr. Ended Dec. 31, 2024		Qtr. Ended Sep. 30, 2024
INTEREST INCOME
Loans, including fees	$10,719,087		$10,126,623		$9,583,093		$9,512,689		$9,346,895
Securities	136,606		118,920		116,372		115,291		123,678
Other	138,292		28,289		47,421		24,256		25,135
Total interest income	10,993,985		10,273,832		9,746,886		9,652,236		9,495,708
INTEREST EXPENSE
Deposits	4,231,636		4,111,978		4,002,995		4,057,530		3,979,691
Borrowings	77,963		85,822		77,303		90,767		245,596
Subordinated debt	134,682		134,681		134,682		134,681		120,829
Total interest expense	4,444,281		4,332,481		4,214,980		4,282,978		4,346,116
Net interest income	6,549,704		5,941,351		5,531,906		5,369,258		5,149,592
Provision for credit losses	189,087		130,416		174,097		1,127,547		13,317
Net interest income after provision for credit losses	6,360,617		5,810,935		5,357,809		4,241,711		5,136,275
NON-INTEREST INCOME
Service charges and other fees	107,182		97,887		109,360		114,958		94,812
BOLI income	68,585		66,998		65,850		66,248		65,800
Gain on sale of SBA loans	-		26,326		86,860		(367)		59,296
Swap referral fee income	96,813		107,925		24,201		31,030		-
Other	76,913		73,275		62,843		77,225		65,944
Total non-interest income	349,493		372,411		349,114		289,094		285,852
NON-INTEREST EXPENSE
Salaries & benefits	2,370,422		2,253,069		2,127,037		1,948,007		1,999,957
Occupancy & equipment	316,684		318,631		334,698		336,629		368,339
Professional fees	143,108		192,378		150,176		109,819		128,748
Advertising	104,356		113,923		108,721		77,809		76,383
Data processing	213,565		207,430		204,492		201,671		189,429
Other	722,935		705,961		664,334		625,603		622,590
Total non-interest expense	3,871,070		3,791,392		3,589,458		3,299,538		3,385,446
Income before federal income tax expense	2,839,040		2,391,954		2,117,465		1,231,267		2,036,681
Federal income tax expense	580,874		488,827		430,241		223,486		413,607
Net income	$  2,258,166		$  1,903,127		$1,687,224		$1,007,781		$1,623,074

 

Income Statements (unaudited)
	Nine Months Ended Sep. 30, 2025		Nine Months Ended Sep. 30, 2024
INTEREST INCOME
Loans, including fees	$  30,428,803		$  26,434,692
Securities	371,898		366,473
Other	214,002		91,834
Total interest income	31,014,703		26,892,999
INTEREST EXPENSE
Deposits	12,346,609		11,265,878
Borrowings	241,088		524,654
Subordinated debt	404,045		307,077
Total interest expense	12,991,742		12,097,609
Net interest income	18,022,961		14,795,390
Provision for credit losses	493,600		323,241
Net interest income after provision for credit losses	17,529,361		14,472,149
NON-INTEREST INCOME
Service charges and other fees	314,429		299,724
BOLI income	201,433		176,769
Gain on sale of SBA loans	113,186		59,296
Swap referral fee income	228,939		244,520
Other	213,031		192,577
Total non-interest income	1,071,018		972,886
NON-INTEREST EXPENSE
Salaries & benefits	6,750,528		5,989,795
Occupancy & equipment	970,013		1,020,391
Professional fees	485,662		396,997
Advertising	327,000		239,638
Data processing	625,487		546,371
Other	2,093,230		1,844,105
Total non-interest expense	11,251,920		10,037,297
Income before federal income tax expense	7,348,459		5,407,738
Federal income tax expense	1,499,942		1,105,294
Net income	$    5,848,517		$    4,302,444

About First Resource Bancorp, Inc.

First Resource Bancorp, Inc. is the holding company of First Resource Bank. First Resource Bank is a locally owned and operated Pennsylvania state-chartered bank with three full-service branches, serving the banking needs of businesses, professionals and individuals in the Delaware Valley. The Bank offers a full range of deposit and credit services with a high level of personalized service. First Resource Bank also offers a broad range of traditional financial services and products, competitively priced and delivered in a responsive manner to small businesses, professionals and residents in the local market. For additional information visit our website at www.firstresourcebank.com. Member FDIC.

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. First Resource Bank disclaims any intent or obligation to update publicly any of the forward-looking statements herein, whether in response to new information, future events or otherwise.     

 

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SOURCE First Resource Bank

FAQ

What were First Resource Bancorp (FRSB) Q3 2025 net income and EPS?

FRSB reported net income $2.3M and EPS $0.75 for Q3 2025, up 39% and 42% year-over-year respectively.

How did First Resource Bancorp (FRSB) net interest margin change in Q3 2025?

Net interest margin improved to 3.87% in Q3 2025, up from 3.72% in Q2 2025.

What were First Resource Bancorp (FRSB) total assets, loans, and deposits as of September 30, 2025?

As of September 30, 2025, total assets $724.9M, total loans $655.3M, and total deposits $630.8M.

Did First Resource Bancorp (FRSB) report credit deterioration in Q3 2025?

Q3 2025 showed a higher provision of $189K and the allowance declined to 0.72% of loans; nonperforming loans were zero at quarter end.

How did First Resource Bancorp (FRSB) expenses and efficiency trend in Q3 2025?

Non-interest expenses rose 14% YoY; the efficiency ratio improved to 56.1% in Q3 2025.

Is First Resource Bancorp (FRSB) buying back stock in Q3 2025?

The prior repurchase program expired July 16, 2025, and no shares were repurchased in Q3 2025.