EXTON, PA — First Resource Bancorp, Inc. (OTCQX: FRSB), the parent company of First Resource Bank, posted its most profitable quarter in history for the three months ending June 30, 2025. Strong loan and deposit growth, combined with disciplined balance sheet management, drove the company’s net interest margin higher and fueled a 41% increase in year-over-year earnings.
Second-quarter net income rose to $1.9 million, or $0.63 per share, compared to $1.3 million, or $0.44 per share, a year earlier. That performance marked a 13% increase over the prior quarter and pushed return on average assets to 1.15% and return on average equity to 14.38%.
“Our net interest margin expanded for the third consecutive quarter,” said President and CEO Lauren C. Ranalli. “With total assets nearing $700 million, every basis point makes a real difference to the bottom line.”
The net interest margin improved to 3.72% in Q2, up from 3.60% in Q1 and 3.50% in Q4 2024. Total interest income for the quarter reached $10.3 million, a 14% increase year-over-year, while net interest income climbed 19% to $6.0 million.
Loan growth remained strong, with total loans rising 3% in the quarter and 9% over the past year to $624.8 million. Deposit balances increased 4% sequentially to $599.7 million, driven by gains in money market and time deposit accounts. Year-over-year, deposits rose 12%.
Asset quality remained sound. Non-performing assets totaled just 0.03% of total assets. The provision for credit losses was $130,000, down from $174,000 in the prior quarter and from $246,000 a year earlier.
Non-interest income rose 28% year-over-year to $372,000, bolstered by swap referral fees and gains on the sale of SBA loans. Meanwhile, non-interest expenses climbed 14% to $3.8 million, reflecting increased staffing and operational costs. Despite the rise, the bank maintained a lean 2.29% expense-to-asset ratio.
Book value per share rose 4% to $18.00, supported by earnings and modest stock repurchases. As of quarter-end, total assets stood at $697.3 million, up $22.0 million from March 31.
First Resource was recently named a “Best Places to Work” by the Philadelphia Business Journal for the seventh consecutive year and earned recognition as a top-performing community bank under $2 billion in assets by American Banker.
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