EXTON, PA — First Resource Bancorp, Inc. (OTCQX: FRSB), parent of First Resource Bank, posted record third-quarter results as net interest margin expanded and both loans and deposits advanced at a double-digit annualized pace.
President and CEO Lauren C. Ranalli said, “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.”
Quarterly net income reached $2.3 million, up 39% year over year and 19% from the prior quarter. Earnings per share rose 42% to $0.75. Return on average assets improved to 1.29% and return on average equity to 16.19%, reflecting stronger spread income and operating leverage.
Net interest margin widened 15 basis points sequentially to 3.87% as loan yields increased to 6.64% and the cost of interest-bearing deposits fell 11 basis points to 3.25%. Net interest income rose 10% from the second quarter, aided by an 8-basis-point decline in total deposit costs to 2.74%. Total interest income climbed to $11.0 million, up 7% sequentially and 16% year over year, on 5% quarterly and 12% annual loan growth. Interest expense rose 3% from the second quarter but was contained by lower funding costs; versus a year ago, deposit mix and rate declines offset higher volumes.
Credit quality remained pristine. The bank recorded a $189,000 provision for credit losses and charged off a $215,000 non-accrual commercial relationship, resulting in zero non-accrual and non-performing loans at quarter-end. The allowance for credit losses stood at 0.72% of total loans. Non-performing assets were 0.00% of total assets, down from 0.19% at year-end 2024.
Balance-sheet momentum was broad-based. Total loans increased 5% in the quarter (19% annualized) to $655.3 million, with growth led by commercial real estate, commercial business, and consumer lending. Total deposits also rose 5% (21% annualized) to $630.8 million, including gains across interest-bearing checking, money market, and time deposits; approximately 82% of deposits were insured or otherwise collateralized. Total assets expanded 4% to $724.9 million.
Non-interest income was $349,000, up 22% year over year, supported by swap referral fees. Non-interest expense increased 2% sequentially and 14% year over year, driven by higher salaries and benefits, professional fees, advertising, and data processing tied to growth initiatives.
Securities remained a modest portion of the balance sheet. Investment securities totaled $19.1 million, with unrealized losses—net of tax—of $1.17 million across held-to-maturity and available-for-sale portfolios, representing a small fraction of equity. Book value per share rose 4% in the quarter to $18.79; total stockholders’ equity increased to $56.4 million. The company’s 2024 repurchase authorization has expired; no shares were repurchased in the third quarter.
“Our record year to date performance through September 30, 2025, positions us for what we anticipate being our most successful year yet,” Ranalli said. “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.”
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