First Resource Bankcorp Inc · OTC:FRSB
First Resource Bankcorp — First Resource Bank — Virtual Investor Conference (March 2019)
24 slides from First Resource Bankcorp's conference presentation, Mar 14, 2019
Slide 1: Virtual Investor Conference March 14, 2019
Virtual Investor Conference March 14, 2019
Slide 2: Cautionary Note Regarding Forward Looking Statements
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS This presentation contains forward-looking information about First Resource Bank that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking sta
Slide 3: First Resource Bank
First Resource Bank • Community bank based in Chester County, Pennsylvania • Two high profile branch locations – Exton, PA (headquarters) – West Chester, PA • Third branch opening in 2019 in Wayne, PA • Established in 2005 • Executive management team were organizers of the Bank 3
Slide 4: Market Area
Market Area Suburban Philadelphia is one of the most economically attractive markets in United States and Pennsylvania: Chester County has the highest Median Household Income in Pennsylvania at $92,417 with an unemployment rate of 2.8% Montgomery County has the 2nd highest Median Household Income in
Slide 5: Hybrid Community Bank
Hybrid Community Bank • Combination of limited physical “high touch” branches complimented by “high tech” banking products and services on par with those offered by national financial services providers • Don’t need to be on every street corner, but do need to be available 24/7 5
Slide 6: Technology Focused
Technology Focused 58% of daily items deposited now flowing through Remote Deposit Capture & Mobile Deposit 6
Slide 7: 2018 Highlights
2018 Highlights • Record profitability, net income grew 28% • Total assets grew to over $300 million • Strong checking growth, with non-interest deposits up 27% • Acquired the site for the third branch location • Loan growth was 13%, 5th consecutive year of double digit annual growth 7
Slide 8: Top Line Income Growth
Top Line Income Growth $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 Total Interest Income 8
Slide 9: Net Interest Margin
9 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Peer Group NIM Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Net Interest Margin Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 FRB NIM Q4 2013 Q3 2013 Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 4.20% Q1 2012 4.00% 3.80% 3.60% 3.40% 3
Slide 10: Overhead Expense Control
Overhead Expense Control 4.00% 3.50% 3.00% 2.50% 2.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 FRB Overhead/Average Earning Assets Peer Group Overhead/Avg. Earning Assets 10
Slide 11: Income Growth
Income Growth $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 Net Income 11
Slide 12: Balance Sheet Growth
Balance Sheet Growth $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 Assets Loans Deposits 12
Slide 13: Deposit Growth
Deposit Growth 19.0% $100,000,000 17.0% 15.0% $75,000,000 13.0% 11.0% $50,000,000 9.0% 7.0% $25,000,000 5.0% $0 3.0% 2011 2012 2013 2014 2015 2016 2017 2018 Checking Money Market CD % Checking 13
Slide 14: Efficient Branching Strategy
Efficient Branching Strategy • Operated as a single branch for 10 years in Exton, Pennsylvania – $154 million in deposits at December 31, 2018 • Second branch opened in West Chester, Pennsylvania in April 2015 – $75 million in deposits at December 31, 2018 • Future branching plans include markets th
Slide 15: Branch Expansion
Branch Expansion • Wayne, PA site acquired with construction to begin by the end of March • Anticipated opening September 2019 Sources: FDIC, SNL Financial LC 15
Slide 16: Expanded Deposit Market
Expanded Deposit Market • As of June 30, 2018, total deposits in our markets were: – Exton $2.4 billion, with 19 branches – West Chester $3.1 billion, with 38 branches – Wayne $3.7 billion, with 21 branches • Combined area creates a $12.5 billion deposit market triangle 16
Slide 17: Loan Growth
Loan Growth $250,000,000 14.0% 12.0% $200,000,000 10.0% $150,000,000 8.0% $100,000,000 6.0% 4.0% $50,000,000 2.0% $0 0.0% 2011 2012 2013 2014 2015 2016 2017 2018 Total Loans % Growth 17
Slide 18: Loan Portfolio Mix at 12/31/18
Loan Portfolio Mix at 12/31/18 CRE Non-Owner Occupied CRE Owner 17% Occupied 23% Consumer other 2% Consumer-1st lien 7% Commercial other 8% Commercial 1-4 Residential C&I 19% 14% Commercial Construction 10% 18
Slide 19: Asset Quality
Asset Quality 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 Total non-performing 2.34% 1.31% 1.64% 1.31% 0.73% 1.39% 1.14% loans/total loans Total non-performing 2.45% 1.51% 1.57% 1.17% 0.63% 1.13% 0.92% assets/total assets Total past due and 3.67% 1.94% 1.99% 1.82% 1.01% 1.94% 1.89
Slide 20: Best Bank in Chester County
Best Bank in Chester County • Voted 2018 and 2017 Best Bank in Chester County by readers of The Daily Local, Chester County’s local newspaper 20
Slide 21: More FRSB Accolades
More FRSB Accolades • West Chester Area Education Foundation Community Partner of the Year 2019 • One House At A Time Supporter of the Year 2018 21
Slide 22: Common Stock Performance
First Common Stock Performance icone First Resource Bank | STOCK CHART creareatert | | «p00 + | { print | | exporr ~ | | auLoaReroRt | {E OTCOX:FRSB (MI KEY:4096749; SPCIQ KEY: 22198873) — OTCOX:FRSB: 77.69% © OTCOK:FRSB-Vol — SHPS5O0:40.75% — SNLUS.Bank: 46.69% © — SHP5O0Bank: 48.21% © — KBWNasdag
Slide 23: Book Value vs. Market Value
Book Value vs. Market Value 140% $11.00 $10.00 120% $9.00 $8.00 100% $7.00 80% $6.00 $5.00 60% $4.00 40% $3.00 $2.00 20% $1.00 $0.00 0% 2011 2012 2013 2014 2015 2016 2017 2018 Feb-19 Book Value per Share Market Value Price/Book Ratio 23
Slide 24: Contact Information
Contact Information Glenn Marshall President & CEO 610-561-6013 GMarshall@FirstResourceBank.com Lauren Ranalli EVP & CFO 610-561-6014 LRanalli@FirstResourceBank.com 24
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