First Resource Bankcorp Inc · OTC:FRSB
First Resource Bankcorp — First Resource Bank — Shareholder Meeting (June 2021)
21 slides from First Resource Bankcorp's shareholder meeting presentation, Jun 17, 2021
Slide 1: Annual Shareholder's Meeting
Annual Shareholder’s Meeting June 17, 2021
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: 2020 Highlights
2020 Highlights • Record profitability, net income grew 40% • Strong checking growth, with non-interest deposits up 97% • $58.8 million of PPP loans completed, with $23.2 million forgiven as of 12/31/20 • Total assets increased 26%, to $424 million • Nonperforming assets to total assets improved 79%
Slide 4: Balance Sheet Growth
Balance Sheet Growth $450,000,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Assets Loans Deposits
Slide 5: Loan Growth
Loan Growth $400,000,000 25.0% $350,000,000 20.0% $300,000,000 $250,000,000 15.0% $200,000,000 $150,000,000 10.0% $100,000,000 5.0% $50,000,000 $0 0.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 Total Loans % Growth 2021
Slide 6: PPP Impact
PPP Impact • Total PPP loans $83.4 million, 654 loans • Total fees generated $3.0 million • 2020 fee recognition $1.1 million • 2021 YTD through 3/31 $384 thousand • $1.5 million in fees still to be recognized • As of 6/15, 413 loans were forgiven for $47.6 million
Slide 7: Top Line Income Growth
Top Line Income Growth $16,000,000 $14,000,000 $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 2019 2020 Total Interest Income
Slide 8: Loan Portfolio Mix at 12/31/20
Loan Portfolio Mix at 12/31/20 CRE Non-Owner Occupied CRE Owner Occupied 18% 18% Consumer Other Multifamily and 1% Commercial Other 9% Consumer-1st Lien 5% C&I Commercial 1-4 10% Residential 20% PPP Construction 10% 9%
Slide 9: Improving Asset Quality
Improving Asset Quality 2.50% Total non-performing assets/total assets 2.00% Net charged-off loans/total loans 1.50% 1.00% 0.50% 0.00% 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 10: Deposit Growth
Deposit Growth 38.0% $150,000,000 33.0% $125,000,000 28.0% $100,000,000 23.0% $75,000,000 18.0% $50,000,000 13.0% $25,000,000 8.0% $0 3.0% Checking Money Market CD % Checking
Slide 11: Net Interest Margin
Note: Prior to 2019 Peer Group was PA Banks with Assets $100M to $300M; Peer Group for 2019-20 is PA Banks with Assets $100M to $1B. Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Peer Group NIM Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016
Slide 12: 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 2019 2020 Q1 2021 FRB Overhead/Average Assets Peer Group Overhead/Average Assets Note: Prior to 2019 Peer Group was PA Banks with Assets $100M to $300M; Peer Group for 2019-20 is PA Banks with Assets
Slide 13: Net Income Growth
Net Income Growth $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net Income
Slide 14: Capital
Capital • Redeemed $4 million in outstanding subordinated debt at 6.50% coupon • Issued a new $6 million of subordinated debt with a 6.00% coupon • Tier 1 capital generated by $3.2 million in 2020 net income, aided by unexpected participation in PPP
Slide 15: 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% 2012 2013 2014 2015 2016 2017 2018 2019 2020 5/31/2021 Book Value per Share Market Value Price/Book Ratio
Slide 16: Common Stock Performance
First Common Stock Performance icone First Resource Bank | STOCK CHART QB Try the new Stock Chart [eneareauerr | [ aooto ~ | [ rinr | | exeonr ~ | | euuoareromr | [ OTCQX:FRSB (MI KEY: 4096749; SPCIQ KEY: 22198873) Change (%) Price 28 volume > a | we al. . 1. . . out og stag 7. peo Bow “ee sen er ‘e
Slide 17: Culture is Everything
Culture is Everything Happy Employees = Happy Customers
Slide 18: Best Bank in Chester County
Best Bank in Chester County • Voted 2020, 2019, 2018 and 2017 Best Bank in Chester County by readers of The Daily Local, Chester County’s local newspaper
Slide 19: Best Bank on the Main Line
Best Bank on the Main Line •Replicating the success we’ve had in Chester County on the Main Line
Slide 20: Looking forward
Looking forward • Major technology enhancements on schedule for 2021-2022 • Huge opportunities caused by significant disruption in the market
Slide 21: Annual Shareholder's Meeting
Annual Shareholder’s Meeting June 17, 2021
First Resource Bank — Shareholder Meeting (June 2021) on 6ix