First Resource Bankcorp Inc · OTC:FRSB
First Resource Bankcorp — First Resource Bank — Virtual Investor Conference 2020
23 slides from First Resource Bankcorp's conference presentation, Mar 12, 2020
Slide 1: Virtual Investor Conference
Virtual Investor Conference March 12, 2020
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 • Three high profile branch locations – Exton, PA – West Chester, PA – 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 $96,726 with an unemployment rate of 2.9% 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 62% of daily items deposited now flowing through Remote Deposit Capture & Mobile Deposit 6
Slide 7: Efficient Branching Strategy
Efficient Branching Strategy • Operated as a single branch for 10 years in Exton, Pennsylvania – $158 million in deposits at December 31, 2019 • Second branch opened in West Chester, Pennsylvania in April 2015 – $101 million in deposits at December 31, 2019 • Third branch opened in Wayne, Pennsylvan
Slide 8: Expanded Deposit Market
Expanded Deposit Market • As of June 30, 2019, total deposits in our markets were: – Exton $2.5 billion, with 17 branches – West Chester $3.1 billion, with 36 branches – Wayne $3.1 billion, with 21 branches • Combined area creates a $12.4 billion deposit market triangle 8
Slide 9: 2019 Highlights
2019 Highlights • Record profitability, net income grew 7% • Strong checking growth, with non-interest deposits up 59% • Opened a third branch location in Wayne, PA • Loan growth was 15%, 6th consecutive year of double digit annual growth • Nonperforming assets to total assets declined 54% 9
Slide 10: Balance Sheet Growth
Balance Sheet Growth $350,000,000 $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 2019 Assets Loans Deposits 10
Slide 11: Loan Growth
Loan Growth $300,000,000 16.0% 14.0% $250,000,000 12.0% $200,000,000 10.0% $150,000,000 8.0% 6.0% $100,000,000 4.0% $50,000,000 2.0% $0 0.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total Loans % Growth 11
Slide 12: 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 Total Interest Income 12
Slide 13: Loan Portfolio Mix at 12/31/19
Loan Portfolio Mix at 12/31/19 CRE Non-Owner CRE Owner Occupied Occupied 18% 21% Consumer Other 2% Multifamily and Consumer-1st Lien Commercial Other 4% 10% Commercial 1-4 Residential C&I 21% 12% Construction 12% 13
Slide 14: Improving Asset Quality
Improving Asset Quality 3.00% Total non-performing assets/total assets 2.50% Net charged-off loans/total loans 2.00% 1.50% 1.00% 0.50% 0.00% 2012 2013 2014 2015 2016 2017 2018 2019 14
Slide 15: Deposit Growth
Deposit Growth 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% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Checking Money Market CD % Checking 15
Slide 16: Benefit of Checking
Benefit of Checking 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019 Gap Between Cost of Interest Bearing Deposits and Cost of Total Deposits 16
Slide 17: Net Interest Margin
17 Note: Prior to 2019 Peer Group was PA Banks with Assets $100M to $300M; Peer Group for 2019 is PA Banks with Assets $300M to $500M. Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Peer Group NIM Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Net Interest M
Slide 18: Net Income Growth
Net Income Growth $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net Income 18
Slide 19: Best Bank in Chester County
Best Bank in Chester County • Voted 2019, 2018 and 2017 Best Bank in Chester County by readers of The Daily Local, Chester County’s local newspaper 19
Slide 20: More FRSB Accolades
More FRSB Accolades • West Chester Area Education Foundation Community Partner of the Year 2018 • Chester County Fund for Women and Girls Corporate Champions of Change Award for 2019 20
Slide 21: Common Stock Performance
First Common Stock Performance icone z & = 2 o £ a 50: o : | > o atta ee kh, | rer whe Ore eee ee ed el Jan "16 Jan "17 Jan 18. Jan"19 Jan 20 — OTCOX:FRSB: 52.59% @ OTCOX:FRSB-Vol —— S&P 500: 59.85 % — SNL U.S. Bank: 52.02% —— S&P 500 Bank: 60.26 % — KBW Nasdaq Bank Index: 50.99 % FirstResourceBank.
Slide 22: 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 Feb-20 Book Value per Share Market Value Price/Book Ratio 22
Slide 23: Contact Information
Contact Information Glenn Marshall CEO 610-561-6013 GMarshall@FirstResourceBank.com Lauren Ranalli President & CFO 610-561-6014 LRanalli@FirstResourceBank.com 23
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