First Resource Bankcorp Inc · OTC:FRSB
First Resource Bankcorp — First Resource Bank — Virtual Investor Conference (March 2021)
25 slides from First Resource Bankcorp's conference presentation, Mar 11, 2021
Slide 1: Virtual Investor Conference
Virtual Investor Conference March 11, 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: 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 founded the Bank
Slide 4: Market Area
First Resource @Bank Market Area FirstResourceBank.com
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
Slide 6: Technology Focused
Technology Focused 65% of daily items deposited now flowing through Remote Deposit Capture & Mobile Deposit
Slide 7: Primary Deposit Markets
Primary Deposit Markets • Exton, Pennsylvania Branch – $188 million in deposits at 12/31/20 – Market had $2.8B at 6/30/20, 16 branches • West Chester, Pennsylvania Branch – $145 million in deposits at 12/31/20 – Market had $3.9B at 6/30/20, 33 branches • Wayne, Pennsylvania Branch (opened in October
Slide 8: Deposit Market
Deposit Market • Combined area creates a $14 billion deposit market triangle
Slide 9: 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 10: 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 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Assets Loans Deposits
Slide 11: Loan Growth
Loan Growth $350,000,000 25.0% $300,000,000 20.0% $250,000,000 $200,000,000 15.0% $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 Total Loans % Growth
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 2020 Total Interest Income
Slide 13: Loan Portfolio Mix at 12/31/20
Loan Portfolio Mix at 12/31/20 CRE Non-Owner CRE Owner Occupied 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 14: 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 15: Deposit Growth
Deposit Growth $150,000,000 38.0% 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% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Checking Money Market CD % Checking
Slide 16: 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. 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 Q2 2016
Slide 17: 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 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 $100M to
Slide 18: 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 19: 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 net income, aided by unexpected participation in PPP
Slide 20: 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 Feb-21 Book Value per Share Market Value Price/Book Ratio
Slide 21: Common Stock Performance
First Common Stock Performance Resource Price Change (%) Volume Bank 100 75 50 nat [a NEVER Ads 25 -25 100K | - A | eee are [en Pe Lo im aati, — Is —cenacus TO Es Oe May "16 Sep'16 Jan"17 May "17 Sep'17 Jan'18 May "18 Sep'18 Jan'19 May "19 Sep'19 Jan'20 May '20 Sep'20 Jan'21 ~~ OTCOX:FRSB: 51.64 % @
Slide 22: Culture is Everything
Culture is Everything Happy Employees = Happy Customers
Slide 23: 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 24: Contact Information
Contact Information Glenn Marshall CEO 610-561-6013 GMarshall@FirstResourceBank.com Lauren Ranalli President & CFO 610-561-6014 LRanalli@FirstResourceBank.com
Slide 25: Q & A Thank you for joining us!
First Resource Bank Q&A Thank you for joining us! FirstResourceBank.com
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