First Resource Bankcorp Inc · OTC:FRSB
First Resource Bankcorp — First Resource Bank — Virtual Investor Conference 2022
26 slides from First Resource Bankcorp's conference presentation, Mar 22, 2022
Slide 1: Virtual Investor Conference
Virtual Investor Conference March 22, 2022
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 Southeastern Pennsylvania • Established in 2005 • Executive management team founded the Bank
Slide 4: 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 5: Technology Focused
Technology Focused 66% of daily items deposited now flowing through Remote Deposit Capture & Mobile Deposit
Slide 6: Technology Focused
Technology Focused • Utilizing proven, cost-effective, competitive technology solutions • Upgraded core processing system installed July 2021 • Digital banking platform updated January 2022 (mobile and online banking) • Near term planned enhancements include: • Internal workflow automations • Busine
Slide 7: Deposit Market
Deposit Market • Combined area creates a $16 billion deposit market triangle
Slide 8: Primary Deposit Markets
Primary Deposit Markets • Exton, Pennsylvania Branch – $203 million in deposits at 6/30/21 – Market had $3.1B at 6/30/21, 17 branches • West Chester, Pennsylvania Branch – $162 million in deposits at 6/30/21 – Market had $5.0B at 6/30/21, 34 branches • Wayne, Pennsylvania Branch (opened in October 2
Slide 9: Deposit Growth
Deposit Growth $200,000,000 38.0% $175,000,000 33.0% $150,000,000 28.0% $125,000,000 23.0% $100,000,000 18.0% $75,000,000 13.0% $50,000,000 $25,000,000 8.0% $0 3.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Checking Money Market CD % Checking
Slide 10: Loan Growth
Loan Growth (excluding PPP) $400,000,000 30.0% $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 2021 Total Loans % Growth
Slide 11: PPP Impact
PPP Impact • Total PPP loans $83.4 million, 654 loans • 1 loan in payment mode, last 2 loan forgiveness applications in process • Total fees generated $3.0 million • 2020 fee recognition $1.1 million • 2021 fee recognition $1.7 million • Approximately $165 thousand in fees still to be recognized in
Slide 12: Loan Portfolio Mix at 12/31/21
Loan Portfolio Mix at 12/31/21 CRE Non-Owner Occupied CRE Owner Occupied 19% 20% Consumer Other 1% Consumer-1st Lien Multifamily and 3% Commercial Other 14% Commercial 1-4 Residential 25% C&I 9% PPP Construction 1% 8%
Slide 13: 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 2021
Slide 14: Balance Sheet Growth
Balance Sheet Growth $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Assets Loans Deposits
Slide 15: Top Line Income Growth
Top Line Income Growth $18,000,000 $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 2021 Total Interest Income
Slide 16: Net Interest Margin
Net Interest Margin 2.50% 4.20% 4.00% 2.00% 3.80% 1.50% 3.60% 1.00% 3.40% 0.50% 3.20% 3.00% 0.00% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 FRB NIM Peer Group NIM Average Fed Funds Effective Rate Note: Prior to 2019 Peer Group was PA Banks with Assets $100M to $300M; Peer Group for 2019
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 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 2019-21 is PA Banks with Assets $10
Slide 18: Net Income Growth
Net Income Growth $4,500,000 $4,000,000 $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 2021 Net Income
Slide 19: Capital
Capital • Holding company formation in process-First Resource Bancorp, Inc. • Shareholder vote on holding company formation on April 27, 2022 • Holding company will provide access to enhanced capital options in the future
Slide 20: Book Value vs. Market Value
Book Value vs. Market Value 140% $12.00 $11.00 120% $10.00 $9.00 100% $8.00 $7.00 80% $6.00 60% $5.00 $4.00 40% $3.00 $2.00 20% $1.00 $0.00 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2/28/2022 Book Value per Share Market Value Price/Book Ratio
Slide 21: Common Stock Performance
First Common Stock Performance icone First Resource Bank | STOCK CHARTG Try thenew Stock Chart OTCOX:FRSB (MI KEY: 4096749; SPCIQ KEY:22198873) cnearéatemt | [aD0vo ~ | [ pawr| [ eeomr » | [ euuDanenonr | | Price Change (6) Yelume aro F | . er ee lL eo ee a Le am ae 20.Mar 2B.Apr 24. May 2am 19.4 16
Slide 22: Culture is Everything
Culture is Everything Happy Employees = Happy Customers Low employee turnover
Slide 23: Best Bank in Chester County
Best Bank in Chester County Voted Best Bank in Chester County for 2017-2021 by readers of The Daily Local, Chester County’s local newspaper
Slide 24: 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 25: Contact Information
Contact Information Glenn Marshall CEO 610-561-6013 GMarshall@FirstResourceBank.com Lauren Ranalli President & CFO 610-561-6014 LRanalli@FirstResourceBank.com
Slide 26: Q & A Thank you for joining us!
First Resource Bank Q&A Thank you for joining us! FirstResourceBank.com
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