First Resource Bancorp Q2 net income rises
FRSB•Overview
- U.S. community bank's Q2 net income rose 46% year over year, EPS up 48%.
- Net interest income grew 36% year over year; net interest margin expanded to 4.09%.
- Q2 results were aided by full recovery of past due interest on a nonaccrual loan.
Key details
| Metric | Actual |
|---|---|
| Q2 EPS | $0.93 |
| Q2 net income | $2.80 million |
| Q2 net interest income | $8.10 million |
| Q2 net interest margin | 4.09% |
Outlook and result drivers
The company did not provide specific guidance or forecasts for future quarters.
- Net interest margin expansion - Margin improvement was partly due to full recovery of past due interest on a nonaccrual loan, which also boosted credit quality, according to CEO Lauren Ranalli.
- Loan and deposit growth - Q2 loan growth was driven by commercial real estate lending, while deposit growth was supported by higher noninterest-bearing and money market balances.
- Credit quality improvement - Non-performing assets fell after the successful resolution and full collection of a $2.3 million nonaccrual commercial loan.
