First Resource Bank (FRSB) AI Stock Analysis

• Market Cap: $52.05M
• Dividend Yield: N/A
• Average Volume (3M): 637.00
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.26
• Revenue Growth: 17.08%
• EPS Growth: 8.84%
• Country: US
• Employees: 15
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.63
• Shares Outstanding: 3,085,612
• 10 Day Avg. Volume: 92
• 30 Day Avg. Volume: 637
• PEG Ratio: -0.93
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 2.45
• P/FCF Ratio: 8.71
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 1.61
• Enterprise Value/Ebitda: 8.77
• 1Y Price Target: $19.50
• Price Target Upside: 16.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: $19.50 ▲(16.07% Upside)

The overall stock score of 66 reflects a mix of strong valuation and solid financial performance, albeit with some risks. The stock appears undervalued, offering potential upside. However, the technical indicators suggest caution due to overbought conditions. Financial performance is stable, with opportunities for improved margins and better cash flow management. The absence of earnings call and corporate events data means these factors have not influenced the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective business strategies, enhancing long-term financial stability.

Leverage Management

Improved leverage management reduces financial risk and enhances the bank's ability to navigate economic fluctuations, supporting sustainable growth.

Equity Growth

Strong equity growth reflects a robust financial foundation, providing greater resilience and capacity for future investments.

Negative Factors

Net Profit Margin Decline

A declining net profit margin indicates rising costs or inefficiencies, which could impact long-term profitability if not addressed.

Equity Ratio Risk

A low equity ratio may increase financial vulnerability, limiting the bank's ability to absorb losses and invest in growth opportunities.

Free Cash Flow Management

Inconsistent free cash flow growth suggests potential challenges in cash management, which could affect the bank's ability to fund operations and growth.

First Resource Bank Business Overview & Revenue Model

Company Description

First Resources Bancorp, Inc. operates as the bank holding for First Resource Bank that provides personal and business banking products and services to businesses and personal primarily in the southeastern area of Pennsylvania. The company's deposit products include checking, money market, and escrow accounts, as well as certificate deposit account registry services, insured cash sweeps, certificates of deposit, and IRAs. Its loan products include commercial mortgages, construction loans, working capital credit lines, small business administration loans, commercial term loans, home equity lines of credit, fixed payment home equity loans, residential construction loans, land loans, overdraft protection, vehicle loans, unsecured installment loans, certificate of deposit secured installment loans, and swing loans. The company also provides credit and debit cards; and cash management, positive pay, ACH origination, sweep/transfer, ATM, over the counter checks, bill payment, wire transfer, guarantee/notary, safe deposit box, drive-up banking, night depository, foreign currency exchange, cashier's check, and stop payments, as well as telephone, text, online, and mobile banking services. It operates three full-service branches serving the banking needs of businesses, professionals, and individuals in the Delaware Valley. The company was founded in 2005 and is based in Exton, Pennsylvania.

How the Company Makes Money

First Resource Bank generates revenue primarily through interest income from loans and mortgages, which is earned when customers borrow funds and pay interest over time. Additionally, the bank earns non-interest income from fees associated with account maintenance, transaction services, and other banking services. Key revenue streams include the interest from personal and commercial loans, credit cards, and other lending products. FRSB may also engage in partnerships with local businesses for co-branded products or services, enhancing its customer base and generating additional income. The bank's focus on community engagement and localized service helps to attract and retain customers, contributing to its overall earnings.

First Resource Bank Financial Statement Overview

Summary

First Resource Bank shows a positive growth trajectory with increasing revenue and expanding equity. Despite strong revenue growth, the decrease in margins and a relatively low equity ratio pose certain risks. The bank demonstrates prudent leverage management, with a decreasing debt-to-equity ratio. Cash flow metrics suggest decent cash generation, though improvements in free cash flow management might be beneficial. Overall, the bank maintains a stable financial position with some areas needing attention for stronger performance.

Income Statement

First Resource Bank has demonstrated consistent revenue growth, with a strong increase from $13.75M in 2020 to $19.98M in 2024, indicating a positive growth trajectory. The gross profit margin remains stable as total revenue is equal to gross profit. However, the net profit margin dropped in 2024 to 26.59% from 19.50% in 2023, which indicates some challenges in maintaining profitability at previous levels. The EBIT margin also decreased to 43.68% in 2024, reflecting higher operating costs. The lack of EBITDA figures for 2024 suggests a potential area of concern in terms of non-operating income or expenses.

Balance Sheet

The balance sheet shows a healthy equity growth from $27.98M in 2019 to $50.29M in 2024, indicating a strengthening financial position. The debt-to-equity ratio decreased to 0.25 in 2024 from 1.10 in 2019, suggesting improved leverage and risk management. The return on equity is moderate at 10.56% in 2024, and the equity ratio of 7.57% indicates a relatively low proportion of equity financing compared to total assets, which might be a potential risk factor.

Cash Flow

Operating cash flow has shown a steady increase, reaching $5.99M in 2024. However, free cash flow growth rate has been inconsistent, with a slight increase to $5.61M in 2024 from $5.45M in 2023. The operating cash flow to net income ratio of 1.13 in 2024 suggests efficient cash generation relative to net income. The free cash flow to net income ratio of 1.06 indicates that cash flow is closely aligned with reported earnings, although there is room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.72M	19.98M	30.38M	18.42M	16.34M	13.75M
Gross Profit	29.33M	19.98M	19.57M	18.42M	16.34M	13.75M
EBITDA	5.39M	6.64M	29.97M	7.48M	5.66M	4.49M
Net Income	5.67M	5.31M	5.93M	5.63M	4.17M	3.25M
Balance Sheet
Total Assets	675.28M	663.58M	602.62M	516.72M	469.06M	424.43M
Cash, Cash Equivalents and Short-Term Investments	32.10M	17.84M	23.82M	31.47M	54.50M	60.89M
Total Debt	42.73M	12.72M	50.51M	42.69M	30.23M	32.15M
Total Liabilities	623.28M	613.29M	556.48M	476.63M	433.51M	392.98M
Stockholders Equity	52.00M	50.29M	46.14M	40.10M	35.55M	31.46M
Cash Flow
Free Cash Flow	0.00	5.61M	5.45M	4.71M	3.86M	1.94M
Operating Cash Flow	0.00	6.00M	5.62M	5.02M	4.00M	2.09M
Investing Cash Flow	0.00	-67.89M	-63.65M	-53.49M	-59.58M	-63.11M
Financing Cash Flow	0.00	55.91M	76.25M	43.52M	40.12M	84.51M

First Resource Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRSB, the sentiment is Positive. The current price of 16.8 is above the 20-day moving average (MA) of 16.73, above the 50-day MA of 16.63, and above the 200-day MA of 15.34, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 58.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRSB.

First Resource Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPHC	74 Outperform	$50.59M	3.35	14.85%	―	25.77%	12.09%
HFBL	69 Neutral	$42.16M	10.71	7.20%	3.88%	-2.93%	7.89%
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%
FRSB	66 Neutral	$52.05M	8.11	12.10%	―	17.08%	8.84%
TCBS	57 Neutral	$47.99M	20.63	4.50%	0.98%	13.47%	―
PBBK	―	$49.57M	20.73	4.53%	―	―	―
CLST	57 Neutral	$53.80M	23.21	2.69%	―	107.33%	―