First Resource Bank (FRSB) AI Stock Analysis

• Market Cap: $65.11M
• Dividend Yield: N/A
• Average Volume (3M): 653.00
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.22
• Revenue Growth: 15.92%
• EPS Growth: 19.03%
• Country: US
• Employees: 15
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.77
• Shares Outstanding: 3,085,612
• 10 Day Avg. Volume: 1,126
• 30 Day Avg. Volume: 653
• 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: 1.41
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 4.19
• Enterprise Value/Ebitda: 12.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $23.00 ▲(15.99% 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

Sustained Revenue Growth

Multi-year revenue growth indicates a durable expansion of the bank's loan portfolio and fee income base. Sustained top-line gains support internal capital formation, enable reinvestment in branch and product capabilities, and reduce reliance on short-term funding for growth.

Improving Capitalization & Leverage

Significant equity build and much lower debt-to-equity signal stronger capitalization and prudent leverage management. This enhances loss-absorption capacity, lowers financial risk, and gives the bank more room to support loan growth or weather credit stress without immediate external capital raises.

Reliable Operating Cash Generation

Operating cash flow consistently at or above net income reflects high earnings quality and strong cash conversion. Durable cash generation reduces reliance on wholesale funding, funds organic growth and loan origination, and strengthens liquidity positioning over a multi-quarter horizon.

Negative Factors

Low Equity Ratio

A low equity ratio implies a thinner capital buffer relative to assets, increasing sensitivity to credit losses or interest-rate shocks. Over several quarters this can constrain regulatory flexibility and growth unless capital is augmented or risk-weighted assets decline.

Margin Pressure

Reported declines in EBIT and net margins suggest rising operating costs or compression in interest spreads. Persistent margin erosion would weaken return on assets and equity, requiring either higher volumes or sustained efficiency improvements to preserve long-term profitability.

Inconsistent Free Cash Flow

Volatile free cash flow limits predictable internal funding for investments, dividends or capital needs. Over months this variability can signal timing mismatches in loan origination/repayments or inefficiencies, making the bank more dependent on external funding during growth or stress periods.

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 the interest earned on loans and mortgages provided to customers. The bank offers various loan products, including personal loans, business loans, and home mortgages, which typically yield higher interest rates compared to the interest paid on deposits. Additionally, FRSB earns fees from account maintenance, overdraft services, and transactional activities. Investment services and wealth management offerings contribute to its income through advisory fees and commissions. The bank may also engage in partnerships with local businesses and organizations, enhancing its service offerings and expanding its customer base, which can further support its revenue generation.

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	30.67M	19.98M	30.38M	21.79M	18.95M	17.44M
Gross Profit	21.84M	19.98M	19.57M	17.76M	15.77M	13.19M
EBITDA	7.35M	6.64M	7.96M	7.48M	5.66M	4.49M
Net Income	6.22M	5.31M	5.93M	5.63M	4.17M	3.25M
Balance Sheet
Total Assets	697.26M	663.58M	602.62M	516.72M	469.06M	424.43M
Cash, Cash Equivalents and Short-Term Investments	35.02M	17.84M	40.99M	31.47M	54.50M	60.89M
Total Debt	36.69M	12.72M	50.51M	42.69M	30.23M	32.95M
Total Liabilities	643.27M	613.29M	556.48M	476.63M	433.51M	392.98M
Stockholders Equity	53.99M	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: 19.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 19.83 is below the 20-day moving average (MA) of 20.30, above the 50-day MA of 19.75, and above the 200-day MA of 17.32, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 73.57 is Negative, neither overbought nor oversold. The STOCH value of 93.33 is Negative, 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FRSB	66 Neutral	$65.11M	7.76	12.96%	―	15.92%	19.03%
ASRV	66 Neutral	$54.52M	9.72	4.54%	3.87%	6.89%	―
CLST	65 Neutral	$63.97M	27.62	2.72%	―	76.66%	―