First Resource Bank, Exton, PA (FRSB)

A Case of Doing Pennsylvania Proud

First Resource is my kind of bank. It offers good old fashioned, treat-your-customer-right community banking, and is unfollowed by any Wall Street analyst.

If you know any Pennsylvanians who'd appreciate an opportunity to double their money by investing locally, spread the word! I'd love to see them move their Wells Fargo or Bank of America accounts to First Resource Bank, buy some FRSB stock, and come along for the ride.

In three years, FRSB should be earning over $1.00 per share, reach book value of $10, and trade at $15.

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Disclosure: As of this posting, I own shares of FRSB and may subsequently either dispose of them or purchase more.

Prospective Buyers	Acquiring First Resource Bank would vault any of these local competitors up to a solid third place in marketshare, behind Bank of America (BAC) and BB&T (BBT). Isn't that what we want — more of America's community banks competing powerfully against the Too Big To Fail banks? Bryn Mawr Bank Corp, Bryn Mawr, PA (BMTC) DNB Financial Corp, Downington, PA (DNBF) Fulton Financial Corpo, Lancaster, PA (FULT)
Financial Snapshot †09/30/2017	Total assets: $249M† Tangible book value per share:    $8.72† NPAs to assets: 2.4% Price to book: 112%† Market cap: $25.7M Dividend yield: 0% Trailing 12-month ROA: 0.7%† Trailing 12-month ROE: 8.5%† TARP: $0M* *Redeemed $2.6M 09/15/2011
Luminaries	James Griffin, Chairman Glenn Marshall, President and CEO Lauren Ranalli, Executive VP, Secretary, and CFO
Gold Stars	Great People - I first learned about First Resource Bank from the proprietor of Honesdale's Hotel Wayne, who is also a top-notch bank investor. He introduced me to Glenn Marshall, who started the bank in 2004, built it from nothing, and manages it with transparency and integrity. Great Market - Both branches of First Resource Bank are in Chester County, which is one of the best banking markets in the State of Pennsylvania. It has the state's highest median household income ($86K) and benefits from both a low unemployment rate (3.4%) and proximity to Philadelphia. Great Banking - First Resource Bank runs lean on equity, is a low-cost provider, and consistently keeps expenses close to 2.5% of assets. I also appreciate that the board and management are heavily invested in FRSB, owning nearly 25% of the stock. Great Opportunity - FRSB has lots of room to grow. Within five miles of the bank's two branches lie $5B in deposits. In the wake of the mergers of National Penn Bank (NPBC) and Susquehanna Bank (SUSQ) into BB&T (BBT), First Resource has an opportunity to pick up talent and customers, as well.
Sources	First Resource Bank website 2016 Annual Report SNL Financial Confidential interviews with management and shareholders