New Resource Bank Reports Third Quarter Financial Results

Before you go, we thought you'd like these...
Before you go close icon

SAN FRANCISCO (BUSINESS WIRE) -- New Resource Bank (OTCBB: NWBN) has announced unaudited financial results for the quarter ended September 30, 2012.

The bank recorded net income of $290,000 for the quarter ended September 30, 2012, compared with net income of $196,000 for the quarter ended September 30, 2011. Net income for the first nine months of 2012 was $439,000, compared with a net loss of $851,000 for the nine months ended September 30, 2011.


Loans outstanding grew 22 percent to $137 million, a $25 million increase from $112 million a year ago. Deposits rose 15 percent to $161 million, a $21 million jump from $140 million at September 30, 2011. Total assets were $191 million, compared with $161 million at September 30, 2011.

"These earnings for the quarter and the first nine months of year show significant improvement, and we're very pleased with how we've continued to strengthen our business," said President and CEO Vince Siciliano. "The bank has developed a pipeline of loan and deposit clients in our target markets, and we're attracting business both because of our mission and because of our ability to listen to our clients and respond in support of their mission."

Nonperforming loans as a percentage of total loans were at 1.75 percent at September 30, 2012. The bank had no nonperforming loans at September 30, 2011. Nonperforming assets to total assets increased from 0.79 percent to 1.62 percent. "The prior year figures were unusual; at this point the nonperforming totals are at a modest level and we are actively managing them," said Bill Peterson, the bank's chief credit officer.

Loan loss reserves at quarter end September 30, 2012, were 2.05 percent with a 117 percent ratio of reserves to non-performing assets.

Net interest income for the quarter ended September 30, 2012, was $2 million, essentially unchanged from the same period in 2011. The bank's net interest margin was 4.39 percent for the quarter ended September 30, 2012, down from 5.31 percent at September 30, 2011.

Non-interest income was $321,000 for the quarter ended September 30, 2012, a $157,000 increase from $164,000 for the quarter ended September 30, 2011. This was due largely to $107,000 in gains on the sale of other real estate owned and higher credit activity fees. Non-interest expense was down 6 percent, an $111,000 decrease from $2 million for the quarter end September 30, 2011, to $1.9 million at September 30, 2012.

The bank's total risk-based capital ratio was 18.93 percent at September 30, 2012, and the leverage ratio was 14.53 percent.

"This is New Resource Bank's largest quarterly profit to date," noted Mark A. Finser, chairman of the New Resource board. "It's gratifying to see the bank's strategic focus on its core markets-cleantech, organic products, nonprofits, and green building-bear fruit."

Balance sheet (unaudited; dollar amounts in thousands):

September 30, 2012September 30, 2011
Assets
Cash & due from banks $ 5,301 $ 5,221
Interest-bearing deposits 18,060 24,830
Money market funds - -
Federal funds - -
Investments 29,851 16,932
Gross loans 136,979 112,299
Allowance for loan losses (2,801 ) (2,836 )
Premises & equipment 1,359 1,566
Other real estate owned 695 1,262
Other assets 1,439 1,374
Total assets $ 190,882 $ 160,648
Liabilities & equity
Deposits $ 161,122 $ 139,688
Borrowings - -
Other liabilities 2,006 1,726
Total liabilities 163,129 141,414
Equity 27,754 19,234
Total liabilities & equity $ 190,882 $ 160,648

Summary income statement (unaudited; dollar amounts in thousands):

Quarter endedNine months ended
Sept. 30, 2012Sept. 30, 2011Sept. 30, 2012Sept. 30, 2011
Interest income $ 2,046 $ 2,071 $ 5,765 $ 5,954
Interest expense 47 60 140 185
Net interest income 1,999 2,011 5,625 5,768
Non-interest income 321 164 720 500
Provision for loan loss 160 0 160 975
Non-interest expense 1,868 1,979 5,742 6,144
Net operating income/(loss) 293 196 443 (851 )
Taxes 3 - 3 -
Net income/(loss) $ 290 $ 196 439 (851 )
Net interest margin 4.39 % 5.31 % 4.27 % 5.17 %

Performance ratios:

September 30, 2012September 30, 2011
Book value per outstanding share $ 4.99 $ 4.99
Leverage ratio 14.53 % 11.89 %
Total risk-based capital ratio 18.93 % 15.75 %
Loan loss reserves to total loans 2.05 % 2.53 %
Loan loss reserves to nonperforming loans 117 % 0 %
Nonperforming loans to total loans 1.75 % 0 %
Nonperforming assets to total assets 1.62 % 0.79 %

About New Resource Bank

New Resource Bank (www.newresourcebank.com) is the premier bank for people who are leading the way to a more sustainable world. We match an entrepreneurial spirit with a dedication to achieving environmental and social as well as financial returns. Our mission is to advance sustainability with everything we do-the loans we make, the way we operate and our commitment to putting deposits to work for good.

This press release contains forward-looking statements such as statements about certain expectations and projections, and the bank's preparedness for the coming year. Forward-looking statements are based on currently available information, are not guarantees of future performance, and are subject to numerous risks and uncertainties. Such risks and uncertainties may include, but are not necessarily limited to, fluctuations in interest rates; fluctuations in asset prices, including real estate; inflation; changes in laws or government regulations or policies; general economic conditions, including the real estate market in California; the adequacy of the bank's allowance for loan losses; and other factors beyond the bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for entire years to differ materially from those indicated. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date of this press release. The bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.



New Resource Bank
Vince Siciliano, President & CEO
415-995-8170
vsiciliano@newresourcebank.com

KEYWORDS: United States North America California

INDUSTRY KEYWORDS:

The article New Resource Bank reports third quarter financial results originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners