New Resource Bank reports second quarter financial results

SAN FRANCISCO — New Resource Bank (OTCBB: NWBN) has announced unaudited financial results for the quarter ended June 30, 2011.

Loans outstanding grew to $111.2 million, up from $95 million a year ago, a 17 percent increase. Deposits were $143 million, 90 percent of which were core deposits (checking, savings, money market, and CDs less than $100,000).

“We continue to show modest but steady growth in a very difficult economic environment,” said President and CEO Vince Siciliano. “I’m also pleased to see our strong growth in mission-related loans.”

After provision for loan and lease losses, the bank reported a net operating loss of $942,000 for the quarter ended June 30, 2011, compared with a net operating loss of $251,000 for the quarter ended June 30, 2010. The provision for loan and lease losses for the quarter was $975,000, $700,000 higher than for the same quarter last year due to charges on problem loans and reserves for performing classified credits.

New Resource’s net interest margin expanded to 5.11 percent at the quarter ended June 30, 2011, from 4.11 percent at June 30, 2010. The bank’s margin benefited from profitable loan growth, an improved earning asset ratio and lower average cost of funds.

Total assets were $164.7 million at June 30, 2011, compared with $176.6 million at the corresponding quarter end in 2010.

Nonperforming assets to total loans rose to 1.47 percent at June 30, 2011, from 0.67 percent at the quarter ended June 30, 2010. Our ratio compares favorably with the peer bank average of 3.94 percent as of March 31, 2011 (the most recent data available). The increase in nonperforming assets year over year reflects taking certain construction and development loans originated prior to the economic recession as bank-owned real estate. There were no nonperforming loans as of June 30, 2011.

The bank’s total risk-based capital ratio was 15.85 percent at the quarter ended June 30, 2011, and the leverage ratio was 11.55 percent.

“These results show New Resource’s growing strength. And given the turmoil in the financial markets, now is an ideal time for people to show their confidence in an insured bank that supports their community and their values,” said Mark A. Finser, chairman of the New Resource board. “We can build a better community together.”

Balance sheet (unaudited; dollar amounts in thousands):

Balance sheet Q2 2011

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

Performance ratios

 

About New Resource Bank

New Resource Bank is the premiere 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.

 

If you're a business user, click OK to skip this message.

 

Beginning on October 25, personal / consumer users will be required to register their browser within online banking. This is a onetime process that is quick and easy -- just follow the prompts after signing in.