New Resource Bank’s strengthened management and improved asset quality result in lifting of cease-and-desist order
San Francisco — New Resource Bank has announced that the Federal Deposit Insurance Corporation (FDIC) and California Department of Financial Institutions (DFI) have lifted the cease-and-desist order announced in April 2009.
“This is good news for us,” said New Resource CEO and President Vince Siciliano. “We’re ready for prudent growth and can now focus more strongly on our mission of sustainability.
“We felt, going into this work last year, that we needed to focus on our fundamentals in confronting the recession’s tough economic climate,” Siciliano continued. “And complying with the FDIC’s directives has improved our operations—we’ve strengthened management and the board of directors, improved asset quality, implemented revised lending policies and reduced bad debt.”
The bank has reduced nonperforming loans to about 3 percent of total loans—considerably better than the average for community banks of 5 percent. In December 2008, New Resource’s nonperforming loans stood at just over 12 percent. About 40 percent of the bank’s assets are liquid.
Additionally, New Resource has raised the bar on its dedication to customers who have a commitment to environmental and social sustainability as well as sound business.
“Our current strength is in the day-to-day ways we execute all our policies,” Siciliano said. “We now have an excellent team of bankers with deep expertise who are focused on our sustainability mission.”
In addition to Siciliano, who joined the bank in March 2009, newly staffed positions include a chief financial officer, a senior vice president for commercial lending and a chief credit officer. It also added directors to the board and elected a new chairman.
“I believe it’s unusual for a bank to come out of an order in less than a year, especially in economic times like these,” said Board Chairman Mark Finser, noting that the bank remains informally committed to the regulators to continue to make various improvements to its operations. “I think, too, it’s a tribute to the skill and professionalism of our new management team.”
About New Resource Bank
New Resource is the 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.
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Vince Siciliano, President & CEO
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.