SAN FRANCISCO — New Resource Bank (OTCBB: NWBN) has announced unaudited financial results for the quarter ended June 30, 2010.
The bank reported a net operating loss of $642,000 for the quarter ended June 30, 2010, compared with a loss of $2.3 million for the quarter ended June 30, 2009. Total assets were $176.6 million, compared with $174.8 million at the end of the second quarter of 2009.
Total deposits were $154.1 million, up from $151.4 million at the quarter-end last year. Gross loans were $94.9 million at June 30, 2010, down slightly from $95.4 million at the second quarter of 2009. However, the percentage of classified loans to total loans dropped substantially year over year, from 11.9 percent on June 30, 2009, to 5.4 percent at the quarter ended June 30, 2010.
“We have been able to maintain our total loan portfolio at roughly the same level while driving down classified loans,” said New Resource Bank President and CEO Vince Siciliano. “In the current economy, replacing problem loans with good loans is not an insignificant feat—and we’ve come a long way toward restoring our balance sheet.”
Total classified loans were reduced by over half year over year, with $5.1 million at the quarter ended June 30, 2010, compared with $11.4 million at the same quarter in 2009. The nonperforming loan total fell from $7.5 million at June 30, 2009 to $0.6 million (or $637,500) at June 30, 2010.
“In a time when many banks are still showing mounting losses and degradation of assets, we’re pleased that New Resource Bank took a conservative approach, faced its challenges in 2009, and is now headed in the right direction,” said New Resource Board Chairman Mark Finser.
The bank’s total risk-based capital ratio was 17.23 percent at the quarter ended June 30, 2010, and the leverage ratio was 11.68 percent. The bank’s net interest margin expanded to 4.09 percent at the quarter ended June 30, 2010, from 3.69 percent at June 30, 2009.
“We are continually improving our market position and bench strength,” said Siciliano. “We became a Certified B Corporation in June, which advances our sustainability mission. And we’ve improved our lending expertise as well, with the recent hiring of Robert Holden as senior vice president, commercial relationship manager.”
Balance sheet (unaudited; dollar amounts in thousands):
Summary income statement (unaudited; dollar amounts in thousands):
About New Resource Bank
New Resource (http://www.newresourcebank.com) 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.
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.