SAN FRANCISCO—New Resource Bank (OTCBB: NWBN) has announced unaudited financial results for the quarter ended March 31, 2014.
Net income for the quarter was $346,000, compared with $187,000 for the quarter ended March 31, 2013—an 85.6 percent increase. Gross loans increased 23.8 percent year over year, from $136 million at March 31, 2013, to $168.3 million at March 31, 2014. The bank also recorded solid growth in deposits and total assets compared with totals at March 31, 2013, and again improved on its already strong credit quality.
“The quarter reflected our continued positive financial momentum, which is the result of our focus on building relationships with sustainable businesses and nonprofits,” said Vince Siciliano, New Resource Bank president and CEO. “The bank’s business model is performing well, and we’re seeing demand from both new and existing clients in our target markets: businesses with sustainable products and services, such as organic foods and renewable energy, as well as sustainably managed businesses and nonprofits.”
Siciliano added that the bank has put significantly more liquidity to work. The bank has shifted nearly $25 million, compared with the first quarter of 2013, from cash assets to higher-earning assets, predominantly loans.
Key financial results from the first quarter 2014 compared with the same quarter 2013 include:
- Loan growth: Loans outstanding grew 23.8 percent, to $168.3 million from $136 million a year ago.
- Asset quality: Non-performing loans as a percentage of total loans dropped to 0.13 percent at March 31, 2014, from 1.48 percent at March 31, 2013.
- Non-performing assets to total assets: Non-performing assets to total assets decreased from 0.97 percent to 0.10 percent.
- Deposits: Deposits rose 7.1 percent, to $191.3 million at March 31, 2014, from $178.5 million at March 31, 2013.
- Total assets: Total assets increased 6.6 percent, to $222 million from $208.3 million at March 31, 2013.
- Net interest income: Net interest income was $2.3 million, a 14.3 percent rise from $2 million for the quarter ended March 31, 2013.
- Non-interest expense: Non-interest expense was $2.1 million, a 4.6 percent rise from $2 million for the quarter ended March 31, 2013.
- Efficiency ratio: The bank’s efficiency ratio for the quarter was 84 percent, compared with 90.4 percent for the quarter ended March 31, 2013.
- Risk-based capital: The bank’s total risk-based capital ratio was 17.64 percent, significantly above the standard for a well-capitalized bank.
“We are pleased with the bank’s financial progress. As we continue to build a solid financial foundation, it will allow us to maintain our focus on our mission and grow the organization in ways that set us apart from other banks,” said Mark A. Finser, chairman of the New Resource board.
Balance sheet (unaudited; dollar amounts in thousands):
Summary income statement (unaudited; dollar amounts in thousands):
NM = not meaningful
About New Resource Bank
New Resource Bank (https://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.