New Resource Bank reports first quarter financial results

SAN FRANCISCO — New Resource Bank (OTCBB: NWBN) has announced unaudited financial results for the quarter ended March 31, 2012.

The bank recorded a net operating loss of $56,000 for the quarter ended March 31, 2012, compared with a net operating loss of $105,000 for the quarter ended March 31, 2011.

Loans outstanding grew to $115.9 million, up from $107.9 million a year ago, an increase of over 7 percent. Deposits were $144.1 million, compared with $130.8 million at quarter end in 2011. Total assets were $172.6 million, compared with $152 million at quarter end in 2011.

“We’ve had steady loan and deposit growth over the past year as the result of our honing in on our target business markets and because of an increase in the number of people who see their personal banking accounts as a vote for the kind of economy they want to see, which has translated to more personal deposit accounts for New Resource,” said President and CEO Vince Siciliano.

“Our prior two quarters were profitable,” Siciliano noted, “so it is disappointing that we recorded a small loss in the first quarter. That was due to our decision to extend current market rates to our long-term, quality credit relationships as well as seasonally higher expenses for personnel and audit-related professional services.”

Nonperforming loans as a percentage of total loans increased from 0.97 percent at quarter end March 31, 2011 to 5.08 percent at quarter end March 31, 2012. Nonperforming assets to total assets increased from 1.43 percent to 4.14 percent. The increase was primarily attributable to the placement of additional commercial real estate loans on nonaccrual status. 

The bank’s net interest margin was 4.28 percent for the quarter ended March 31, 2012, down from 5.09 percent at March 31, 2011, reflecting the repricing of quality credits to current market rates as well as higher levels of nonperforming loans.

The total risk-based capital ratio was 21.26 percent at the quarter ended March 31, 2012, and the leverage ratio was 14.88 percent.

“The bank’s capital has increased significantly as a result of our closing a capital raise in January,” said Mark A. Finser, chairman of the New Resource board. “We were gratified by the response, which included increased investments from existing shareholders as well as investments from new shareholders. With this capital strength, we look forward to continued progress on our mission.”

Balance sheet (unaudited; dollar amounts in thousands):

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

Performance ratios:

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.

 

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