New Resource Bank reports fourth-quarter and year-end financial results

SAN FRANCISCO, February 10, 2012 — New Resource Bank (OTCBB: NWBN) has announced unaudited financial results for the quarter and year ended December 31, 2011.

The bank recorded its second consecutive profitable quarter: a net operating income of $138,000 for the quarter ended December 31, 2011, compared with a net operating loss of $663,000 for the quarter ended December 31, 2010. Net operating income in the third quarter of 2011 was $196,000.

“We are very pleased to report another quarter of profitability, driven by loan growth and improved margins, plus reduced non-interest expenses,” said President and CEO Vince Siciliano.  “We believe our continued loan growth demonstrates that our sustainability mission resonates with our target markets.”

For the year ended December 31, 2011, New Resource Bank’s net operating loss was $713,000, a $1.3 million improvement over 2010, when the bank’s net operating loss was $2 million. Year-over-year performance highlights include:

  • Net interest income rose 10 percent, to $7.6 million.
  • Non-interest income rose 29 percent, to $679,000.
  • Non-interest expense dropped 3 percent, to $8 million.

The bank’s net interest margin was 5.02 percent for the year ended December 31, 2011, up from 4.30 percent at December 31, 2010.

Loans outstanding grew to $115.4 million, up from $104.6 million a year ago, an increase of more than 10 percent. Deposits were $149.6 million, compared with $133.4 million at year-end in 2010. Total assets were $170.8 million, compared with $154.9 million at year-end in 2010.

Nonperforming loans as a percentage of total loans increased year over year from 0.99 percent to 5.22 percent. Nonperforming assets to total assets increased from 1.39 percent to 4.26 percent. “Continued challenging economic conditions put pressure on local businesses, and we have been quick to identify and respond to problem loans,” noted Siciliano.

The bank’s total risk-based capital ratio was 15.56 percent at the year ended December 31, 2011, and the leverage ratio was 11.47 percent.

“New Resource Bank is beginning to show that it can execute on its mission and achieve profitability even in an uncertain economy,” said Mark A. Finser, chairman of the New Resource board. “The third quarter of 2011 marked a turning point for the bank, and the fourth quarter demonstrated continued positive results.”

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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