New Resource Bank Reports Fourth Quarter 2013 Financial Results

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SAN FRANCISCO, Feb. 3, 2014 (GLOBE NEWSWIRE) -- New Resource Bank (OTCBB:NWBN) has announced unaudited financial results for the quarter and year ended December 31, 2013.

Net income for the 12 months of 2013 was $1.13 million, compared with $751,000 for the 12 months ended December 31, 2012—a 50.2 percent increase. Net income for the quarter was $261,000, a 16.5 percent decrease compared with net income of $312,000 for the quarter ended December 31, 2012.

The bank achieved substantial growth in gross loans and solid growth in deposits compared with the fourth quarter of 2012, and improved on its already strong credit quality. The reduction in fourth quarter net income compared with the prior year's quarter was due to increased provision and personnel expenses.

"These excellent year-over-year results and the strong performance on key quarterly measures reflect our focus on growing the bank's balance sheet efficiently while deepening our commitment to our mission," said Vince Siciliano, New Resource Bank president and CEO. "All of our growth has come from our target markets: businesses with green products and services, such as organic foods and renewable energy, as well as sustainably managed businesses and sustainability-oriented nonprofits.

"The greater provision for loan loss was simply a prudent action reflecting our growth," he added. "Our non-performing loan percentage decreased compared with the fourth quarter of 2012, to a low 0.14 percent in the fourth quarter of 2013."

Key financial results from 2013 compared with 2012 include:

  • Loan growth: Loans outstanding grew 17.9 percent, to $160 million from $135.7 million a year ago.
  • Asset quality: Non-performing loans as a percentage of total loans dropped to 0.14 percent at December 31, 2013, from 1.52 percent at December 31, 2012.
  • Non-performing assets to total assets: Non-performing assets to total assets decreased from 1.1 percent to 0.1 percent.
  • Deposits: Deposits rose 9.1 percent, to $185.7 million at December 31, 2013, from $170.2 million at December 31, 2012.
  • Total assets: Total assets increased 7.7 percent, to $215.7 million from $200.2 million at December 31, 2012.
  • Net interest income: Net interest income for the year was $8.5 million, a 9.1 percent rise from $7.8 million at December 31, 2012.
  • Non-interest expense: Non-interest expense for the year was $7.9 million, a 3 percent rise from $7.7 million at December 31, 2012.
  • Efficiency ratio: The bank's efficiency ratio for the year was 84.3 percent, a 5 percent improvement over 2012.
  • Risk-based capital: Total risk-based capital ratio was 18.23 percent, significantly above the standard for a well-capitalized bank.

"The bank's strong mission orientation has enabled it to remain tightly focused on serving its target markets as the Bay Area economy has improved and generated greater opportunities," said Mark A. Finser, chairman of the New Resource board. "The bank's ability to demonstrate improving efficiency is also worth noting, given New Resource's strategic imperative to grow the portfolio while keeping operations lean."

Balance sheet (unaudited; dollar amounts in thousands):
December 31, 2013 December 31, 2012 Change
Assets
Cash and due from banks $5,700 $7,838 -27.3%
Interest-bearing deposits 19,280 29,315 -34.2%
Money market funds -- -- 0.0%
Fed funds -- -- 0.0%
Investments 30,977 27,244 13.7%
Gross loans 159,999 135,741 17.9%
Allowance for loan losses (3,293) (2,819) 16.8%
Premises and equipment 1,097 1,301 -15.7%
Other real estate owned -- 144 -100.0%
Other assets 1,939 1,451 33.7%
Total assets $215,700 $200,215 7.7%
Liabilities and equity
Deposits $185,675 $170,209 9.1%
Borrowings -- -- 0.0%
Other liabilities 1,461 2,027 -27.9%
Total liabilities 187,137 172,235 8.7%
Equity 28,563 27,980 2.1%
Total liabilities and equity $215,700 $200,215 7.7%
Performance ratios:
December 31, 2013 December 31, 2012
Book value per outstanding share $5.09 $5.03
Leverage ratio 13.42% 14.38%
Total risk-based capital ratio 18.23% 19.36%
Loan loss reserves to total loans 2.06% 2.08%
Loan loss reserves to non-performing loans 1464% 136%
Non-performing loans to total loans 0.14% 1.52%
Non-performing assets to total assets 0.10% 1.10%
Summary income statement (unaudited; dollar amounts in thousands):
Quarter ended
December 31, 2013 December 31, 2012 Change
Interest income $2,405 $2,219 8.4%
Interest expense 34 45 -25.5%
Net interest income 2,371 2,174 9.1%
Non-interest income 210 117 80.2%
Provision for loan loss 150 50 200.0%
Non-interest expense 2,157 1,915 12.6%
Net operating income/(loss) 275 325 -15.6%
Taxes 14 13 NM
Net income/(loss) $261 $312 -16.5%
Net interest margin 4.47% 4.65% -3.9%
Efficiency ratio 83.55% 83.62% -0.1%
12 Months ended
December 31, 2013 December 31, 2012 Change
Interest income $8,655 $7,984 8.4%
Interest expense 149 185 -19.4%
Net interest income 8,505 7,799 9.1%
Non-interest income 846 837 1.1%
Provision for loan loss 300 210 42.9%
Non-interest expense 7,884 7,657 3.0%
Net operating income/(loss) 1,167 768 52.0%
Taxes 38 16 NM
Net income/(loss) $1,129 $751 50.2%
Net interest margin 4.22% 4.37% -3.3%
Efficiency ratio 84.32% 88.68% -4.9%
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.

CONTACT: Media contact: Vince Siciliano, President & CEO 415.995.8170 vsiciliano@newresourcebank.com

Source:New Resource Bank