New Resource Bank Reports Third Quarter 2015 Financial Results

SAN FRANCISCO, Oct. 28, 2015 (GLOBE NEWSWIRE) — New Resource Bank (OTC PINK:NWBN) has announced unaudited financial results for the quarter ended September 30, 2015.

Net income rose from $519,000 for the quarter ended September 30, 2014 to $7.1 million in the current quarter. Our September 2015 quarterly results included a non-recurring $6.8 million tax benefit, reflecting the recognition of a deferred tax asset (DTA) primarily from the operating loss carry forward for the years 2006 to 2011. Pre-tax income for the quarter was $267,000, 50 percent below the quarter ended September 30, 2014. Our pre-tax income for third quarter 2014 included a non-recurring loan prepayment penalty; pre-tax income for the current quarter was impacted primarily by the cost of the bank’s recent move to our new offices and continued growth in our staff.

Gross loans totaled $186 million — a $12.7 million or 7.3 percent increase over September 30, 2014. Total deposits amounted to $238 million — an increase of $39.3 million or 19.8 percent over September 30, 2014.

“Our third quarter results — as evidenced by the recognition of the deferred tax asset — are a testament to our financial stability and the quality of our earnings since 2011,” said Vince Siciliano, New Resource Bank president and CEO.

Key financial results from the third quarter of 2015 compared with the same quarter of 2014 include:

  • Loan growth: Loans outstanding grew 7.3 percent to $186.3 million from $173.6 million a year ago.
  • Asset quality: Non-performing assets to total assets rose from 0.09 percent to 0.63 percent. The increase in non-performing assets was the result of a single commercial loan classified as non-accrual in the fourth quarter of 2014.
  • Deposits: Deposits rose 19.8 percent to $238.5 million at September 30, 2015, from $199.1 million at September 30, 2014.
  • Total assets: Total assets increased 21.4 percent to $280.2 million at September 30, 2015 from $230.7 million at September 30, 2014.
  • Net interest income: Net interest income for the quarter ended September 30, 2015 was $2.57 million, a decline of $65,000 from the quarter ended on September 30, 2014. The third quarter of 2014 included a nonrecurring loan prepayment penalty of $132,000.
  • Non-interest expense: Non-interest expense for the quarter ended September 30, 2015 was $2.51 million, a 7.8 percent increase from $2.32 million for the quarter ended on September 30, 2014. The increase was primarily due to an expansion in staffing to support the bank’s growth and expenses associated with the bank’s move to 255 California Street.
  • Efficiency ratio: The bank’s efficiency ratio for the quarter ended on September 30, 2015 was 90.4 percent, an increase from 81.9 percent for the quarter ended September 2014. As with non-interest expense, the increase was primarily due to an expansion in staffing to support the bank’s growth as well as the costs associated with the office move.
  • Risk-based capital: The third quarter of 2015 reflected the capital guidelines associated with BASEL III. The bank’s common equity tier 1 capital ratio amounted to 15.8 percent and the total risk-based capital ratio was 17.1 percent, significantly above the standard for a well-capitalized bank.

“The third quarter was a unique period as it reflected the completion of our move to our new office. I am pleased we are able to convey our overall financial performance through this quarter’s one time recognition of the bank’s deferred tax asset. However our market remains very competitive, especially in growing our loan portfolio, and we remain cognizant of this as we plan for the next year and beyond,” said Mark A. Finser, chairman of the New Resource Bank board.


Balance Sheet
September 30, 2015 Quarter Ended
September 30, 2014
% Change
       
Assets      
Cash & Due From $ 6,426 $ 5,623 14.3%
Interest Bearing Deposits 48,970 23,280 110.4%
Money Market Funds 0.0%
Fed Funds 0.0%
Investments Securities 30,075 28,870 4.2%
       
Gross Loans 186,287 173,572 7.3%
Allowance for Loan Losses (3,361) (3,328) 1.0%
       
Premises & Equipment 2,520 811 210.7%
Other Real Estate Owned 0.0%
Other Assets 9,245 1,899 386.9%
       
Total Assets $ 280,162 $ 230,728 21.4%
       
Liabilities & Equity      
Deposits $ 238,495 $ 199,149 19.8%
Borrowings 0.0%
Other Liabilities 2,410 1,066 126.0%
Total Liabilities 240,904 200,215 20.3%
       
Equity 39,258 30,513 28.7%
Total Liabilities & Equity $ 280,162 $ 230,728 21.4%
       
Performance Ratios      
       
Book Value per Outstanding Share $6.74 $5.34  
Leverage Ratio 12.88% 13.02%  
Total Risk-based Capital Ratio 17.07% 17.54%  
BASEL III Common Equity Tier 1 15.81% N/A  
Loan Loss Reserves to Total Loans 1.80% 1.92%  
Loan Loss Reserves to Non-performing Loans 191% 1524%  
Non-performing Loans to Total Loans 0.95% 0.13%  
Non-performing Assets to Total Assets 0.63% 0.09%  
       
       
Income Statement Quarter Ended  
  September 30, 2015 September 30, 2014 % Change
       
Interest Income $ 2,596 $ 2,660 -2.4%
Interest Expense 28 28 1.7%
Net Interest Income 2,567 2,632 -2.5%
       
Non-Interest Income 205 206 -0.7%
       
Provision for Loan Loss (20) NM
Non-Interest Expense 2,505 2,324 7.8%
    0  
Pre Tax Income 267 534 -50.0%
Tax (Benefit) / Expense (6,848) 15 NM
Net Income $ 7,115 $ 519 1270.8%
       
Net Interest Margin 4.02% 4.65% -13.6%
Efficiency Ratio 90.36% 81.89% 10.3%
       
NM = Not Meaningful      
N/A = Not Available      
       

About New Resource Bank

New Resource Bank (https://www.newresourcebank.com/) is a triple-bottom-line bank serving values-driven businesses and nonprofits that are building a more sustainable world. We see money as an agent of positive social, environmental and financial change. We use banking to transform the economy into one that serves all people and the planet. By putting deposits to work for good, we lend to organizations that benefit our communities and preserve our planet.

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 and CEO
         415.995.8170
         vsiciliano@newresourcebank.com

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