New Resource Bank reports third quarter financial results
New Resource Bank (OTCBB: NWBN) has announced unaudited financial results for the quarter ended September 30, 2012.
The bank recorded net income of $290,000 for the quarter ended September 30, 2012, compared with net income of $196,000 for the quarter ended September 30, 2011. Net income for the first nine months of 2012 was $439,000, compared with a net loss of $851,000 for the nine months ended September 30, 2011.
Loans outstanding grew 22 percent to $137 million, a $25 million increase from $112 million a year ago. Deposits rose 15 percent to $161 million, a $21 million jump from $140 million at September 30, 2011. Total assets were $191 million, compared with $161 million at September 30, 2011.
“These earnings for the quarter and the first nine months of year show significant improvement, and we're very pleased with how we've continued to strengthen our business,” said President and CEO Vince Siciliano. “The bank has developed a pipeline of loan and deposit clients in our target markets, and we're attracting business both because of our mission and because of our ability to listen to our clients and respond in support of their mission.”
Nonperforming loans as a percentage of total loans were at 1.75 percent at September 30, 2012. The bank had no nonperforming loans at September 30, 2011. Nonperforming assets to total assets increased from 0.79 percent to 1.62 percent. “The prior year figures were unusual; at this point the nonperforming totals are at a modest level and we are actively managing them,” said Bill Peterson, the bank's chief credit officer.
Loan loss reserves at quarter end September 30, 2012, were 2.05 percent with a 117 percent ratio of reserves to non-performing assets.
Net interest income for the quarter ended September 30, 2012, was $2 million, essentially unchanged from the same period in 2011. The bank's net interest margin was 4.39 percent for the quarter ended September 30, 2012, down from 5.31 percent at September 30, 2011.
Non-interest income was $321,000 for the quarter ended September 30, 2012, a $157,000 increase from $164,000 for the quarter ended September 30, 2011. This was due largely to $107,000 in gains on the sale of other real estate owned and higher credit activity fees. Non-interest expense was down 6 percent, an $111,000 decrease from $2 million for the quarter end September 30, 2011, to $1.9 million at September 30, 2012.
The bank's total risk-based capital ratio was 18.93 percent at September 30, 2012, and the leverage ratio was 14.53 percent.
“This is New Resource Bank's largest quarterly profit to date,” noted Mark A. Finser, chairman of the New Resource board. “It's gratifying to see the bank's strategic focus on its core markets—cleantech, organic products, nonprofits, and green building—bear fruit.”
Balance sheet (unaudited; dollar amounts in thousands):
|September 30, 2012||September 30, 2011|
|Cash & due from banks||$||5,301||$||5,221|
|Money market funds||-||-|
|Allowance for loan losses||(2,801||)||(2,836||)|
|Premises & equipment||1,359||1,566|
|Other real estate owned||695||1,262|
|Liabilities & equity|
|Total liabilities & equity||$||190,882||$||160,648|
Summary income statement (unaudited; dollar amounts in thousands):
|Quarter ended||Nine months ended|
|Sept. 30, 2012||Sept. 30, 2011||Sept. 30, 2012||Sept. 30, 2011|
|Net interest income||1,999||2,011||5,625||5,768|
|Provision for loan loss||160||0||160||975|
|Net operating income/(loss)||293||196||443||(851||)|
|Net interest margin||4.39||%||5.31||%||4.27||%||5.17||%|
|September 30, 2012||September 30, 2011|
|Book value per outstanding share||$||4.99||$||4.99|
|Total risk-based capital ratio||18.93||%||15.75||%|
|Loan loss reserves to total loans||2.05||%||2.53||%|
|Loan loss reserves to nonperforming loans||117||%||0||%|
|Nonperforming loans to total loans||1.75||%||0||%|
|Nonperforming assets to total assets||1.62||%||0.79||%|
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.
New Resource Bank
Vince Siciliano, President & CEO