New Resource Bank (OTCBB:NWBN) has announced unaudited financial results for the quarter ended September 30, 2010.
The bank reported a net operating loss of $433,000 for the quarter ended September 30, 2010, compared with net operating income of $11,000 for the quarter ended September 30, 2009. Total deposits were $135.5 million, down from $141.8 million at the quarter-end last year. Gross loans were $95.8 million at September 30, 2010, up from $90.9 million at the third quarter of 2009.
?The bank remains in good health, and we are continuing to improve in key areas while sharpening our focus on our mission of sustainability,? said President and CEO Vince Siciliano. He noted that because net operating income for the third quarter of 2009 recognized $1.2 million in recoveries of previously charged-off loans, operating results have actually improved year over year.
The bank has dramatically reduced problem loans. The percentage of classified loans to total loans dropped year over year, from 4.3 percent on September 30, 2009, to 0.3 percent at the quarter ended September 30, 2010. Total classified loans were reduced by over half year over year, to $3.6 million at the quarter ended September 30, 2010, compared with $8 million at the third quarter in 2009. Nonperforming assets were reduced substantially, from $3.9 million at the quarter ended September 30, 2009, to $1.6 million at September 30, 2010.
The bank's total risk-based capital ratio was 16.91 percent at the quarter ended September 30, 2010, and the leverage ratio was 11.2 percent. The bank's net interest margin expanded to 4.18 percent at the quarter ended September 30, 2010, from 3.79 percent at September 30, 2009.
?While it's still a slow economy, we're continuing to grow at a measured pace,? said Siciliano. ?We have increased commercial banking relationships, with $24.2 million in new lending commitments through the third quarter. All are with sustainability-focused businesses, which are central to our mission.?
Board of directors welcomes new members
Ken Ansin and Greg Linvill have joined the New Resource board of directors. Ansin, an accomplished business executive and entrepreneur, has a long record of board service with nonprofit organizations and experience in finance and banking, including as a board member of Root Capital and director of Enterprise Bank & Trust Co. of Lowell, Massachusetts. Linvill is a veteran Bay Area banker with over 30 years of experience in banking and commercial credit, with particular expertise in start-ups, nonprofits, and commercial and asset-based lending. He has held senior positions with First Republic Bank, Silicon Valley Bank, Bay View Capital, and City National Bank. He is chair of New Resource's loan committee.
?Ken Ansin and Greg Linvill are excellent additions to the board?we couldn't do better,? said Board Chair Mark Finser. ?It's deeply gratifying that we can attract and involve such experienced and mission-aligned directors.?
Former director Barbara Kamm resigned from the board following her appointment as CEO of Technology Credit Union.
Balance Sheet (unaudited; dollar amounts in thousands): | ||||||||
Sept. 30, 2010 | Sept. 30, 2009 | |||||||
Assets | ||||||||
Cash & due from banks | $ | 5,051 | $ | 8,906 | ||||
Interest-bearing deposits | 13,705 | 19,195 | ||||||
Money market funds | 14,928 | 19,298 | ||||||
Federal funds | 0 | 0 | ||||||
Investments | 25,761 | 26,344 | ||||||
Gross loans | 95,859 | 90,922 | ||||||
Allowance for loan loss | (2,397 | ) | (2,046 | ) | ||||
Premises & equipment | 1,861 | 2,176 | ||||||
Other real estate owned | 1,390 | 0 | ||||||
Other assets | 1,657 | 841 | ||||||
Total assets | $ | 157,815 | $ | 165,635 | ||||
Liabilities & equity | ||||||||
Deposits | $ | 135,546 | $ | 141,879 | ||||
Borrowings | 0 | 0 | ||||||
Other liabilities | 1,924 | 1,746 | ||||||
Total liabilities | 137,471 | 143,625 | ||||||
Equity | 20,344 | 22,010 | ||||||
Total liabilities & equity | $ | 157,815 | $ | 165,635 |
Summary Income Statement (unaudited; dollar amounts in thousands): | ||||||||
Quarter Ended | ||||||||
Sept. 30, 2010 | Sept. 30, 2009 | |||||||
Interest income | $ | 1,830 | $ | 1,783 | ||||
Interest expense | 79 | 244 | ||||||
Net interest income | 1,750 | 1,539 | ||||||
Non-interest income | 128 | 117 | ||||||
Provision for loan loss | 120 | (500 | ) | |||||
Non-interest expense | 2,191 | 2,145 | ||||||
Net operating income/(loss) | (433 | ) | 11 | |||||
Taxes | 0 | 0 | ||||||
Net income/(loss) | $ | (433 | ) | $ | 11 | |||
Net interest margin | 4.18 | % | 3.79 | % |
Performance Ratios | ||||||||
Sept. 30, 2010 | Sept. 30, 2009 | |||||||
Book value per share | $ | 5.40 | $ | 5.84 | ||||
Leverage ratio | 11.20 | % | 12.91 | % | ||||
Total risk-based capital ratio | 16.91 | % | 18.14 | % | ||||
Loss reserves to total loans | 2.50 | % | 2.25 | % | ||||
Nonperforming loans to total loans | 0.32 | % | 4.37 | % |
About New Resource Bank
New Resource (http://www.newresourcebank.com) is the 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, 415-995-8170
President & CEO
vsiciliano@newresourcebank.com