SAN FRANCISCO, Jan. 30, 2015 (GLOBE NEWSWIRE) -- New Resource Bank (OTCBB:NWBN) has announced unaudited financial results for the quarter ended December 31, 2014.
The bank achieved strong net income for the quarter and year ended December 31, 2014. Net income for the quarter was $414,000, a 59.1 percent increase compared with net income of $261,000 for the quarter ended December 31, 2013. Net income for the 12 months of 2014 was $1.75 million, compared with $1.13 million for the 12 months ended December 31, 2013—a 54.6 percent increase.
The bank also delivered another solid quarter and year-over-year growth in both loans and deposits. Gross loans rose 13.4 percent year over year, from $160.0 million at December 31, 2013, to $181.4 million at December 31, 2014. The bank also recorded an increase in deposits, from $185.7 million at year-end 2013, to $214.8 million at year-end 2014, a 15.7 percent rise.
"I am very pleased with our 2014 financial results. We've been successful in growing commercial loans and deposits, reflecting the opportunities that exist in our core markets," said Vince Siciliano, New Resource Bank president and CEO. "Our mission-related loan commitments have now grown from 79% of our portfolio to 84%."
Included in the quarter results was an insurance recovery that covered a majority of the third quarter operating loss resulting from the previously reported fraudulent activity in our home equity line of credit portfolio.
Key financial results from the fourth quarter of 2014 compared with the same quarter of 2013 include:
- Loan growth: Loans outstanding grew 13.4 percent, to $181.4 million from $160.0 million a year ago.
- Asset quality: Non-performing assets to total assets increased from 0.10 percent to 0.89 percent. Total criticized loans to total loans decreased from 3.49 percent to 2.59 percent. The increase in non-performing assets was the result of a single commercial loan classified as non-accrual.
- Deposits: Deposits rose 15.7 percent, to $214.8 million at December 31, 2014, from $185.7 million at December 31, 2013.
- Total assets: Total assets increased 14.7 percent, to $247.4 million at December 31, 2014 from $215.7 million at December 31, 2013.
- Net interest income: Net interest income for the year ended on December 31, 2014 was $9.9 million, a 16.5 percent rise from $8.5 million for the year ended on December 31, 2013.
- Non-interest expense: Non-interest expense for the year was $8.8 million, an 11.9 percent rise from $7.9 million for the year ended on December 31, 2013. The increase was primarily due to an expansion in staffing to support the bank's growth and preparation for an office move scheduled for July of 2015.
- Efficiency ratio: The bank's efficiency ratio for the year ended on December 31, 2014 was 82.1%, an improvement from 84.3% for the year ended on 2013.
- Risk-based capital: The bank's total risk-based capital ratio was 16.8 percent, significantly above the standard for a well-capitalized bank.
"Our excellent financial performance in 2014 reflects the strength of the Bank's mission and unique expertise in meeting the growing needs of our target markets—clean energy, organic foods and natural products, green building, sustainably managed businesses and nonprofits," said Mark A. Finser, chairman of the New Resource Bank board. "In the year ahead we will continue to concentrate our efforts to support mission-aligned organizations in our regional community and beyond."
| Balance Sheet (unaudited: dollar amounts in thousands): | |||
| December 31, 2014 | December 31, 2013 | % Change | |
| Assets | |||
| Cash & Due From | $ 5,076 | $ 5,700 | -10.9% |
| Interest Bearing Deposits | 32,875 | 19,280 | 70.5% |
| Money Market Funds | -- | -- | 0.0% |
| Fed Funds | -- | -- | 0.0% |
| Investments | 28,279 | 30,977 | -8.7% |
| Gross Loans | 181,428 | 159,999 | 13.4% |
| Allowance for Loan Loss | (3,429) | (3,293) | 4.1% |
| Premises & Equipment | 587 | 1,097 | -46.5% |
| Other Real Estate Owned | -- | -- | 0.0% |
| Other Assets | 2,555 | 1,939 | 31.8% |
| Total Assets | $ 247,372 | $ 215,700 | 14.7% |
| Liabilities & Equity | |||
| Deposits | $ 214,818 | $ 185,675 | 15.7% |
| Borrowings | -- | -- | 0.0% |
| Other Liabilities | 1,454 | 1,461 | -5.9% |
| Total Liabilities | 216,272 | 187,137 | 15.6% |
| Equity | 31,100 | 28,563 | 8.9% |
| Total Liabilities & Equity | $ 247,372 | $ 215,700 | 14.7% |
| Performance ratios: | December 31, 2014 | December 31, 2013 |
| Book value per outstanding share | $5.44 | $5.09 |
| Leverage ratio | 12.65% | 13.42% |
| Total risk based capital ratio | 16.83% | 18.23% |
| Loan loss reserves to total loans | 1.89% | 2.06% |
| Loan loss reserves to non-performing loans | 155% | 1,464% |
| Non-performing loans to total loans | 1.22% | 0.14% |
| Non-performing assets to total assets | 0.89% | 0.10% |
| Summary income statement (unaudited; dollar amounts in thousands): | |||
| Quarter Ended | |||
| December 31, 2014 | December 31, 2013 | % Change | |
| Interest Income | $ 2,578 | $ 2,405 | 7.2% |
| Interest Expense | 27 | 34 | -18.2% |
| Net Interest Income | 2,550 | 2,371 | 7.5% |
| Non-Interest Income | 208 | 210 | -1.0% |
| Provision for Loan Loss | 100 | 150 | -33.3% |
| Non-Interest Expense | 2,232 | 2,157 | 3.5% |
| Net Operating Income/(Loss) | 426 | 275 | 55.3% |
| Taxes | 12 | 14 | NM |
| Net Income/(Loss) | $ 414 | $ 261 | 59.1% |
| Net Interest Margin | 4.24% | 4.47% | -5.2% |
| Efficiency Ratio | 80.91% | 83.55% | -3.2% |
| NM = Not Meaningful | |||
| 12 Months Ended | |||
| December 31, 2014 | December 31, 2013 | % Change | |
| Interest Income | $ 10,025 | $ 8,655 | 15.8% |
| Interest Expense | 117 | 149 | -21.6% |
| Net Interest Income | 9,908 | 8,505 | 16.5% |
| Non-Interest Income | 829 | 846 | -2.0% |
| Provision for Loan Loss | 130 | 300 | -56.7% |
| Non-Interest Expense | 8,820 | 7,884 | 11.9% |
| Net Operating Income/(Loss) | 1,787 | 1,167 | 53.2% |
| Taxes | 42 | 38 | NM |
| Net Income/(Loss) | $ 1,745 | $ 1,129 | 54.6% |
| Net Interest Margin | 4.35% | 4.22% | 3.0% |
| Efficiency Ratio | 82.14% | 84.32% | -2.6% |
| 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.