SAN FRANCISCO, April 28, 2015 (GLOBE NEWSWIRE) -- New Resource Bank (OTCBB:NWBN) has announced unaudited financial results for the quarter ended March 31, 2015.
The bank recorded its twelfth consecutive quarter of profitability and achieved another quarter of robust deposit growth.
"Our bank is growing into new office space this July, fueled by our continuing strong financial performance and dedication to our mission of achieving well-being for all people and the planet," said Vince Siciliano, New Resource Bank president and CEO. "Our excellent momentum entering the second quarter, supported by solid deposit growth, will enable us to continue to grow our values-aligned loan portfolio to serve more socially and environmentally responsible organizations."
Net income for the quarter was $410,000, an 18.5 percent increase compared with net income of $346,000 for the quarter ended March 31, 2014. Total deposits amounted to $230.9 million – a boost of 20.7 percent from March 31, 2014. Gross loans totaled $174.9 million, a 3.9 percent rise over March 31, 2014. While loans increased year over year, they fell slightly from the $181.4 million in the last quarter of 2014 as a result of several loan payoffs in the first quarter of 2015.
Key financial results from the first quarter of 2015 compared with the same quarter of 2014 include:
- Loan growth: Loans outstanding advanced 3.9 percent, to $174.9 million from $168.3 million a year ago. Although we have booked a significant number of new loans over the past year, the overall modest year over year loan growth can be attributed to loan payoffs as clients take advantage of the stronger economy to sell their real estate and businesses.
- Asset quality: Non-performing assets to total assets increased from 0.10 percent to 0.78 percent from one year ago. The rise in non-performing assets was the result of a single commercial loan that was classified as non-accrual in the fourth quarter of 2014.
- Deposits: Deposits surged 20.7 percent, to $230.9 million at March 31, 2015, from $191.3 million at March 31, 2014.
- Total assets: Total assets increased 18.8 percent, to $263.7 million at March 31, 2015 from $221.9 million at March 31, 2014.
- Net interest income: Net interest income for the first quarter ended March 31, 2015 was $2.69 million, a 16.5 percent gain from $2.30 million for the quarter ended on March 31, 2014.
- Non-interest expense: Non-interest expense for the first quarter ended March 31, 2015 was $2.49 million, a 18.7 percent increase from $2.10 million for the quarter ended on March 31, 2014. The rise was primarily attributed to an expansion in staffing to support the bank's growth as well as expenses associated with our upcoming office move scheduled for July 6, 2015.
- Efficiency ratio: The bank's efficiency ratio for the quarter ended on March 31, 2015 was 86.4 percent, an increase from 84.0 percent for the quarter ended March 31, 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 preparation for our upcoming move in July.
- Risk-based capital: The first quarter of 2015 reflected the capital changes associated with the Basel III capital adequacy framework. The bank's new common equity tier 1 capital ratio amounted to 16.04 percent and total risk-based capital ratio was 17.3 percent, significantly above the standard for a well-capitalized bank.
"Our steady growth into the first quarter of 2015 reflects our efforts to target values-aligned organizations within our community and beyond," said Mark A. Finser, chairman of the New Resource Bank board. "With our strong base of deposits, we look forward to continuing to support these organizations and growing our community of values over the next year."
| Balance Sheet (in thousands) | March 31, 2015 | March 31, 2014 | % Change | |||
| Assets | ||||||
| Cash & Due From | $ 6,643 | $ 7,032 | -5.5% | |||
| Interest Bearing Deposits | 55,830 | 16,850 | 231.3% | |||
| Investments | 27,362 | 30,462 | -10.2% | |||
| Gross Loans | 174,906 | 168,271 | 3.9% | |||
| Allowance for Loan Loss | (3,410) | (3,345) | 2.0% | |||
| Premises & Equipment | 412 | 1,078 | -61.8% | |||
| Other Real Estate Owned | -- | -- | 0.0% | |||
| Other Assets | 1,947 | 1,624 | 19.9% | |||
| Total Assets | $ 263,690 | $ 221,972 | 18.8% | |||
| Liabilities & Equity | ||||||
| Deposits | $ 230,937 | $ 191,270 | 20.7% | |||
| Borrowings | -- | -- | 0.0% | |||
| Other Liabilities | 1,153 | 1,577 | -26.9% | |||
| Total Liabilities | 232,090 | 192,848 | 20.3% | |||
| Equity | 31,600 | 29,124 | 8.5% | |||
| Total Liabilities & Equity | $ 263,690 | $ 221,972 | 18.8% | |||
| Performance Ratios | March 31, 2015 | March 31, 2014 | ||||
| Book value per outstanding share | $5.46 | $5.10 | ||||
| Leverage ratio | 12.33% | 13.38% | ||||
| Total risk based capital ratio | 17.30% | 17.59% | ||||
| Common Equity Tier 1 capital ratio | 16.04% | N/A | ||||
| Loan loss reserves to total loans | 1.95% | 1.99% | ||||
| Loan loss reserves to non-performing loans | 166% | 1,501% | ||||
| Non-performing loans to total loans | 1.17% | 0.13% | ||||
| Non-performing assets to total assets | 0.78% | 0.10% | ||||
| Summary Income Statement (unaudited; dollar amounts in thousands) | Quarter Ended | |||||
| March 31, 2015 | March 31, 2014 | % Change | ||||
| Interest Income | $ 2,707 | $ 2,330 | 16.2% | |||
| Interest Expense | 28 | 32 | -12.0% | |||
| Net Interest Income | 2,679 | 2,298 | 16.5% | |||
| Non-Interest Income | 206 | 200 | 2.8% | |||
| Provision for Loan Loss | 0 | 50 | NM | |||
| Non-Interest Expense | 2,472 | 2,099 | 17.87% | |||
| Net Operating Income/(Loss) | 413 | 349 | 18.3% | |||
| Taxes | 3 | 3 | NM | |||
| Net Income/(Loss) | $ 410 | $ 346 | 18.5% | |||
| Net Interest Margin | 4.36% | 4.34% | 0.4% | |||
| Efficiency Ratio | 86.37% | 84.02% | 2.8% | |||
| NM = Not Meaningful | ||||||
| N/A = Not Available | ||||||
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. 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.