SAN FRANCISCO, April 29, 2016 (GLOBE NEWSWIRE) -- New Resource Bank (OTC Link LLC:NWBN) has announced unaudited financial results for the first quarter ended March 31, 2016.
Gross loans totaled $208.7 million — a $33.7 million or 19 percent increase over March 31, 2015. Factors influencing the robust growth in loans are the appeal of our triple-bottom-line mission combined with our target market expertise. Total deposits amounted to $251.3 million, an increase of $20.3 million or 9 percent over March 31, 2015. Asset quality remained strong, with non-performing assets to total assets declining from 0.78 percent to 0.20 percent.
Net income for the quarter was $177,000, a 57 percent decline compared with net income of $410,000 for the quarter ended March 31, 2015. Part of this decline reflects the impact of income taxes. In March 2015, the Bank made minimum tax payments due to the impact of our operating loss carryforward. This changed at the end of 2015 when the bank recognized the deferred tax asset associated with the operating loss carryforward and began to account for normalized tax rates. On a pre-tax net income basis, the bank earned $294,000 for the quarter ended March 31, 2016, a 29 percent decline from March 31, 2015. The drop in pre-tax net income reflects rising expenses, including normal additions to our loan-loss reserve to support the strong loan growth as well as growth in employees.
“I am encouraged by the robust start to 2016, evidenced by our loan and deposit growth. Our focus for the next quarter is to expand our operations into Colorado and continue this momentum throughout the remainder of the year,” said Vincent Siciliano, New Resource Bank president and CEO. Opening a second office in Boulder, Colorado will be a key activity for the second quarter.
Key financial results from the first quarter of 2016 compared with the same quarter of 2015 include:
- Loan growth: Loans outstanding grew 19 percent, to $208.7 million from $174.9 million a year ago.
- Asset quality: Non-performing assets to total assets decreased from 0.78 percent to 0.20 percent.
- Deposits: Deposits rose 9 percent, to $251.3 million from $231.0 million one year ago.
- Total assets: Total assets increased 11 percent, to $293.2 million from $263.7 million a year ago.
- Net interest income: Net interest income for the first quarter ended March 31, 2016 was $2.75 million, an increase of $69,000 or 3 percent from the first quarter of 2015.
- Non-interest expense: Non-interest expense for the first quarter was $2.60 million, an increase of $103,000 or 4 percent. The increase was influenced by the expansion in staffing to support the bank’s growth; the bank currently has 45 employees.
- Provision expense: Provision expense amounted to $75,000 for the quarter, an increase of $95,000 compared to the first quarter of 2015.
- Efficiency ratio: The bank’s efficiency ratio for the first quarter was 87.6 percent, an increase from 86.4 percent from the first quarter of 2015. As with non-interest expense, the rise was influenced by the expansion in staffing to support the bank’s growth.
- Risk-based capital: Common equity tier 1 capital ratio amounted to 13.92 percent and total risk-based capital ratio was 15.19 percent, significantly above the standard for a well-capitalized bank.
“Our higher expenses are in preparation for our next phase of growth. We believe that our mission is being embraced by more and more clients who wish to partner with a trusted bank that knows their market and who value the transparent and mission-aligned link our bank provides between our borrowers and our depositors,” stated Mark A. Finser, chairman of the New Resource Bank board.
| Quarter Ended | ||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||
| Balance Sheet | March 31, 2016 | March 31, 2015 | % Change | |||||||||||||||||||
| Assets | ||||||||||||||||||||||
| Cash & Due From | $ | 6,629 | $ | 6,643 | -0.2 | % | ||||||||||||||||
| Interest Bearing Deposits | 34,730 | 55,830 | -37.8 | % | ||||||||||||||||||
| Money Market Funds | - | - | 0.0 | % | ||||||||||||||||||
| Fed Funds | - | - | 0.0 | % | ||||||||||||||||||
| Investments | 34,522 | 27,362 | 26.2 | % | ||||||||||||||||||
| Gross Loans | 208,636 | 174,906 | 19.3 | % | ||||||||||||||||||
| Allowance for Loan Loss | (3,414 | ) | (3,410 | ) | 0.1 | % | ||||||||||||||||
| Premises & Equipment | 2,533 | 412 | 514.8 | % | ||||||||||||||||||
| Other Real Estate Owned | 87 | - | 0.0 | % | ||||||||||||||||||
| Other Assets | 9,526 | 1,947 | 389.2 | % | ||||||||||||||||||
| Total Assets | $ | 293,248 | $ | 263,690 | 11.2 | % | ||||||||||||||||
| Liabilities & Equity | ||||||||||||||||||||||
| Deposits | $ | 251,269 | $ | 230,937 | 8.8 | % | ||||||||||||||||
| Borrowings | - | - | 0.0 | % | ||||||||||||||||||
| Other Liabilities | 2,298 | 1,153 | 99.3 | % | ||||||||||||||||||
| Total Liabilities | 253,566 | 232,090 | 9.3 | % | ||||||||||||||||||
| Equity | 39,682 | 31,600 | 25.6 | % | ||||||||||||||||||
| Total Liabilities & Equity | $ | 293,248 | $ | 263,690 | 11.2 | % | ||||||||||||||||
| Book value per outstanding share | $ | 6.82 | $ | 5.46 | ||||||||||||||||||
| Leverage ratio | 12.27 | % | 12.33 | % | ||||||||||||||||||
| Total risk based capital ratio | 15.19 | % | 17.30 | % | ||||||||||||||||||
| BASEL III Common Equity Tier 1 | 13.92 | % | 16.04 | % | ||||||||||||||||||
| Loan loss reserves to total loans | 1.64 | % | 1.95 | % | ||||||||||||||||||
| Loan loss reserves to non-performing loans | 696 | % | 166 | % | ||||||||||||||||||
| Non-performing loans to total loans | 0.23 | % | 1.17 | % | ||||||||||||||||||
| Non-performing assets to total assets | 0.20 | % | 0.78 | % | ||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||
| Income Statement | ||||||||||||||||||||||
| March 31, 2016 | March 31, 2015 | % Change | ||||||||||||||||||||
| Interest Income | $ | 2,776 | $ | 2,707 | 2.6 | % | ||||||||||||||||
| Interest Expense | 28 | 28 | 0.0 | % | ||||||||||||||||||
| Net Interest Income | 2,748 | 2,679 | 2.6 | % | ||||||||||||||||||
| Non-Interest Income | 216 | 206 | 4.7 | % | ||||||||||||||||||
| Provision for Loan Loss | 75 | (20 | ) | NM | ||||||||||||||||||
| Non-Interest Expense | 2,595 | 2,492 | 4.2 | % | ||||||||||||||||||
| 0 | ||||||||||||||||||||||
| Net Operating Income/(Loss) | 294 | 413 | -28.8 | % | ||||||||||||||||||
| Taxes | 117 | 3 | NM | |||||||||||||||||||
| Net Income/(Loss) | 177 | 410 | -56.9 | % | ||||||||||||||||||
| Net Interest Margin | 4.16 | % | 4.36 | % | -4.6 | % | ||||||||||||||||
| Efficiency Ratio | 87.55 | % | 86.37 | % | 1.4 | % | ||||||||||||||||
| 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 economic 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.