SAN FRANCISCO, Jan. 30, 2017 (GLOBE NEWSWIRE) -- New Resource Bank (OTC Link LLC:NWBN) has announced unaudited financial results for the fourth quarter ended December 31, 2016.
The bank finished the year with strong momentum. Their loan portfolio ended the year on a high note, with gross loans totaling $243.6 million — a $51.6 million or 27 percent increase over December 31, 2015. The robust growth in loans reflects the thriving economy and appeal of their values-based banking model. Ninety percent of New Resource Bank’s gross loans are to socially and environmentally responsible organizations, which take an impact assessment to determine their level of sustainability as part of the loan qualification process. Total deposits amounted to $287.9 million, an increase of $46.9 million or 19 percent over December 31, 2015. Asset quality remained strong, with non-performing assets to total assets declining from 0.20 percent to 0.09 percent.
Pre-tax net income rose to $841,000 for the fourth quarter of 2016 and $2.3 million for the year, an increase of 242 percent and 404 percent respectively in 2015. Net income amounted to $582,000 for the quarter, growing 365 percent from the fourth quarter of 2015, while net income for the year declined to $1.3 million from $8.0 million in 2015. The decline in net income from 2015 reflects the impact of income taxes. During 2015, the bank recognized a deferred tax asset amounting to $6.9 million, which was primarily associated with an accumulated net operating loss carryforward. The rise in pre-tax net income reflects the bank’s sound asset quality together with 18 percent growth in net interest income.
“This year our loans benefited over 200 organizations, enabling them to both grow their business and make a positive impact on the world. We look forward to continuing to use money and banking to be a force for good in 2017,” said Vincent Siciliano, New Resource Bank president and CEO.
Key financial results from 2016 compared with the same period in 2015 include:
- Loan growth: Loans outstanding grew 27 percent for the year, from $191.9 million at year-end 2015 to $243.6 million at year-end 2016.
- Asset quality: Non-performing assets to total assets decreased to 0.09 percent as of December 31, 2016, from 0.20 percent as of December 31, 2015.
- Deposit growth: Deposits rose 19 percent for the year, reaching $287.9 million at year-end 2016 from $241.0 million at year-end 2015.
- Total assets: Total assets increased 17 percent to $330.8 million as of December 31, 2016 from $282.2 million as of December 31, 2015.
- Net interest income: Net interest income was $3.3 million for the fourth quarter and $12.2 million for the full year, an increase of 30 percent and 18 percent respectively in 2015.
- Non-interest income: Non-interest income was $293,000 for the fourth quarter and $1 million for the full year, an increase of 38 percent and 19 percent respectively in 2015. The purchase of bank-owned life insurance contributed to this growth.
- Non-interest expense: Non-interest expense was $2.8 million for the quarter and $10.6 million for the full year, an increase of 23 percent and 9 percent respectively in 2015. The increase was influenced by higher staffing needs to support the bank’s growth; the bank ended 2016 with 49 employees as compared with 43 employees at year-end 2015.
- Provision expense: Provision expense reflected a reduction of $21,000 for the quarter. For the full year, provision amounted to $339,000, a decline from $1.1 million in 2015, a signal of our sound asset quality.
- Efficiency ratio: The bank’s efficiency ratio was 77.4 percent for the fourth quarter and 80.1 percent for the full year, an improvement from 81.7 percent and 86.3 percent respectively in 2015. Performance was positively impacted by revenue growth from loans outpacing the growth in expenses.
- Risk-based capital: The common equity tier 1 capital ratio amounted to 12.96 percent and the total risk-based capital ratio was 14.22 percent in the fourth quarter of 2016, significantly above the standard for a well-capitalized bank.
“I am pleased with our robust loan and deposit growth in 2016, which demonstrates not only the financial resiliency of our bank, but the increasing demand for values-based banking. We are well positioned to benefit from this trend in 2017,” stated Mark A. Finser, chairman of the New Resource Bank board.
| Quarter Ended | ||||||||||
| (in thousands) | ||||||||||
| Balance Sheet | December 31, 2016 | December 31, 2015 | % Change | |||||||
| Assets | ||||||||||
| Cash & Due From | $ | 7,478 | $ | 6,372 | 17.3 | % | ||||
| Interest Bearing Deposits | 37,685 | 39,770 | -5.2 | % | ||||||
| Money Market Funds | - | - | 0.0 | % | ||||||
| Fed Funds | - | - | 0.0 | % | ||||||
| Investments | 29,223 | 35,115 | -16.8 | % | ||||||
| Gross Loans | 243,556 | 191,990 | 26.9 | % | ||||||
| Allowance for Loan Loss | (3,682 | ) | (3,337 | ) | 10.3 | % | ||||
| Premises & Equipment | 2,392 | 2,575 | -7.1 | % | ||||||
| Other Real Estate Owned | - | 117 | -100.0 | % | ||||||
| Other Assets | 14,109 | 9,598 | 47.0 | % | ||||||
| Total Assets | $ | 330,760 | $ | 282,201 | 17.2 | % | ||||
| Liabilities & Equity | ||||||||||
| Deposits | $ | 287,873 | $ | 241,006 | 19.4 | % | ||||
| Borrowings | - | - | 0.0 | % | ||||||
| Other Liabilities | 2,408 | 1,962 | 22.8 | % | ||||||
| Total Liabilities | 290,281 | 242,968 | 19.5 | % | ||||||
| Equity | 40,479 | 39,233 | 3.2 | % | ||||||
| Total Liabilities & Equity | $ | 330,760 | $ | 282,201 | 17.2 | % | ||||
| Book value per outstanding share | $ | 6.95 | $ | 6.77 | ||||||
| Leverage ratio | 11.03 | % | 11.88 | % | ||||||
| Total risk based capital ratio | 14.22 | % | 15.88 | % | ||||||
| BASEL III Common Equity Tier 1 | 12.96 | % | 14.61 | % | ||||||
| Loan loss reserves to total loans | 1.51 | % | 1.74 | % | ||||||
| Loan loss reserves to non-performing loans | 1281 | % | 763 | % | ||||||
| Non-performing loans to total loans | 0.12 | % | 0.23 | % | ||||||
| Non-performing assets to total assets | 0.09 | % | 0.20 | % | ||||||
| Quarter Ended (in thousands) | |||||||||||
| Income Statement | |||||||||||
| December 31, 2016 | December 31, 2015 | % Change | |||||||||
| Interest Income | $ | 3,374 | $ | 2,606 | 29.4 | % | |||||
| Interest Expense | 35 | 29 | 18.7 | % | |||||||
| Net Interest Income | 3,339 | 2,577 | 29.6 | % | |||||||
| Non-Interest Income | 293 | 212 | 38.4 | % | |||||||
| Provision for Loan Loss | (21 | ) | 1,100 | NM | |||||||
| Non-Interest Expense | 2,812 | 2,280 | 23.4 | % | |||||||
| Net Operating Income/(Loss) | 841 | (591 | ) | 242.3 | % | ||||||
| Taxes | 259 | (716 | ) | NM | |||||||
| Net Income/(Loss) | $ | 582 | $ | 125 | 365.0 | % | |||||
| Net Interest Margin | 4.31 | % | 3.74 | % | 15.2 | % | |||||
| Efficiency Ratio | 77.42 | % | 81.75 | % | -5.3 | % | |||||
| 12 Months Ended (in thousands) | |||||||||||
| Income Statement | |||||||||||
| December 31, 2016 | December 31, 2015 | % Change | |||||||||
| Interest Income | $ | 12,317 | $ | 10,479 | 17.5 | % | |||||
| Interest Expense | 132 | 114 | 16.1 | % | |||||||
| Net Interest Income | 12,185 | 10,366 | 17.6 | % | |||||||
| Non-Interest Income | 1,045 | 882 | 18.6 | % | |||||||
| Provision for Loan Loss | 339 | 1,080 | -68.6 | % | |||||||
| Non-Interest Expense | 10,594 | 9,711 | 9.1 | % | |||||||
| Net Operating Income/(Loss) | 2,297 | 456 | 403.9 | % | |||||||
| Taxes | 999 | (7,554 | ) | NM | |||||||
| Net Income/(Loss) | $ | 1,298 | $ | 8,010 | -83.8 | % | |||||
| Net Interest Margin | 4.21 | % | 4.02 | % | 4.6 | % | |||||
| Efficiency Ratio | 80.08 | % | 86.34 | % | -7.3 | % | |||||
| NM = Not Meaningful | |||||||||||
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. We put deposits to work for good by lending 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.