SAN FRANCISCO, Jan. 29, 2016 (GLOBE NEWSWIRE) -- New Resource Bank (OTC Link LLC:NWBN) has announced unaudited financial results for the fourth quarter ended December 31, 2015.
Net income for the quarter was $125,000, a 70 percent decline compared with net income of $414,000 for the quarter ended December 31, 2014. Included in this quarter was a $1.1 million write-down of a nonaccrual commercial loan. The write-down was counterbalanced by a nonrecurring $716,000 tax benefit — a further “true-up” from the recognition of the bank’s deferred tax asset in the third quarter of 2015.
Net income for the 12 months of 2015 was $8.01 million, compared with $1.75 million at year-end 2014. The majority of net income was accounted for by the recognition of the deferred tax asset, amounting to $7.6 million. The deferred tax asset recognition reflects the Bank’s ability to use the operating loss carry forward for the years 2006 to 2011.
Gross loans totaled $192.0 million — a $10.6 million or 5.8 percent increase over December 31, 2014. Total deposits amounted to $241.0 million, an increase of $26.1 million or 12.2 percent over the previous year.
“2015 has been a year of transition for the bank given our move to California Street and the recognition of the deferred tax asset. We are well positioned to achieve solid growth in both loans and deposits in the year ahead,” said Vince Siciliano, New Resource Bank president and CEO.
Key financial results from the fourth quarter of 2015 compared with the same quarter of 2014 include:
- Loan growth: Loans outstanding grew 5.8 percent, to $192.0 million from $181.4 million at December 31, 2015 and 2014, respectively.
- Asset quality: Non-performing assets to total assets decreased from 0.89 percent at December 31, 2014 to 0.20 percent at December 31, 2015.
- Deposits: Deposits rose 12.2 percent to $241.0 million at December 31, 2015 from $214.8 million at December 31, 2014.
- Total assets: Total assets increased 14.1 percent to $282.2 million at December 31, 2015 from $247.4 million at December 31, 2014.
- Net interest income: Net interest income for the fourth quarter ended December 31, 2015 was $2.58 million, an increase of $27,000 or 1.1 percent from the fourth quarter of 2014. Full year net interest income amounted to $10.4 million, an increase of 4.6 percent over the year ended on December 31, 2014.
- Non-interest expense: Non-interest expense for the fourth quarter was $2.28 million, an increase of $48,000 or 2.1 percent from the fourth quarter of 2014. Full year non-interest expense amounted to $9.71 million, an increase of $892,000 or 10.1 percent from the previous year. The increase was influenced by an expansion in staffing to support the bank’s growth as well as expenses associated with the bank’s move to 255 California Street in July.
- Provision expense: Provision expense amounted to $1.10 million for the quarter and $1.08 million for the year, an increase of $1.0 million compared to the fourth quarter of 2014 and $950,000 compared to the previous year.
- Efficiency ratio: The bank’s efficiency ratio for the fourth quarter was 81.8 percent, a slight increase from 80.9 percent from the fourth quarter of 2014. The efficiency ratio for the full year amounted to 86.3 percent, which was 4.2 percent higher than the 82.1 percent for the full year 2014. As with non-interest expense, the increase was influenced by the expansion in staffing to support the bank’s growth as well as the costs associated with the bank’s move to a new office space.
- Risk-based capital: The fourth quarter reflected the capital guidelines associated with BASEL. The bank’s common equity tier 1 capital ratio amounted to 14.61 percent and total risk-based capital ratio was 15.88 percent, significantly above the standard for a well-capitalized bank.
“Although the landscape for lending remains very competitive, we believe our unique mission and expertise in our target markets differentiate us from other banks and will help sustain our growth in 2016,” said Mark A. Finser, chairman of the New Resource Bank board.
| Quarter Ended | |||||||||
| Balance Sheet | December 31, 2015 | December 31, 2014 | % Change | ||||||
| (in thousands) | |||||||||
| Assets | |||||||||
| Cash & Due From | $ | 6,372 | $ | 5,076 | 25.5 | % | |||
| Interest Bearing Deposits | 39,770 | 32,875 | 21.0 | % | |||||
| Money Market Funds | - | - | 0.0 | % | |||||
| Fed Funds | - | - | 0.0 | % | |||||
| Investments | 35,115 | 28,279 | 24.2 | % | |||||
| Gross Loans | 191,990 | 181,428 | 5.8 | % | |||||
| Allowance for Loan Loss | (3,337 | ) | (3,429 | ) | -2.7 | % | |||
| Premises & Equipment | 2,575 | 587 | 338.6 | % | |||||
| Other Real Estate Owned | 117 | - | 0.0 | % | |||||
| Other Assets | 9,598 | 2,555 | 275.6 | % | |||||
| Total Assets | $ | 282,201 | $ | 247,372 | 14.1 | % | |||
| Liabilities & Equity | |||||||||
| Deposits | $ | 241,006 | $ | 214,896 | 12.2 | % | |||
| Borrowings | - | - | 0.0 | % | |||||
| Other Liabilities | 1,962 | 1,375 | 42.6 | % | |||||
| Total Liabilities | 242,968 | 216,272 | 12.3 | % | |||||
| Equity | 39,233 | 31,100 | 26.1 | % | |||||
| Total Liabilities & Equity | $ | 282,201 | $ | 247,372 | 14.1 | % | |||
| Performance Ratios | |||||||||
| Book value per outstanding share | $ | 6.77 | $ | 5.44 | |||||
| Leverage ratio | 11.88 | % | 12.65 | % | |||||
| Total risk based capital ratio | 15.88 | % | 16.83 | % | |||||
| BASEL III Common Equity Tier 1 | 14.61 | % | N/A | ||||||
| Loan loss reserves to total loans | 1.74 | % | 1.89 | % | |||||
| Loan loss reserves to non-performing loans | 763 | % | 155 | % | |||||
| Non-performing loans to total loans | 0.23 | % | 1.22 | % | |||||
| Non-performing assets to total assets | 0.20 | % | 0.89 | % | |||||
| Income Statement | Quarter Ended | ||||||||
| December 31, 2015 | December 31, 2014 | % Change | |||||||
| Interest Income | $ | 2,606 | $ | 2,578 | 1.1 | % | |||
| Interest Expense | 29 | 27 | 6.4 | % | |||||
| Net Interest Income | 2,577 | 2,550 | 1.1 | % | |||||
| Non-Interest Income | 212 | 208 | 1.7 | % | |||||
| Provision for Loan Loss | 1,100 | 100 | NM | ||||||
| Non-Interest Expense | 2,280 | 2,232 | 2.1 | % | |||||
| Net Operating Income/(Loss) | (591 | ) | 426 | -238.6 | % | ||||
| Taxes | (716 | ) | 12 | NM | |||||
| Net Income/(Loss) | $ | 125 | $ | 414 | -69.8 | % | |||
| Net Interest Margin | 3.74 | % | 4.24 | % | -11.7 | % | |||
| Efficiency Ratio | 81.75 | % | 80.92 | % | -1.0 | % | |||
| 12 Months Ended | |||||||||
| December 31, 2015 | December 31, 2014 | % Change | |||||||
| Interest Income | $ | 10,479 | $ | 10,025 | 4.5 | % | |||
| Interest Expense | 114 | 117 | -2.8 | % | |||||
| Net Interest Income | 10,366 | 9,908 | 4.6 | % | |||||
| Non-Interest Income | 882 | 829 | 6.3 | % | |||||
| Provision for Loan Loss | 1,080 | 130 | NM | ||||||
| Non-Interest Expense | 9,711 | 8,820 | 10.1 | % | |||||
| Net Operating Income/(Loss) | 456 | 1,787 | -74.5 | % | |||||
| Taxes | (7,554 | ) | 42 | NM | |||||
| Net Income/(Loss) | $ | 8,010 | $ | 1,745 | 358.9 | % | |||
| Net Interest Margin | 4.02 | % | 4.35 | % | -7.6 | % | |||
| Efficiency Ratio | 86.34 | % | 82.14 | % | 5.1 | % | |||
| 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 financial 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.