New Resource Bank reports third quarter financial results

  New Resource Bank reports third quarter financial results

Business Wire

SAN FRANCISCO -- October 30, 2012

New Resource Bank (OTCBB: NWBN) has announced unaudited financial results for
the quarter ended September 30, 2012.

The bank recorded net income of $290,000 for the quarter ended September 30,
2012, compared with net income of $196,000 for the quarter ended September 30,
2011. Net income for the first nine months of 2012 was $439,000, compared with
a net loss of $851,000 for the nine months ended September 30, 2011.

Loans outstanding grew 22 percent to $137 million, a $25 million increase from
$112 million a year ago. Deposits rose 15 percent to $161 million, a $21
million jump from $140 million at September 30, 2011. Total assets were $191
million, compared with $161 million at September 30, 2011.

“These earnings for the quarter and the first nine months of year show
significant improvement, and we’re very pleased with how we’ve continued to
strengthen our business,” said President and CEO Vince Siciliano. “The bank
has developed a pipeline of loan and deposit clients in our target markets,
and we’re attracting business both because of our mission and because of our
ability to listen to our clients and respond in support of their mission.”

Nonperforming loans as a percentage of total loans were at 1.75 percent at
September 30, 2012. The bank had no nonperforming loans at September 30, 2011.
Nonperforming assets to total assets increased from 0.79 percent to 1.62
percent. “The prior year figures were unusual; at this point the nonperforming
totals are at a modest level and we are actively managing them,” said Bill
Peterson, the bank’s chief credit officer.

Loan loss reserves at quarter end September 30, 2012, were 2.05 percent with a
117 percent ratio of reserves to non-performing assets.

Net interest income for the quarter ended September 30, 2012, was $2 million,
essentially unchanged from the same period in 2011. The bank’s net interest
margin was 4.39 percent for the quarter ended September 30, 2012, down from
5.31 percent at September 30, 2011.

Non-interest income was $321,000 for the quarter ended September 30, 2012, a
$157,000 increase from $164,000 for the quarter ended September 30, 2011. This
was due largely to $107,000 in gains on the sale of other real estate owned
and higher credit activity fees. Non-interest expense was down 6 percent, an
$111,000 decrease from $2 million for the quarter end September 30, 2011, to
$1.9 million at September 30, 2012.

The bank’s total risk-based capital ratio was 18.93 percent at September 30,
2012, and the leverage ratio was 14.53 percent.

“This is New Resource Bank’s largest quarterly profit to date,” noted Mark A.
Finser, chairman of the New Resource board. “It’s gratifying to see the bank’s
strategic focus on its core markets—cleantech, organic products, nonprofits,
and green building—bear fruit.”

Balance sheet (unaudited; dollar amounts in thousands):

                            September 30, 2012  September 30, 2011
                                                  
Assets
Cash & due from banks        $    5,301           $    5,221
Interest-bearing deposits         18,060               24,830
Money market funds                -                    -
Federal funds                     -                    -
Investments                       29,851               16,932
                                                  
Gross loans                       136,979              112,299
Allowance for loan losses         (2,801    )          (2,836    )
                                                  
Premises & equipment              1,359                1,566
Other real estate owned           695                  1,262
Other assets                      1,439                1,374
                                                 
Total assets                 $    190,882        $    160,648   
                                                  
Liabilities & equity
Deposits                     $    161,122         $    139,688
Borrowings                        -                    -
Other liabilities                2,006              1,726     
Total liabilities                 163,129              141,414
                                                  
Equity                           27,754             19,234    
Total liabilities & equity   $    190,882        $    160,648   
                                                                 

Summary income statement (unaudited; dollar amounts in thousands):

                  Quarter ended                  Nine months ended
                   Sept. 30, 2012  Sept. 30,      Sept. 30,     Sept. 30,
                                    2011           2012           2011
                                                                  
Interest income    $   2,046        $  2,071       $  5,765       $  5,954
Interest expense      47            60           140          185    
Net interest           1,999           2,011          5,625          5,768
income
                                                                  
Non-interest           321             164            720            500
income
                                                                  
Provision for          160             0              160            975
loan loss
Non-interest           1,868           1,979          5,742          6,144
expense
                                                               
Net operating          293             196            443            (851   )
income/(loss)
Taxes                 3             –            3            –      
Net                $   290         $  196          439          (851   )
income/(loss)
                                                                  
Net interest           4.39    %       5.31   %       4.27   %       5.17   %
margin
                                                                            

Performance ratios:

                                      September 30, 2012  September 30, 2011
Book value per outstanding share       $    4.99            $    4.99
Leverage ratio                              14.53    %           11.89    %
Total risk-based capital ratio              18.93    %           15.75    %
Loan loss reserves to total loans           2.05     %           2.53     %
Loan loss reserves to nonperforming         117      %           0        %
loans
Nonperforming loans to total loans          1.75     %           0        %
Nonperforming assets to total assets        1.62     %           0.79     %

About New Resource Bank

New Resource Bank (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.

Contact:

New Resource Bank
Vince Siciliano, President & CEO
415-995-8170
vsiciliano@newresourcebank.com