InvestorsHub Logo

di4

Followers 394
Posts 22418
Boards Moderated 8
Alias Born 12/16/2006

di4

Re: None

Wednesday, 05/20/2009 7:05:44 AM

Wednesday, May 20, 2009 7:05:44 AM

Post# of 6
New Resource Bank Presents Quarterly Financial Results for the First Quarter Ended March 31, 2009
May 19, 2009 7:00:00 PM
Copyright Business Wire 2009


Email Story Discuss on ZenoBank

View Additional ProfilesSAN FRANCISCO--(BUSINESS WIRE)-- New Resource Bank (OTCBB:NWBN) announced unaudited financial results for the quarter ended March 31, 2009.

The Bank reported a net loss of $1.991 million for the quarter ended March 31, 2009, compared to a loss of $826,835 for the quarter ended March 31, 2008. Included in the results for the quarter was a $1.129 million Provision for Loan Loss related to construction loans originated in 2007.

"Despite this loss, New Resource Bank continues to have high levels of capital and good liquidity," said Chairman, Mark Finser. "Like many financial institutions, we are facing a challenging economic climate and have already made significant reductions in under-performing loans in the real estate construction and development sector."

"In addition, we added nearly $15 million in equity capital September of 2008, which increased our capital base by over 80%. The standard regulatory definition for well capitalized banks is for risk based capital of at least 10%. We take comfort that our ratio was 18.97% as of 3/31/09, nearly double the standard," said bank Founder and Vice Chairman, Peter Liu.

The following is a summary of selected balance sheet items:


Unaudited (all dollar amounts in End of period Net %
thousands) Change Change

Mar-09 Mar-08

Gross Loans $ 108,407 $ 86,903 $ 21,503 25 %

Allowance for Loan Losses 4,228 1,362 2,866 210 %

Deposits 140,364 149,488 (9,124 ) (6 %)

Shareholders' Equity 23,746 20,574 3,172 15 %

Total Assets 166,115 170,377 (4,262 ) (3 %)



Gross loans increased 25% from the same period March 31, 2008. The loans originated in this period were largely commercial loans (both commercial real estate and traditional commercial business loans) and not construction loans that currently make up the entirety of the non-performing portfolio. Deposits, down 6% from the quarter end March 31, 2008, reflect an increased use of off-balance sweep accounts among some of our largest relationships. Checking balances as a percentage of total deposits rose to 21% from 13% at the end of the first quarter 2008.

Summary income information for the quarters ended March 31, 2008 and March 31, 2009 is as follows:


Quarter Ended

Unaudited (all dollar amounts in thousands) Mar-09 Mar-08

Interest Income $ 1,986 $ 2,259

Interest Expense 380 1,021

Net Interest Income 1,606 1,238

Non-Interest Income 104 61

Provision for Loan Loss 1,129 410

Non-Interest Expense 2,572 1,715

Net Operating Income/(Loss) (1,990 ) (826 )

Taxes 1 1

Net Income/(Loss) $ (1,991 ) $ (827 )



Net interest income for the quarter ended March 31, 2009 compared to the quarter ended March 31, 2008 increased $368,099. The increase can be attributed to careful management of interest rate margins which more than offsets the negative impact to interest income of the increase in the non-accrual loan portfolio. The provision for loan loss was $1.129 million, driven by the write-down of one Land & Construction loan originated in 2nd Quarter 2007. Non-Interest expense reflects higher occupancy expense to accommodate staffing, higher levels of technology and data processing expenditures, and the increased costs related to more frequent appraisals and other loan recovery costs.

"With our strong capital and liquidity, we are confident we will weather this storm," said A. Vincent Siciliano, President and CEO. "Our strength is our mission and our mission is financing sustainable growth in our community."

This release contains forward-looking statements, such as statements about certain plans, expectations, goals, and projections which are subject to numerous risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and 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 the entire years to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. http://www.newresourcebank.com/



Source: New Resource Bank


----------------------------------------------
New Resource Bank
Vince Siciliano
President and CEO
415-995-8100
info@newresourcebank.com
Peter Liu
Founder and Vice Chairman
415-995-8100
info@newresourcebank.com

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.