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Thursday, 04/01/2010 4:52:03 PM

Thursday, April 01, 2010 4:52:03 PM

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"NWBN News" FDIC and DFI Lift Regulatory Order as New Resource Bank Strengthens Operations

New Resource Bank's Strengthened Management and Improved Asset Quality Result in Lifting of Cease-and-Desist Order

http://www.marketwatch.com/story/fdic-and-dfi-lift-regulatory-order-as-new-resource-bank-strengthens-operations-2010-04-01?reflink=MW_news_stmp

SAN FRANCISCO, Apr 01, 2010 (BUSINESS WIRE) -- New Resource Bank /quotes/comstock/11k!nwbn (NWBN 4.10, +0.35, +9.33%) has announced that the Federal Deposit Insurance Corporation (FDIC) and California Department of Financial Institutions (DFI) have lifted the cease-and-desist order announced in April 2009.

"This is good news for us," said New Resource CEO and President Vince Siciliano. "We're ready for prudent growth and can now focus more strongly on our mission of sustainability.

"We felt, going into this work last year, that we needed to focus on our fundamentals in confronting the recession's tough economic climate," Siciliano continued. "And complying with the FDIC's directives has improved our operations--we've strengthened management and the board of directors, improved asset quality, implemented revised lending policies and reduced bad debt."

The bank has reduced nonperforming loans to about 3 percent of total loans--considerably better than the average for community banks of 5 percent. In December 2008, New Resource's nonperforming loans stood at just over 12 percent. About 40 percent of the bank's assets are liquid.

Additionally, New Resource has raised the bar on its dedication to customers who have a commitment to environmental and social sustainability as well as sound business.

"Our current strength is in the day-to-day ways we execute all our policies," Siciliano said. "We now have an excellent team of bankers with deep expertise who are focused on our sustainability mission."

In addition to Siciliano, who joined the bank in March 2009, newly staffed positions include a chief financial officer, a senior vice president for commercial lending and a chief credit officer. It also added directors to the board and elected a new chairman.

"I believe it's unusual for a bank to come out of an order in less than a year, especially in economic times like these," said Board Chairman Mark Finser, noting that the bank remains informally committed to the regulators to continue to make various improvements to its operations. "I think, too, it's a tribute to the skill and professionalism of our new management team."

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