UPDATE: New Resource Bank, San Francisco, CA (NWBN)

In the three years since my February 2014 Timyan™ Bank Alert review of New Resource Bank, the bank has inarguably "blossomed" — just not in quite the fashion I had hoped. This one-branch San Francisco institution is a much bigger tree now, having grown footings by 52% and built a fancy new headquarters, but it is nowhere near bearing fruit for its shareholders.

Personally, I think it's fine if Management and some shareholders would like to run this bank as a non-profit. (I can even get excited about their focus on "impact lending" to promote clean energy, green building, and sustainable commerce!) But if that's what they are up to, they should be honest, and offer outside shareholders a way off the farm at a fair price.

Given the looks of things today, I'd be happy to take $10/share for NWBN, even though the stock could garner $12/share were the bank to be acquired.

Disclosure: As of this posting, I own shares of NWBN and may subsequently either dispose of them or purchase more.

Prospective Buyers
New Resource Bank's CEO Vince Siciliano has been clear that he has zero intentions of ever selling the bank.
Bank of Marin, Novato, CA (BMRC)
First Republic Bank, San Francisco, CA (FRC)
SVB Financial, Santa Clara, CA (SIVB) 
Financial Snapshot
as of 12/31/2016
Total assets:
$331M
Tangible book value per share:
$6.95
NPAs to assets:
0.2%
Price to book:
74.7%
Market cap:
$30.2M
Dividend yield:
0%
Trailing 12-month return on assets:
0.4%
Trailing 12-month return on equity:
3.8%
TARP:$0M
The Crew
Mark Finser, Chairman
Vince Siciliano, President and CEO
Stephen Rossi, CFO
The Skinny
For me, New Resource Bank's May 2016 Investor Presentation really says it all...


 
Sources
  • Confidential interviews with shareholders and analysts