New Resource Bank’s mission is to promote well-being for people and the planet. We follow a triple-bottom-line model of banking that entails achieving financial, social, and environmental returns. We serve values-driven businesses and nonprofits that are building a more sustainable world. We believe in business as a force for good and see money as an agent of positive social, environmental and economic change. We use banking to transform the economy into one that serves people and the planet. We put our deposits to work for good by lending to organizations that benefit our communities and preserve our planet.
As we continue to deepen our mission and grow financially, our work in 2016 reflected ongoing goals in the following areas:
Every aspect of New Resource Bank’s operations and services are grounded in sustainability.
Our goal is to build a loan portfolio 100 percent invested in businesses and nonprofits that are socially and environmentally responsible in order to have an impact across four main areas: environmental protection, health & wellness, education & community engagement, and sustainable commerce. Our core lending markets are clean energy, organic and natural products, green real estate, sustainable business and nonprofits. Our current loan portfolio is approximately 90 percent invested in values-driven organizations.
Client deposits are put to work to build a better world by funding organizations that benefit our communities and protect our planet. We also offer the Impact CD, which allows depositors to designate one of three impact areas to support with their money: clean energy, organic and natural products or nonprofits.
We dedicate all our resources to our mission of advancing sustainability. That mission is what attracted our more than 415 current shareholders, including sustainable banking pioneer Triodos Bank and the sustainability-focused management firm Trillium Investments.
We believe that our sector-specific expertise and project-finance capabilities allow us to assess the risks involved in lending to sustainably-oriented enterprises more successfully than generalist banks can. As a result, we believe we can fund clients whose businesses aren’t well understood by conventional banks. Our strong credit quality—we have a 0.09 percent non-performing asset ratio—compares favorably to our peers.
We believe in continuous improvement to achieve our goal of a 100 percent values-aligned loan portfolio. All new loan clients complete our Impact Assessment, which measures the sustainability of their businesses, to ensure they align with our mission. We carefully consider the long-term impacts of our lending decisions to ensure the bank’s long-term viability. We were awarded the highest possible rating—five stars—from GIIRS (Global Impact Investing Ratings System), which assesses companies’ social and environmental impact using an approach analogous to Morningstar investment rankings. For more information on our Impact Assessment tool, visit the “Lending for Impact” section of this report.
Our commitment to sustainability impacts our hiring, bonuses and daily practices. Our employees are accountable for following the environmental policy developed by our employee-led Green Team as well as participating in the Sustainability Engagement Program. The program is designed to broaden employee knowledge and training in sustainability and is linked to annual performance reviews.
Our vision to create a bank that helps build a better world started when we first opened our doors in 2006. Soon after opening, in 2008, the U.S. financial crisis hit and caused many community banks like ours to close. Armed with our ambitious mission of achieving well-being for people and the planet, we weathered the crisis and emerged with a renewed commitment to our values. We discontinued general community bank loans and focused solely on lending to socially and/or environmentally responsible companies. By 2012, we had achieved our first year of profitability.
Net interest income for the 12 months of 2016 was $12.2 million, compared with $10.4 million at year-end 2015, influenced by our strong loan growth. Gross loans in 2016 totaled $243.6 million, a 27 percent increase over December 31, 2015. Total deposits in 2016 amounted to $287.9 million, a 19 percent over year-end 2015. By the end of 2016, 91 percent of our loan commitments were to sustainable organizations and every new loan made during the year was 100 percent values-aligned. Our deposit and loan growth continues to be robust and our asset quality remains strong. We have grown to see ourselves not just as an independent bank serving our local community, but also as a bank that serves a community with shared values.
Partnerships with key organizations that are aligned with our mission are central to creating the sustainable world toward which we are building. We are proud to work with a number of organizations that are leading the way to a better world for future generations.
B Corporation is an integral partner to us because our bank was founded on a triple-bottom-line mission that believes in business as a force for good. We became a Certified B Corporation in 2010 and were the first publicly traded B Corp on the OTCBB in 2010. We are very active in the B Corp community locally and nationally and support a variety of B Corp events around the United States.
As a founding member of Global Alliance for Banking on Values (GABV), we are committed to upholding the organization’s sustainable banking principles, which they define as:
We are proud to be counted among a group of 36 GABV banks pioneering a way of banking founded in these six principles. As a member bank, we report on several accountability metrics and annually complete the GABV Sustainable Banking scorecard. We also hosted the GABV’s Metrics Group Meeting last October along with Beneficial State Bank. As part of the group’s visit to New Resource Bank, we took them on a tour of our clients, including Alter Eco and Veritable Vegetable, to learn about their impact. We concluded with dinner at our nonprofit client Old Skool Café.
We are proud to be a member of the following organizations:
In addition, New Resource Bank is proud to partner with organizations that are leaders in sustainability, clean energy, organic food, nonprofits, or that provide a valuable service to our community. Our partners include:
In 2016, we were honored to receive three prestigious awards: