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NATIONAL COOPERATIVE BANK RELEASES YEAR-END FINANCIAL REVIEW

 NATIONAL COOPERATIVE BANK RELEASES YEAR-END FINANCIAL REVIEW
 WASHINGTON, Jan. 31, /PRNewswire/ -- National Cooperative Bank (NCB) reported net income of $1.3 million for the fourth quarter of 1991, which was a 13.9 percent increase when compared to $1.1 million earned in the same period last year. The increase is attributable to higher non-interest income. For the year, net income totalled $5.9 million compared with $12.7 million in 1990. The decrease reflects the increased interest expense on NCB's subordinated Class A notes as a result of the implementation of a long-standing agreement between NCB and the U.S. Treasury in October 1990. Return on assets in 1991 was 1.20 percent.
 Net interest income in the fourth quarter of 1991 was $4.7 million compared with $5.0 million in the fourth quarter of 1990. Lower interest rates and lower average loan volumes were responsible for the decline. For the year, net interest income totalled $19.2 million compared with $27.2 million in 1990 due primarily to the higher interest expense on the Class A notes.
 The provision for possible credit losses totalled $2.4 million in 1991 compared with $2.1 million in 1990. As a percentage of average loans outstanding, the provision was .56 percent compared with .53 percent in 1990. The increase reflects some deterioration in the credit quality of the loan portfolio as a result of the economy.
 Charles H. Hackman, chief financial officer, stated that, "While credit quality will continue to decline slightly as the recession continues in 1992, we expect only modest decline next year. The loan portfolio has performed very well during the past year and interest income lost from non-accruing assets has been minimal."
 Non-interest income was $5.0 million in 1991 compared with $3.4 million in 1990. The increase relates to higher fees from the sales of real estate loans and realized and unrealized gains on marketable securities.
 Non-interest expenses (excluding contributions to NCB Development Corporation) increased 6 percent from $14.1 million in 1990 to $14.9 million in 1991. The increase reflects higher costs from contractual services related to loan work-outs. Total contractual services expense increased 30 percent from $1.9 million to $2.4 million. Salaries and benefits, meanwhile, increased 3.6 percent from $6.9 million in 1990 to $7.1 million in 1991.
 Despite the increase in non-interest expenses, NCB's overall operating efficiency improved. Non-interest expenses as a percentage of total average assets declined from 3.2 percent in 1990 to 3.0 percent in 1991.
 Total assets at Dec. 31, 1991, were $517.2 million, an increase of $28.5 million, or 6 percent, over the prior year. The increase reflects loan growth and greater cash balances. Net of the allowance for possible credit loss, the loan and lease portfolio increased 2 percent from $432.8 million in 1990 to $443.4 million in 1991. NCB also maintained greater liquidity in 1991. NCB increased cash and equivalents 75 percent from $20.4 million in 1990 to $35.8 million in 1991 to further stabilize its loan funding capability.
 Financing for the asset growth was derived primarily through the placement of additional long-term debt. Long-term debt increased from $68.3 million in 1990 to $97.0 million in 1991 as part of NCB's strategy to reduce short-term funding dependency.
 The private placement markets' receptiveness toward NCB is indicative of NCB's increased financial strength and the growing acceptance of the cooperative form of business.
 The balance of NCB's notes payable, meanwhile, declined from $83.1 million in 1990 to $74.1 million in 1991. A higher level of short-term deposits at NCB's wholly-owned subsidiary, NCB Savings Bank, FSB, provided additional low-cost funding. Deposits increased 19.2 percent in 1991 from $34.5 million to $41.2 million.
 At year-end, NCB's equity capitalization totalled $103.2 million or 20 percent of assets.
 Charles E. Snyder, chief executive officer, said, "We are pleased with NCB's financial performance in that we had modest loan growth and strong profitability for the year, despite recessionary conditions."
 NCB is a leading provider of financial services to cooperative enterprises in the United States. NCB and its subsidiaries provide mortgage banking, commercial lending, capital markets and depository services. Headquartered in Washington, NCB also operates regional offices in Anchorage, Alaska; Atlanta; Austin, Texas; Chicago; Minneapolis; New York; San Francisco and Seattle.
 NATIONAL COOPERATIVE BANK
 Summary of Financial Performance
 Selected Items
 Years ended Dec. 31, 1991 1990
 Balance Sheet Items
 Commercial loans and leases $230,843,733 $249,693,387
 Real estate loans 221,305,057 191,376,391
 Total loans and leases 452,148,790 441,069,778
 Total investments 57,520,117 42,496,202
 Total assets 517,175,257 488,671,806
 Deposits and notes payable 217,929,108 191,373,112
 Members equity 103,167,969 99,023,209
 Loans sold to investors 74,830,075 73,963,644
 Income Statement Items
 Interest earned 45,996,564 46,991,936
 Interest expense 26,819,021 19,796,352
 Prov. for possible
 credit losses 2,362,616 2,061,499
 Non-interest income 5,044,944 3,442,019
 Total non-interest expenses 15,566,235 15,466,311
 Net income 5,863,958 12,686,730
 Operating Items to
 Total Average Assets (in percent)
 Interest income 9.38 10.52
 Interest expense 5.47 4.43
 Net interest income 3.91 6.09
 Prov. for possible
 credit losses 0.48 0.46
 Non-interest income 1.03 0.77
 Non-interest expenses
 (with contribution) 3.17 3.46
 Non-interest expenses
 (without contribution) 3.04 3.15
 Net income-ROA (with contrib.) 1.20 2.84
 Net income-ROA (without contrib.) 1.33 3.16
 Selected Ratios
 Prov. for possible credit losses
 to avg. loans outstanding 0.56 0.53
 Avg. net loans to avg. assets 84.83 86.07
 Avg. members' equity to:
 Avg. assets 20.67 21.62
 Avg. loans 23.88 24.72
 Yield on commercial loans 9.84 10.64
 Yield on real estate loans 9.94 11.28
 Yield on investments 7.03 8.65
 Avg. allow. for possible losses
 to avg. loans outstanding 2.02 1.58
 Return on average equity 5.78 13.13
 -0- 1/31/92
 /CONTACT: Louise Grant of National Cooperative Bank, 202-745-4797/ CO: National Cooperative Bank ST: District of Columbia IN: FIN SU:


MK-DC -- DC033 -- 5844 01/31/92 18:13 EST
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Date:Jan 31, 1992
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