Financial Update from the CFO

National Consumer Cooperative Bank (NCCB) reported consolidated earnings of $15.6 million for the year ended December 31, 2014 compared with $21.2 million during the year ended December 31, 2013.  The change in NCCB’s earnings during 2014 was driven entirely by lower profitability in NCCB’s loan sales and securitization activities relative to 2013, a year in which NCCB realized significant gains from its capital markets transactions.  Despite the lower level of overall earnings, NCCB’s financial performance in 2014 improved in every other component compared with 2013 as evidenced by improved lending margins, increased fee income from activities other than loan sales, improved credit quality and lower operating expenses.
Total assets as of December 31, 2014 increased to $1.9 billion from $1.8 billion at December 31, 2013.  For the year ended December 31, 2014, total loans held for investment increased $188.9 million or 15.1% with most of the growth providing new capital to NCCB’s commercial and cooperative housing members and customers.  In addition, NCCB originated $1.1 billion in loans for sale and subsequently sold $1.2 billion of loans. 

Deposits increased 9.8% to $1.44 billion as of December 31, 2014 from $1.31 billion at December 31, 2013.  NCB continues to improve its overall cost of funding resulting in increased net interest margins and improved profitability. 

Regulatory capital ratios at National Cooperative Bank, N.A. (NCCB’s wholly-owned commercial bank subsidiary, or “NCB”) remained very strong at December 31, 2014.  As of December 31, 201413, NCB’s core capital was 12.40% of adjusted total assets and its total risk-based capital was 15.26% of total risk-weighted assets, both significantly in excess of levels considered “well capitalized” by banking regulators.


Rick Reed Signature  
Richard L. Reed
Chief Financial Officer