Financial Update from the CFO

National Cooperative Bank (NCB) reported earnings of $21.2 million for the year ended December 31, 2013 compared with $13.7 million during the year ended December 31, 2012.  The improvement in NCB’s earnings during 2013 was driven by a number of factors, including improved asset quality, decreased funding costs and significantly increased profitability of loan sale activity at NCB’s thrift subsidiary, NCB, FSB.

Total assets as of December 31, 2013 increased to $1.8 billion from $1.7 billion at December 31, 2012.  For the year ended December 31, 2013, loans originated for sale, net of principal collections totaled $685.2 million (compared with $903.6 million during the year ended December 31, 2012) and proceeds from mortgage banking activities and loan sales totaled $1.5 billion (compared with $1.4 billion during the year ended December 31, 2012).  Total loans held for investment decreased slightly during the year ended December 31, 2013 and included transfers to the held for sale portfolio totaling $166.2 during the year.  Gains on mortgage banking activities and loan sales increased 33.8% from the year ended December 31, 2012 due to improved pricing in the secondary mortgage markets and the participation by NCB in its first CMBS transactions since December 2007.

Deposits increased 6.2% to $1.31 billion from $1.24 billion during the year ended 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 NCB’s wholly-owned thrift subsidiary, NCB, FSB, remained very strong at December 31, 2013.  As of December 31, 2013, NCB, FSB’s core capital was 12.34% of adjusted total assets and its total risk-based capital was 16.62% of total risk-weighted assets, both improved over the prior year.

 

NCB Financial Summary 

Dollars in millions      December 30, 2013 
Total Assets $1,812
Cash & Investments $426.6
Total Loans $1,310.6
Deposits $1,314.1
Borrowings $239.7
Equity $227.6
Net Income $21.2

 

Rick Reed Signature  
Richard L. Reed
Chief Financial Officer