Washington, DC (November 12, 2010) — National Consumer Cooperative Bank (NCCB), a Congressionally chartered, cooperatively owned holding company, has announced the repayment of the final $29.7 million in outstanding principal and accrued interest under its two senior debt arrangements. NCCB had amended its senior debt agreements in February to provide for a final maturity date of December 15, 2010. NCCB made the final payments more than seven weeks ahead of the final maturity date.
The final payment, made on October 25, 2010 reflects a total debt reduction by NCCB of $215.5 million since the fourth quarter of 2009 and releases NCCB of all remaining covenants under those agreements. The repayment of the senior debt over the past year was funded principally by asset sales that were achieved at or close to par.
“The repayment of our senior debt was a significant milestone in putting the negative effects of the recent financial crisis behind us,” said Charles E. Snyder, President and CEO of the National Consumer Cooperative Bank. The retirement of senior debt was a key objective in the long term plan to conduct lending activities through NCCB’s wholly owned thrift subsidiary, NCB, FSB. Please click here for more information on NCB,FSB's current performance.
NCB is dedicated to strengthening communities nationwide through the delivery of banking and financial services, complemented by a special focus on cooperative expansion and economic development. Headquartered in Washington, DC, the Bank has offices in Alaska, California, New York, Ohio and Virginia. To learn more, visit www.ncb.coop.
NCB Financial Group (NCB) consists of National Consumer Cooperative Bank, a federally chartered cooperative corporation; its wholly-owned subsidiary NCB, FSB, a federally chartered savings bank; and, NCB Capital Impact, a 501(c)3 nonprofit affiliate. Loans and other financial services are provided by NCB, FSB and NCB Capital Impact. Deposit products and services are provided by NCB, FSB, which is a member FDIC. Each is a separate corporation within the NCB Financial Group.
This news release contains certain “forward-looking statements”. Examples of forward-looking statements include, but are not limited to, estimates with respect to NCB’s financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates and most other statements that are not historical in nature. These factors include, but are not limited to, general and local economic conditions, changes in interest rates, debt covenants and compliance projections, other-than-temporary impairment evaluations, deposit flows, demand for mortgage, commercial and other loans, real estate values, performance of collateral underlying certain securities, competition, changes in accounting principles, policies, or guidelines, changes in legislation or regulation, and other economic, competitive, governmental, regulatory, and technological factors affecting NCB’s operations, pricing products and services.