Arlington, VA (February 24, 2010) —Today, NCB, FSB, a federally chartered savings bank dedicated to serving cooperatives, reported that its Congressionally chartered, cooperatively owned parent company, National Consumer Cooperative Bank ( NCCB), has exited forbearance with its senior debt holders and entered into an amendment that provides for the maturity of its senior secured debt on December 15, 2010.
Since entering forbearance on August 14, 2009, NCCB has paid down its senior secured debt from $276.8 million to $98 million. This repayment has largely been funded by asset sales executed at par or with discounts of less than 1 percent. Charles E. Snyder, President and CEO of National Consumer Cooperative Bank reports “NCCB is committed to retiring its senior secured debt as soon as possible. Looking forward, all current and future customers’ banking needs will be handled either at NCB, FSB or our community development affiliate.”
“Though NCB, FSB is not currently reliant on NCCB for capital or liquidity, we applaud this development and the efforts that have been made to date to transform NCCB into more of a traditional bank holding company,” stated Steven Brookner, President and CEO of NCB, FSB. Last week NCB, FSB reported it earned $3.9 million in the 4th quarter of 2009, substantially enhanced overall liquidity and improved its total risk-based capital ratio to 12.62% against a regulatory requirement of 10% to be well-capitalized.
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.