National Cooperative Bank (NCB) reported earnings of $19.8 million for the six months ended June 30, 2013 compared with $8.0 million during the six months ended June 30, 2012. The improvement in NCB’s earnings during the 1st six months of 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 June 30, 2013 increased to $1.8 billion from $1.7 billion at December 31, 2012. For the six months ended June 30, 2013, loans originated for sale, net of principal collections totaled $474.9 million (compared with $417.4 million during the six months ended June 30, 2012) and proceeds from mortgage banking activities and loan sales totaled $817.4 million (compared with $663.3 million during the six months ended June 30, 2012). Total loans held for investment decreased 7.5% during the six months ended June 30, 2013. Gains on mortgage banking activities and loan sales increased 110.2% from the 1st six months of 2012 due to the increased volume of sales, improved pricing in the secondary mortgage markets and the participation by NCB in its first two CMBS transactions since December 2007.
Deposits increased slightly to $1.29 billion from $1.24 billion from December 31, 2012 to June 30, 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 in the 2nd quarter of 2013. As of June 30, 2013, NCB, FSB’s core capital was 12.95% of adjusted total assets and its total risk-based capital was 16.45% of total risk-weighted assets.
NCB Financial Summary
|Dollars in millions
||June 30, 2013
|Cash & Investments
|Net Income (quarter end)
Richard L. Reed
Chief Financial Officer