` FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1994 Commission file number 2-99779
National Consumer Cooperative Bank
(Exact name of registrant as specified in its charter)
United States of America 52-1157795
(12 U.S.C. Section 3001 et seq.) (I.R.S. Employer
(State or other jurisdiction of Identification No.)
incorporation or organization)
1401 Eye St., NW, Suite 700, Washington, D.C. 20005
(Address of principal executive offices)
Registrant's telephone number, including area code (202)336-7700
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for shorter period that the
registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
Yes x No________.
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Outstanding at June 30, 1994
Class C 205,738
(Common stock, $100.00 par value)
Class B 596,708
(Common stock, $100.00 par value)
Class D 3
(Common stock, $100.00 par value)
National Consumer Cooperative Bank
(doing business as National Cooperative Bank)
and Subsidiaries
INDEX
PART I FINANCIAL INFORMATION Page No.
Item 1 Consolidated balance sheets-
June 30, 1994 and December 31, 1993 ........... 3
Consolidated statements of income -
for the three and six months ended June 30, 1994
and 1993........................................ 4
Consolidated statements of cash
flows - for the six months ended June 30,
1994 and 1993................................... 5-6
Condensed notes to the consolidated financial
statements - June 30, 1994.................... 7-9
Item 2 Management's discussion and analysis of
financial condition and results of operations -
for the three and six months ended June 30,
1994 and 1993................................... 10-16
PART II OTHER INFORMATION
Item 4 Submission of Matters to a Vote of Security- Holders
NATIONAL COOPERATIVE BANK
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1994 AND DECEMBER 31, 1993
ASSETS 1994 1993
----------- ----------
Cash and cash equivalents $22,022,287 $22,938,795
Restricted cash 8,348,703 8,361,519
Investment securities
Available-for sale 25,993,707 26,406,171
Held-to-maturity 2,314,264 3,380,698
Loans and lease financing 416,297,779 417,438,593
Loans held for sale 20,355,611 40,274,829
Less: Allowance for loan losses (12,989,270) (12,309,359)
------------ ------------
423,664,120 445,404,063
------------ ------------
Excess servicing fees receivable 16,682,895 18,124,471
Premises and equipment, net 2,243,381 2,028,044
Other assets 10,335,161 9,123,215
----------- ----------
Total assets $511,604,518 $535,766,976
============ ============
Liabilities and Members' Equity
Liabilities
Deposits 62,195,534 66,931,434
Patronage dividends payable in cash 2,390,290 3,147,860
Other liabilities 9,757,841 8,722,495
Borrowings
Short-term 35,036,031 31,541,577
Long-term 105,287,757 130,354,889
Other 1,686,937 2,040,406
----------- -----------
142,010,725 163,936,872
Subordinated Class A notes 182,955,071 182,989,162
----------- -----------
Total borrowings 324,965,796 346,926,034
----------- -----------
Total liabilities 399,309,461 425,727,823
----------- -----------
Members' Equity
Common stock
Class B 59,670,818 59,671,095
Class C 20,573,753 20,573,753
Class D 300 300
Retained earnings
Allocated 15,776,732 12,844,968
Unallocated 17,189,721 16,949,037
Unrealized loss on investment
securities available for sale (916,267)
------------ -----------
Total members' equity 112,295,057 110,039,153
------------ -----------
Total liabilities and members'
equity $511,604,518 $535,766,976
============ ============
<TABLE>
NATIONAL COOPERATIVE BANK
CONSOLIDATED STATEMENTS OF INCOME
Six months ended June 30, Three months ended June 30,
1994 1993 1994 1993
-------------------------- ---------------------------
<S> <C> <C> <C> <C>
Interest income
Loans and lease financing $18,198,900 $18,200,326 $ 8,974,123 $ 8,777,855
Investment securities 1,299,446 1,327,104 710,005 690,983
----------- ----------- ---------- -----------
Total interest income 19,498,346 19,527,430 9,684,128 9,468,838
Interest expense
Deposits 905,044 974,934 480,531 497,474
Short-term borrowings 863,941 536,643 437,878 192,688
Long-term debt, other
borrowings and
Subordinated Class A notes 7,765,597 9,027,072 3,895,861 4,356,508
---------- --------- --------- ---------
Total interest expense 9,534,582 10,538,649 4,814,270 5,046,670
---------- ---------- --------- ---------
Net interest income 9,963,764 8,988,781 4,869,858 4,422,168
Provision for loan losses 540,200 614,528 50,100 315,241
---------- ---------- --------- ---------
Net interest income after
provision for loan losses 9,423,564 8,374,253 4,819,758 4,106,927
Non-interest income
Gain on sale of loans 3,198,997 2,404,084 452,291 1,036,924
Loan and deposit servicing
fees 753,679 614,339 390,734 316,361
Other 1,460,932 1,472,915 619,623 1,046,419
----------- --------- --------- ---------
Total non-interst income 5,413,608 4,491,338 1,462,648 2,399,704
---------- --------- --------- ---------
Non-interest expenses
Compensation and employee
benefits 4,568,310 3,741,325 2,040,727 1,689,542
Contractual services 1,542,412 1,447,311 844,417 794,334
Occupancy and equipment 1,369,954 1,290,599 684,966 608,634
Contribution to NCB
Development Corporation 902,773 668,988
Other 1,070,331 946,104 592,558 584,099
--------- ---------- -------- -------
Total non-interest
expenses 8,551,007 8,328,112 4,162,668 4,345,597
--------- --------- --------- ---------
Income before income taxes 6,286,165 4,537,479 2,119,738 2,161,034
Provision for income taxes 681,319 412,520 178,012 140,135
--------- --------- --------- ---------
Net income $5,604,846 $4,124,959 $1,941,726 $2,020,899
========== ========== ========== ==========
Distribution of net income
Patronage dividends $5,330,480 $4,400,802 $2,064,450 $2,289,366
Retained earnings 274,366 (275,843) (122,724) (268,467)
---------- ----------- ---------- -----------
$5,604,846 $4,124,959 $1,941,726 $2,020,899
========== ========== ========== ===========
</TABLE>
NATIONAL COOPERATIVE BANK
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1993 AND 1994
1994 1993
--------------- -----------
Cash flows from operating activities
Interest received $22,777,218 $20,085,639
Commitment charges and other fees
received 7,410,357 3,729,607
Proceeds from sales of loans held for
sale 98,271,054 109,740,948
Loans originated for sale (77,097,313) (94,176,643)
Loss( gain) on hedges of loans held for
sale 170,108 (1,498,847)
Decrease (increase) in investment
securities, net 1,066,434 (148,585)
Interest paid (13,119,799) (10,996,188)
Transfer from (to) restricted cash
account 12,816 (1,927,810)
Cash paid to suppliers and employees (11,559,905) (11,205,520)
------------ ------------
Net cash provided by operating activities 27,930,970 13,602,601
------------ ------------
Cash flows from investing activities
Proceeds from sales of investments
available for sale 14,100,000
Purchase of investments available for
sale (17,924,817)
Proceeds from maturities of investments
available for sale 3,251,673
Proceeds from sales of portfolio loans 3,153,436 23,114,212
Net decrease in loans and lease financing (1,138,644) (43,090,524)
Capital expenditures (487,322) (127,529)
----------- ------------
Net cash provided by (used in) investing
activities 954,326 (20,103,841)
----------- ------------
Cash flows from financing activities
Net (decrease) increase in deposits (4,733,242) 867,257
Net increase in short-term borrowings 3,494,454 10,894,996
Repayment of long-term debt (25,000,000) (7,083,273)
Repayment of other borrowings (353,469) (325,628)
Redemption of common stock (61,687) (80,952)
Repayment of subordinated Class A notes (314,622)
Patronage dividends paid (3,147,860) (2,970,925)
------------ -----------
Net cash (used in) provided by
financing activities (29,801,904) 986,853
------------- ----------
Decrease in cash and cash
equivalents (916,508) (5,514,387)
Cash and cash equivalents, beginning
of the year 22,938,795 23,888,148
----------- -----------
Cash and cash equivalents, end of period $22,022,287 $18,373,761
=========== ============
National Cooperative Bank
Reconciliation of Net Income to Net Cash
Provided by Operating Activities
For the six months ended June 30, 1994 and 1993
1994 1993
------------ -----------
Net income $ 5,604,846 $ 4,124,959
Adjustments to reconcile net
income to net cash provided by
operating activities
Decrease (increase) in restricted
cash account 12,816 (1,927,810)
(Increase) decrease in accrued
interest receivable (88,741) 355,859
Net investment securities account
activity 1,066,434 (148,585)
Decrease in loans held for sale 21,173,741 15,564,305
Increase in other assets, net of
real estate owned (3,715,672) (4,322,485)
Increase in accounts payable and
other accrued expenses 1,102,729 3,495,323
Decrease in accrued interest payable (67,383) (434,452)
Provision for loan losses 540,200 614,528
Depreciation and amortization, net 3,755,038 1,843,570
Gain on sale of assets, net (1,750,994) (3,244,559)
Increase (decrease) on hedges of
loans held for sale 170,108 (1,498,847)
Other, net 127,848 (819,205)
----------- -----------
Net cash provided by operating activities $27,930,970 $13,602,601
=========== ===========
NATIONAL COOPERATIVE BANK
Condensed Notes to the Consolidated
Financial Statements
June 30, 1994
(Unaudited)
The accompanying financial statements have been prepared without audit
and reflect all adjustments (consisting only of normal recurring adjustments)
which were, in the opinion of NCB, necessary to a fair statement of the
results of the interim period presented. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
Accordingly, these condensed financial statements should be read in conjunction
with the financial statements and the notes thereto included in NCB's most
current annual report.
1. Cash, Cash Equivalents and Investment Securities
As of June 30, 1994, NCB's portfolio of investment securities, cash
and cash equivalents had an average adjusted maturity of 998 days with interest
rates in those portfolios varying from 3.8% to 9.4%.
<TABLE>
Cash and Cash Equivalents Investment Available for Sale Investments held to maturity
<S> <C> <C> <C>
Cash $ 7,619,439
Corporate bonds $10,849,342
Federal funds 8,500,000
Money market
securities and
commercial paper 1,966,961
Eurodollar
certificates and
repurchase agreements 3,935,887 2,314,264
US Treasury and
agency obligations 15,144,365
------------ ----------- ----------
$ 22,022,287 $ 25,993,707 $ 2,314,264
============ ============ ============
</TABLE>
At June 30, 1994, the investments in the available for sale portfolio
were recorded at aggregate market value. Restricted cash of $8,348,703 is held
by a trustee for the benefit of certificate holders in the event of loss on
certain loans and will become available to NCB as the principal balance
of the respective loan decreases. The loans sold have original maturities of
ten to fifteen years.
2. Loans, Lease Financing and Non-performing Assets
Loans and leases outstanding by category at June 30, 1994 were:
Commercial loans $224,197,950
Lease financing 6,121,570
Real estate loans:
Residential 195,555,358
Construction 347,719
Commercial 10,430,793
------------
$436,653,390
============
At June 30, 1994 and December 31, 1993 real estate loans held for
sale were $20.4 million and $40.3 million, respectively. The loan portfolio
includes loans which were not currently accruing any interest. The total
outstanding principal of these loans at June 30, 1994 and the effect on
income for the six months ended June 30, 1994 is shown below:
Principal outstanding $1,180,575
==========
Gross amount of income which
would have been recorded
under original terms $ 70,345
Less interest received 11,553
----------
Interest not recorded $ 58,792
==========
The loan portfolio includes loans that are renegotiated with a
reduced interest rate or with an extension of payment of interest and
principal. The total outstanding principal of these loans at June 30, 1994
and the effect on income for the six months ended June 30, 1994 is shown
below:
Principal outstanding $2,193,729
==========
Gross amount of income which
would have been recorded
under original terms $ 98,545
Less interest received 60,046
----------
Interest not recorded $ 38,499
==========
3. Allowance for Loan Losses
The following is a transaction summary of the allowance for loan
losses during the six months ended June 30, 1994:
Balance at January 1, 1994 $12,309,359
Provision for loan losses 540,200
Charge-offs ( 4,283)
Recoveries of loans previously charged off 143,994
-----------
Balance at June 30, 1994 $12,989,290
===========
The allowance for loan losses as a percentage of loans outstanding
at June 30, 1994 was 3.0%.
NATIONAL COOPERATIVE BANK
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE SIX MONTHS ENDED JUNE 30, 1994 AND 1993
SUMMARY
NCB's net income for the six months ended June 30, 1994 was $5.6
million. This was a 36.6% or $1.5 million increase over the six months ended
June 30, 1993. The increase primarily resulted from an increase in non-interest
income of $.9 million, net interest margin of $1.0 million, and non-interest
expenses of $.3 million.
Total assets decreased by $24.2 million or 4.5% to $511.6 million at
June 30, 1994 from $535.8 million at December 31, 1993. The decreases resulted
from real estate loan sales in 1994. Loans and leases outstanding at June 30,
1994 decreased 4.8% to $436.6 million from $457.7 million at December 31, 1993.
NET INTEREST INCOME
Net interest income increased $1.0 million to $10.0 million from the
same period the prior year. As shown on Table 1, the net yield on interest-
earning assets increased to 4.04% from 3.58% as higher yielding warehoused
real estate loans held in the portfolio were funded by interest-bearing
liabilities that were sensitive to short term interest rate movements. As
shown on Table 2, rates caused a positive variance of $1.0 million. In
comparison to prior year-end and the prior quarter, average commercial
balances have increased due to strengthening originations in the cooperative
loan market.
Interest income remained flat at $19.5 million for the six months ended
June 30, 1994. In general, average rates on interest-earning assets increased
to 7.92% in the 1994 period from 7.77% in the 1993 period due to increasing
rates on new real estate originations and existing variable rate real estate
loans. Increasing average rates accounted for a $.5 million positive variance.
Average rates on the commercial loan portfolio dropped 11 basis points as
interest sensitive assets in the commercial portfolio reacted to declining
short term market rates. Real estate rates increased by 49 basis points as
existing portfolio loans repriced at higher rates that occurred during the
latter quarters in 1993 and the first quarter in 1994.
Interest expense decreased $ 1.0 million to $9.5 million for the six
months ended June 30, 1994 due to the maturity of $10 million in intermediate
term debt in the third quarter of 1993 and the repricing of a $36.9 tranche of
the US Class A notes during October 1993 at the prevailing US 3 year Treasury
rate. Average rates on interest bearing liabilities decreased to 4.93% from
5.21%.
<TABLE>
Table 1
Rate Related Assets and Liabilities
( in thousands )
<CAPTION>
Six months ended June 30,
-----------------------------------------------------------------------
1994 1993
--------------------------------- -------------------------------
ASSETS Average Income/ Yields/ Average Income/ Yields/
Balance Expense Rates Balance Expense Rates
------- ------- ------
<S> <C> <C> <C> <C> <C>
Interest-earning assets
Real estate loans $214,517 $ 9,625 8.97% $242,399 $10,277 8.48%
Commercial loans & leases 224,163 8,574 7.65% 204,076 7,923 7.76%
-------- ------ -------- - ------
Total loans and leases 438,680 18,199 8.30% 446,475 18,200 8.15%
Trading,investment securities
and cash equivalents 53,373 1,299 4.87% 56,254 1,327 4.72%
------- ------ -------- ------
Total interest-earning assets 492,053 19,498 7.92% 502,729 19,527 7.77%
------- ------ ------- ------
Allowance for loan loss (12,776) (10,727)
Non-interest earning assets
Cash 5,115 4,027
Other assets 32,951 28,460
Total non-interest earning ------ ------
assets 38,066 32,487
-------- ------
Total assets $517,343 $524,489
======== ========
LIABILITIES AND MEMBERS' EQUITY
Interest-bearing liabilities
Subordinated Class A notes $182,971 4,386 4.79% $183,151 4,997 5.46%
Notes payable 148,932 4,244 5.70% 169,121 4,567 5.40%
Deposits 54,780 905 3.30% 52,336 975 3.73%
------- ----- ------- -----
Total interest-bearing liabilities 386,683 9,535 4.93% 404,608 10,539 5.21%
------- ----- ------- ------
Other liabilities 19,316 14,261
Members' equity 111,344 105,620
Total liabilities & members' ------- -------
equity $517,343 $524,489
======== ========
Net interest revenue $ 9,963 $ 8,988
Net interest spread 2.99% 2.56%
Net yield on interest-earning assets 4.04% 3.58%
</TABLE>
<TABLE>
Table 1A
Rate Related Assets and Liabilities
( in thousands )
<CAPTION>
Three months ended June 30,
-------------------------------------------------------------------------
1994 1993
----------------------------------- -------------------------------
ASSETS Average Income/ Yields/ Average Income/ Yields/
Balance Expense Rates Balance Expense Rates
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Interest-earning assets
Real estate loans $197,449 $ 4,502 9.12% $227,390 $ 4,883 8.59%
Commercial loans & leases 224,522 4,472 7.97% 204,337 3,895 7.62%
------- ----- ------- -----
Total loans and leases 421,971 8,974 8.51% 431,727 8,778 8.13%
Trading, investment securities
and cash equivalents 59,625 710 4.76% 58,673 691 4.71%
------- ----- ------- -----
Total interest-earning assets 481,596 9,684 8.04% 490,400 9,469 7.72%
------- ----- ------- -----
Allowance for loan loss (12,959) (10,809)
Non-interest earning assets
Cash 5,334 3,614
Other assets 33,042 30,683
Total non-interest earning ------ ------
assets 38,376 34,297
------ ------
Total assets $507,013 $513,888
======== ========
LIABILITIES AND MEMBERS' EQUITY
Interest-bearing liabilities
Subordinated Class A notes $182,963 2,173 4.75% $183,045 2,460 5.38%
Notes payable 141,857 2,168 6.12% 158,312 2,089 5.28%
Deposits 54,608 473 3.46% 52,760 498 3.78%
------- ----- ------- ------
Total interest-bearing liabilities 379,428 4,814 5.08% 394,117 5,047 5.12%
------ ----- ------- ------
Other liabilities 15,438 13,521
Members' equity 112,147 106,250
Total liabilities & members' --------- -------
equity $507,013 $513,888
========= ========
Net interest revenue $ 4,870 $ 4,422
Net interest spread 2.96% 2.60%
Net yield on interest-earning assets 4.04% 3.61%
</TABLE>
<TABLE>
Table 2
Changes in Net Interest Income
( in thousands )
<CAPTION>
For the six months ended June 30, 1994 compared to June 30,1993
Increase ( decrease ) due to changes in:
Average Average
Volume Yield Net
------- ------- ------
Interest Income
<S> <C> <C> <C>
Cash equivalents and investment securities $ (69) $ 42 $ (27)
Commercial loans and leases 770 (119) 651
Real estate loans (1,228) 575 (653)
------- -------- --------
Total interest income (527) 498 (29)
------- -------- --------
Interest expense
Deposits 44 (114) (70)
Notes payable (589) 266 (323)
Subordinated Class A notes (5) (606) (611)
----- ----- -------
Total interest expense (550) (454) (1,004)
-------- --------- -------
Net interest income $ 23 $ 952 $ 975
======== ========= ========
</TABLE>
<TABLE>
Table 2A
Changes in Net Interest Income
( in thousands )
<CAPTION>
For the three months ended June 30, 1994 compared to June 30,1993
Increase ( decrease ) due to changes in:
Average Average
Volume Yield Net
------- ------- --------
Interest Income
<S> <C> <C> <C>
Cash equivalents and investment securities $ 9 $ 9 $ 18
Commercial loans and leases 357 250 607
Real estate loans (722) 312 (410)
----- ------- -----
Total interest income (356) 571 215
===== ======= =====
Interest expense
Deposits 20 (44) (24)
Notes payable (928) 1,007 79
Subordinated Class A notes (1) (287) (288)
----- ---- -------
Total interest expense (909) 676 (233)
------ ----- -------
Net interest income $ 553 $ (105) $ 448
======= ======== =======
</TABLE>
NON-INTEREST INCOME
Non-interest income increased 20% to $5.4 million for the six months ended
June 30,1994 from $4.5 million for the six months ended June 30, 1993. Gains
from the sales of loans resulted in an increase of $.8 million from the prior
year. Servicing fee income and excess servicing fees receivable
accounted for the remaining increase in non-interest income.
For the three month period ended June 30, non-interest income declined by
$.9 million from $2.4 million at June 30, 1993 to $1.5 million for the same
period in the current year. The majority of the decline was related to the
timing of large real estate loan sales during the second quarter of 1993.
NON-INTEREST EXPENSES
Non-interest expenses for the six months ended June 30, 1994, increased
3.6% to $8.6 million from $8.3 million for the six months ended June 30, 1993.
Non-interest expenses as a percentage of average assets increased to 3.3% for
six months ended June 30, 1994 from 2.8% for the six months ended June 30, 1993
due to an increase in salary and benefit expenses during the first quarter of
1994 which was offset with no contribution to NCBDC.
Salaries and benefits expenses increased due to the accrual of
employee and senior management incentive bonuses.
For the three month period ended June 30, non-interest expenses declined
by $.1 million to $4.2 million at June 30, 1994 from $4.3 million at June 30,
1993. The decrease is attributable to NCB's discontinuance of its contribution
to NCBDC for 1994.
PROVISION FOR INCOME TAXES
The provision for income taxes is driven by taxes due on non- member
income earned by NCB and by state and local income taxes owed by NCB's
subsidiaries. The federal income tax provision for the six months ended
June 30 increased by $270 thousand from the prior year reflecting additional
non-member income generated by NCB Mortgage Corporation and NCB Savings Bank.
LOANS AND LEASE PORTFOLIO
Consolidated Loans and Leases Outstanding (millions)
%
6/30/94 12/31/93 Change
-------- -------- ------
Commercial $224.2 $223.7 .1%
Real estate 206.3 227.2 -9.2
Leases 6.1 6.8 -10.3
------ ------
Total: $436.6 $457.7 - 4.6%
====== ======
Total loans and leases outstanding at June 30, 1994, were $436.6
million, down 4.6% from $457.7 million at December 31, 1993. Real estate loans
decreased by $20.9 million or 9.8% from year-end due to $88.9 million loan sales
during the first half of 1994. Commercial loans and leases increased slightly
due to originations on commercial accounts.
CASH, CASH EQUIVALENTS AND INVESTMENT SECURITIES
Cash, cash equivalents and investment securities decreased 3.9% to $58.7
million at June 30, 1994 from $61.1 million at year- end 1993. NCB used
$27.9 million of funds generated from operating activities to repay a $25
million intermediate term debt obligation during the second quarter of
1994. As a percentage of earning assets, cash, cash equivalents, and investment
securities increased slightly to 11.9% from 11.2% at December 31, 1993.
ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses at June 30, 1994 increased 5.7% to $13.0
million from $12.3 million at December 31, 1993. The allowance was impacted
primarily by the $.5 million loan loss provision taken during the first six
months of the year. The provision for loan losses decreased to $.5 million for
the six months ended June 30, 1994 from $.6 million for the six months ended
June 30, 1993. NCB's provision for loan losses as a percentage of average loans
and leases outstanding has remained flat at .2%.
The allowance as a percentage of loans outstanding at June 30, 1994
increased from 2.69% at June 30, 1993 and December 31, 1993, respectively to
2.97% at June 30, 1994. The increase is primarily due to declining real estate
assets as compared to the prior year and year end 1993.
As shown in Table 3, total nonperforming assets (renegotiated and
non-accruing loans, REO, and in-substance foreclosures) increased slightly to
$3.5 million at June 30, 1994 from December 31, 1993. Nonperforming assets as a
percentage of loans and leases outstanding plus REO and in-substance
foreclosures increased slightly to .8% at June 30, 1994 from .7% at December
31, 1993. The allowance for loan loss as a percentage of nonperforming loans
has increased to 386% at June 30, 1994 from 384% at December 31, 1993.
<TABLE>
Table 3
Nonperforming assets
( in thousands )
<CAPTION>
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
1994 1994 1993 1993 1993
------- -------- -------- --------- --------
Nonaccrual loans
<S> <C> <C> <C> <C> <C>
Commercial $ 341 $ 20 $ 10 $ 17 $ 431
Real estate- construction 0 0 0 0 0
Real estate- commercial 0 0 0 0 0
Real estate- residential 839 855 876 1,592 1,574
----- --- --- ------ ------
Total nonaccrual loans 1,180 875 886 1,609 2,005
----- --- ---- ----- ------
Restructured loans 2,194 2,273 2,283 2,309 2,339
----- ----- ----- ----- ------
Total nonperforming loans 3,374 3,148 3,169 3,918 4,344
Real estate acquired through
foreclosure and in-substance
foreclosure 170 171 172 217 341
------- ------ ------- ------- -------
Total nonperforming assets $ 3,544 $3,319 $ 3,341 $ 4,315 $ 4,685
======= ====== ======= ======= =======
Non-performing assets/Loans
plus REO and in-substance
foreclosure .8% .8% .7% 1.1% 1.0%
Allowance/ non performing loans 385% 416% 384% 298% 235%
</TABLE>
INTEREST-BEARING LIABILITIES
Interest-Bearing Liabilities %
(millions) 06/30/94 12/31/93 Change
-------- -------- -------
Class A notes $182.96 $182.99 -0.8%
Short-term 35.04 31.54 11.0
Deposits 62.20 66.93 -7.1
Non-current term debt 75.33 75.35 -0.1
Current term debt 30.00 55.00 -45.5
Other borrowings 1.69 2.04 -17.2
------- -------
Totals $387.22 $413.85 -6.4%
======= =======
Interest-bearing liabilities decreased by $26.6 million to $387.2 million
at June 30, 1994. As noted earlier, NCB retired $25 million of intermediate
term debt in April 1994. NCB increased usage of its short term lines of credit
to support existing asset balances. Unused capacity under the line of credit
( $145 million ) is sufficient to meet anticipated commitments. The decrease
in deposits is due to large demand deposits that occurred at year-end 1993 that
were subsequently liquidated in the first quarter of 1994,
Part II
Item 4 Submission of Matters to a Vote of Security- Holders
NCB held its annual meeting on April 21, 1994. Shareholders elected the
following persons to terms as directors:
Leo Barlow
Mary Ann Rothman
The following terms of office of the directors continued after the meeting:
Richard G. Biernacki
Harry J. Bowie
Jerry W. Davis
Edward J. Dirkswager, Jr.
Jeremiah J. Foley
Thomas D. Henrion
Terry Lewis
Gordon E. Lindquist
Wally Smith
Frank B. Sollars
John K. Stewart
Robert L. Thompson
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NATIONAL CONSUMER COOPERATIVE BANK
Date: August 15, 1994
By: /s/ Richard L. Reed
(Richard L. Reed,
Chief Financial Officer)
/s/ Marietta J. Orcino
(Marietta J. Orcino, Controller/Principal
Accounting Officer)
