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, 1996 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 Street, 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, 1996
Class C 216,242
(Common stock, $100.00 par value)
Class B 719,709
(Common stock, $100.00 par value)
Class D 3
(Common stock, $100.00 par value)
<PAGE>
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, 1996
and December 31, 1995...................... 3
Consolidated statements of income - for the
three and six months ended June 30, 1996 and
1995........................................ 4
Consolidated statements of cash flows - for
the six months ended June 30,1996 and 1995.. 5-6
Condensed notes to the consolidated financial
statements - June 30, 1996.................... 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, 1996
and 1995........................................ 10-20
PART II OTHER INFORMATION
Item 6 Exhibits:
Exhibit 27 - Financial Data Schedule
<PAGE>
NATIONAL COOPERATIVE BANK
CONSOLIDATED BALANCE SHEETS
June 30, 1996 and December 31, 1995
(Unaudited)
1996 1995
Assets
Cash and cash equivalents $ 17,124,660 $ 21,289,376
Restricted cash 8,348,703 8,348,703
Investment securities
Available-for-sale 29,551,280 29,095,559
Held-to-maturity 4,126,739 3,118,956
Loans and lease financing 543,305,685 558,582,284
Loans held for sale 55,531,054 38,608,195
Less: Allowance for loan losses (15,006,455) (14,554,240)
583,830,284 582,636,239
Excess servicing 33,282,129 25,670,305
Premises and equipment, net 2,192,545 1,896,779
Other assets 11,489,751 12,475,747
Total assets $ 689,946,091 $684,531,664
Liabilities and Members' Equity
Liabilities
Deposits $ 81,688,090 $ 78,100,173
Patronage dividends payable in cash 8,911,498 5,088,851
Other liabilities 11,080,533 12,687,840
Borrowings
Short-term 96,000,000 132,499,998
Long-term 187,111,103 154,688,045
283,111,103 287,188,043
Subordinated Class A notes 182,963,918 183,013,689
Total borrowings 466,075,021 470,201,732
Total liabilities 567,755,142 566,078,596
Members' equity
Common stock
Class B 71,970,863 72,349,754
Class C 21,624,207 21,731,166
Class D 300 300
Retained earnings
Allocated 10,915,736 6,219,707
Unallocated 18,048,773 17,898,103
Unrealized (loss) gain on investment
securities available-for-sale (368,930) 254,038
Total members' equity 122,190,949 118,453,068
Total liabilities and members'
equity $ 689,946,091 $684,531,664
<PAGE>
NATIONAL COOPERATIVE BANK
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Six Months Ended June 30, Three Months Ended June 30,
1996 1995 1996 1995
Interest Income
Loans and lease financing $26,522,790 $22,636,052 $13,193,649 $11,752,585
Investment securities 1,883,515 1,865,156 924,667 980,425
Total interest income 28,406,305 24,501,208 14,118,316 12,733,010
Interest expense
Deposits 2,036,792 1,628,496 1,001,913 914,033
Short-term borrowings 3,371,843 2,239,552 1,518,009 1,190,995
Long-term debt, other
borrowings & subordinated
Class A notes 11,238,815 10,233,020 5,673,139 5,306,079
Total interest expense 16,647,450 14,101,068 8,193,061 7,411,107
Net interest income 11,758,855 10,400,140 5,925,255 5,321,903
Provision for loan losses 650,000 589,200 330,000 370,000
Net interest income after
prov. for loan losses 11,108,855 9,810,940 5,595,255 4,951,903
Non-interest income
Commercial fees 851,579 477,291 382,696 265,028
Real estate fees/gain
on sale 4,937,477 2,300,106 4,806,209 887,512
Servicing fees 1,027,085 826,574 545,007 455,393
Excess yield income 1,253,771 982,324 843,265 441,478
Other 216,020 148,722 168,206 82,065
8,285,932 4,735,017 6,745,383 2,131,476
Non-interest expenses
Compensation and employee
benefits 5,311,691 4,797,812 2,646,487 2,429,427
Contractual services 2,187,841 2,182,556 1,099,460 1,121,237
Occupancy and equipment 1,425,532 1,421,510 880,680 707,117
Contribution to NCB
Development Corp. 250,000 250,000 125,000 125,000
Other 1,164,462 1,184,639 523,822 569,094
Total non-interest
expenses 10,339,526 9,836,517 5,275,449 4,951,875
Income before income
taxes 9,055,261 4,709,440 7,065,189 2,131,504
Provision for income taxes 451,611 377,119 222,274 252,055
Net income $ 8,603,650 $ 4,332,321 $ 6,842,915 $ 1,879,449
Distribution of net income
Patronage dividends $ 8,518,676 $ 3,558,043 $ 6,757,941 $ 1,308,194
Retained earnings 84,974 774,278 84,974 571,255
$ 8,603,650 $ 4,332,321 $ 6,842,915 $ 1,879,449
<PAGE>
NATIONAL COOPERATIVE BANK
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the six months ended June 30, 1996 1995
Cash flows from operating activities
Net income $ 8,603,656 $ 4,332,321
Adjustments to reconcile net income to
net cash (used in) provided by operating
activities
Provision for loan losses 650,000 589,200
Depreciation and amortization 2,445,833 2,266,712
Gain on sale of assets (4,816,579) (5,255,888)
Loans originated for sale (139,255,443) (77,524,577)
Proceeds from sale of loans held
for sale 118,777,927 130,613,445
Increase in other assets (6,625,828) (1,266,662)
Increase in other liabilities 2,472,331 1,186,741
Other (19,434)
Net cash (used in) provided by
operating activities (17,748,103) 54,921,858
Cash flows from investing activities
Purchases of investment securities
Available-for-sale (7,044,371) (4,612,927)
Held-to-maturity (1,007,783)
Proceeds from maturities and sales of
investment securities
Available-for-sale 6,075,132 5,828,241
Held-to-maturity 1,554,115
Loans originated, net of loan repayments (2,256,647) (61,309,818)
Proceeds from sale of portfolio loans 18,812,435 1,747,793
Purchases of premises and equipment (580,296) (320,201)
Net cash provided by (used in)
investing activities 13,998,470 (57,112,799)
Cash flows from financing activities
Net increase in deposits 3,587,917 15,174,861
Net (decrease) increase in short-term
borrowings (36,500,000) 19,906,279
Proceeds from issuance increase of
long-term debt 32,500,000
Repayment on long-term debt (17,663,577)
Repayment on other borrowings (1,055,593)
Redemption of common stock (3,000) (24,355)
Patronage dividends paid (4,056,132)
Net cash (used in) provided by financing
activities (415,083) 12,281,483
(Decrease) increase in cash and cash
equivalents (4,164,716) 10,090,544
Cash and cash equivalents,
beginning of year 21,289,376 12,546,834
Cash and cash equivalents,
end of period $ 17,124,660 $22,637,378
NATIONAL COOPERATIVE BANK
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Supplemental schedule of noncash investing and financing activities:
For the six months ended June 30, 1996 1995
Unrealized (loss) gain on investment
available-for-sale $ (622,968) $ 971,868
Interest paid 16,597,351 16,386,665
Income taxes paid 548,012 199,221
Loans charged off 708,052 442,092
<PAGE>
NATIONAL COOPERATIVE BANK
CONSOLIDATED NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
June 30, 1996
(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 management, 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. The results of operations for the interim
periods are not necessarily indicative of the results of the entire year.
1. Cash, Cash Equivalents and Investment Securities
As of June 30, 1996, NCB's portfolio of investment securities, cash and cash
equivalents had an average adjusted maturity of 1834 days with interest rates
in those portfolios varying from 5.25% to 8.88%.
Cash and Investment Investments
Cash Available- Held-to-
Equivalents for-Sale Maturity
Cash $ 4,658,286 $ $
Federal funds 5,060,000
Money market securities 7,406,374
Mutual funds 2,085,609
Certificates of deposit 1,389,000
Mortgage-backed securities 2,737,739
Corporate bonds 10,081,868
U.S. Treasury and
Agency obligations 17,383,803
$17,124,660 $29,551,280 $ 4,126,739
At June 30, 1996, the investments in the available-for-sale portfolio were
recorded at aggregate fair 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 sold of $37,300,000 and $92,623,000 in 1993 and 1992,
respectively. The restricted cash will become available to NCB I, Inc., as
the principal balance of the respective loans decreases. The loans sold
have original maturities of ten to fifteen years.
2. Loans and Lease Financing
Loans and leases outstanding by category at June 30, 1996 were:
Commercial loans $304,119,223
Lease financing 12,861,474
Real estate loans
Residential 272,838,069
Construction 118,828
Commercial 8,899,145
$598,836,739
At June 30, 1996 and December 31, 1995 real estate loans held for sale were
$55.5 million and $38.6 million, respectively.
3. Impaired Assets
Loans that became impaired after January 1, 1995 totaled $2,071,399 and
$2,636,397 at June 30, 1996 and 1995, respectively. The 1996 impaired loans
are comprised of nonaccrual loans and a restructured loan totaling $1,370,097
and $701,302, respectively. The 1995 impaired loans are comprised of
nonaccrual loans and a restructured loan totaling $1,919,143 and $717,254
respectively. A specific allowance of $245,000 and $143,000 has been set
aside for these loans at June 30, 1996 and 1995, respectively, as
management's best estimate of their fair value is less than the recorded
investment in the loans. During 1996 and 1995, the interest collected on the
nonaccrual loans was applied to reduce the outstanding principal. Interest
earned on the restructured loan totalled $26,856 and $26,313 during the first
six months ended June 30, 1996 and 1995, respectively.
At June 30, 1996 there were no commitments to lend additional funds to
borrowers whose loans are non-performing.
At June 30, 1996 and 1995, NCB had real estate acquired through foreclosure
of $546,559 and $300,000, respectively, which are classified as other assets.
4. Allowance for Loan Losses
The following is a summary of the activity in the allowance for loan losses
during the six months ended June 30, 1996:
Balance at January 1, 1996 $14,554,240
Provision for loan losses 650,000
Charge-offs (229,650)
Recoveries of loans previously charged off 31,865
Balance at June 30, 1996 $15,006,455
The allowance for loan losses as a percentage of average loans and lease
financing at June 30, 1996 was 2.5%.
5. Mortgage Servicing Rights
As of January 1, 1996, NCB adopted Statement of Financial Accounting
Standards No. 122, "Accounting for Mortgage Servicing Rights". The impact of
the implementation on its financial condition and results of operation was
immaterial.
<PAGE>
NATIONAL COOPERATIVE BANK
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995
SUMMARY
NCB's net income for the six months ended June 30, 1996 was $8.6 million.
This was a 98.61% or $4.3 million increase compared with the six months ended
June 30, 1995. The variance resulted from increases in net interest income
and in non-interest income of $1.4 million and $3.5 million, respectively.
These were, however, partially offset by increases in non-interest expenses
and provision for loan losses in the total amount of $.5 million.
Total assets were $690.0 million at June 30, 1996, representing growth of
less than 1% from $684.5 million at December 31, 1995. This modest growth
resulted from the large volume of loans originated and subsequently sold
during the first six months.
The return on average total assets was 2.47% for the first six months of
1996 compared with 1.52% for the same period in 1995. The return on average
equity for the first six months of 1996 and 1995 was 14.33% and 7.52%,
respectively.
NET INTEREST INCOME
Net interest income increased 13.06% or $1.4 million for the first six
months of 1996 compared with the same period a year ago. As shown on
Table 1, the net yield on interest earning assets dropped 28 basis points
to 3.53% from 3.81 % for the six months ended June 30, 1995. As shown on
Table 2, the increase in net interest income related to volume was $1.1
million while the increase related to changes in interest rates was $212
thousand.
For the three months ending June 30,1996, net interest income increased
$603 thousand from the same period in 1995. The net yield for the period
decreased to 3.58% from 3.83%. As shown on Table 2A, the increases related
to volume and interest rate were $505 thousand and $98 thousand,
respectively.
For the six months ended June 30,1996, interest income went up $3.9 million
to $28.4 million. The average rate on interest earning assets decreased to
8.53% during the six months ended June 30, 1996 compared with 8.97% in the
same period in 1995. The increase in interest income was due to a higher
average balance of the assets for the time period. As shown on Table 2,
interest income increased $5.1 million due to increased volume but decreased
$1.2 million due to a drop in interest rates.
Interest income increased $1.4 million to $14.1 million for the three
months ended June 30, 1996 compared with $12.7 million for the prior year.
The average rate on interest earning assets decreased to 8.52% during the
three months ended June 30, 1996 compared with 9.16% in the same period in
1995. As shown on Table 2A, interest income increased $2.3 million due to
increased volume but decreased $900 thousand due to the decreasing rate
environment.
Interest expense increased $2.5 million to $16.6 million for the six months
ended June 30, 1996 compared with $14.1 million for the same period in 1995.
The average rate on interest bearing liabilities decreased to 5.98 % compared
with 6.44%. As shown on Table 2, a $4.0 million increase in interest expense
was volume related while a $1.4 million decrease was due to declining
interest rates.
For the three month period June 30, 1966, interest expense increased $800
thousand to $8.2 million. The average rate on interest bearing liablities
dropped to 5.91 % compared with 6.59% in the same period in 1995. As shown
on Table 2A, an increase of $1.8 million in interest expense was volume
related which was partially offset by $1.0 million due to a decrease in
rates.
NON-INTEREST INCOME
Non-interest income for the six months ended June 30, 1996 of $8.3 million
increased 74.8% or $3.5 million from $4.9 million for the same period last
year. The increase was due to the fees and gain on sale of real estate loans
which totaled $4.7 million in the first half of 1996 compared with $2.3
million in the same period in 1995. Servicing fees and excess yield income
went up also due to the increase in the servicing portfolio.
For the three month period ended June 30, non-interest income increased
$4.6 million from $2.1 million at June 30,1995 to $6.7 million for the same
period in the current year. The increase was related to the timing of real
estate loan sales during the second quarter of 1996.
NON-INTEREST EXPENSES
Non-interest expenses for the six months ended June 30, 1996 increased 5.1%
to $10.3 million from $9.8 million for the six months ended June 30, 1995.
Salaries and benefits, the largest component of non-interest expenses,
increased 10.7% or $.5 million due to a higher employee base at the start of
1996 and also to higher bonus accruals as compared with 1995. Non-interest
expense, excluding the voluntary contribution to NCB Development Corporation,
as a percentage of average assets, decreased to 1.4% for the six months ended
June 30, 1996 from 1.7% for the six months ended June 30,1995.
For the three months ended June 30, 1996, non-interest expenses increased
$300 thousand or 6% to $5.3 million from $5.0 million for the same period in
1995. The increase was primarily attibutable to the timing of new hires and
payment of commissions to loan officers.
<PAGE>
Table 1
Rate Related Assets and Liabilities
(dollars in thousands)
Six Months Ended June 30,
ASSETS 1996 1995
Average Income/ Yields/ Average Income/ Yields/
Balance Expense Rates Balance Expense Rates
Interest earning assets
Real estate loans $278,540 $12,764 9.16% $239,575 $10,965 9.15%
Commercial loans
and leases 322,475 13,757 8.53% 256,978 11,671 9.08%
Total loans and leases 601,015 26,521 8.83% 496,553 22,636 9.12%
Trading, investment sec.,
cash equivalents and
other earning assets 64,926 1,885 5.81% 9,839 1,865 7.48%
Total interest earning
assets 665,941 28,406 8.53% 546,392 24,501 8.97%
Allowance for loan losses (14,784) (12,978)
Non-interest earning assets
Cash 2,914 5,311
Other assets 43,136 31,112
Total non-interest earning
assets 46,050 36,423
Total assets $697,207 $569,837
LIABILITIES AND MEMBERS' EQUITY
Interest bearing liabilities
Subordinated Class A
notes $182,989 4,690 5.13% $182,906 5,575 6.10%
Notes payable 291,875 9,920 6.80% 187,554 6,898 7.36%
Deposits 81,505 2,037 5.00% 67,665 1,628 4.81%
Total interest bearing
liabilities 556,369 16,647 5.98% 438,125 14,101 6.44%
Other liabilities 20,837 16,482
Members' equity 120,001 115,230
Total liabilities and
members' equity $697,207 $569,837
Net interest earning
assets $109,572 $108,267
Net interest revenues
and spread $11,759 2.55% $10,400 2.53%
Net yield on
interest earning assets 3.53% 3.81%
<PAGE>
Table 1A
Rate Related Assets and Liabilities
(dollars in thousands)
Three Months Ended June 30,
ASSETS 1996 1995
Average Income/ Yields/ Average Income/ Yields/
Balance Expense Rates Balance Expense Rates
Interest earning assets
Real estate loans $274,686 $6,370 9.28% $245,911 $5,780 9.40%
Commercial loans
and leases 321,921 6,822 8.48% 258,934 5,973 9.23%
Total loans and leases 596,607 13,192 8.84% 504,845 11,753 9.31%
Trading, investment sec.,
cash equivalents and
other earning assets 66,190 926 5.60% 51,244 980 7.65%
Total interest earning
assets 662,797 14,118 8.52% 556,089 12,733 9.16%
Allowance for loan losses (14,880) (12,920)
Non-interest earning assets
Cash 3,760 5,989
Other assets 45,299 33,064
Total non-interest earning
assets 49,059 39,053
Total assets $696,976 $582,222
LIABILITIES AND MEMBERS' EQUITY
Interest bearing liabilities
Subordinated Class A
notes $182,977 2,275 4.97% $182,895 2,836 6.20%
Notes payable 290,051 4,916 6.78% 194,981 3,661 7.51%
Deposits 81,935 1,002 4.89% 71,813 914 5.09%
Total interest bearing
liabilities 554,963 8,193 5.91% 449,689 7,411 6.59%
Other liabilities 21,023 16,538
Members' equity 120,990 115,995
Total liabilities and
members' equity $696,976 $582,222
Net interest earning
assets $107,834 $106,400
Net interest revenues
and spread $5,925 2.61% $5,322 2.57%
Net yield on
interest earning assets 3.58% 3.83%
<PAGE>
Table 2
Change in Net Interest Income
(dollars in thousands)
For the six months ended June 30,
1996 Compared 1995
Increase (decrease) due to changes in:
Average Average
Volume* Yield Net**
Interest Income
Cash equivalents and
investment securities $ 492 $ (472) $ 20
Commercial loans and leases 2,829 (742) 2,087
Real estate loans 1,785 13 1,798
Total interest income 5,106 (1,201) 3,905
Interest Expense
Deposits 344 64 408
Notes payable 3,612 (590) 3,022
Subordinated Class A notes 3 (887) (884)
Total interest expense 3,959 (1,413) 2,546
Net interest income $1,147 $ 212 $1,359
* Average monthly balances
** Changes in interest income and interest expense due to changes in rate
and volume have been allocated to "change in average volume" and
"change in average rate" in proportion to the absolute dollar amounts
in each.
<PAGE>
Table 2A
Change in Net Interest Income
(dollars in thousands)
For the three months ended June 30,
1996 Compared 1995
Increase (decrease) due to changes in:
Average Average
Volume* Yield Net**
Interest Income
Cash equivalents and
investment securities $ 246 $(300) $ (54)
Commercial loans and leases 1,364 (515) 849
Real estate loans 668 (78) 590
Total interest income 2,278 (893) 1,385
Interest Expense
Deposits 125 (37) 88
Notes payable 1,647 (392) 1,255
Subordinated Class A notes 1 (562) (561)
Total interest expense 1,773 (991) 782
Net interest income $ 505 $ 98 $ 603
* Average monthly balances
** Changes in interest income and interest expense due to changes in rate
and volume have been allocated to "change in average volume" and
"change in average rate" in proportion to the absolute dollar amounts
in each.
<PAGE>
PROVISION FOR INCOME TAXES
The federal income tax provision is determined on the basis of non-member
income generated by NCB Savings Bank, FSB and reserves set aside for the
retirement of Class A notes and dividends on Class C stock. NCB's
subsidiaries are also subject to varying levels of state taxation. The
federal income tax provision for the six months ended June 30, 1996 increased
by $75 thousand compared with the prior year's provision of $377 thousand.
CASH, CASH EQUIVALENTS AND INVESTMENT SECURITIES
Cash, cash equivalents and investment securities at June 30, 1996 decreased
$2.7 million or 4.4% from $61.9 million at year-end 1995. NCB used the
proceeds from the portfolio liquidation to partially fund loan originations.
As a percentage of earning assets, cash, cash equivalents and investment
securities decreased to 9.1% at June 30, 1996 from 9.4% at December 31, 1995.
ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses at June 30, 1996 increased 2.7% to $15.0
million from $14.6 million at December 31, 1995. The allowance during the
period was impacted by loans charged off, net of recoveries of loans
previously charged off, amounting to $198 thousand and the provision of $650
thousand. NCB's provision for loan losses as a percentage of average loans
and leases outstanding decreased to .1% at June 30, 1996 compared with .2%
at year-end 1995. The decrease is primarily due to a slight increase in
loans and leases outstanding during the period. Management
considers the current allowance to be adequate to absorb known and inherent
risks in the loan portfolio.
The loan loss allowance as a percentage of average loans and leases has
remained flat at 2.5%.
As shown in Table 3, total nonperforming assets (renegotiated and
non-accruing loans and real estate owned) decreased from $7.2 million at
December 31, 1995 to $6.1 million at June 30, 1996. This was the result of
the repayment of one loan and the sale of a real estate owned property.
Nonperforming assets as a percentage of loans and leases outstanding plus
real estate owned were 1.0% at June 30, 1996 compared with 1.2% at year-end
1995. The allowance for loan losses as a percentage of nonperforming assets
increased to 247.5% at June 30,1996 from 202.7% at December 31, 1995.
<PAGE>
TABLE 3
Nonperforming assets
(dollars in thousands)
June 30, March 31, Dec. 31, Sept. 31, June 30,
1996 1996 1995 1995 1995
Real estate owned $ 547 $1,621 $1,397 $1,314 $ 300
Non-accruing $1,370 $1,762 $1,741 $ 932 $1,919
Restructured $4,145 $4,124 $4,041 $3,960 $2,080
<PAGE>
INTEREST BEARING LIABILITIES
Interest bearing liabilities
(dollars in thousands)
6/30/96 12/31/95 % Change
Deposits $ 81,688 $ 78,100 4.6%
Lines of credit 96,000 132,500 (27.5%)
Term debt 187,111 154,688 21.0%
Class A notes 182,964 183,014 0.0%
Total $547,763 $548,302 (.1%)
Interest bearing liabilities decreased slightly by .1% to $547.8 million
at June 30, 1996 from $548.3 million at December 31, 1995.
For the first six months of 1996, deposits at NCB Saving Bank, FSB grew
4.6% to $81.7 million. The growth was attributable to local and national
deposit accounts and from cooperative customers. Average maturity of these
deposits is 20.2 months. Funds generated by the increased deposit activity
were used to originate single-family loans and increase liquidity.
At June 30,1996, total short term borrowings and intermediate-term notes
decreased 6.5% from year-end 1995. Proceeds from loan sales during the second
quarter of 1996 were used to partially pay off these outstanding
obligations. Included in these borrowings are NCB's short-term borrowings
from its cooperative customers which have an outstanding balance of $6.0
million at June 30, 1996.
<PAGE>
SIGNATURE
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:
By: /s/ Richard L. Reed
Richard L. Reed,
Managing Director,
Chief Financial Officer
By: /s/ Marietta J. Orcino
Marietta J. Orcino
Vice President,
Tax & Regulatory Compliance
and an authorized signature
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