Herald National Bank Reports Q3 2009 Financial Results
04 November 2009 - 2:29AM
Business Wire
Herald National Bank (NYSE AMEX: HNB), a New York-based
full-service commercial bank, announced today financial results for
its third quarter ending September 30, 2009, its fourth operating
quarter since opening in November 2008.
Key highlights for the quarter ended September 30, 2009
include:
- Total assets increased 40% to
$366 million from $261 million.
- Loan originations of $126
million drove asset growth during the quarter. Total loans
increased 128% from $99 million to $225 million.
- Deposits increased 51% during
the quarter, to $326 million from $216 million, of which 90% are
core deposits.
- Tier 1 capital ratios currently
stand at 10.36%, maintaining a level well in excess of the 5%
benchmark necessary to be designated a "well capitalized"
institution by the FDIC.
- Net interest margin increased to
2.58%, up from 1.82% at June 30, 2009.
- Net loss prior to the provision
for loan losses was $4MM for the quarter, an improvement of $2.4MM
or 37% against the $6.4MM loss for the period ended June 30, 2009,
which is due to lower operating expenses and an increase in net
interest income.
According to third quarter data presently available from SNL
Financial, Herald National Bank’s asset growth for the year to date
ranks highest among all commercial banks headquartered in New York
as well as all de novo banks having started in the nation since
2006.
“The significant increase in our net interest margin stemming
from our loan and deposit growth as well as our decreased quarterly
loss is a clear indication that we are executing on our business
plan," said David S. Bagatelle, President and CEO of Herald
National Bank. "We look forward to continuing our present rate of
growth, as we drive toward profitability by maintaining the high
level of dedicated one-on-one service that our clients have come to
expect from all of our private client teams."
Consistent with the Bank’s business plan and as approved by our
shareholders at the Bank’s Annual Meeting on September 22, 2009,
the Bank expects to complete its previously announced capital raise
during the 4th quarter 2009.
About Herald National Bank
Herald National Bank is a relationship-based banking institution
dedicated to serving the commercial and private banking needs of
small to mid-size businesses, their owners, executives and senior
managers, as well as high net worth individuals in the New York
metropolitan area. Herald National Bank presently has three offices
located in Manhattan (623 Fifth Avenue), Brooklyn (1333 60th
Street), and Melville, Long Island (58 South Service Road).
For more information, visit www.heraldnb.com.
Forward Looking Statements Disclaimer
Certain matters in this press release constitute forward-looking
statements that involve assumptions and potential risks and
uncertainties, which are made in a manner consistent with the safe
harbor provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These forward looking statements involve known and
unknown risks, uncertainties, and other factors that may cause the
actual results, performance and achievements of Herald National
Bank to be materially different from any future results,
performance or achievements expressed or implied by such forward
looking statements. These factors include: general economic,
capital market and business conditions; risks arising from
litigation or similar proceedings; interest rate fluctuations;
levels of delinquent loans; employee turnover; government
regulation; and those other factors discussed in the filings of
Herald National Bank with the Office of the Comptroller of the
Currency. Herald National Bank undertakes no obligation, and
expressly disclaims any obligation, to update publicly or revise
any forward looking statement, which speaks only as of the date it
is made, whether as a result of new information, future events or
otherwise.
Herald National Bank
Financial Highlights
(unaudited)
(dollars in thousands, except
per share data)
Three months ended Nine months ended
September 30, September 30,
Statement of Operations (1)
2009
2008
2009
2008
Interest income $ 2,773 $ 46 $ 4,848 $ 126 Interest expense
1,026 -
1,978 - Net interest
income 1,747 46 2,870 126 Provision for loan losses 1,454 - 2,441 -
Noninterest income 77 - 169 - Noninterest expense, net
5,844 2,529
20,814 5,161 Pretax
loss (5,474 ) (2,483 ) (20,216 ) (5,035 ) Tax expense
26 14
34 78 Net loss
$ (5,500 ) $
(2,497 ) $
(20,250 ) $
(5,113 ) (1) During the three and
nine month periods ending September 30, 2008, the Bank was a
development stage corporation and the Bank was in formation.
Basic earnings per share $ (0.89 ) n/a $ (3.27 ) n/a Weighted
average shares - basic 6,201 n/a 6,201 n/a
Selected
Financial Highlights
Data at End of Period
9/30/2009
6/30/2009
3/31/2009
12/31/2008
Total loans $ 225,418 $ 98,876 $ 42,927 $ 10,249 Allowance for loan
losses 2,546 1,092 459 105 Securities available for sale 78,693
90,042 70,714 28,885 Securities held to maturity 32,635 30,713 - -
Total assets 366,095 261,475 160,097 74,817 Total deposits 326,278
216,147 114,686 22,069 Stockholders' equity 31,317 36,176 42,998
50,430 Net loss before provision for loan losses (4,045 ) (6,379 )
(7,383 ) n/a Net interest margin 2.58 % 1.82 % 1.36 % n/a
Capital Ratios
Equity to Assets 8.55 % 13.84 % 26.86 % 67.40 % Tier 1 Leverage
Ratio 10.36 % 16.90 % 37.73 % 189.75 % Tier 1 Risk-based Capital
Ratio 12.06 % 24.34 % 53.00 % 139.24 % Total Risk-based Capital
Ratio 13.05 % 25.07 % 53.56 % 139.53 %
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