Herald National Bank (NYSE AMEX: HNB), a New York-based
full-service commercial bank, announced today financial results for
its fourth quarter and year ending December 31, 2009, the bank’s
first complete year of operations since opening in November,
2008.
Key highlights for the quarter and year ended December 31, 2009
include:
- Total assets increased 21%
during the quarter to $443 million from $366 million, and 492%
during the year from $74.9 million at prior year end.
- Deposits increased 24% during
the quarter, to $405 million from $326 million, of which 93% are
core deposits and 35% are checking accounts.
- Loans increased by $76 million
during the quarter. Loans increased 34% to $301 million from $225
million.
- Tier 1 leverage ratio stood at
8.52%, a level in excess of all minimum regulatory capital ratios
applicable to the bank.
- Net interest margin increased to
3.22% at December 31, 2009, up from 2.58% at September 30,
2009.
- Net loss for the quarter was
$3.7 million or $0.59 per share as compared to a net loss of $5.5
million or $0.89 per share. The $1.8 million decrease in the
quarterly loss represents a 33% improvement quarter over quarter.
Net loss for the first full year of operations was $23.9 million or
$3.86 per share, which was in line with the business plan.
- Net loss prior to the provision
for loan losses was $2.1 million for the quarter, an improvement of
$2.0 million or 49% against the $4.1 million loss for the period
ended September 30, 2009. The improvement is predominantly due to a
decrease in operating expenses and an increase in net interest
income, which was fueled by increases in the bank’s net interest
margin and the overall growth of the institution.
- Nonperforming loans are $1.3
million, or 0.42% of Loans, net at December 31, 2009. Allowance for
Loan & Lease Losses was $4.1 million, or 1.37% of Loans,
net.
“The conclusion of our first full year of operations is
highlighted by significant achievements. Most notably, high quality
loan origination and core deposit growth have yielded increases to
net interest income and net interest margin. Together with actions
taken by management to reduce operating expenses, Herald National
Bank is on pace to become profitable on a quarterly basis in 2010,
as initially projected. From the client perspective, our model is
working well. When comparing first full fiscal years of operations,
our private banking teams have attracted and retained relationships
that equate to more deposits, more loans and greater assets
generated than any other de novo bank started in the nation since
2006,” stated David S. Bagatelle, President and CEO of Herald
National Bank.
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 Twelve months
ended December 31, December 31,
Statement of Operations (1)
2009
2008
2009
2008
Interest income $ 4,416 $ 238 $ 9,264 $ 238 Interest expense
1,377 14
3,355 14 Net
interest income 3,039 224 5,909 224 Provision for loan losses 1,582
105 4,022 105 Noninterest income 150 1 319 1 Noninterest expense,
net
5,244 10,424
26,059 10,424
Pretax loss (3,637 ) (10,304 ) (23,853 ) (10,304 ) Tax
expense
23 79
57 79 Net
loss
$ (3,660 )
$ (10,383 ) $
(23,910 ) $
(10,383 ) (1) During the three and twelve
month periods ending December 31, 2008, the Bank was a development
stage corporation and the Bank was in formation. Basic
earnings per share $ (0.59 ) $ (1.67 ) $ (3.86 ) $ (1.67 ) Weighted
average shares - basic 6,230 6,201 6,202 6,201
Selected
Financial Highlights
Data at End of Period
12/31/2009
9/30/2009
6/30/2009
3/31/2009
12/31/2008
Total loans $ 301,177 $ 225,418 $ 98,876 $ 42,927 $ 10,249
Allowance for loan losses 4,127 2,546 1,092 459 105 Securities
available for sale 71,779 78,693 90,042 70,714 28,885 Securities
held to maturity 41,515 32,635 30,713 - - Total assets 443,194
366,095 261,475 160,097 74,817 Total deposits 404,628 326,278
216,147 114,686 22,069 Stockholders' equity 35,226 31,317 36,176
42,998 50,430 Net loss before provision for loan losses (2,079 )
(4,045 ) (6,379 ) (7,383 ) n/a Net interest margin 3.22 % 2.58 %
1.82 % 1.36 % n/a
Capital Ratios
Equity to Assets 7.95 % 8.55 % 13.84 % 26.86 % 67.40 % Tier 1
Leverage Ratio 8.52 % 10.36 % 16.90 % 37.73 % 189.75 % Tier 1
Risk-based Capital Ratio 10.63 % 12.06 % 24.34 % 53.00 % 139.24 %
Total Risk-based Capital Ratio 11.88 % 13.05 % 25.07 % 53.56 %
139.53 %
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