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Commerzbank AG (CBK), the biggest loser on Germany’s benchmark DAX Index this year, has recently steepened its decline because of unfounded speculation about risks in its shipping portfolio, said Chief Financial Officer Stephan Engels.
“The stock retreat isn’t at all fundamentally justified,” Engels, 51, said today in an internal memo to staff obtained by Bloomberg News. “There’s renewed speculation about risks in our shipping portfolio. We on the management board find that incomprehensible.”
Commerzbank is selling assets and allowing loans to expire to comply with European Union requirements for 18.2 billion euros ($24 billion) in state aid the Frankfurt-based firm received in 2009. That portfolio, comprised of credit to shipping companies hit by oversupply in the freight industry as well as commercial real-estate loans and sovereign debt, is loss-making.
The shares have fallen 6.8 percent this week, extending losses this year to 42 percent, after a June 26 Dow Jones Newswires report raised speculation that offers for loans the bank plans to sell would require writedowns on its shipping portfolio. The stock rose 7.2 percent as of 4:35 p.m., after reaching a record intraday low earlier in the trading session.
“We’ve always said we expect unchanged high risk provisions for 2013,” Engels said. “Nothing has changed about that except that today I’m actually a bit more positive than I was a few months ago, as are other market participants.”
Engels said the speculation triggered “market technical reactions” that forced some shareholders to sell in order to comply with their own investment rules, according to the memo.
Repossessing Ships
Commerzbank also fell along with other financial stocks on concern related to a potential resurgence of Europe’s sovereign debt crisis and the European Central Bank’s plan to evaluate the financial health of banks, he said in the memo.
Commerzbank’s press department declined to comment on the contents of the memo.
The lender, whose soured shipping loans prompted a ratings downgrade by Standard & Poor’s in May, is repossessing ships from its debtors as it tries to salvage some of the 4.5 billion euros it holds in bad debt from the crisis-hit industry.
It’s holding off on a sale of the vessels until values recover, Stefan Otto, the head of the shipping unit, said in an interview with Bloomberg News published on June 13. The bank is focusing on ships in which it sees “significantly more upside than downside,” Otto said at the time.
Commerzbank, which had shipping loans of 18 billion euros in the first quarter, became the world’s second-biggest financier of ships with the 2009 acquisition of Dresdner Bank.
To contact the reporter on this story: Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.net
To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net
Everyone here, happy 4th of July.
Good small bank in the engineering state which is back in full recovery. Expect this bank to grow further. Further research about the bank is in seeking alpha; this article is good.
http://seekingalpha.com/instablog/981533-jay-unni/1557361-investing-in-undervalued-banks-bnccorp-and-bank-of-birmingham
Investors wanted in ND..
http://sfbay.craigslist.org/sfc/bfs/3899690831.html
German technology company Siemens AG SIE.XE -0.35% said Thursday it received an order worth around €1.8 billion for delivering 1,140 commuter trains in the U.K.
Under the deal, Siemens will supply 1,140 railway cars to the Department for Transport in London from 2016 onward, Siemens said.
The trains will operate on the Thameslink north-south commuter route that runs through London and connects Bedford with Brighton on the south coast.
In addition, Siemens will be responsible for the long-term maintenance of the fleet and overseeing construction of two new train maintenance depots, in Three Bridges and Hornsey.
Siemens said that this is the largest order so far the company has ever received in the U.K. and one of the biggest in its global railway business segment.
Siemens joined with with Cross London trains (XLT) for this contract. XLT is a consortium of Siemens Project Ventures GmbH, Innisfree Limited and 3i Infrastructure 3IN.LN +0.22% PLC and will be responsible for financing the deal, it said.
The trains will be manufactured at the Siemens factory in Krefeld, Germany, and the first trains will enter service in 2016.
For the Thameslink project, Siemens invested almost €50 million in the development of a new train platform.
Siemens said it was named preferred bidder for the project in June 2011.
http://www.raillynews.com/2013/siemens-receives-e1-8-billion-order-for-u-k-trains/
$50 million increase in con. debt was the Chesapeake investment, which has been taken out by Boone Pickens and another investment firm.
Thats probably why Mr Pickens is asking for action from the President on natural gas burning transportation trucks to hit the road. If UPS is going with natural gas trucks, other truckers have to follow or else they lose the margin. I was following a trucking company named YRCW and from there I ended up here. But looking at CMI as the engine of the trucks and the way the company has performed, this industry is here to stay?
I don't know how to short or other stuffs. I only know about buying common stocks. But I am also not buying anything. Just curious.
OTOH, the national traffic grid is looking very promising. Even UPS is considering converting their OTR fleet.
Thats how I ended up here after UPS news. But then this may not be the right stock to own. Have you seen CMI? They've done great in the last 10 years. To me it looks like CMI has grown more than 30 times in 10 years.
OTOH, the national traffic grid is looking very promising. Even UPS is considering converting their OTR fleet.
Thats how I ended up here after UPS news. But then this may not be the right stock to own. Have you seen CMI? They've done great in the last 10 years. To me it looks like CMI has grown more than 30 times in 10 years.
Their gross margin looks ugly and those convertible debts increased by 50 million more since last year. Any thoughts?
Yes that was an old record broken. Also, the below news may be the leading outcome of these activities in the oil field.
Houston’s residential real estate market is thriving, buoyed by new home construction in master-planned communities.
Master-planned communities hold about 30 percent of the market share of Houston's new home construction, said David Jarvis, regional director of Houston-based Metrostudy.
However, many of the communities are short on lot supply and nearly sold out. In April, lot supply — months left if the community maintains its current rate of new home starts — dipped to 3.4 months, a 13-year low.
Click through the slideshow at right to see the top 10 most active communities with the lowest lot supply in months.
“Good quality (master-planned community) lots are in short supply, and competition for these lots is going to get more severe,” said Ali Ebrahimi, CEO of Houston-based Ersa Grae Corp.
Old-school factors such as proximity to work and respectability of school districts still matter just as much, but the difference is that corporations are moving to livable centers that feature a high quality of life, said Bill Odle, managing principal in Houston at TBG Partners, an Austin-based architecture firm.
Indeed, three major companies have expansions underway in Fort Bend County — Fluor Corp. (NYSE: FLR), Texas Instruments Inc. (Nasdaq: TXN) and Nalco Co.
Looking forward, the planned Grand Parkway near the Katy area has concrete just poured and will likely bring development farther west, experts say.
Houston Business Journal’s Most Active Residential Communities list, ranked by the number of new homes started last year, published in its June 21 edition available to print and digital subscribers. Click here to subscribe.
NOTE: Lot supply is listed in months per year and was calculated by Metrostudy using developed lot inventory divided by annual starts of the community. MetroStudy only included lots that are developed and ready for slab to be poured and did not include future lots, which may be in various stages of development — platted, excavation, utility installation.
http://www.bizjournals.com/houston/morning_call/2013/06/houston-master-planned-communities.html
http://www.bloomberg.com/news/2013-06-20/eagle-ford-output-rises-54-to-more-than-530-000-barrels-a-day.html
Oil production in Texas’s Eagle Ford shale formation rose 54 percent in April from the previous year.
The nine fields that make up the majority of Eagle Ford yielded 530,689 barrels of crude a day, according to preliminary data released by the Texas Railroad Commission, which oversees oil and gas drilling in the state. The fields produced 345,702 barrels daily in April 2012.
February output was revised to 561,554 barrels a day from the preliminary report of 529,874, the commission said. Production totals typically increase in subsequent months as the state receives revised, corrected or late reports.
Growing production out of Eagle Ford is helping fuel a renaissance in Texas crude. The state produced 2.37 million barrels a day in March, the highest monthly level since February 1986, according to the Energy Information Administration, the statistical arm of the Energy Department. The EIA hasn’t released March production data for the state.
EOG Resources Inc. (EOG) is the largest leaseholder in the Eagle Ford play, with 639,000 net acres. Chesapeake Energy Corp. (CHK) is next with 485,000, according to data compiled by Bloomberg.
Plains Marketing LP’s posted price for Eagle Ford light oil was $94.75 a barrel yesterday, compared with the settlement prices of $98.24 for West Texas Intermediate and $106.12 for Brent.
To contact the reporter on this story: Dan Murtaugh in Houston at dmurtaugh@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
Thanks to you guys.
http://finance.yahoo.com/news/state-bank-corp-reports-first-165925097.html
Interest bearing deposits 3,126 5,192
Overnight Funds 32,985 7,400
can we assume that the customers are more interested in spending than in saving with the decrease in interest bearing deposits?
To have such an increase in overnightfund is good or bad?
http://en.wikipedia.org/wiki/Overnight_market
Someone told me to look for the following criteria and this bank does not seem to meet the criteria.
"The metrics I use are banks that have under .80 PPS/Book value, 1+% ROA, 7+% ROE and downward trending NPAs/PDs.
How should one take it where for this company, the following is the result...
"Return on average assets was 0.50% and return on average equity was 5.08% against return on average assets of 0.19% and return on average equity of 1.99% a year ago"
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=SBAZ
https://www.facebook.com/lakehavasucityarizona
Looks like the bank is serving a prosperous community of the area.
Top-Performer Profile—BNCCORP
The Diversified Market Strategist
By Vanessa Mambrino, Senior Consultant, Capital Performance Group LLC, Washington, DC, a firm providing advisory, planning, analytic, and project management support to the financial services industry.
BNCCORP, Inc., of Bismarck, ND, was founded in 1987 by Greg Cleveland, the current CEO, and Tracy Scott, who is now chairman. The bank has offices in North Dakota, Arizona, and Minnesota, and it became the #3-ranked non-subchapter-S corporation with total assets of between $100 million and $1 billion through a set of strategies as diverse as its markets.
In 1995, BNCCORP used the proceeds of its IPO to purchase several branches in North Dakota and capitalize a charter in Minneapolis. The branches in North Dakota turned out to be "right smack dab in the center" of the Bakken Oil Fields in the northwestern part of the state. This market has since become core growth corridor of BNCCORP's C&I lending division. Just over 52% of the holding company's loan portfolio is in either C&I or CRE loans, compared to 42% of the average top performing large non-S-corp's loan portfolio and 43% of the average non-S-corp's loan portfolio. The strong North Dakota economy has both good and not-so-good implications for 2013, says Cleveland. The C&I pipeline is "robust," however, "we're in a race to put on new loans before the old ones can be paid off," he says.
In 2001, BNCCORP chartered a bank in Arizona to enter the Phoenix market (all charters have since been consolidated). The bank has developed an SBA focus in Phoenix that has helped it to collect fee income via gains on loan sales. It should be noted that BNCCORP offers SBA products in all of its markets, but promotes them most heavily in Phoenix. "The SBA secondary markets have been very acquisitive and we have been seeing good premiums," notes Tim Franz, CFO. Revenue from SBA loan sales was $1.1 million in 2012.
In 2008, the bank began to invest in its mortgage banking unit. This line of business ramped up production in '08, '09, and '10 as BNCCORP built a network of producers and an online platform for originations. The bank now has mortgage-only offices throughout the Midwest and generated $1.1 billion in originations in 2012. Mortgage banking revenues were $29.6 million in 2012 compared to $11.3 million in 2011. Finally, the bank also benefited from a favorable litigation settlement in 2012.
In 2013, BNCCORP plans to expand its resources and its branch presence in North Dakota and to continue to constantly evaluate its business model and capital position. "All community banks have to answer the question: what do you want to be when you grow up? You can either sell or be aggressive on acquisitions to continue to remain independent," says Cleveland. In the meantime, both Cleveland and Franz believe that we can expect to see BNCCORP back among the top performers next year.
[This article was posted on June 6, 2013, on the website of ABA Banking Journal, www.ababj.com, and is copyright 2013 by the American Bankers Association. Thanks Mike.
http://www.ababj.com/briefing/top-performer-profile-bnccorp-3988.html
According to this interview of WB, business in Europe is getting better each day or it is already better. Their problem is with currency related difficulties among each other and he does not have a fix but it seems Germany will benefit the most because of their financial system that seem to put them as the top creditor of Europe among other EU nations. Sort of like senior secured note holders. I don't know if that makes sense but this bank with German back up must be benefiting along the way.
Here I join you.
Pulaski Financial Corp. Announces At-The-Market Equity Offering
ST. LOUIS--(BUSINESS WIRE)--Pulaski Financial Corp. (NASDAQ: PULB) (the “Company”) announced today that it has filed a prospectus supplement under which it may from time to time sell up to $10,000,000 of its common stock pursuant to an “at-the-market” equity offering program. The shares would be offered through Sandler O’Neill & Partners, L.P. as sales agent. Sales, if any, will be made primarily in “at-the-market” offerings, including sales made directly on The Nasdaq Global Select Market or sales made to or through a market maker other than on an exchange or by privately negotiated transactions.
The Company intends to use the proceeds from any sales for general corporate purposes, including but not limited to contributing capital to its subsidiary, Pulaski Bank, redeeming its outstanding shares of preferred stock or supporting organic growth, de novo branching and opportunistic acquisitions, should appropriate acquisition opportunities arise. The Company does not currently have any agreements, arrangements or understandings regarding any possible acquisitions.
The shares of common stock will be offered under the Company’s existing shelf registration statement. A prospectus supplement and related base prospectus describing the terms of the offering have been filed with the Securities and Exchange Commission (the “SEC”). Before you invest, you should read the prospectus supplement and the related base prospectus and other documents the Company has filed with the SEC for more complete information about the Company and the at-the-market offering program. You may obtain the prospectus supplement and the related base prospectus on the SEC website at www.sec.gov or the sales agent will arrange to send you the prospectus supplement and the related base prospectus if you request it by contacting Sandler O’Neill & Partners, L.P., 1251 Avenue of the Americas, 6th Floor, New York, New York 10020, or by phone at 1-866-805-4128.
This press release is for informational purposes only and is not an offer to sell or the solicitation of an offer to sell any security of the Company, nor will there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. The offering may be made only by means of a prospectus supplement and related base prospectus.
About Pulaski Financial
Pulaski Financial Corp., operating in its 91st year through its subsidiary, Pulaski Bank, offers a full line of quality retail and commercial banking products through 13 full-service branch offices in the St. Louis metropolitan area. The Bank also offers residential mortgage loan products through loan production offices in the St. Louis and Kansas City metropolitan areas, mid- Missouri, southwestern Missouri, eastern Kansas, Omaha, Nebraska, and Council Bluffs, Iowa. The Company’s website can be accessed at www.pulaskibank.com.
This news release may contain forward-looking statements about Pulaski Financial Corp., which the Company intends to be covered under the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of the Company. These statements often include the words “may,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions. You are cautioned that forward-looking statements involve uncertainties, and important factors could cause actual results to differ materially from those anticipated, including changes in general business and economic conditions, changes in interest rates, legal and regulatory developments, increased competition from both banks and non-banks, changes in customer behavior and preferences, and effects of critical accounting policies and judgments. For discussion of these and other risks that may cause actual results to differ from expectations, refer to our Annual Report on Form 10-K for the year ended September 30, 2012 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, each as on file with the SEC, including the sections entitled “Risk Factors.” These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.
Contacts
Pulaski Financial Corp.
Paul Milano, 314-317-5046
Chief Financial Officer
And do you know where the money is coming from? Midwestern oil boom.
Ford goes main street -
http://buzz.money.cnn.com/2013/05/28/ford-stock/?iid=HP_LN
Go Ford. Now suddenly CNN is also talking about Ford's achievements.
Not worried about candle sticks. Here for a long. Good luck and hope you recover from you anxieties.
Good news ahead!
NEW YORK (Reuters) - Shares of Ford Motor Co (F.N) have surged nearly 40 percent over the past year, but the company isn't yet firing on all cylinders, said Barron's in its May 27 edition.
Last quarter, Ford's pretax profit in North America reached the highest level in a decade, but losses in Europe widened.
The good news is that demand in Europe appears close to bottoming out, and may have done so already, Barron's said.
As the continent becomes less of a drag, the stock could climb another 50 percent over the next two years, Barron's said.
Ford shares finished at $14.79 on Friday on the New York Stock Exchange.
http://finance.yahoo.com/news/fords-profits-accelerate-europe-improves-001322020.html
http://www.reuters.com/article/2013/05/02/us-autos-ford-trucks-idUSBRE94104O20130502
Ford Motor Co is adding more than 2,000 jobs at its pickup truck factory in Kansas City as growth in the U.S. housing and oil sectors trigger a boom in truck sales.
The second-largest U.S. automaker said on Thursday that it will add 900 jobs and a third shift at its Kansas City Assembly Plant to build the F-150 pickup truck, the top-selling U.S. vehicle for well over three decades.
Another 1,100 jobs will be added starting in the fourth quarter to prepare for the 2014 introduction of the Ford Transit full-size van. The moves will boost Ford's workforce at the factory by just over 80 percent.
The announcement comes after several months of surging sales in the lucrative pickup truck market. Truck sales grew three times the rate of the overall auto industry, Ford executives said Wednesday while discussing April U.S. auto sales.
"There's a lot more room for the housing market to move because it bottomed out so low in the U.S.," said Joe Hinrichs, who leads Ford's operations in North and South America.
He added in an interview that the average age of the trucks on the road is at a record high, which should push some tradesman to buy new trucks as business picks up.
Kansas City is the latest Ford factory in the United States to run a third shift. Hiring more entry-level workers as well as increasing factory capacity utilization helped Ford's profits margins in North America.
About 1,000 of the workers will be hired at the entry-level wage. Entry-level workers start at $15.78 an hour or nearly half the pay of traditional unskilled blue-collar Ford workers.
Under its four-year labor pact with the United Auto Workers union in 2011, Ford promised to create or preserve 12,000 hourly jobs in the United States by 2015.
Ford said it was now three-quarters of the way through with this commitment.
http://www.istockanalyst.com/business/news/6421736/1st-century-bancshares-inc-reports-financial-results-for-the-quarter-ended-march-31-2013
LOS ANGELES, May 8, 2013 (GLOBE NEWSWIRE) -- 1st Century Bancshares, Inc. (the "Company") (Nasdaq:FCTY), the holding company for 1st Century Bank, N.A. (the "Bank"), today reported net income for the quarter ended March 31, 2013 of $1.4 million compared to $592,000 for the same period last year. Pre-tax, pre-provision earnings for the quarters ended March 31, 2013 and 2012 were $980,000 and $608,000, respectively.
Pre-tax, pre-provision earnings, a non-GAAP financial measure, is presented because management believes adjusting the Company's results to exclude taxes and loan loss provisions provides stockholders with a useful metric for evaluating the core profitability of the Company. A schedule reconciling our GAAP net income to pre-tax, pre-provision earnings is provided in the table below.
Alan I. Rothenberg, Chairman of the Board and Chief Executive Officer of the Company stated, "I'm extremely proud to announce our first quarter financial results. Net income for the period was $1.4 million, or $0.16 per diluted share, compared to $592,000, or $0.07 per diluted share, during the same period last year. Our increased earnings were primarily driven by favorable loan growth, as well as improved credit quality. During the quarter, our average loans grew by over $43 million as compared to the same period last year, while our non-performing loans declined to less than $1.0 million. Non-performing loans currently represent only 0.31% of our total loan portfolio, compared to a peak of 6.66% at September 30, 2009. The decline in these problem loans during the current quarter was primarily attributable to the full repayment and recovery of non-performing loan balances."
Jason P. DiNapoli, President and Chief Operating Officer of the Company added, "I am very encouraged with our results for the first quarter. Our core profitability continues to improve, our book value per share continues to grow and, with our credit quality issues substantially behind us, we can focus further attention and resources on our long-term strategic objective of becoming the premier community business bank serving the Westside of Los Angeles."
2013 1st Quarter Highlights
The Bank's total risk-based capital ratio was 14.41% at March 31, 2013, compared to the requirement of 10.00% to generally be considered a "well capitalized" financial institution for regulatory purposes. The Bank's equity is comprised solely of common stock, and does not include any capital received in connection with TARP, or other forms of capital such as trust preferred securities, convertible preferred stock or other equity or debt instruments.
For the quarter ended March 31, 2013, the Company recorded net income of $1.4 million, or $0.16 per diluted share, compared to $592,000, or $0.07 per diluted share, for the same period last year.
At March 31, 2013 and 2012, the Company's book value per share was $5.54 and $5.06, respectively, representing an increase of 9.5% during the twelve month period.
Net interest margin was 3.30% for the quarter ended March 31, 2013, compared to 3.20% for the same period last year. This increase in net interest margin was primarily attributable to the recovery of $294,000 in deferred interest income from the repayment of non-accrual and previously charged off loan balances during the quarter ended March 31, 2013.
Loans increased to $297.8 million at March 31, 2013, compared to $266.7 million at December 31, 2012. Loan originations were $66.3 million during the quarter ended March 31, 2013, compared to $25.7 million during the same period last year.
Non-performing loans declined to $917,000, or 0.31% of total loans, at March 31, 2013, compared to $1.9 million, or 0.70% of total loans, at December 31, 2012.
Non-performing assets as a percentage of total assets declined to 0.20% at March 31, 2013, compared to 0.39% at December 31, 2012.
Net loan recoveries were $1.1 million during the quarter ended March 31, 2013, compared to net loan recoveries of $4,000 during the same period last year.
As of March 31, 2013, the allowance for loan losses ("ALL") was $6.6 million, or 2.22% of total loans, compared to $6.0 million, or 2.26% of total loans, at December 31, 2012. The ALL to non-performing loans was 722.16% and 324.36% at March 31, 2013 and December 31, 2012, respectively.
Investment securities declined to $168.0 million at March 31, 2013, representing 34.1% of our total assets, compared to $181.2 million, or 36.3% of our total assets, at December 31, 2012.
Total core deposits, which include non-interest bearing demand deposits, interest bearing demand deposits, and money market deposits and savings, were $369.7 million and $371.4 million at March 31, 2013 and December 31, 2012, respectively. Non-interest bearing deposits represent 47.2% of total deposit at March 31, 2013, compared to 47.0% at December 31, 2012.
Cost of funds declined to 19 basis points for the quarter ended March 31, 2013, compared to 26 basis points for the same period last year.
Capital Adequacy
At March 31, 2013, the Company's stockholders' equity totaled $50.6 million compared to $49.2 million at December 31, 2012. At March 31, 2013, the Bank's total risk-based capital ratio, tier 1 risk-based capital ratio, and tier 1 leverage ratio were 14.41%, 13.15%, and 9.77%, respectively, compared to the requirements of 10.00%, 6.00%, and 5.00%, respectively, to generally be considered a "well capitalized" financial institution for regulatory purposes.
Balance Sheet
Total assets at March 31, 2013 were $493.4 million, representing a decrease of approximately $5.8 million, or 1.2%, from $499.2 million at December 31, 2012. Cash and cash equivalents at March 31, 2013 were $27.5 million, representing a decrease of $23.0 million, or 45.6%, from $50.6 million at December 31, 2012. The decline in cash and cash equivalents was primarily related to the increase in loan funding during the quarter ended March 31, 2013. Loans increased by $31.1 million during the quarter from $266.7 million at December 31, 2012 to $297.8 million at March 31, 2013. The majority of growth within our loan portfolio related to increases of $9.0 million, $8.5 million and $7.4 million in our single-family, multi-family and commercial real estate loans, respectively. Loan originations were $66.3 million during the quarter ended March 31, 2013, compared to $25.7 million during the same period last year. Prepayment speeds for the quarter ended March 31, 2013 were 15.2% compared to 30.1% for the same period last year. Investment securities were $168.0 million at March 31, 2013, compared to $181.2 million at December 31, 2012, representing a decrease of $13.2 million, or 7.3%. The weighted average life of our investment securities was 2.52 years and 2.80 years at March 31, 2013 and December 31, 2012, respectively.
Total liabilities at March 31, 2013 decreased by $7.2 million, or 1.6%, to $442.8 million compared to $450.0 million at December 31, 2012. This decrease is primarily due the repayment during the current quarter of a $4.5 million short-term borrowing that was outstanding at December 31, 2012. Total core deposits, which includes non-interest bearing demand deposits, interest bearing demand deposits and money market deposits and savings, were $369.7 million and $371.4 million at March 31, 2013 and December 31, 2012, respectively, representing a decrease of $1.7 million, or 0.45%.
Credit Quality
Allowance and Provision for Loan Losses
The ALL was $6.6 million, or 2.22% of our total loan portfolio, at March 31, 2013, compared to $6.0 million, or 2.26% of our total loan portfolio, at December 31, 2012. At March 31, 2013 and December 31, 2012, our non-performing loans were $917,000 and $1.9 million, respectively. The decline in non-performing loans during the quarter ended March 31, 2013 was primarily related to the full repayment of two loans that had been classified as non-performing at December 31, 2012. The ratio of our ALL to non-performing loans was 722.16% and 324.36% at March 31, 2013 and December 31, 2012, respectively. In addition, our ratio of non-performing loans to total loans was 0.31% and 0.70% at March 31, 2013 and December 31, 2012, respectively.
The ALL is impacted by inherent risk in the loan portfolio, including the level of our non-performing loans, as well as specific reserves and charge-off activities. During quarter ended March 31, 2013, we reversed $500,000 of provision for loan losses. There was no provision for loan losses recorded during the quarter ended March 31, 2012. The reversal in provision for loan losses is primarily due to the loan recoveries discussed above, as well as the continued improvement in the level of our criticized and classified loans. These declines were partially offset by additional provisions required for the $31.1 million increase in our loan portfolio during the quarter ended March 31, 2013. Criticized and classified loans generally consist of special mention, substandard and doubtful loans. Special mention, substandard and doubtful loans were $6.5 million, $2.3 million and none, respectively, at March 31, 2013, compared to $4.1 million, $9.8 million and none, respectively, at March 31, 2012. We had net recoveries of $1.1 million and $4,000 during the quarters ended March 31, 2013 and 2012, respectively. Management believes that the ALL as of March 31, 2013 and December 31, 2012 was adequate to absorb known and inherent risks in the loan portfolio.
Non-Performing Assets
Non-performing assets totaled $1.0 million and $1.9 million at March 31, 2013 and December 31, 2012, respectively. Non-accrual loans totaled $917,000 and $1.9 million at March 31, 2013 and December 31, 2012, respectively. At March 31, 2013, non-accrual loans consisted of one commercial loan totaling $572,000 and one consumer loan totaling $345,000. At December 31, 2012, non-accrual loans consisted of three commercial loans totaling $1.5 million and one consumer loan totaling $345,000. At March 31, 2013 and December 31, 2012, other real estate owned ("OREO") consisted of one undeveloped land property totaling $90,000. As a percentage of total assets, the amount of non-performing assets was 0.20% and 0.39% at March 31, 2013 and December 31, 2012, respectively.
Net Interest Income and Margin
During the quarter ended March 31, 2013, net interest income was $3.9 million, compared to $3.3 million for the same period last year. The average balances of our loan portfolio were $272.9 million and $229.6 million during the quarter ended March 31, 2013 and 2012, respectively. In addition, during the quarter ended March 31, 2013, the Company recognized $294,000 of interest income in connection with the pay-off of non-accrual and previously charged off loans.
The Company's net interest margin (net interest income divided by average interest earning assets) was 3.30% for the quarter ended March 31, 2013, compared to 3.20% for the same period last year. This 10 basis point improvement in net interest margin is due to the interest income recognized as a part of the pay-offs discussed above. Excluding the impact of these pay-offs, our net interest margin would have declined, as compared to the same period last year. This decline was primarily due to a decrease in the yield on our earning assets, partially offset by a decline in the cost of our interest bearing liabilities. The decline in yield on our interest earning assets was caused by a general downward trend in interest rates, as well as competitive loan pricing conditions in our market, which have continued to compress loan yields. The decline in the cost of interest bearing deposits and borrowings is primarily attributable to a decrease in interest rates paid on these accounts. The average cost of interest bearing deposits and borrowings was 0.33% and 0.40% during the quarters ended March 31, 2013 and 2012, respectively.
Non-Interest Income
Non-interest income was $359,000 for the quarter ended March 31, 2013, compared to $347,000 for the same period last year. Non-interest income primarily consists of loan arrangement fees earned in connection with our college loan funding program. During the first quarter of 2013, the Company terminated this program and does not anticipate any further loan arrangement fee earnings subsequent to the second quarter of 2013.
Non-Interest Expense
Non-interest expense was $3.3 million for the quarter ended March 31, 2013, compared to $3.0 million for the same period last year. The increase in non-interest expense during the quarter ended March 31, 2013 as compared to the same period last year is primarily due to the additional costs incurred related to expanding the Bank's business development and related operational support teams.
Income Tax Provision
During the quarter ended March 31, 2013, we recorded a tax expense of approximately $38,000, compared to $16,000 for the same period last year. The Company does not anticipate owing any substantial taxes for Federal or State purposes until the Company's net operating losses ("NOL") are fully utilized.
Net Income
For the quarter ended March 31, 2013, the Company recorded net income of $1.4 million, or $0.16 per diluted share, compared to $592,000, or $0.07 per diluted share, for the same period last year.
About 1st Century Bancshares, Inc.
1st Century Bancshares, Inc. is a publicly owned company traded on the NASDAQ Capital Market under the symbol "FCTY." The Company's wholly-owned subsidiary, 1st Century Bank, N.A., is headquartered in the Century City area of Los Angeles, with a full service business bank in Century City, CA, and a relationship office in Santa Monica, CA. The Bank's primary focus is serving the specific banking needs of entrepreneurs, professionals and small businesses with the personal service of a traditional community bank, while offering the technologies of a big money center bank. The Company maintains a website at www.1cbank.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained therein.
Safe Harbor
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can find many (but not all) of these forward-looking statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. These statements are based upon our management's current expectations and speak only as of the date hereof. Forward-looking statements are subject to certain risks and uncertainties that could cause our actual results, performance or achievements to differ materially and adversely from those expressed, suggested or implied herein. Accordingly, investors should use caution in relying on forward-looking statements to anticipate future results or trends. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, (2) political instability, (3) changes in the monetary policies of the U.S. Government, (4) a renewed decline in economic conditions, (5) continued deterioration in the value of California real estate, both residential and commercial, (6) an increase in the level of non-performing assets and charge-offs, (7) further increased competition among financial institutions, (8) the Company's ability to continue to attract interest bearing deposits and quality loan customers, (9) further government regulation and the implementation and costs associated with the same, (10) internal and external fraud and cyber-security threats including the loss of bank or customer funds, loss of system functionality or the theft or loss of data, (11) management's ability to successfully manage the Company's operations, and (12) the other risks set forth in the Company's reports filed with the U.S. Securities and Exchange Commission. The Company does not undertake, and specifically disclaims, any obligation to revise or update any forward-looking statements for any reason.
SUMMARY FINANCIAL INFORMATION
The following tables present relevant financial data from the Company's recent performance (dollars in thousands, except per share data):
March 31, 2013 December 31, 2012 March 31, 2012
Balance Sheet Results: (unaudited) (unaudited)
Total Assets $ 493,415 $ 499,173 $ 433,398
Total Loans $ 297,763 $ 266,671 $ 230,010
Allowance for Loan Losses ("ALL") $ 6,619 $ 6,015 $ 5,288
Non-Performing Assets $ 1,007 $ 1,944 $ 7,285
Investment Securities-AFS, at estimated fair value $ 168,034 $ 181,225 $ 130,051
Deposits:
Non-Interest Bearing Demand Deposits $ 195,540 $ 196,026 $ 135,753
Interest Bearing Demand Deposits $ 22,930 $ 23,233 $ 20,790
Money Market Deposits and Savings $ 151,196 $ 152,094 $ 156,935
Certificates of Deposit $ 44,863 $ 45,328 $ 46,715
Total Deposits $ 414,529 $ 416,681 $ 360,193
Total Stockholders' Equity $ 50,640 $ 49,173 $ 45,706
Gross Loans to Deposits 71.84% 63.99% 63.83%
Ending Book Value per Share $5.54 $5.38 $5.06
Three Months Ended March 31,
Quarterly Operating Results (unaudited): 2013 2012
Net Interest Income $ 3,884 $ 3,299
Provision for (Reduction of) Loan Losses $ (500) $ --
Non-Interest Income $ 359 $ 347
Non-Interest Expense $ 3,263 $ 3,038
Income Tax Provision $ 38 $ 16
Net Income $ 1,442 $ 592
Basic Earnings per Share $0.17 $0.07
Diluted Earnings per Share $0.16 $0.07
Quarterly Net Interest Margin* 3.30% 3.20%
Reconciliation of QTD Net Income to Pre-Tax, Pre-Provision Earnings:
Net Income $ 1,442 $ 592
Provision for (Reduction of) Loan Losses (500) --
Income Tax Provision 38 16
Pre-Tax, Pre-Provision Earnings $ 980 $ 608
______________________________
* Percentages are reported on an annualized basis.
CONTACT: Alan I. Rothenberg
Chairman/Chief Executive Officer
Phone: (310) 270-9501
Jason P. DiNapoli
President/Chief Operating Officer
Phone: (310) 270-9505
(Source: PrimeZone )
(Source: Quotemedia)
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When Disclosure Isn't A Good Thing
Thank you.
http://bismarcktribune.com/bakken/north-dakota-oil-production-continues-record-pace/article_c453e868-c56a-11e2-a7d0-001a4bcf887a.html
The Department of Mineral Resources said North Dakota oil drillers continue to pump crude at a record pace.
The agency said the state produced an average of about 782,000 barrels per day in March. That’s more than double the amount of barrels produced for the same month in 2011.
The agency said there were 8,634 producing wells in March. That’s up from 5,439 wells in March 2011.
The March tally is the latest figure available because oil production numbers typically lag at least two months.
http://jobsearch.local-jobs.monster.com/jobs/?q=BNC&where=North-Dakota&cy=us
CRZBF is the ticker on my screen.
My poker face - I bought tons in the 3s to break even and so I lost 2k and that was some vacation money that I helped supply to someone but I did get to buy in the 3s and sell in the 6 to 8 cents range. Going forward, side change and will only buy unsecured bonds, if ever. Obscure equity with structured and understandable debt is what makes sense to buy as there will be no vultures around and only the people wishing to cash out to remodel their home or to pay debt or go to the vacation.
Marketwired) -- 05/15/13 -- 1st Century Bancshares, Inc. (the "Company") (NASDAQ: FCTY), the holding company of 1st Century Bank, N.A. (the "Bank"), announced today that J. Scott Green, has been appointed as its new BSA Officer.
As BSA Officer of 1st Century Bank, Mr. Green will be responsible for overseeing adherence of the Bank's policies and procedures to federal and state laws and regulations as well as developing, implementing and administering all aspects of the Bank Secrecy Act.
Mr. Green has over 30 years of experience in Operations and Lending/Note Department with a "hands on" background in all areas of Business Development, Banking Operations and Note Operations. Nineteen years of that time was spent in management with an emphasis on BSA and Deposit and Credit Compliance. He recently completed the ABA 2010 Nationals Compliance School in both Deposit/Operations and Credit modules.
"Mr. Green is a welcome addition to our team here at 1st Century Bank," said Chairman of the Board, Alan I. Rothenberg. "He brings a wealth of knowledge and experience in the BSA field that will allow us to continue to reach our goals set forth."
Most recently, Mr. Green was SVP, BSA Officer, Privacy Officer and Information Security Officer at The Private Bank of California. He was responsible for writing all compliance policies as well as creating all BSA Policies including CIP Risk Rating forms, OFAC, FinCEN, CTR Reporting, SAR Reporting and NSA Letters, and all bank compliance trainings including BSA. He has been involved in many other areas of banking including, but not limited to, Branch Management/Operations, Core System Conversions as well as being a part of a team to start a De Novo National Bank in 2004, Excel National Bank.
He has professional certifications in CRCM: Certified Regulatory Compliance Manager Certification from ABA (through ICBA) as well as CAMS: Designation for AML professional from ACAMS.
About 1st Century Bancshares, Inc.
1st Century Bancshares, Inc. is a publicly owned company traded on the NASDAQ Capital Market under the symbol "FCTY." The Company's wholly-owned subsidiary, 1st Century Bank, N.A., is headquartered in the Century City area of Los Angeles, with a full service business bank in Century City, CA, and a relationship office in Santa Monica, CA. The Bank's primary focus is serving the specific banking needs of entrepreneurs, professionals and small businesses with the personal service of a traditional community bank, while offering the technologies of a big money center bank. The Company maintains a website at www.1cbank.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained therein.
Contact Information:
Alan I. Rothenberg
Chairman/Chief Executive Officer
Phone: (310) 270-9501
Jason P. DiNapoli
President/Chief Operating Officer
Phone: (310) 270-9505
Published May 15, 2013 – Reads 178
Copyright © 2013 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.
Greed, love and happiness- hedge fund way..house prices in Connecticut going up. Judge, please let us "bullshit with you"!! US Trustee, shut up. Fuck those 99 per cent shareholders..Hedge fund style.
I mean I find that they're selling SBA loan and profiting. Do you think that is the right thing to do or they should have held those loans? Thank you.
From the latest earning..
"Net income for the 2013 first quarter was $3.785 million, or $1.00 per diluted share. This compared to net income of $1.568 million, or $0.37 per diluted share, in the first quarter of 2012. The first quarter results reflect higher non-interest income driven primarily by mortgage banking, gains on sales of assets and higher fees and service charges, which were partially offset by slightly lower net interest income and higher non-interest expense when compared to the first quarter of 2012. The provisions for credit losses and OREO valuation allowances in the first quarter of 2013 were $700 thousand compared to $800 thousand in the first quarter of 2012. Credit quality improved as nonperforming assets decreased to $13.6 million at March 31, 2013, compared to $15.6 million at December 31, 2012 and $14.5 million at March 31, 2012."
Do you like the idea that they're selling assets? Why sell assets and not hold them? Is that to gain a bigger market share or to buy more undervalued assets? Thank you in advance.
still exited to see if the equity lawyers are gonna talk about those mega trades on April 11th April 12th. Was it insider trading or the pumpers of ihub? Hard to tell. Some of the pumpers are quiet here.
shit happens to shitty people. write letter to the judge and help the equity lawyers if you think you find something credible, once equity team is formed. that's what you can do right now instead of hoping and praying.
V. Conclusion
The decision in School Specialty provides further comfort to creditors that bankruptcy courts will enforce properly drafted make-whole premiums. However, creditors must be vigilant to make sure that a make-whole premium is, in fact, triggered by acceleration (including upon a bankruptcy filing) and that the make-whole formula seeks to approximate the lost yield from the time of prepayment or acceleration through maturity, discounted by an appropriate discount rate, which may include the Treasury rate.
Roadmap to cheating for upcoming make-whole agreements. It's like- do it certain way and they won't know your original intention.
http://www.lexology.com/library/detail.aspx?g=427ffa19-1de6-4292-befc-75294c821915
when the going gets tough, tough gets going!
http://en.wikipedia.org/wiki/When_the_Going_Gets_Tough,_the_Tough_Get_Going