Golden Mountain Financial Holdings Corp. (fka FNBCQ)

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First NBC Bank Reports Second Consecutive Quarterly Profit Decline

Net interest income up 14.9% but net income fell to $9.7 million from $12.3 million, according to filings

First NBC Bank Holding Co., the New Orleans bank that built its name and fortune investing in city construction projects but whose finances have come under scrutiny of late, on Wednesday reported quarterly profit fell again the most recent period.

Based on preliminary results, First NBC reported net income of $9.7 million for the period ended Sept. 30, down from $12.3 million in the year-ago period, as restated.

Meanwhile, net interest income, a key driver of profitability, rose 14.9% to $39.6 million.

Total assets stood at about $4.9 billion, roughly unchanged from the previous two quarters, according to regulatory filings.

Total loans, the bank said, rose $832.1 million, or 27%, from the year-ago period and total deposits rose $194.8 million, or 5.3%.
As of June 30, First NBC reported $3.78 billion in total loans and $3.93 billion in total deposits.

At the heart of First NBC’s mounting financial problems are the tax credits that fueled much of its growth but that also put in question its underlying financial health.

For example, in 2014, First NBC made $43 million—$33 million of which was from tax benefits. In 2015, it reported a $25.5 million loss; tax benefits surged to $105.3 million.

Largely because of the credits, the bank’s deferred tax assets—effectively an offset to future taxes—stood at $252.7 million as of June 30, roughly 60% of shareholders’ equity, and up from $247 million in the previous quarter.

First NBC didn’t update that figure Tuesday. Instead, it said it would release full third-quarter results and file the required regulatory report “as soon as practicable” after it hires a new auditor.

Chief Executive Ashton J. Ryan Jr. said in a press release the bank continued to explore strategic and capital options with advisers and remained confident it would rebuild its capital ratios. He didn’t elaborate. A call to the bank after regular business hours wasn’t returned.

Regulators have told the bank it is in “troubled condition,” restricting First NBC’s ability to take on certain deposits and pay interest. The Securities and Exchange Commission is also investigating the bank’s accounting.

The bank’s stock closed Tuesday at $5.05, having lost four-fifths of its value this year.

Source:
http://www.wsj.com/articles/first-nbc-bank-reports-second-consecutive-quarterly-profit-decline-1478048120

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