Bank Leumi USA Reports Improved Earnings For The Period Ended June 30, 2012
Net Income YTD $11.4 Million
Total Assets $5.7 Billion
Return on Equity of 4.88%
Makes Strategic Announcement
NEW YORK, July 31, 2012 /PRNewswire/ -- Bank Leumi USA ("BLUSA") today filed its Call Report for the period ended June 30, 2012.
Net Income improved by 17.5% for six months ended June 30, 2012 at $11.4 million compared to $9.7 million in the same period last year.
Total Assets as of June 30, 2012, were $5.7 billion, a 10.0% increase from the $5.2 billion in the same period last year.
BLUSA's Capital remained strong with tier 1, total risk-based, and leverage capital ratios of 11.24%, 14.22% and 9.04% respectively, all of which exceed regulatory requirements and positions BLUSA to take advantage of opportunities for growth in our key markets.
BLUSA also announced its new business strategy in the United States. Bank Leumi USA President and Chief Executive Officer, Itzhak Eyal delivered the strategic announcement and explained how the bank seeks to be their clients' primary financial institution, improve their product and services platform, and develop a competitive advantage. "We must always look for ways to improve and we must be innovative in our approach to business. We are investing in new products and services and our clients must be aware of this and use Bank Leumi USA as their primary bank."
Leumi Group Chairman of the Board, David Brodet, was also elected as BLUSA Chairman on July 26, 2012, added, "We stand committed to develop and strengthen this subsidiary to ensure it has a clear business focus to initiate technology and infrastructure upgrades." Mr. Brodet is replacing Steve Lavin, who has been a member of BLUSA's board for seven years and who will continue to serve as a board member.
Leumi Group President and Chief Executive Officer, Rakefet Russak-Aminoach shared her vision and goals for BLUSA. "We have a strong commitment to strengthen the Leumi Group's international activity and Bank Leumi USA is our most significant overseas subsidiary. For me, it is essential that Bank Leumi USA has a defined strategy based on a focused business model and an efficient operating model."
Net Interest Income
Net interest income for the six months ended June 30, 2012 increased by $2.0 million to $67.8 million compared to the same period in 2011 primarily due to an increase in interest income on loans.
Non-Interest Income
Non-interest income totaled $20.5 million for the six months ended June 30, 2012. This represents a decrease of $3.2 million or 13.5% from the same period last year. The difference is mainly due to lower gains on loan sales of $1.6 million and lower commission income of $1.5 million compared to the same period last year 2011.
Realized gains/loss on securities
Realized gain on securities totaled $3.3 million for the six months ended June 30, 2012.
Non-Interest Expense
Non-interest expense totaled $70.0 million for the six months ended June 30, 2012; an increase of $0.2 million, or 0.3% compared to the same period last year and reflects the bank's efforts to control operating and compensation expenses.
Loans and Allowance for Loan Losses
Total net loans were $3.7 billion at June 30, 2012, equal to the balance at June 30, 2011. The provision for Loan and Lease Losses was $3.8 million for six months ended June 30, 2012 compared to $3.0 million for the same period in 2011 and $8.0 million for twelve months ended at December 31, 2011.
The Allowance for Loan Losses was $55.6 million as of June 30, 2012. This represents a ratio of 1.50% of total loans and is 0.82 times the level of non-accrual loans.
Equity and Capital Adequacy
Shareholders' Equity rose to $528.5 million as of June 30, 2012 compared to $516.9 million as of December 31, 2011. This change is due to six months net income of $11.4 million and an increase in unrealized gains on available for sale net of deferred tax of $0.2 million.
About Bank Leumi USA
Bank Leumi USA, the largest subsidiary of the Leumi Group, has operated in the U.S. for more than fifty five years. It is an FDIC-insured, full-service commercial bank providing financial services to middle and upper-middle market firms, and international businesses through offices in New York, Illinois, California, Florida, a representative office in Israel, and an offshore office in the Cayman Islands. Bank Leumi USA offers U.S. and international private banking services as well as a full range of securities and insurance products through its brokerage subsidiary, Leumi Investment Services Inc.
For Additional Information:
Diana Sandru | Marketing
420 Lexington Ave. 10th Floor | New York, NY 10170
[email protected] | 917.542.2346
|
Bank Leumi USA and Subsidiaries Consolidated Statements of Financial Condition (US GAAP) (Dollars in Thousands)
|
||
|
as of June 30, 2012 |
as of June 30, 2011 |
|
| Assets |
||
| Cash and Due from Banks |
$ 886,371 |
$ 306,960 |
| Cash segregated under federal and other regulations |
87,453 |
80,455 |
| Time Deposits with Banks |
4,303 |
4,579 |
| Securities |
746,244 |
811,194 |
| Loans |
3,704,519 |
3,708,483 |
| Less: Allowance for Loan Losses |
55,570 |
56,923 |
| Loans – Net |
3,648,949 |
3,651,560 |
| Bank Premises and Equipment |
17,976 |
16,123 |
| Other Assets |
277,364 |
356,667 |
| Total Assets |
$5,668,660 |
$5,227,538 |
| Liabilities and Shareholders' Equity |
||
| Non Interest Bearing Deposits |
$1,022,063 |
$ 894,617 |
| Interest Bearing Deposits |
3,845,603 |
3,385,396 |
| Other Borrowings |
55,000 |
150,000 |
| Other Liabilities |
127,448 |
194,604 |
| Long-Term Debt |
90,000 |
90,000 |
| Shareholders' Equity |
528,546 |
512,921 |
| Total Liabilities and Shareholders' Equity |
$5,668,660 |
$5,227,538 |
Note: Due to regulatory accounting requirements differences exist between US GAAP presentation and Call Report presentation for certain line items.
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Bank Leumi USA and Subsidiaries Consolidated Statements of Income (US GAAP) (Dollars in Thousands)
|
||
| Six months ended June 30, |
||
| 2012 |
2011 |
|
| Interest Income |
$ 84,546 |
$ 82,116 |
| Interest Expense |
16,744 |
16,271 |
| Net Interest Income |
67,802 |
65,845 |
| Provision for Loan Loss |
2,999 |
2,454 |
| Net Interest Income after Provision for Loan Losses |
64,803 |
63,391 |
| Non-Interest Income |
23,774 |
23,773 |
| Non-Interest Expense |
70,808 |
70,376 |
| Income before Income Taxes |
17,769 |
16,788 |
| Income Tax Expense |
6,397 |
7,051 |
| Net Income |
$ 11,372 |
$ 9,737 |
Note: Due to regulatory accounting requirements differences exist between US GAAP presentation and Call Report presentation for certain line items.
SOURCE Bank Leumi USA
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