x |
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR
THE QUARTERLY PERIOD ENDED SEPTEMBER
30, 2005
|
o |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR
THE TRANSITION PERIOD
FROM__________TO________
|
Commission
file number
|
1-14103
|
Maryland
|
52-2063921
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
65
East 55th
Street, New York, New York
|
10022
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Class
|
Outstanding
at Nov
01, 2005
|
|||
Common
Stock par value $0.01 per share
|
100
|
Page
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
8
|
|
9
|
|
11
|
|
11
|
|
12
|
|
12
|
|
ITEM 1(a). FINANCIAL STATEMENTS | |||||||||
NB CAPITAL CORPORATION | |||||||||
BALANCE SHEETS |
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
( in thousands of US dollars ) |
(Unaudited)
|
||||||
Assets |
$
|
$
|
|||||
Current | |||||||
Cash
and cash equivalent
|
16,651
|
58,327
|
|||||
Due
from an affiliated company
|
13,400
|
9,474
|
|||||
Promissory
notes - current portion
|
86,659
|
51,678
|
|||||
Accrued
interest on cash equivalent
|
3
|
26
|
|||||
Prepaid
expenses
|
19
|
30
|
|||||
116,732
|
119,535
|
||||||
Promissory
notes
|
367,349
|
358,228
|
|||||
484,081
|
477,763
|
||||||
Liabilities
|
|||||||
Current
|
|||||||
Due
to the parent company
|
411
|
414
|
|||||
Accounts
payable
|
68
|
30
|
|||||
479
|
444
|
||||||
Stockholders'
equity
|
|||||||
Capital
stock and Additional paid-in capital
|
476,764
|
476,764
|
|||||
Retained
earnings
|
6,838
|
555
|
|||||
483,602
|
477,319
|
||||||
484,081
|
477,763
|
||||||
NB CAPITAL CORPORATION | |||||||||
STATEMENTS OF INCOME |
(Unaudited)
|
|||||||||||||
Three-month
periods ended
|
Nine-month
periods ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
(
in thousands of US dollars )
|
2005
|
2004
|
2005
|
2004
|
|||||||||
$
|
$
|
$
|
$
|
||||||||||
Revenue
|
|||||||||||||
Interest
income
|
|||||||||||||
Cash
equivalent
|
452
|
108
|
948
|
271
|
|||||||||
Promissory
notes
|
8,241
|
9,119
|
25,612
|
27,181
|
|||||||||
8,693
|
9,227
|
26,560
|
27,452
|
||||||||||
Expenses
|
|||||||||||||
Servicing
and advisory fees
|
411
|
402
|
1,212
|
1,184
|
|||||||||
Legal
and other professional fees
|
94
|
83
|
261
|
211
|
|||||||||
505
|
485
|
1,473
|
1,395
|
||||||||||
Net
income
|
8,188
|
8,742
|
25,087
|
26,057
|
|||||||||
Preferred
stock dividends
|
6,268
|
6,267
|
18,804
|
18,801
|
|||||||||
Income
available to common stockholders
|
1,920
|
2,475
|
6,283
|
7,256
|
|||||||||
Weighted-average
number of common shares outstanding
|
100
|
100
|
100
|
100
|
|||||||||
Earnings
per common share - basic and diluted
|
19
|
25
|
63
|
73
|
|||||||||
See
accompanying notes to the financial statements.
|
NB CAPITAL CORPORATION | |||||||||
STATEMENTS OF STOCKHOLDERS' EQUITY |
(Unaudited)
|
|||||||||||||
Three-month
periods ended
|
Nine-month
periods ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
(
in thousands of US dollars )
|
2005
|
2004
|
2005
|
2004
|
|||||||||
PREFERRED
STOCK
|
$
|
|
$
|
$
|
|
$
|
|||||||
Balance,
beginning and end of period
|
3
|
3
|
3
|
3
|
|||||||||
COMMON
STOCK AND PAID-IN CAPITAL
|
|||||||||||||
Balance,
beginning and end of period
|
476,761
|
476,761
|
476,761
|
476,761
|
|||||||||
RETAINED
EARNINGS
|
|||||||||||||
Balance,
beginning of period
|
4,918
|
6,444
|
555
|
1,663
|
|||||||||
Net
income
|
8,188
|
8,742
|
25,087
|
26,057
|
|||||||||
Preferred
stock dividends
|
(6,268
|
)
|
(6,267
|
)
|
(18,804
|
)
|
(18,801
|
)
|
|||||
Balance,
end of period
|
6,838
|
8,919
|
6,838
|
8,919
|
|||||||||
TOTAL
STOCKHOLDERS' EQUITY
|
483,602
|
485,683
|
483,602
|
485,683
|
|||||||||
NB CAPITAL CORPORATION | |||||||||
STATEMENTS OF CASH FLOWS |
(Unaudited)
|
|||||||
Nine-month
periods ended
|
|||||||
September
30,
|
|||||||
(
in thousands of US dollars )
|
2005
|
2004
|
|||||
OPERATING
ACTIVITIES
|
|||||||
$
|
$
|
||||||
Net
income
|
25,087
|
26,057
|
|||||
Items
not affecting cash resources
|
|||||||
Prepaid
expenses
|
11
|
(17
|
)
|
||||
Due
from an affiliated company
|
(3,926
|
)
|
654
|
||||
Due
to the parent company
|
(3
|
)
|
(13
|
)
|
|||
Accounts
payable
|
38
|
3
|
|||||
Accrued
interest receivable on cash equivalent
|
23
|
4
|
|||||
Net
cash provided by (used in) operating activities
|
21,230
|
26,688
|
|||||
FINANCING
ACTIVITIES
|
|||||||
Dividends
|
(18,804
|
)
|
(18,801
|
)
|
|||
Net
cash provided by (used in) financing activities
|
(18,804
|
)
|
(18,801
|
)
|
|||
INVESTING
ACTIVITIES
|
|||||||
Investment
in promissory notes
|
(170,775
|
)
|
(170,613
|
)
|
|||
Repayments
of promissory notes
|
126,673
|
162,165
|
|||||
Net
cash provided by (used in) investing activities
|
(44,102
|
)
|
(8,448
|
)
|
|||
Cash
and cash equivalents, beginning of period
|
58,327
|
19,406
|
|||||
Cash
and cash equivalents, end of period
|
16,651
|
18,845
|
|||||
1) |
Incorporation
and nature of operations
|
2) |
Significant
accounting policies
|
3) |
Promissory
notes
|
Promissory
notes as of December
31, 2004
|
$
|
409,906
|
||
Acquisitions
|
170,775
|
|||
Principal
repayments
|
(126,673
|
)
|
||
Promissory
notes as of September
30, 2005
|
$
|
454,008
|
2005
|
$
|
14,251
|
2011
|
$
|
68,459
|
|||||
2006
|
$
|
86,735
|
2012
|
$
|
40,397
|
|||||
2007
|
$
|
118,090
|
2013
|
$
|
8,307
|
|||||
2008
|
$
|
26,699
|
2014
|
$
|
4,248
|
|||||
2009
|
$ |
35,909
|
2015
|
|
$
|
8,588
|
||||
2010
|
$
|
42,325
|
4) |
Transactions
with an affiliated company
|
5) |
Transactions
with the parent company
|
6) |
Stockholders'
equity
|
· |
100
shares have been authorized and issued to the
Bank.
|
· |
300,000
shares of preferred stock have been authorized and issued as
8.35%
Non-cumulative Exchangeable Preferred Stock, Series A (“Series A Preferred
Shares”), non-voting, ranked senior to the common stock and junior to
the
Adjustable Rate Cumulative Senior Preferred Shares, with a liquidation
value of $1,000 per share, redeemable at the Company's option
on or after
September 3, 2007, except upon the occurrence of certain changes
in tax
laws in the United States or in Canada, on or after September
3, 2002.
These Series A Preferred Shares are traded on the New York Stock
Exchange
in the form of Depository Shares, each Depository Share representing
a
one-fortieth interest therein.
|
· |
Each
Series A Preferred Share is exchangeable, upon the occurrence
of certain
events, for one newly issued 8.45% Non-cumulative First Preferred
Share,
Series Z, of the Bank.
|
· |
1,000
shares of preferred stock have been authorized (110 issued) as
Adjustable
Rate Cumulative Senior Preferred Shares, non-voting, ranked senior
to the
common stock and to the Series A Preferred Shares with a liquidation
value
of $3,000 per share, redeemable at the Company's option at any
time and
retractable at the holder's option on December 30, 2007 and every
ten-year
anniversary thereof.
|
(unaudited) |
Quarter
ended july 31
|
Nine
months ended July 31
|
|||||||||||||||||
2005
|
2004
|
%
Change
|
2005
|
2004
|
%
Change
|
||||||||||||||
Operating
Results
(millions
of Canadian Dollars)
|
|||||||||||||||||||
Total
revenues
|
$ |
889
|
$ |
858
|
4
|
$ |
2,772
|
$ |
2,653
|
4
|
|||||||||
Net
Income
|
207
|
167
|
24
|
648
|
533
|
22
|
|||||||||||||
Return
on common shareholders' equity
|
19.6
|
%
|
17.2
|
%
|
|
|
21.1
|
%
|
18.4
|
%
|
|||||||||
Per
Common Share
|
|||||||||||||||||||
Net
earnings - basic
|
$ |
1.20
|
$ |
0.95
|
26
|
$ |
3.76
|
$ |
2.99
|
26
|
|||||||||
Dividends
paid
|
0.44
|
0.38
|
16
|
1.28
|
1.04
|
23
|
|||||||||||||
Book
value
|
24.70
|
22.30
|
11
|
||||||||||||||||
Stock
trading range
|
|||||||||||||||||||
High
|
58.21
|
45.50
|
58.21
|
47.93
|
|||||||||||||||
Low
|
51.60
|
42.72
|
46.39
|
40.17
|
|||||||||||||||
Close
|
57.30
|
44.76
|
57.30
|
44.76
|
Financial
Position
(millions
of Canadian dollars)
|
July
31
2005
|
October
31
2004
|
||||||||
Total
assets
|
$ |
110,593
|
$ |
88,721
|
25
|
|||||
Loans
and acceptances
|
48,637
|
44,574
|
9
|
|||||||
Cash
resources and securities
|
54,991
|
38,280
|
44
|
|||||||
Other
assets
|
6,965
|
5,867
|
19
|
|||||||
Total
liabilities
|
104,116
|
82,739
|
26
|
|||||||
Deposits
|
60,993
|
53,432
|
14
|
|||||||
Other
liabilities
|
43,123
|
29,307
|
47
|
|||||||
Subordinated
debentures
|
1,409
|
1,408
|
-
|
|||||||
Non-controlling
interest
|
415
|
307
|
12
|
|||||||
Preferred
shared
|
575
|
375
|
53
|
|||||||
Common
shares
|
1,557
|
1,545
|
1
|
|||||||
Retained
earnings
|
2,521
|
2,284
|
10
|
|||||||
Capital
ratios - BIS
|
||||||||||
Tier
1
|
9.2
|
%
|
9.6
|
%
|
||||||
Total
|
12.1
|
%
|
13.0
|
%
|
||||||
Impaired
loans, net of specific and general allowances
|
(219
|
)
|
(190
|
)
|
||||||
as
a % of loans and acceptances
|
(0.5
|
)%
|
(0.4
|
)%
|
||||||
Assets
under administration/management
|
205,982
|
180,598
|
ITEM 1. |
LEGAL
PROCEEDINGS
|
ITEM 6. |
EXHIBITS
|
Exhibit No. | Description |
11 |
Computation
of Earnings Per Share
|
31.1 |
Certification
of Chairman and President pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
31.2 |
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
32.1 |
Written
Statement of Chairman and President Pursuant to Section 906 of
the
Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
1350)
|
32.2 |
Written
Statement of Chief Financial Officer Pursuant to Section 906
of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
1350)
|
NB CAPITAL CORPORATION | ||
|
|
|
Date: November 14, 2005 | By: | /s/ Serge Lacroix |
|
||
Serge
Lacroix
Chairman of the Board and
President
|
Date: November 14, 2005 | By: | /s/ Jean Dagenais |
|
||
Jean
Dagenais
Chief Financial
Officer
|