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 May 14, 2008
|
Common
Stock
|
|
par
value $0.01 per share
|
100
|
|
Page
|
|||
Part
I. FINANCIAL INFORMATION:
|
||||
Item
1(a). Financial Statements
|
||||
Balance
Sheets –
As
of March 31, 2008 and December 31, 2007
|
1
|
|||
Statements
of Income –
For
the three-month periods ended March 31, 2008 and 2007
|
2
|
|||
Statements
of Stockholders’ Equity –
For
the three-month periods ended March 31, 2008 and 2007
|
3
|
|||
Statements
of Cash Flows –
For
the three-month periods ended March 31, 2008 and 2007
|
4
|
|||
Notes
to the financial statements
|
5
|
|||
Item
1(b). National Bank of Canada Summarized Financial
Information
|
8
|
|||
Item
2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
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9
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|||
Item
3. Quantitative and Qualitative Disclosures About Market
Risk
|
10
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|||
Item
4. Controls and Procedures
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11
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|||
Part
II. OTHER INFORMATION :
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||||
Item
5. Other Information
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11
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|||
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||||
Item
6. Exhibits
|
12
|
March
31,
|
December
31,
|
||||||
2008
|
2007
|
||||||
(
in thousands of U.S. dollars )
|
(Unaudited)
|
|
|||||
$
|
$
|
||||||
Assets
|
|||||||
Current
assets
|
|||||||
Cash
and cash equivalents
|
6,779
|
16,887
|
|||||
Due
from an affiliated company
|
11,725
|
11,630
|
|||||
Promissory
notes - current portion (Note 3)
|
267,685
|
297,724
|
|||||
Prepaid
expenses
|
37
|
36
|
|||||
Accrued
interest on cash equivalents
|
1
|
5
|
|||||
Total
current assets
|
286,227
|
326,282
|
|||||
Promissory
notes (Note 3)
|
193,110
|
152,356
|
|||||
Total
assets
|
479,337
|
478,638
|
|||||
Liabilities
|
|||||||
Current
liabilities
|
|||||||
Due
to the parent company
|
398
|
419
|
|||||
Accounts
payable
|
82
|
71
|
|||||
Total
liabilities
|
480
|
490
|
|||||
Stockholders'
equity
|
|||||||
Capital
stock and Additional paid-in capital
|
476,764
|
476,764
|
|||||
Retained
earnings
|
2,093
|
1,384
|
|||||
Total
stockholders' equity
|
478,857
|
478,148
|
|||||
Total
liabilities and stockholders' equity
|
479,337
|
478,638
|
Three-month
periods ended
|
|||||||
March
31,
|
|||||||
(
in thousands of U.S. dollars, except per share
amounts)
|
2008
|
2007
|
|||||
$
|
$
|
||||||
Revenue
|
|||||||
Interest
income
|
|||||||
Cash
and cash equivalents
|
409
|
942
|
|||||
Promissory
notes
|
7,039
|
6,973
|
|||||
|
7,448
|
7,915
|
|||||
Expenses
|
|||||||
Servicing
and advisory fees
|
398
|
364
|
|||||
Legal
and other professional fees
|
72
|
61
|
|||||
|
470
|
425
|
|||||
Net
income
|
6,978
|
7,490
|
|||||
Preferred
stock dividends
|
6,269
|
6,270
|
|||||
Income
available to common stockholders
|
709
|
1,220
|
|||||
Weighted-average
number of common shares outstanding
|
100
|
100
|
|||||
Earnings
per common share - basic and diluted
|
7
|
12
|
Three-month
periods ended
|
|||||||
March
31,
|
|||||||
(
in thousands of U.S. dollars )
|
2008
|
2007
|
|||||
$ |
$
|
||||||
Preferred
stock
|
|||||||
Balance,
beginning and end of period
|
3
|
3
|
|||||
|
|||||||
Common
stock and paid-in capital
|
|||||||
Balance,
beginning and end of period
|
476,761
|
476,761
|
|||||
|
|||||||
Retained
earnings
|
|||||||
Balance,
beginning of period
|
1,384
|
2,444
|
|||||
Net
income
|
6,978
|
7,490
|
|||||
Preferred
stock dividends
|
(6,269
|
)
|
(6,270
|
)
|
|||
Balance,
end of period
|
2,093
|
3,664
|
|||||
Total
stockholders' equity
|
478,857
|
480,428
|
Three-month
periods ended
|
|||||||
March
31,
|
|||||||
(
in thousands of U.S. dollars )
|
2008
|
2007
|
|||||
$ |
$
|
||||||
Operating
activities
|
|||||||
Net
income
|
6,978
|
7,490
|
|||||
Adjustments
for :
|
|||||||
Prepaid
expenses
|
(1
|
)
|
-
|
||||
Due
from an affiliated company
|
(95
|
)
|
(8,370
|
)
|
|||
Due
to the parent company
|
(21
|
)
|
(1
|
)
|
|||
Accounts
payable
|
11
|
10
|
|||||
Accrued
interest receivable on cash equivalents
|
4
|
21
|
|||||
|
6,876
|
(850
|
)
|
||||
Financing
activities
|
|||||||
Dividends
|
(6,269
|
)
|
(6,270
|
)
|
|||
|
(6,269
|
)
|
(6,270
|
)
|
|||
Investing
activities
|
|||||||
Investment
in promissory notes
|
(91,855
|
)
|
(118,363
|
)
|
|||
Repayments
of promissory notes
|
81,140
|
99,619
|
|||||
|
(10,715
|
)
|
(18,744
|
)
|
|||
Decrease
in cash and cash equivalents
|
(10,108
|
)
|
(25,864
|
)
|
|||
Cash
and cash equivalents, beginning of period
|
16,887
|
90,212
|
|||||
Cash
and cash equivalents, end of period
|
6,779
|
64,348
|
Promissory
notes as of December 31, 2007
|
|
$450,080
|
||
Acquisitions
|
91,855
|
|||
Principal
repayments
|
(81,140
|
)
|
||
Promissory
notes as of March 31, 2008
|
$460,795
|
2008
|
|
$232,644
|
2013
|
|
$5,627
|
|||||||
2009
|
|
$139,142
|
2014
|
|
$2,722
|
|||||||
2010
|
|
$20,689
|
2015
|
|
$8,521
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|||||||
|
$33,530
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|||||||||||
2012
|
|
$17,920
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· |
100
shares have been authorized and issued to the
Bank.
|
· |
300,000
shares of preferred stock have been authorized and issued as 8.35%
Noncumulative 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% Noncumulative 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.
|
Highlights
|
||||||||||
Quarter
ended January 31
(unaudited)
|
% | |||||||||
2008
|
2007
|
Change
|
||||||||
Operating
results
|
||||||||||
(millions
of Canadian dollars)
|
||||||||||
Total
revenues
|
|
$929
|
|
$989
|
(6
|
)
|
||||
Net
income
|
255
|
240
|
6
|
|||||||
Return
on common shareholders' equity
|
22.9
|
%
|
20.7
|
%
|
||||||
Per
common share
|
||||||||||
Earnings
- basic
|
|
$1.58
|
|
$1.45
|
9
|
|||||
Earnings
- diluted
|
1.58
|
1.43
|
10
|
|||||||
Dividends
declared
|
0.62
|
0.54
|
15
|
|||||||
Book
value
|
28.13
|
28.34
|
(1
|
)
|
||||||
Stock
trading range
|
||||||||||
High
|
54.25
|
66.59
|
||||||||
Low
|
45.15
|
61.36
|
||||||||
Close
|
50.53
|
64.29
|
Financial
position
|
January
31
|
October
31
|
||||||||
(millions
of Canadian dollars)
|
2008
|
2007
|
||||||||
Cash resources and securities |
56,262
|
48,564
|
16
|
|||||||
Loans
and acceptances
|
52,095
|
52,045
|
0
|
|||||||
Other
assets
|
11,767
|
12,476
|
(6
|
)
|
||||||
Total
assets
|
|
$120,124
|
|
$113,085
|
6
|
|||||
Deposits
|
73,122
|
70,798
|
3
|
|||||||
Other
liabilities
|
38,833
|
35,085
|
11 | |||||||
Subordinated
debentures
|
1,656
|
1,605
|
3
|
|||||||
Non-controlling
interest
|
1,664
|
960
|
73 | |||||||
Preferres
shares
|
400
|
400
|
- | |||||||
Common
shares
|
1,590
|
1,575
|
1
|
|||||||
Contributed
surplus
|
33
|
32
|
3
|
|||||||
Retained
earnings
|
2,941
|
2,793
|
5
|
|||||||
Accumulated
other comprehensive income (loss)
|
(115
|
)
|
(163
|
)
|
(29
|
) | ||||
Total
liabilities and shareholder's equity
|
|
$120,124
|
|
$113,085
|
6
|
|||||
Capital
ratios - BIS under Basel II
|
||||||||||
Tier
1
|
9.3
|
%
|
||||||||
Total
|
12.9
|
%
|
||||||||
Capital
ratios - BIS under Basel I
|
||||||||||
Tier
1
|
9.8
|
%
|
9.0
|
%
|
||||||
Total
|
13.5
|
%
|
12.4
|
%
|
||||||
Impaired
loans, net of specific and general allowances
|
(168
|
)
|
(179
|
)
|
||||||
as
a % of loans and acceptances
|
(0.3)
|
%
|
(0.3)
|
%
|
||||||
Assets
under administration/management
|
233,835
|
239,028
|
ITEM 2. |
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
|
Exhibit
No.
|
Description
|
|
11
|
Computation
of Earnings Per Share
|
|
14
|
Code
of Business Conduct and Ethics
|
|
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
|
Certification
of Chairman and President Pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 (18 U.S.C. Section 1350)
|
|
32.2
|
Certification
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
: May 14, 2008
|
/s/
Donna Goral
|
|
Donna
Goral
|
||
Chairman
of the Board and President
|
||
Date
: May 14, 2008
|
/s/
Jean Dagenais
|
|
Jean
Dagenais
|
||
Chief
Financial Officer
|