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

Jul 31, 2012, 05:00 ET from Bank Leumi USA

 

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
diana.sandru@leumiusa.com | 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.

 

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