Citi Fun 29 Regulatory News (AD49)

6 Nov 2007 07:44

Leumi International Investments NV06 November 2007 BANK LEUMI LE-ISRAEL B.M. - (GUARANTOR - GUARANTEED EURO MEDIUM TERM NOTE PROGRAMME OF LEUMI INTERNATIONAL INVESTMENTS N.V.) Translation of Immediate Report Bank Leumi le-Israel B.M. Registration No. 520018078 Securities of the Corporation are listed on The Tel Aviv Stock Exchange Abbreviated Name: Leumi Leumi House, 34 Yehuda Halevi Street, Tel Aviv 65546 Phone: + 972 3 5148111, + 972 3 5149419; Facsimile: + 972 3 5149732 Electronic Mail: jennifer@bll.co.il 6 November 2007 To: Israel Securities Authority (www.isa.gov.il) The Tel Aviv Stock Exchange (www.tase.co.il) Immediate Report regarding an Event or Matter falling outside the Ordinary Course of Business of the Corporation Pursuant to Regulation 36(a) of the Securities (Periodic and Immediate Reports) Regulations, 1970 Nature of the Event: Financial Statements - Bank Leumi USA Bank Leumi le-Israel B.M. announces that a subsidiary of the Bank, Bank LeumiUSA approved its financial statements as at 30 September 2007. See attached Notice in this regard Date and time at which the corporation first became aware of the event ormatter: 5 November 2007 at 16:00.________________________________________________________________ Name of Electronic Reporter: Jennifer Janes, Position: Executive Vice President,Group SecretaryPOB 2 Tel Aviv 61000, Phone: + 972 3 5149419, Facsimile: + 972 3 5149732,Electronic Mail: jennifer@bll.co.il Press Release Contact: Bank Leumi USA Leslie B. Kahle 212-626-1182 leslie.kahle@leumiusa.com BANK LEUMI USA REPORTS THIRD QUARTER 2007 RESULTS 3Q Net Income $7.7 Million YTD Net Income $21.6 Million Total Assets $5.7 Billion ROE YTD 7.26% New York, NY, - Bank Leumi USA (BLUSA) reports results for the third quarter of2007 and for the nine months ended September 30, 2007. Net income for the quarter was $7.7 million compared with $5.9 million(excluding the effects of restatement adjustments) for the third quarter of2006. The increase in net income was primarily due to growth in the loanportfolio combined with increased revenues from private banking. Net income forthe nine months ended September 30, 2007 was $21.6 million compared with $16.0million (excluding the effects of restatement adjustments) for the same periodlast year.(1) Total assets of $5.7 billion at September 30, 2007 are slightly less than totalassets at December 31, 2006. "We are pleased with our third quarter and nine months financial results.Despite the challenges we continue to face in a very competitive market, we haveseen an increase of 35% in net income (excluding the effects of restatementadjustments) for the period ended September 30, 2007. We have maintained astrong balance sheet with high quality loans and investments. We believe thatthe current interest rate environment, coupled with the addition of key businessdevelopers and improvements to our technology infrastructure will continue topositively impact our performance during the remainder of the year," stated Mr.Uzi Rosen, Chief Executive Officer of Bank Leumi USA. Net Interest Income Net interest income for the nine months ended September 30, 2007 increased $10.4million to $80.2 million compared to the same period of 2006. This is primarilyattributable to growth in the loan portfolio and widened interest rate spreads. Non-Interest Income Non-interest income totaled $36.2 million for the first nine months of 2007.This represents an increase of $2.2 million from the same period last year andwas primarily due to an increase in fee income from private banking activities,partially offset by the revaluation adjustment on trading derivatives andcertain Certificates of Deposit (CD) elected under Statement of FinancialAccounting Standard ("SFAS") No. 159, "The Fair Value Option for FinancialAssets and Financial Liabilities." Non-Interest Expense Non-interest expense totaled $82.6 million through September 30, 2007, anincrease of $8 million or 10.8% compared to the same period last year. Thisincrease is primarily due to higher compensation expense and technology costssupporting increased business activity. Loans and Allowance for Loan Losses The loan portfolio of $3.43 billion at September 30, 2007 was higher than theyear end 2006 loan portfolio of $3.06 billion. The Allowance for Loan Losses was $61.3 million as of September 30, 2007. Thisrepresents a ratio of 1.79% of total loans and is more than 3 times the level ofnon-performing loans. Equity and Capital Adequacy Shareholders' Equity was $453 million as of September 30, 2007, compared to $416million as of year end 2006. This change is due to nine months income of $21.6million, an adjustment to opening retained earnings at January 1, 2007 of $5.9million, net of tax, related to adoption of SFAS No. 159, and the reversal ofunrealized losses on available for sale securities, net of tax, for $9.5million. The bank's tier 1 risk-based, total risk-based and leverage capital ratios were8.34%, 11.17% and 7.49%, respectively, as of September 30, 2007, and remain inexcess of regulatory requirements. Bank Leumi USA is an FDIC-insured commercial bank that provides financialservices to middle-to upper-middle market firms, international businesses, andnot-for-profit organizations through offices in New York, Illinois, Californiaand Florida. BLUSA offers U.S. and international private banking services aswell as a full range of securities and insurance products through its brokeragesubsidiary, Leumi Investment Services Inc. BLUSA is the largest subsidiary ofthe Leumi Group, founded in 1902. (1)In December 2006, BLUSA adjusted its financial results for 2006 primarily tocorrect an error related to the "short cut" method of hedge accounting underSFAS No. 133 for certain CDs and related interest rate swap transactions enteredinto during the period 2002 through 2005. The adjusted net income for the thirdquarter of 2006 and nine months period ended September 30, 2006 was $13.4million and $18.6 million respectively. Bank Leumi USA and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (Dollars in Thousands) as of September 30, 2007 as of December 31, 2006Assets Cash and Due from Banks $ 58,209 $ 83,782 Federal Funds Sold 25,000 25,000 Time Deposits with Banks 200 25,500 Securities 1,927,828 2,287,466 Loans 3,428,676 3,063,162Less: Allowance for LoanLosses 61,346 63,123 -------- --------Loans - Net 3,367,330 3,000,039 Bank Premises andEquipment 19,218 21,744 Other Assets 311,095 307,151 --------- --------- Total Assets $ 5,708,880 $ 5,750,682 =========== =========== Liabilities Non-interest BearingDeposits $ 400,690 $ 493,384Interest-Bearing Deposits 4,349,310 4,293,479 Other Borrowings 262,875 310,000Other Liabilities 142,594 137,335Long-Term 100,000 100,000 Shareholders' Equity 453,411 416,484 --------- --------- Total Liabilities and Shareholders' Equity $5,708,880 $5,750,682 ============ ============ Bank Leumi USA and Subsidiaries Consolidated Statements of Income (Unaudited) (Dollars in Thousands) For the nine months period ended September 30, 2007 September 30, 2006 (1) Interest Income $ 248,501 $ 225,561 Interest Expense 168,273 155,720 ------- -------- Net Interest Income 80,228 69,841 Non-Interest Income 36,197 33,975 Allowance for loan losses 1,000 2,000 Non-Interest Expense 82,611 74,562 ------ ------ Income before Income Taxes 32,814 27,254 Income Tax Expense 11,248 8,616 ------ ----- Net Income $ 21,566 $ 18,638 ======== ======== (1)In December 2006, BLUSA adjusted its financial results for 2006 primarily tocorrect an error related to the "short cut" method of hedge accounting underSFAS No. 133 for certain CDs and related interest rate swap transactions enteredinto during the period 2002 through 2005. The adjusted net income for the thirdquarter of 2006 and nine months period ended September 30, 2006 was $13.4million and $18.6 million respectively. This information is provided by RNS The company news service from the London Stock Exchange