SASKATOON, March 20 /CNW/ - First Nations Bank of Canada ("First Nations
Bank") had a great year in 2007. The addition of new Aboriginal Shareholders,
another year of record earnings and expansion into new markets were all very
positive developments for the Bank.
In October First Nations Bank announced that it had closed a private
placement share offering to Aboriginal investors of 6,222,240 shares at an
issue price of $2.25 per share for gross proceeds of $14 million. The proceeds
of the private placement will be primarily used to fund the future growth of
the Bank. Of the proceeds, 19.5% were used to redeem shares owned by The
Toronto-Dominion Bank ("TD Bank"), which continues to hold a 9% interest in
the common shares. The redemption is consistent with the original plans for
First Nations Bank to be controlled by Aboriginal Shareholders. Aboriginal
Shareholders from across Canada now own 91% of the common shares of the Bank.
TD Bank Financial Group will continue to provide services to First Nations
First Nations Bank is also pleased to announce record earnings for the
fiscal year ended October 31, 2007 of $1.66 million, up 19.7% from the prior
year. Total assets grew 24.8% to $226.3 million with total loans and mortgages
increasing by 9.5% to $139.4 million. Total deposits strengthened by
$21.6 million or 16.9% to reach a new high of $149.2 million. Low loan losses
and a growing base of customers made a strong contribution to the Bank's solid
"The Bank had a very good year in terms of growth and profitability which
is a reflection of the continuing support of our customers and the commitment
of our employees to grow the business," said Arden Buskell, President and
Chief Operating Officer. "The closing of the share offering is very
significant as it solidified our capital base while positioning the Bank to
grow with the Aboriginal economy."
In July First Nations Bank opened its fifth full service branch in Canada
in Whitehorse, Yukon and will be opening a second branch in Saskatchewan at
Meadow Lake in the summer of 2008.
"The Bank continues to meet the objectives we set when it was created in
1996. The achievements in 2007 are a credit to our dedicated management and
staff. These accomplishments establish a good base for further development and
expansion," said Keith Martell, Executive Chair. "Our shareholders should be
proud of these accomplishments and should look forward to the continued
success of the Bank."
About First Nations Bank of Canada:
First Nations Bank of Canada is a domestic, federally chartered bank with
branches in Saskatchewan, Yukon, Manitoba, Ontario, and Quebec and executive
offices in Saskatoon, Saskatchewan. It offers a full range of personal and
business banking services with a primary focus on Aboriginal customers.
First Nations Bank was founded in 1996 as a strategic alliance of the
Saskatchewan Indian Equity Foundation Inc., the Federation of Saskatchewan
Indians, Inc. and The Toronto-Dominion Bank. Services are available through
its network of branches and community banking centres and through all TD
Canada Trust branch and electronic banking channels.
The Bank was established to service the Aboriginal market. The Bank's
vision is to be a national leading Aboriginal financial institution recognized
and respected in the Economy.
First Nations Bank is the first Canadian bank with majority Aboriginal
share ownership. In addition to the founding shareholders, Aboriginal groups
from the Yukon, Northwest Territories, Nunavut, Saskatchewan, Manitoba and
Quebec have become shareholders of First Nations Bank. For more information
For further information:
For further information: Keith Martell, Executive Chair of the Board,
Phone: (306) 955-6734, E-Mail: firstname.lastname@example.org; Arden Buskell,
President and Chief Operating Officer, Phone: (306) 955-6736, E-Mail: