SASKATOON, March 21, 2013 /CNW/ - First Nations Bank of Canada (the
"Bank") - On March 12, 2013, the Board of Directors of First Nations
Bank of Canada approved the annual management proxy circular and
announced that the Annual Shareholders Meeting will be held on Thursday
April 11, 2013, in Yellowknife, Northwest Territories. At the Annual
Shareholders Meeting the results of the fiscal year ended October 31,
2012 will be presented, the nominees for the Board of Directors and the
appointment of Auditors will be put forward for approval by the
Shareholders of the Bank.
Fiscal 2012 was a significant year in the development of the Bank with
the transition to a new bank operating system and the required changes
to internal processes. Despite this internal focus, the Bank continued
to support its customers and expand its business in the regions already
served by existing branches. This transition to a fully independent,
Aboriginal controlled Bank slowed asset growth from that experienced in
past years, but prepares the Bank for the next stage of development and
"I want to personally thank our customers for their support during
transition," said Keith Martell, CEO of the Bank. "Any changes to a
bank system can be difficult, but our loyal customers worked with our
dedicated staff to make the conversion a success."
Operating results for the fiscal year ended October 31, 2012 recorded a
net income of $1.24 million compared to a net income of $1.27 million
in 2011. The 2012 income was positively impacted by a net reversal of
credit losses and an increase in net interest income, primarily due to
loan growth of $11.0 million. These increases to income were offset by
an increase in expenses over fiscal 2011. Expense increases were
primarily related to the systems transition and the additional
employees to manage the new operating system.
Total assets at the year ended October 31, 2012, decreased $26.2 million
from the prior year end. This decrease was due to a $27.4 million
decrease in the total customer deposits at October 31, 2012, as a
result of the timing of cash transactions by some large customers. The
total number of customer accounts, both commercial and personal,
continued to grow in fiscal 2012. The decrease in deposits, as well as
the $11.0 million growth in loans and a $2.8 million capital investment
in bank operating systems, resulted in a $41.6 million decrease in cash
balances at October 31, 2012. Despite this decrease the Bank remains in
a strong liquid position.
As of October 31, 2012, the Bank had regulatory capital ratios in excess
of 'well capitalized' regulatory benchmarks.
"Fiscal 2012 was a time of transition for the First Nations Bank," said
Keith Martell. "When the Bank was formed in 1996, we had a long term
plan to grow and develop as a truly independent, successful, Aboriginal
owned and controlled Bank. For many years we operated and grew
successfully, while using the operating systems of TD Bank, our
strategic partner in establishing the Bank. This year was the point
when we took the last step toward full independence, through the
development and implementation of our own operating system. This
prepares us to more fully meet the financial services needs of the
Aboriginal Market in Canada during the next stage of our growth and
expansion" he added.
According to Martell, the Bank's experienced lenders, who remained
focused throughout the systems transition, as well as supportive
shareholders and loyal customers are the reasons for the financially
successful fiscal year. Despite spending a significant amount of time
and effort on the systems transition, the Bank accomplished positive
financial results and continued to grow loan and mortgage assets.
"Our team looks forward to fiscal 2013, when we can put our new systems
to work and continue to focus on growth and expansion. Our Annual
Shareholders Meeting in Yellowknife will include an announcement on our
planned expansion into Northwest Territories, as well as the
development of small market branches in Nunavut," said Martell.
"First Nations Bank is focused on the success and development of the
Aboriginal economy and remains confident in the long term potential of
the Aboriginal communities we serve."
More information about the First Nations Bank of Canada operations and
performance during 2012, including financial statements, can be found
on the website at www.fnbc.ca.
About First Nations Bank of Canada
First Nations Bank of Canada is a domestic, federally chartered bank
with branches in Saskatchewan, Ontario, Manitoba, Yukon, Nunavut and
Quebec, and executive offices in Saskatoon, Saskatchewan. The Bank
offers a full range of personal and business banking services with a
primary focus on Aboriginal customers. First Nations Bank was founded
The Bank's Aboriginal shareholders include groups from Nunavut,
Northwest Territories, Yukon, Saskatchewan, Manitoba and Quebec who
together own 80.1% of the Bank. Our Aboriginal shareholders are
progressive like-minded organizations, culturally and linguistically
diverse and are all respected leaders in their regional economies.
With the support of its Aboriginal shareholders, the Bank has
demonstrated consistent growth and profitability. Bank services are
available through electronic banking and a network of seven full
service branches (three on reserve) and two community banking centres.
The Bank is a member of the Canada Deposit Insurance Corporation, the
Canadian Payments Association and is an approved lender with Canada
Mortgage and Housing Corporation.
FORWARD LOOKING STATEMENTS
This release contains "forward-looking statements" related to First
Nations Bank of Canada's future events. These statements include, but
are not limited to, our plans, objectives, expectations, and intentions
and are not statements of historical fact. When used in this report,
the word "expects," "believes," "anticipates," "could," "may," "will,"
"should," "plan," "predicts," "projections," "continue" and other
similar expressions constitute forward-looking statements, as do any
other statements that expressly or implicitly predict future events,
results or performance. Certain risks and uncertainties could cause
actual results to differ materially from those projected. These
forward-looking statements speak only as of the date of this release.
First Nations Bank of Canada undertakes no obligation to publish
revised forward-looking statements to reflect the occurrence of
unanticipated events or circumstances after the date hereof. Readers
should carefully review all disclosures filed by First Nations Bank of
Canada's from time to time.
SOURCE: First Nations Bank of Canada
For further information:
Keith Martell, Chair of the Board and Chief Executive Officer, First Nations Bank of Canada (306) 955-6734
Arden Buskell, President & Chief Operating Officer, First Nations Bank of Canada (306) 955-6736