UBS Second Quarter Pre-Tax Profit of CHF 2,614 Million

July 28, 2010 By Leave a Comment

ZURICH & BASEL, Switzerland–(Business Wire)–
Regulatory News:

UBS: (NYSE:UBS)(SWX:UBSN):

A good performance in volatile markets

* Net profit attributable to UBS shareholders of CHF 2,005 million
* Diluted EPS of CHF 0.52
* Annualized return on equity of 19.5% in the first half of 2010

CHF 1.3 billion pre-tax profit from the Investment Bank, up 10% on first quarter
2010

* Equities revenues of CHF 1,365 million, up 9% on the first quarter
* Foreign exchange revenues up significantly on the first quarter
* Fixed income, currencies and commodities generated CHF 1,703 million of
revenues

Wealth Management & Swiss Bank profits resilient and in line with the first
quarter

* Pre-tax profit of CHF 1,131 million
* Margin improved in Wealth Management with annualized gross margin up 2 bps to
95 bps

Clear improvements in Net New Money

* Third-party inflows of CHF 10.9 billion and overall net new money inflows of
CHF 3.4 billion in Global Asset Management
* Net new money outflows of CHF 5.5 billion for Wealth Management & Swiss Bank
and CHF 2.6 billion for Wealth Management Americas, compared with outflows of
CHF 8.2 billion and CHF 7.2 billion in the first quarter respectively

Strong capital ratios; focus on risks and costs

* Quarter-end BIS tier 1 capital ratio was 16.4% compared with 16.0% on 31 March
2010; core tier 1 capital ratio increased to 13.0% from 12.5% over the same time
frame
* Group cost / income ratio of 71.2% in the second quarter, underlying cost base
remained broadly stable
* Risk-weighted assets down by CHF 4 billion to CHF 205 billion on 30 June 2010;
FINMA leverage ratio unchanged at 4.1% compared with first quarter 2010

Following Swiss parliamentary approval of the US-Swiss Government Agreement, UBS
expects to achieve a comprehensive resolution of all outstanding matters with
the US government related to the US cross-border business by October 2010.

Commenting on UBS’s second quarter 2010 results, Group CEO Oswald J. Grübel
said: “This was a good result in volatile market conditions, and demonstrates
the progress we are making as we move towards our mid-term targets. Our
Investment Bank has improved its competitive positioning, and profits in Wealth
Management & Swiss Bank are stable. Our portfolio of businesses is increasingly
able to generate competitive returns in a variety of market conditions, and our
risk management framework has proven robust. I remain confident in our future
and I firmly believe that we have the right strategy in place.”

Second quarter 2010 net profit of CHF 2,005 million

UBS reports a second quarter net profit attributable to UBS shareholders of CHF
2,005 million compared with CHF 2,202 million in first quarter 2010.

Wealth Management & Swiss Bank’s pre-tax profit of CHF 1,131 million in the
second quarter was broadly stable compared with CHF 1,161 million in the first
quarter. Wealth Management’s pre-tax profit of CHF 658 million was 5% lower than
in the first quarter, reflecting broadly stable revenues and slightly higher
operating expenses. The gross margin increased to 95 basis points per annum, up
2 basis points from the first quarter. The invested asset base declined 2%
quarter-on-quarter in average terms, mostly reflecting the effects of lower
market values. Expenses increased 2%, partly due to the UK Bank Payroll Tax as
well as the full effect of annual salary increases. Retail & Corporate’s pre-tax
result was CHF 473 million, up 2% on the first quarter. Increased credit-related
fee income more than offset lower brokerage and sales commissions. Costs
continued to be tightly managed and the cost / income ratio for Retail &
Corporate remained stable at 52.1%.

Wealth Management Americas recorded a pre-tax loss of CHF 67 million compared
with a pre-tax profit of CHF 15 million in the first quarter. However, excluding
restructuring charges of CHF 146 million principally related to a
rationalization of the property portfolio, the pre-tax profit improved to CHF 79
million compared with CHF 36 million in the first quarter, primarily due to
higher fee income and transactional revenues.

Global Asset Management’s pre-tax profit was CHF 117 million in the second
quarter compared with CHF 137 million in the first quarter. Revenues were stable
with higher management fees offsetting declining performance fees in a volatile
market. Costs increased 5%, in part due to higher charges from the amortization
of compensation awards related to the prior year.

The Investment Bank recorded a pre-tax profit of CHF 1,314 million compared with
CHF 1,190 million in the first quarter. Equities revenues were up 9% compared
with the first quarter at CHF 1,365 million, demonstrating the strength of our
largest flow business in unstable markets. Revenues in the fixed income,
currencies and commodities trading business declined to CHF 1,703 million due to
defensive positioning of the books in the quarter and lower client activity,
with declines in credit and emerging markets offsetting gains in our foreign
exchange business, which benefited from higher market volatility and stronger
client flows. Revenues for the investment banking department decreased to CHF
478 million in the context of a contraction of the global investment banking fee
pool compared with the first quarter. The Investment Bank`s revenues include a
CHF 595 million own credit gain on financial liabilities designated at fair
value. Costs were CHF 2,788 million, up 3% on the previous quarter, but included
a CHF 228 million charge relating to the UK Bank Payroll Tax. Excluding this
tax, costs fell on reduced accruals for variable compensation.

Treasury activities and other corporate items generated a pre-tax profit of CHF
119 million in the second quarter compared with CHF 306 million in the first
quarter.

Net profit attributable to minority interests of CHF 298 million includes the
recognition of a dividend obligation for preferred securities in second quarter
2010, compared with CHF 6 million in first quarter 2010.

Second quarter 2010 results include a tax charge of CHF 311 million compared
with CHF 603 million in the previous quarter.

Business division performance: 2Q10 vs 1Q10

Reporting by business division
CHF million Total operating income Total operating expenses Performance before tax from
continuing operations
For the quarter ended 30.6.10 31.3.10 % change 30.6.10 31.3.10 % change 30.6.10 31.3.10 % change
Wealth Management 1,891 1,904 (1) 1,232 1,208 2 658 696 (5)
Retail & Corporate 995 978 2 522 512 2 473 465 2
Wealth Management & Swiss Bank 2,886 2,882 0 1,754 1,720 2 1,131 1,161 (3)
Wealth Management Americas 1,485 1,362 9 1,552 1,347 15 (67) 15
Global Asset Management 522 521 0 405 385 5 117 137 (15)
Investment Bank 4,101 3,889 5 2,788 2,699 3 1,314 1,190 10
Treasury activities and other corporate items 191 356 (46) 72 49 47 119 306 (61)
UBS 9,185 9,010 2 6,571 6,200 6 2,614 2,810 (7)

Net new money and invested assets

Wealth Management – Net new money outflows reduced further to CHF 5.2 billion in
second quarter 2010 from CHF 8.0 billion in the prior quarter, with continued
net inflows in the Asia Pacific region, from ultra high net worth clients and in
certain European locations. Overall, net new money in Europe remained slightly
negative but net outflows decreased again compared with the prior quarter.

Retail & Corporate – Net new money outflows were CHF 0.3 billion in second
quarter 2010 compared with CHF 0.2 billion in first quarter 2010.

Wealth Management Americas – Net new money outflows were CHF 2.6 billion in
second quarter 2010 compared with CHF 7.2 billion in first quarter 2010.
Including interest and dividends, as is consistent with US market practice, the
division recorded net new money inflows of CHF 2.0 billion. For the second
quarter in succession, net new money was generated by financial advisors
employed with UBS for more than one year.

Global Asset Management – In the second quarter, the business division recorded
positive net new money of CHF 3.4 billion compared with net outflows of CHF 2.6
billion in the prior quarter. Net inflows from third parties of CHF 10.9 billion
were partially offset by net outflows of CHF 7.5 billion from clients of UBS’s
wealth management businesses. Excluding money market flows, net new money
inflows were CHF 6.2 billion compared with net outflows of CHF 1.6 billion in
first quarter 2010.

Invested assets were CHF 2,180 billion on 30 June 2010 compared with CHF 2,267
billion on 31 March 2010. This decrease was mainly due to negative market
movements. Of the invested assets, CHF 917 billion were attributable to Wealth
Management & Swiss Bank (CHF 786 billion thereof attributable to Wealth
Management and CHF 131 billion attributable to Retail & Corporate); CHF 693
billion were attributable to Wealth Management Americas; and CHF 569 billion
were attributable to Global Asset Management.

Capital base and balance sheet

UBS’s risk management framework has proven to be robust in testing market
conditions. In light of these conditions, UBS adopted a more cautious approach
to risk-taking during the quarter. In the Investment Bank, the average trading
risk decreased and the business division achieved further significant reductions
in its residual risk positions.

Risk-weighted assets, at CHF 205 billion at the end of the second quarter, were
down slightly as UBS continued to reduce the overall risk profile of the Group.
While the balance sheet increased by 8% over the quarter, this mostly reflected
higher replacement values for derivative instruments, which are highly sensitive
to market volatility. BIS tier 1 capital ratio continued to increase and stood
at 16.4% on 30 June 2010 compared with 16.0% at the end of the prior quarter.
The FINMA leverage ratio was 4.1%, unchanged from the first quarter.

Outlook

Concerns about the sustainability of the global economic recovery may leave
markets volatile and with little direction. We believe that this could lead to
more subdued client activity levels across our businesses. In addition, we
expect that our portfolio management fee income will be lower than in the second
quarter due to the lower level of invested assets at the end of June.

We are delivering on our strategy and expect to make further progress over the
coming quarters. We are confident about our future.

UBS key figures

For the quarter ended Year-to-date
CHF million, except where indicated 30.6.10 31.3.10 30.6.09 30.6.10 30.6.09

Group results
Operating income 9,185 9,010 5,770 18,195 10,740
Operating expenses 6,571 6,200 7,093 12,772 13,621
Operating profit before tax (from continuing operations) 2,614 2,810 (1,323) 5,424 (2,881)
Net profit attributable to UBS shareholders 2,005 2,202 (1,402) 4,207 (3,376)
Diluted earnings per share (CHF)1 0.52 0.58 (0.39) 1.10 (0.96)

Key performance indicators, balance sheet and capital management2
Performance
Return on equity (RoE) (%) 19.5 (21.0)
Return on risk-weighted assets, gross (%) 17.5 8.9
Return on assets, gross (%) 2.6 1.3
Growth
Net profit growth (%)3 (8.9) 78.9 N/A N/A N/A
Net new money (CHF billion)4 (4.7) (18.0) (39.5) (22.7) (54.4)
Efficiency
Cost / income ratio (%) 71.2 69.7 115.2 70.5 111.1

As of
CHF million, except where indicated 30.6.10 31.3.10 31.12.09

Capital strength
BIS tier 1 ratio (%)5 16.4 16.0 15.4
FINMA leverage ratio (%)5 4.12 4.12 3.93
Balance sheet and capital management
Total assets 1,458,223 1,356,427 1,340,538
Equity attributable to UBS shareholders 46,017 42,800 41,013
BIS total ratio (%)5 20.4 20.0 19.8
BIS risk-weighted assets5 204,848 209,138 206,525
BIS tier 1 capital5 33,685 33,404 31,798

Additional information
Invested assets (CHF billion) 2,180 2,267 2,233
Personnel (full-time equivalents) 63,876 64,293 65,233
Market capitalization6 55,393 65,660 57,108
1 Refer to “Note 8 Earnings per share (EPS) and shares outstanding” in the “Financial information” section of the second quarter 2010 report.
2 For the definitions of UBS’s key performance indicators refer to the “Measurement and analysis of performance” section on page 33 of UBS’s Annual Report 2009. 3 Not meaningful if either the current period or the comparison period is a loss period. 4 Excludes interest and dividend income. 5 Refer to the “Capital management” section of the second quarter 2010 report. 6 Refer to the appendix “UBS registered shares” of the second quarter 2010 report.

Income statement
For the quarter ended % change from Year-to-date
CHF million, except per share data 30.6.10 31.3.10 30.6.09 1Q10 2Q09 30.6.10 30.6.09

Continuing operations
Interest income 4,864 4,798 6,035 1 (19) 9,661 13,680
Interest expense (3,771) (2,980) (4,892) 27 (23) (6,751) (10,638)
Net interest income 1,093 1,818 1,143 (40) (4) 2,911 3,042
Credit loss (expense) / recovery (48) 116 (388) (88) 68 (1,523)
Net interest income after credit loss expense 1,045 1,934 755 (46) 38 2,979 1,519
Net fee and commission income 4,366 4,372 4,502 0 (3) 8,738 8,744
Net trading income 3,450 2,368 220 46 5,818 (410)
Other income 324 337 292 (4) 11 660 887
Total operating income 9,185 9,010 5,770 2 59 18,195 10,740
Personnel expenses 4,645 4,521 4,578 3 1 9,166 8,542
General and administrative expenses 1,638 1,419 1,699 15 (4) 3,057 3,334
Depreciation of property and equipment 257 234 284 10 (10) 491 537
Impairment of goodwill 0 0 492 (100) 0 1,123
Amortization of intangible assets 31 27 39 15 (21) 58 84
Total operating expenses 6,571 6,200 7,093 6 (7) 12,772 13,621
Operating profit from continuing operations before tax 2,614 2,810 (1,323) (7) 5,424 (2,881)
Tax expense 311 603 (208) (48) 914 86
Net profit from continuing operations 2,303 2,207 (1,115) 4 4,509 (2,967)

Discontinued operations
Profit from discontinued operations before tax 0 2 7 (100) (100) 2 17
Tax expense 0 0 0 0 0
Net profit from discontinued operations 0 2 7 (100) (100) 2 17
Net profit 2,303 2,208 (1,108) 4 4,511 (2,949)
Net profit attributable to minority interests 298 6 294 1 304 427
from continuing operations 298 5 290 3 303 418
from discontinued operations 0 1 4 (100) (100) 1 9

Net profit attributable to UBS shareholders 2,005 2,202 (1,402) (9) 4,207 (3,376)
from continuing operations 2,005 2,202 (1,405) (9) 4,207 (3,385)
from discontinued operations 0 1 3 (100) (100) 1 8

Earnings per share (CHF)
Basic earnings per share 0.53 0.58 (0.39) (9) 1.11 (0.96)
from continuing operations 0.53 0.58 (0.40) (9) 1.11 (0.96)
from discontinued operations 0.00 0.00 0.00 0.00 0.00
Diluted earnings per share 0.52 0.58 (0.39) (10) 1.10 (0.96)
from continuing operations 0.52 0.58 (0.40) (10) 1.10 (0.96)
from discontinued operations 0.00 0.00 0.00 0.00 0.00

Media release available at www.ubs.com/media
Further information on UBS’s quarterly results is available at www.ubs.com/investors:

* Second quarter 2010 financial report
* Second quarter 2010 results slide presentation
* Letter to shareholders (English, German, French and Italian)
Webcast: The results presentation, with Oswald J. Grübel, Group Chief Executive Officer, John Cryan, Group Chief Financial Officer and Caroline Stewart, Global Head of Investor Relations, will be webcast live on www.ubs.com/investors at the following times on 27 July 2010:

* 0900 CET
* 0800 BST
* 0300 US EST

Webcast playback will be available from 1400 CET on 27 July 2010.

Webcast: The results presentation, with Oswald J. Grübel, Group Chief Executive
Officer, John Cryan, Group Chief Financial Officer and Caroline Stewart, Global
Head of Investor Relations, will be webcast live on www.ubs.com/investors at the
following times on 27 July 2010:

* 0900 CET
* 0800 BST
* 0300 US EST

Webcast playback will be available from 1400 CET on 27 July 2010.

Cautionary Statement Regarding Forward-Looking Statements

This release contains statements that constitute “forward-looking statements,”
including but not limited to management`s outlook for UBS`s financial
performance and statements relating to the anticipated effect of transactions
and strategic initiatives on UBS`s business and future development. While these
forward-looking statements represent UBS`s judgments and expectations concerning
the matters described, a number of risks, uncertainties and other important
factors could cause actual developments and results to differ materially from
UBS`s expectations. Additional information about those factors is set forth in
documents furnished and filings made by UBS with the US Securities and Exchange
Commission, including UBS`s financial report for second quarter 2010 and UBS`s
Annual Report on Form 20-F for the year ended 31 December 2009. UBS is not under
any obligation to (and expressly disclaims any obligation to) update or alter
its forward-looking statements, whether as a result of new information, future
events or otherwise.

Rounding

Numbers presented throughout this release may not add up precisely to the totals
provided in the tables and text. Percentages and percent changes are calculated
based on rounded figures displayed in the tables and text and may not precisely
reflect the percentages and percent changes that would be derived based on
figures that are not rounded.

UBS AG
Media Relations
Tel. +41-44-234 85 00
www.ubs.com

Copyright Business Wire 2010

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BofA bolsters compliance after $10.7 bln error

July 11, 2010 By Leave a Comment

N.C., July 10 (Reuters) – Bank of America Corp (BAC.N) is beefing up its internal accounting controls after it incorrectly classified as much as $10.7 billion in short-term lending and repurchase deals for mortgage securities as sales, according to a letter filed on Friday with U.S. securities regulators.

The Charlotte, N.C.-based lender said the transactions — spread over a three-year period — were immaterial to Bank of America’s earnings in a May 13 letter to the U.S. Securities and Exchange Commission, which was publicly filed on Friday.

The error was first disclosed in the bank’s first quarter 2010 report, which noted the bank incorrectly accounted for some mortgage-backed securities as sales, rather than repurchase or short-term lending deals.

The first such error occurred on March 31, 2007, totaling $4.5 billion in securities. The largest misclassification was $10.7 billion in securities on Sept. 30, 2008.

“The transactions did not have a material impact on the bank’s earnings or balance sheet,” said company spokesman Jerry Dubrowski.

If the deals were properly accounted for, Bank of America’s Tier 1 capital ratio — a key metric monitored by bank regulators — would have declined 0.01 percent on Sept 30, 2008, when the largest such error existed.

Bank of America has since beefed up its internal accounting procedures to prevent the error from recurring and the bank has not found similar errors after an internal review, according to the bank’s letter to the SEC.

(Reporting by Joe Rauch, editing by Vicki Allen)

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Dyer & Berens LLP Encourages Frontier Financial Corporation Investors With Significant…

June 10, 2010 By Leave a Comment

Dyer & Berens LLP Encourages Frontier Financial Corporation Investors With
Significant Losses to Consider Their Legal Options Prior to the June 14, 2010
Shareholder Lawsuit Lead Plaintiff Deadline — FTBK

DENVER, June 9, 2010 (GLOBE NEWSWIRE) — The law firm of Dyer & Berens LLP
(www.DyerBerens.com) today encouraged investors who purchased or otherwise
acquired the common stock of Frontier Financial Corporation (“Frontier”) (Pink
Sheets:FTBK) between July 22, 2008 and March 16, 2010 (“Class Members”) to
consider their legal options in connection with the shareholder class action
recently filed by the firm.

Class Members may, among other things, seek to be appointed by the court as the
“lead plaintiff” in the class action on or before June 14, 2010. The lead
plaintiff will oversee the litigation and participate in important decisions
such as whether to accept a settlement on behalf of all Class Members. The lead
plaintiff will be selected from among applicants claiming the largest losses
from their investments in Frontier Financial during the class period. In the
alternative, Class Members may do nothing at this time and remain in the
putative class action as “absent class members” or affirmatively opt-out of the
class action and file individual lawsuits. For a free consultation regarding
your legal options, you may contact Jeffrey A. Berens, Esq. at (888) 300-3362,
(303) 861-1764, or via email at jeff@dyerberens.com.

The class action complaint charges that Frontier and certain of its officers and
executives violated the federal securities laws by issuing materially false
statements regarding the company’s business and financial results and by failing
to disclose the extent of seriously delinquent commercial real estate,
construction and land loans. Frontier also allegedly failed to adequately and
timely record losses for its impaired loans, causing its financial results and
its Tier 1 capital ratio to be materially false and misleading.

The plaintiff in the initial class action complaint is represented by Dyer &
Berens LLP, which has significant expertise in prosecuting investor class
actions. For more information about the case or Dyer & Berens LLP, please visit
our website at www.DyerBerens.com.

CONTACT: Dyer & Berens LLP
Jeffrey A. Berens
(888) 300-3362
(303) 861-1764
jeff@dyerberens.com
303 East 17th Avenue, Suite 300
Denver, CO 80203

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Herald National Bank Raises $32 Million in Capital

April 3, 2010 By Leave a Comment

NEW YORK–(Business Wire)–
Herald National Bank (NYSE AMEX: HNB), a New York-based full-service commercial
bank, announced today the completion of a private placement of 10.7 million
shares of its common stock and Series A preferred stock at $3.00 per share. The
private placement was completed in two tranches, with the first tranche of $7.5
million closing December 30, 2009 and the second tranche of $24.5 million
closing on March 31, 2010. The gross proceeds to Herald National Bank from the
offering were approximately $32 million, prior to the deduction of placement
fees and offering expenses. The offering was lead by Sandler O’Neill + Partners,
LP with participation from Freeman & Co. Securities LLC.

Key highlights of the offering include:

* Approximately $29 million in additional tier one capital, net of estimated
offering related expenses
* Chairman of the Board, Raymond A. Nielsen elected to the additional position
of Chief Executive Officer

“The capital raise enhances Herald National Bank`s capital position and
increases our pro-forma tier one capital ratio to a level considerably in excess
of that required of de novo banks, which is significantly higher than the ratio
required of older more established banks,” stated Herald National Bank
President, David S. Bagatelle. “We are pleased to have the support of our
institutional investors and look forward to working with them as we continue to
build our relationship based franchise in the New York metropolitan area,” he
concluded.

“The investors in this offering have reaffirmed their confidence in our business
plan and our ability to execute. Unlike many offerings in the financial services
sector these days, our offering was not about balance sheet repair, rather the
capital we raised strengthens our bank`s ability to work with and lend to many
of the premier middle market businesses in our market area,” added Chairman of
the Board and CEO, Raymond A. Nielsen.

New York-based, Clinton Group was the lead investor in the offering with a 24.9%
investment in the Bank. In total five new institutional investors participated
in the offering including: The Clinton Group, Blue Atlantic Capital, Triumph
Investment Funds, and ALDA Capital, LLC. In addition to the new investors, four
of Herald National Bank`s initial institutional investors and Raymond A. Nielsen
also participated in the private placement.

“Our investment in Herald is based on our confidence in this management team and
the capacity to capitalize on the many opportunities that exist for a locally
managed, middle market bank in the New York metropolitan area,” stated George
Hall, President and CEO, of The Clinton Group. “We were attracted to the clean
balance sheet, core deposit growth, and recent measures taken to improve their
operational efficiency,” he continued.

David Perez, of Palladium Equity Partners, an initial investor in the bank and
participant in this offering commented, “Our team at Palladium contributed to
the recapitalization of Herald National Bank because of a continued belief in
the fundamentals of this business plan and its long-term potential in this
marketplace and the ability of management to execute on that plan.”

Immediately following the offering, Herald National Bank also made several
changes to its management and board structure designed to enhance the oversight
and operations of the bank. First, the bank has separated the offices of Chief
Executive Officer and President, with current Chairman of the Board Raymond A.
Nielsen assuming the office of Chief Executive Officer, subject to regulatory
non-objection. David S. Bagatelle has retained the office of President – a move
that allows Bagatelle to focus on day-to-day management and direct support of
the bank`s business development efforts. Second, the Board of Directors has
reduced in size from 15 persons to 10 persons, resulting in resignations from
five directors to accommodate the reduction in size. As a result of significant
investments by The Clinton Group and ALDA Capital, LLC the Board of Directors
expects to nominate representatives of each entity to serve on the Board of
Directors, subject to regulatory non-objection, which will be expected to result
in two additional director resignations.

About Herald National Bank

Herald National Bank is a relationship-based banking institution dedicated to
serving the commercial and private banking needs of small to mid-size
businesses, their owners, executives and senior managers, as well as high net
worth individuals in the New York metropolitan area. Herald National Bank
presently has three offices located in Manhattan (623 Fifth Avenue), Brooklyn
(1333 60th Street), and Melville, Long Island (58 South Service Road). As of
December 31, 2009 the bank had $443 million in assets of which $301 million were
loans. Deposits at December 31, 2009 were $405 million, of which 93% were core
deposits and 35% of which were checking accounts, largely the operating accounts
of the businesses served by the bank.

For more information, visit www.heraldnb.com.

Forward Looking Statements Disclaimer

Certain matters in this press release constitute forward-looking statements that
involve assumptions and potential risks and uncertainties, which are made in a
manner consistent with the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward looking statements involve known
and unknown risks, uncertainties, and other factors that may cause the actual
results, performance and achievements of Herald National Bank to be materially
different from any future results, performance or achievements expressed or
implied by such forward looking statements. These factors include: general
economic, capital market and business conditions; risks arising from litigation
or similar proceedings; interest rate fluctuations; levels of delinquent loans;
employee turnover; government regulation; and those other factors discussed in
the filings of Herald National Bank with the Office of the Comptroller of the
Currency. Herald National Bank undertakes no obligation, and expressly disclaims
any obligation, to update publicly or revise any forward looking statement,
which speaks only as of the date it is made, whether as a result of new
information, future events or otherwise.

Photos/Multimedia Gallery Available:

http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6236592〈=en

Press Inquiries:
Herald National Bank
Adam Moskowitz, 646-521-6234

Copyright Business Wire 2010

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Dutch ABN Amro division reports 87-million euro Q1 profit

May 25, 2009 By Leave a Comment

Dutch ABN Amro division reports 87-million euro Q1 profit Amsterdam – The Dutch division of the ABN Amro bank made a small profit in the first three months of 2009, the bank said in its first quarter report released on Monday.

Net results for the division, nationalized by the Dutch state in the wake of the global economic meltdown, amounted to 87 million euros (121.56 million dollars).

That was a sharp drop compared with the same period last year, when net results amounted to 226 million euros. This was mainly caused by write-offs on corporate lending, the bank said.

Net results for the entire ABN Amro Group – owned by Spanish Banco Santander, Britain’s Royal Bank of Scotland and, since October 2008, the Dutch state – showed a deeper fall, with a loss of 886 million euros in the first quarter of 2009.

The RBS division of ABN Amro suffered a loss of 928 million euros, while Banco Santander manage to limit its losses to 3 million euros only.

The bank said its capital ratio, however, increased from 14.4 to 16.8 per cent since December 31.

ABN Amro said its final decoupling into three separate banks would be completed by the end of this year.

The Dutch ABN Amro division would then be united with the Dutch branch of Fortis Bank that was also nationalized by the Dutch government in October.

The integrated ABN Amro and Fortis banks would continue to focus on Dutch commercial and consumer clients, as well as international private clients, the bank said in its first quarter report.(dpa)

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UBS to sell Brazilian arm for 2.5 billion dollars

April 21, 2009 By Leave a Comment

Zurich – UBS announced Monday it had agreed to sell its Brazilian financial services business, UBS Pactual, for approximately 2.5 billion dollars to BTG Investments, in an attempt to raise capital.

In a statement the Swiss bank said the sale, which would result in a “small loss,” was part of a strategy to reduce its risk profile and improve its balance sheet.

Also, the sale will strengthen by 1.3 billion dollars its Tier 1 capital, which had been slipping in recent months, UBS said. The tier 1 capital ratio is considered an important indicator of a bank’s financial strength

The full details of the deal were to be made available in the bank’s May 5 first-quarter report.

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Pacific Commerce Bank Announces 1st Quarter 2009 Profit

April 17, 2009 By Leave a Comment

LOS ANGELES–(Business Wire)–
Pacific Commerce Bank (OTCBB: PFCI), located at 420 E. Third Street, Los
Angeles, California, announced its first quarter of 2009 results.

Net income for the first quarter was $75,000 compared to $184,000 for the same
quarter a year ago. The decrease in net income was largely attributable to the
bank`s decision to set-aside an additional provision for loss reserves of
$280,000 (an increase of $137,000 over the prior year`s allocation). Core
operating income (before loan loss provision, stock options expense, and income
tax benefits) increased by $101,000 to $284,000 compared to $183,000 a year ago.

There were two non-performing commercial real estate loans totaling $1,542,000
at March 31, 2009. The ratio of non-performing loans to total loans was
approximately 1.05%. In addition, the bank has charged off three loans totaling
approximately $2.05 million (provisions for which were previously established in
2008).

The following are balance sheet highlights at March 31, 2009,

* Total assets increased 12% to $180,794,000 at March 31, 2009 from $161,254,000
a year ago,
* Investment portfolio also increased by 25% to $22,463,000 from $17,965,000,
* Gross loans increased 14% to $147,007,000 from $129,016,000 for the same
quarter last year,
* Allowance for loan losses was $2,363,000 (after charge-off of $2,052,000)
versus $1,542,000 a year ago,
* Total deposits increased 16% to $148,933,000 from $109,652,000 as of March 31,
2008, and
* Tier 1 Leverage Ratio and Total Risk-Based Capital Ratio were approximately
10.00% and 13.74% compared to regulatory minimum of 5.00% and 10.0%,
respectively, for well-capitalized institutions.

Highlights of results of operations for the period ended March 31, 2009 include
the following:

* Net interest income for the quarter was $1,555,000 compared to $1,382,000 for
the same period a year ago, an increase of 13%,
* Non-interest income was $175,000 compared to $121,000 a year ago,
* Non-interest expense was $1,446,000 compared to $1,320,000 a year ago, and
* Net interest margin was 3.92% compared to 3.83% a year ago.

Brian H. Kelley, President and CEO, said, “We are generally pleased with the 1st
Quarter results, which reflect a net profit of $75,000, notwithstanding the
bank`s decision to set-aside an additional $280,000 in loan loss reserves. Any
decline in our loan yields was more than offset by a reduction in our funding
costs, as we benefited from lower cost deposits flowing back into the bank.” Mr.
Kelley discussed the need to remain vigilant in the bank`s oversight of existing
credits, and said, “We do anticipate that 2009 will be a challenging year,
particularly as we wait for the residential and commercial real estate markets
to bottom out, but we believe the bank is well capitalized and provisioned, and
have confidence in the ability of our staff to address and manage through any
issues that arise. We also look forward to identifying and executing on
strategic opportunities during the coming year, which we think will be
plentiful,” Kelley stated.

Established in 2002, Pacific Commerce Bank is a community bank with offices in
Downtown Los Angeles and West Los Angeles. Founded by local business owners and
professionals, it is focused on meeting the varied needs of those clients. It is
publicly traded on the OTC Bulletin Board under the stock symbol PFCI. The bank
offers small business loans, asset-based loans, construction and permanent real
estate financing, SBA government-guaranteed loans, as well as personal and
professional credit lines. Information on the bank as well as a copy of the
bank`s most recent newsletter and financial summary can be accessed through its
website: “pacificcommercebank.com” or by calling between 9:00am and 5:00pm at
213-617-0082.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of
1995:

The financial information in this press release is based on our unaudited
financial results. Certain statements in this press release, including
statements regarding the anticipated development and expansion of the bank’s
business, and the intent, belief, and current expectations of the bank, its
directors, or its officers, are “forward-looking” statements (as such term is
defined in the Private Securities Litigation Reform Act of 1995). Such
forward-looking statements are subject to risks and uncertainties and therefore
the bank’s actual results may differ materially from those expressed or implied
by such forward-looking statements. The risks and uncertainties that the bank is
subject to include, but are not limited to, risks related to the local and
national economy, including fluctuations in interest rates and costs and changes
in economic policy; the ability of the bank to perform in accordance with its
plans; competition; regulatory matters; and other risks detailed in its filings
with the State of California Department of Financial Institutions and the
Federal Deposit Insurance Corporation. The bank cautions readers not to place
undue reliance on any forward-looking statements. The bank does not undertake,
and specifically disclaims any obligation, to revise any forward-looking
statements to reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.

Financial Highlights
BALANCE SHEET (unaudited)
(In thousands, except for shares outstanding and book 03/31/2009 03/31/2008 $ Change % Change
value per share)
Total Assets $ 180,794 $ 161,254 $ 19,540 12.1 %
Total Investments $ 22,463 $ 17,965 $ 4,498 25.0 %
Total Loans $ 147,007 $ 129,016 $ 17,991 13.9 %
Deferred Loan Fees ($290 ) ($305 ) $ 15 -4.9 %
Allowance for Loan Losses ($2,363 ) ($1,542 ) ($821 ) 53.2 %
Net Loans $ 144,354 $ 127,169 $ 17,185 13.5 %
Total Deposits $ 148,933 $ 109,652 $ 39,281 35.8 %
Total Borrowings $ 11,506 $ 34,004 ($22,498 ) -66.2 %
Total Stockholders’ Equity $ 19,379 $ 16,732 $ 2,647 15.8 %
Non-performing assets $ 1,542 $ 0 $ 1,542 100.0 %
Non-performing assets/Total loans 1.05 % 0.00 %
QTD Net Interest Margin 3.92 % 3.83 %
Net Loans to Deposits 96.9 % 116.0 %
Tangible equity ratio 10.7 % 10.4 %
Ending shares outstanding 2,444,255 2,440,255
Ending book value per share $ 7.93 $ 6.86

STATEMENT OF OPERATIONS (unaudited) For the Three Months
Ended March 31,
(In thousands) 2009 2008
Total interest income $ 2,234 $ 2,397
Total interest expense 679 1,015
Net interest income 1,555 1,382
Total non-interest income 175 121
Total Income 1,730 1,503
Total non-interest expense 1,446 1,320
Income before loan loss provision, stock options 284 183
and income tax expenses
Provision for loan losses 280 143
Stock option expense 33 35
Income tax benefits (103 ) (179 )
Net (Loss)/Income $ 75 $ 184
Adjusted income before loan loss provision, $ 284 $ 183

stock option expense, and income tax benefits
EPS $ 0.03 $ 0.08
EPS of adjusted income before loan loss provision, stock $ 0.12 $ 0.08
option expense, and income tax benefits

Pacific Commerce Bank
Richard Koh, Chief Financial Officer, 213-617-0082

http://www.pacificcommercebank.com

Copyright Business Wire 2009

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , ,

CORRECTED – CORRECTED-Macquarie Bank buys back $100.8 mln sub debt

April 15, 2009 By Leave a Comment

(Corrects amount in headline and lead to $100.8 million, not
$160.8 million, and in paragraph 6 corrects amount of bond
outstanding)

SYDNEY, April 14 (Reuters) – Australia’s Macquarie Bank
(MQG.AX) has bought back $100.8 million of subordinated debt to
improve its Tier 1 capital ratio, a source familiar with the
offer said on Tuesday.

The bank paid investors 60 cents per dollar, which was at
the top end of the 50 to 60 cents initial range. It was still
well above the bonds’ trading range of 30-40 cents prior to the
buyback announcement.

Investors who sold their bonds back to Macquarie came from
Europe, Asia and Australia, the source said.

The source declined to be identified because he was not
authorised to speak publicly about the offer.

A Macquarie spokeswoman declined to comment.

The buyback leaves around $250 million of the lower Tier 2
sub debt bonds, initially sold in 2005, on issue. The bonds
mature in 2015 but are callable on Sept. 18, 2010.

These types of bonds are usually paid back at 100 at the
call date, and almost never reach maturity.

Investors are increasingly worried that some banks could be
tempted to roll over their debt, rather than pay it back at the
call date as is usual, leaving holders stuck with far longer
maturities than they initially thought.

Last week Deutsche Bank (DBKGn.DE) became the first bank to
roll over Australian dollar subordinated debt instead of paying
it back, following a similar move by the bank over a eurobond
issue.

In 2004, the bank sold A$350 million ($255.5 million) of
debt in Australia that would normally have been called last
week under a 10-year, callable in five, maturity structure.

But the bank opted to keep the debt on issue and pay a
small cost penalty rather than refinance it at current market
prices with a new subordinated issue.

Since the global credit crisis hit, debt costs have blown
out, forcing many borrowers to rethink their capital
strategies.

South Korea’s Woori Bank shocked investors in February when
it decided not to recall $400 million of sub debt.

Tier 1 and Tier 2 are forms of capital that banks are
required to maintain as a cushion to protect bank deposits.

Macquarie’s sub debt is rated A minus by S and P and A2 by
Moody’s. HSBC and Royal Bank of Scotland jointly arranged the
buyback.
($1=1.37 Australian Dollar)
(Reporting by Cecile Lefort; Editing by Jonathan Standing)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

UBS to buy back bonds

March 20, 2009 By Leave a Comment

Zurich – The Swiss bank UBS said Thursday it has made a tender offer worth up to 1 billion euros (1.34 billion dollars) to buy back bonds in an attempt to raise its Tier 1 regulatory capital ratio.

The offer pertains to four lower tier 2 bonds with maturity dates between November 2015 and September 2019 and a notional value of around 7 billion Swiss francs (6.15 billion dollars).

The bank said in a statement that the bonds were currently trading at a significant discount to their original issuance price.

Tier 1 capital ratio is a regulatory measure of a bank’s financial stamina.

UBS, in a separate statement said it would ask shareholders at an upcoming meeting next month to approve the creation of authorized capital, as a contingency measure.

They would also be asked to approve the creation of conditional capital related to UBS’s deal with the Swiss National Bank, as part of a bailout plan agreed on last year. (dpa)

Filed Under: Business News Tagged With: , , , , , , , , , , , , , , , , , , ,