National Consumer Cooperative Bank/DC – ‘10-Q’ for 3/31/00

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Quarterly Report   —   Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                      18±    67K 
 2: EX-27       Financial Data Schedule (Pre-XBRL)                     2±     6K 

10-Q   —   Quarterly Report
Document Table of Contents

FORM 10-Q               
SECURITIES AND EXCHANGE COMMISSION                
Washington, D.C. 20549                

QUARTERLY REPORT UNDER SECTION 13 or 15(d)                
OF THE SECURITIES EXCHANGE ACT OF 1934                

For the quarter ended March 31, 2000 Commission file number 2-99779             

National Consumer Cooperative Bank      
(Exact name of registrant as specified in its charter)                

United States of America                    52-1157795                    
(12 U.S.C. Section 3001 et seq.)            (I.R.S. Employer                    
(State or other jurisdiction of              Identification No.)                
incorporation or organization)                                                

1401 Eye Street, NW, Suite 700, Washington, D.C.  20005               
(Address of principal executive offices)                

Registrant's telephone number, including area code (202)336-7700                

Indicate by check mark whether the registrant (1) has  filed          
all  reports required to be filed by Section 13 or 15(d)  of  the               
Securities  Exchange Act of 1934 during the preceding  12  months               
(or  for shorter period that the registrant was required to  file               
such   reports),  and  (2)  has  been  subject  to  such   filing               
requirements for the past 90 days. Yes   x    No        .                       

Indicate  the number of shares outstanding of  each  of  the          
issuer's  classes  of common stock, as of the latest  practicable               
date.                                                                           

                   Outstanding at March 31, 2000

Class C                                      222,633                  
(Common stock, $100.00 par value)                                               

Class B                                      997,104                  
(Common stock, $100.00 par value)                                               

Class D                                            3                  
(Common stock, $100.00 par value)                                               

National Consumer Cooperative Bank                
(doing business as National Cooperative Bank)               
and Subsidiaries                

INDEX                 

PART I  FINANCIAL INFORMATION                                                   
Page No.                                                                        

Item 1    Consolidated balance sheets - March 31,                               
2000 and December 31, 1999 ............           3         

Consolidated statements of income - for                     
the three months ended March 31, 2000                       
and 1999...............................           4         

Consolidated statements of comprehensive                    
income - for the three months ended                         
March 31, 2000 and 1999.................          5         

Consolidated statements of cash flows -                     
for the three months ended                                  
March 31, 2000 and 1999.................          6-7       

Condensed notes to the consolidated                         
financial statements - March 31,                            
2000....................................          8-13      

Item 2    Management's discussion and analysis                                  
of financial condition and results of                       
operations - for the three  months                          
ended March 31, 2000 and 1999...........          14-20     

Item 3    Quantitative and qualitative disclosures                              
about market risk.......................          21        

PART II OTHER INFORMATION               

Item 4    Submission of Matters to a Vote of                                    
Security Holders....................              22        

Item 6    Exhibits ...........................              23                  

Exhibit 27 - Financial Data Schedule                        

NATIONAL COOPERATIVE BANK                 
CONSOLIDATED BALANCE SHEETS               
March 31, 2000 and December 31, 1999                
(Unaudited)       

                     March 31,    December 31,
Assets                                  2000            1999                    
Cash and cash equivalents          $   40,338,572 $   29,910,037                
Restricted cash                         4,887,213      4,887,213                
Investment securities                                                           
Available-for-sale                   43,894,287     46,283,045              
Held-to-maturity                      2,710,244      2,710,191              

Loans held for sale                   168,429,733    132,057,978                
Loans and lease financing             889,254,904    815,840,439                
Less: Allowance for loan losses      (18,675,296)   (18,693,670)              
Net loans held for sale and                                                   
loans and lease financing        1,039,009,341    929,204,747             

Other assets                           42,112,472     43,514,663                

Total assets                     $1,172,952,129 $1,056,509,896              

Liabilities and Members' Equity                                                 
Liabilities                                                                     
Deposits                           $  134,266,817 $  126,071,259                
Patronage dividends payable in                                                  
cash                                  6,210,222      5,642,040              
Other liabilities                      36,891,454     25,041,359                
Borrowings                                                                      
Short-term                          410,106,055    283,589,354              
Long-term                           254,321,611    286,262,870              
                      664,427,666    569,852,224

Subordinated debt                   182,592,571    182,620,212              

Total borrowings                    847,020,237    752,472,436              

Total liabilities                 1,024,388,730    909,227,094              

Members' equity                                                                 
Common stock                                                                    
Class B                              99,710,414     99,879,531              
Class C                              22,263,318     22,380,663              
Class D                                     300            300              
Retained earnings                                                               
Allocated                             9,885,602      9,203,865              
Unallocated                          17,034,342     16,682,644              
Accumulated other comprehensive                                                 
income                                 (330,577)      (864,201)             

Total members' equity              148,563,399    147,282,802             

Total liabilities and members'                                            
equity                        $1,172,952,129 $1,056,509,896           

NATIONAL COOPERATIVE BANK               
CONSOLIDATED STATEMENTS OF INCOME               
(Unaudited)               

For the three months ended March 31,   2000           1999                      

Interest income                                                                 
Loans and lease financing        $20,581,080    $17,013,818                 
Investment securities              1,241,412      1,488,772                 

Total interest income            21,822,492     18,502,590                

Interest expense                                                                
Deposits                           1,458,326      1,450,724                 
Short-term borrowings              4,705,757      3,583,426                 
Long-term debt, other borrowings                                            
and subordinated debt             8,113,922      5,829,905                

Total interest expense           14,278,005     10,864,055                

Net interest income               7,544,487      7,638,535                

Provision for loan losses               12,500        417,500                   

Net interest income after                                                 
provision for loan losses        7,531,987      7,221,035               

Non-interest income                                                             
(Loss) gain on sale of loans           (4,069)        64,470                  
Loan and deposit servicing fees      811,933        720,595                 
Other                                616,312        856,162                 

Total non-interest income         1,424,176      1,641,227                

Non-interest expense                                                            
Compensation and employee                                                   
benefits                         4,253,232      3,613,886               
Contractual services               1,053,472      1,067,046                 
Occupancy and equipment            1,241,590      1,049,780                 
Contribution to NCB                                                         
Development Corporation              -              50,000                
Other                                529,795        606,380                 

Total non-interest expense        7,078,089      6,387,092                

Net income before income taxes       1,878,074      2,475,170                   

Provision for income taxes             378,264        324,414                   

Net income                       $ 1,499,810    $ 2,150,756                 

Distribution of net income                                                      
Patronage dividends              $ 1,499,810    $ 2,150,756                 
Retained earnings                     -              -                      
                $ 1,499,810    $ 2,150,756

NATIONAL COOPERATIVE BANK               
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME               
(Unaudited)               

For the three months ended March 31,          2000        1999                  

Net income                                 $1,499,810  $2,150,756               
Other comprehensive income, net of tax:                                         
Net unrealized holding                                                      
gain (losses) before tax                   533,624    (316,537)           

Comprehensive income                       $2,033,434  $1,834,219               

NATIONAL COOPERATIVE BANK               
CONSOLIDATED STATEMENTS OF CASH FLOWS               
(Unaudited)               

For the three months ended March 31,     2000            1999                   

Cash flows from operating activities                                            
Net income                         $  1,499,810   $   2,150,756                 
Adjustments to reconcile net                                                    
income to net cash used in                                                  
operating activities                                                        
Provision for loan losses              12,500         417,500               
Depreciation and amortization       1,688,537       1,461,790               
Loss (gain) on sale of loans            4,069         (64,470)              
Loans originated for sale         (39,968,174)    (70,837,217)              
Proceeds from sale of loans                                                 
held for sale                     3,592,351       7,201,898             
Increase in other assets             (553,308)     (1,141,324)              
Increase(decrease) in other                                                 
liabilities                      11,850,095     (15,534,766)            

Net cash used in operating                                                      
activities                        (21,874,120)    (76,345,833)              

Cash flows from investing activities                                            
Redemption of restricted cash          -            7,512,629               
Purchase of investment securities                                           
Available-for-sale                  (650,000)     (1,000,000)             
Proceeds from maturities of                                                 
investment securities                                                     
Available-for-sale                 2,055,341       1,337,832              
Held-to-maturity                      -              165,596              
Net increase in loans and lease                                             
financing                       (79,713,118)   (110,753,344)            
Proceeds from sale of portfolio                                             
loans                             7,950,098          -                  
Purchases of premises and                                                   
equipment                           (51,925)       (201,259)            

Net cash used in investing                                                      
activities                        (70,409,604)   (102,938,546)              

Cash flows from financing activities                                            
Net increase in deposits            8,195,558       3,569,061               
Net increase in short-term                                                  
borrowings                       126,516,701     165,542,250              
Repayment on long-term debt       (32,000,000)    (20,000,000)              

Net cash provided by financing                                                  
activities                        102,712,259     149,111,311               

Increase (decrease) in cash and                                                 
cash equivalents                   10,428,535     (30,173,068)              

Cash and cash equivalents,                                                      
beginning of year                  29,910,037      66,563,160               

Cash and cash equivalents, end                                                  
of period                       $  40,338,572   $  36,390,092               

NATIONAL COOPERATIVE BANK               
CONSOLIDATED STATEMENTS OF CASH FLOWS               
(Unaudited)               

Supplemental schedule of investing and financing activities:                    

For the three months ended March 31,          2000         1999                 

Unrealized gain (loss) on investment                                            
available-for-sale                     $   533,624   $ (316,537)            

Interest paid                            $11,667,706   $9,772,836               

Income taxes paid                        $       970   $    1,494               

NATIONAL COOPERATIVE BANK               
CONDENSED NOTES TO THE CONSOLIDATED               
FINANCIAL STATEMENTS                
March 31, 2000                
(Unaudited)               

The  accompanying  financial statements  have  been  prepared           
without  audit  and reflect all adjustments (consisting  only  of               
normal  recurring  adjustments) which were,  in  the  opinion  of               
management, necessary to a fair statement of the results  of  the               
interim  period  presented.   Certain  information  and  footnote               
disclosures normally included in financial statements prepared in               
accordance  with  generally accepted accounting  principles  have               
been   condensed   or  omitted.   Accordingly,  these   condensed               
financial  statements  should be read  in  conjunction  with  the               
financial statements and the notes thereto included in NCB's most               
current  annual report. The results of operations for the interim               
periods  are  not necessarily indicative of the  results  of  the               
entire year.                                                                    

1.  Cash, Cash Equivalents and Investment Securities                            

As   of   March  31,  2000,  NCB's  portfolios  of   investment             
securities,  cash  and cash equivalents had an  average  adjusted               
maturity  of  1,062 days with interest rates in those  portfolios               
varying from 5.20% to 8.38%.                                                    

       Cash and      Investments Investments
Cash                  Available-       Held-to-                             
     Equivalents     for-Sale     Maturity

Cash                  $ 2,602,874    $    -      $    -                     
Federal funds          10,071,611         -           -                     
Money market                                                                
securities            27,314,087       742,012       -                    
Private debt security      -              -         769,932                 
Mutual funds               -           1,535,681      -                     
Certificates of                                                             
deposits                 350,000         -           -                    
Mortgage-backed                                                             
securities             -              -       1,942,312             
Corporate bonds            -           4,099,092      -                     
U.S. Treasury and Agency                                                    
obligations              -          17,530,555      -                   
Interest-only                                                               
receivables               -          19,986,947      -                    

     $40,338,572    $43,894,287 $2,710,244

As  of  December  31,  1999,  NCB's  portfolios  of  investment             
securities,  cash  and  cash equivalents were  comprised  of  the               
following:                                                                      

       Cash and      Investments Investments
Cash                  Available-       Held-to-                             
     Equivalents     for-Sale     Maturity

Cash                  $ 3,407,537    $    -      $    -                     
Federal funds          11,763,202         -           -                     
Money market                                                                
securities            14,389,298      1,039,318      -                    
Private debt                                                                
security                  -              -         767,878                
Mutual funds               -           1,221,719      -                     
Certificates of                                                             
deposit                  350,000         -           -                    
Mortgage-backed                                                             
securities             -              -       1,942,313             
Corporate bonds            -           4,721,038      -                     
U.S. Treasury and Agency                                                    
obligations              -          18,447,345      -                   
Interest-only                                                               
receivables               -          20,853,625      -                    

     $29,910,037    $46,283,045 $2,710,191

At March 31, 2000 and December 31, 1999, the investments  in          
the  available-for-sale portfolio were recorded at aggregate fair               
value.                                                                          

Restricted  cash of $4,887,213 at March 31, 2000 and  December            
31,1999  is  held  by  a trustee for the benefit  of  certificate               
holders in the event of a loss on certain loans sold in 1992  and               
1993.  At  March  31,  2000 and December 31, 1999,  the  combined               
remaining balances of 1992 and 1993 loans totaled $43,405,002 and               
$56,967,101,  respectively.  The  restricted  cash  will   become               
available  to  NCB  I,  Inc.  as the  principal  balance  of  the               
respective   loans  decreases.  The  loans  sold  have   original               
maturities of ten to fifteen years.                                             

Interest-only  receivables substantially  pertain  to  blanket            
loans to cooperative housing corporations.                                      

2.  Loans and Lease Financing                                                   

Loans and leases outstanding, including loans held for sale,                
by category, were as follows:                                                   

  March 31, 2000 December 31, 1999

Commercial loans    $  516,353,741    $470,913,210                    
Lease financing         58,550,265      60,104,256                    
Real estate loans                                                     
Residential          472,789,836     408,204,055                  
Commercial             9,990,795       8,676,896                  

$1,057,684,637    $947,898,417

At  March 31, 2000 and December 31, 1999 loans held for  resale             
were $168.4 million and $132.1 million, respectively.                           

3.    Impaired Assets                                                           

Impaired loans, representing the nonaccrual loans at March  31,             
2000  and  December  31,  1999, totaled  $795,483  and  $580,311,               
respectively,  and  averaged $797,307 and $1,084,000  during  the               
respective periods ending on these dates. Specific allowances  of               
$397,742  and  $239,911 were established at March  31,  2000  and               
December  31,  1999, respectively. During the first  quarters  of               
2000 and 1999, the interest collected on the nonaccrual loans was               
applied to reduce the outstanding principal.                                    

At  March  31,  2000  and  December 31,  1999,  there  were  no             
commitments to lend additional funds to borrowers whose loans are               
impaired.                                                                       

At  March  31, 2000 and December 31, 1999, NCB had real  estate             
acquired  through  foreclosure for both  periods  of  $2,686,747,               
which is classified as other assets.                                            

4.    Allowance for Loan Losses                                                 

The  following  is a summary of the activity in  the  allowance             
for loan losses during the three months ended March 31, 2000:                   

Balance at January 1, 2000           $18,693,670                            
Provision for loan losses                 12,500                            
Charge-offs                             (334,870)                           
Recoveries of loans previously                                              
charged-off                            303,996                          

Balance at March 31, 2000            $18,675,296                            

The  allowance for loan losses as a percentage of average loans             
and lease financing and loans held for sale at March 31, 2000 was               
1.86%.                                                                          

5.   Statement of Changes in Members' Equity                                    

The following is a summary of the activity in members' equity for the three 
months ended March 31, 2000:                                                    

                                                        [Enlarge/Download Table]
                                                                                            
                                         Retained     Retained                  Total       
                             Common      Earnings     Earnings     Unrealized  Members'     
                              Stock      Allocated   Unallocated   Gain(Loss)               
Equity                                                                                      

Balance, December 31, 1999  $122,260,494 $ 9,203,865 $16,682,644   $(864,201)  $147,282,802 
Net income                        -           -        1,499,810        -         1,499,810 
Cancellation and                                                                            
  redemption of stock           (286,462)     -           91,409        -          (195,053)
2000 patronage dividends                                                                    
  To be distributed in cash       -           -         (557,784)       -          (557,784)
  Retained in form of equity      -          681,737    (681,737)       -              -    
Unrealized gain on investment                                                               
  securities available-for-                                                                 
  sale                            -           -           -          533,624        533,624 

Balance, March 31, 2000     $121,974,032 $ 9,885,602 $17,034,342   $(330,577)  $148,563,399 

6. SEGMENT REPORTING                                                            

NCB's  reportable segments are strategic business units  that             
provide  diverse  products  and services  within  the  financial                
services  industry. NCB has four reportable segments: commercial                
lending,  real estate lending, NCB Savings Bank and  other.  The                
commercial  lending  segment  provides  financial  services   to                
cooperative and member-owned businesses. The real estate lending                
segment  originates,  sells  and  services  real  estate   loans                
nationally, with a concentration in New York City.  NCB  Savings                
Bank  segment  provides  traditional banking  services  such  as                
lending   and   deposit  gathering  to  retail,  corporate   and                
commercial  customers.  "Other" consists  of  NCB's  unallocated                
parent company income and expense, and net interest income  from                
investments and corporate debt after allocations to segments.                   

NCB  evaluates segment performance based on net income before             
taxes. The accounting policies of the segments are substantially                
the  same  as  those  described in the  summary  of  significant                
accounting  policies in the most recent annual report.  Overhead                
and  support  expenses are allocated to each  operating  segment                
based  on  number  of employees, and other factors  relevant  to                
expenses  incurred.  Also included in overhead  and  support  is                
depreciation allocated based on equipment usage.                                

The following is the segment reporting for the three months                 
March 31, 2000 and 1999 (dollars in thousands):                                 

2000             Commercial   Real Estate                          NCB
                        Lending      Lending     NCBSB      Other   Consolidated

Net interest income                                                             
Interest income     $ 11,423     $  6,569      $  2,933  $    898           
Allocated interest                                                          
expense               8,873        4,461          -      (13,334)         
Interest expense        -            -            1,703    12,575           
Net interest income      2,550        2,108         1,230     1,657  $   7,545  

Provision (credit)                                                              
for loan losses         5,949           70            13    (6,019)        13 

Non-interest                                                                    
income-external           657          652           226      (111)     1,424 

Non-interest expense                                                            
Direct expense         1,219        1,152           554     4,153      7,078
Overhead and support     287          252           274      (813)      -   
Total non-interest                                                              
expense                 1,506        1,404           828     3,340      7,078 

Income (loss) before                                                            
taxes                $ (4,248)    $  1,286      $    615  $  4,225 $    1,878 

Total average assets  $555,690     $296,137      $158,034 $ 75,436  $1,085,297  

   1999          Commercial   Real Estate                          NCB
                       Lending      Lending     NCBSB     Other   Consolidated

Net interest income                                                             
Interest income     $  7,844     $  7,247      $  2,437  $    975           
Allocated interest                                                          
expense               5,487        4,479          -       (9,966)         
Interest expense        -            -            1,454     9,410           
Net interest income      2,357        2,768           983     1,531   $  7,639  

Provision (credit)                                                              
for loan losses        (2,069)        193             43     2,251        418 

Non-interest                                                                    
income-external           609          205           251       576      1,641 

Non-interest expense                                                            
Direct expense         1,148        1,111           662     3,466      6,387
Overhead and support     117           88            75      (280)      -   
Total non-interest                                                              
expense                 1,265        1,199           737     3,186      6,387 

Income (loss)                                                                   
before taxes         $  3,770     $  1,581      $    454  $ (3,330)  $  2,475 

Total average assets  $385,674     $353,477      $131,822  $107,581   $978,554  

NATIONAL COOPERATIVE BANK               
MANAGEMENT'S DISCUSSION AND ANALYSIS                
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999                

SUMMARY                                                                         

NCB's net income for the three months ended March 31, 2000  was             
$1.5  million.   This  was  a 30.3% or $650.9  thousand  decrease               
compared  with $2.2 million for the three months ended March  31,               
1999.   The  variance resulted from a decrease of 1.2%  or  $94.0               
thousand  in net interest income, a decrease  of 13.2% or  $217.1               
thousand  in  non-interest income and an  increase  of  10.8%  or               
$691.0  thousand  in  non-interest expense  which  was  partially               
offset  by a decrease of 97% or $405.0 thousand in provision  for               
loan losses.                                                                    

Total  assets were $1.17 billion at March 31, 2000, up  11%  or             
$116.4  million  from $1.06 billion at December  31,  1999.  This               
resulted  primarily from increases in loans  held  for  sale  and               
loans and lease financing of $109.8 million and in cash and  cash               
equivalents, restricted cash and investment securities  of  $8.04               
million.                                                                        

The  annualized return on average total assets was .55% for the             
first three months of 2000 compared with .88% for the same period               
in  1999.  The annualized return on average equity for the period               
ended March 31, 2000 and 1999 was 4.05% and 6.11%, respectively.                

NET INTEREST INCOME                                                             

Net  interest  income  for  the  first  three  months  of  2000             
decreased 1.2% or $94.0 thousand over the same period a year ago.               
Table  2  contains  more  detailed information  about  the  $94.0               
thousand decrease.                                                              

As  shown  on  Table  1, the net interest spread  decreased  61             
basis  points to 1.7% from 2.31% for the three months ended March               
31,  1999 while net interest yield on interest earning assets was               
2.78%  and  3.21% for the three months ended March 31,  2000  and               
1999,  respectively. The decrease was mainly due to increased                   
cost to borrow on the short-term facilities. For the three months               
ended March  31,  2000, the   yield  on  average  loans  and                    
leases  and  on  investment securities  and cash equivalents was                
up 18 basis  points  and  53 basis  points, respectively, compared              
with the first  quarter  of 1999.                                               

For  the  three  months ending March 31, 2000, interest  income             
increased  17.9%  or  $3.3 million to $21.8  million  from  $18.5               
million  of  the prior year's quarter. As shown on Table  2,  the               
increase  in  interest income was due mostly  to  growth  in  the               
commercial loan and lease portfolio.                                            

Interest  expense  increased $3.4 million or  31.4%  to  $14.3            
million  for the three months ended March 31, 2000 compared  with               
$10.9  million  for the three months ended March  31,  1999.  The               
interest  expense was up as a result of higher  levels  of  notes               
payable to fund loan volume. At March 31, 2000, the average  rate               
on  interest-bearing liabilities increased to 6.35% compared with               
5.46%  in the same period in 1999. As shown on Table 2, the total               
increase  in  interest  expense of $3.4 million  was  volume  and               
interest rate related.                                                          

NON-INTEREST INCOME                                                             

Non-interest income for the three months ended March  31,  2000             
of  $1.4  million  decreased 13.2% or $217.1 thousand  from  $1.6               
million  for  the same period last year. Non-interest  income  is               
composed of gains from sales of blanket mortgages and share loans               
to  secondary  market investors, servicing fees, net  origination               
fees  on loans sold, management fees, advisory and debt placement               
fees  and  other  income.  The majority of the decrease  resulted               
from  a  loss  on  a  commercial loan sale  and  the  reduced                   
yield of interest-only receivables. Loans sold during  the                      
first  quarter  of  2000 were $11.7  million compared  with  $7.1               
million in the year-earlier period.                                             

Servicing  fee  income for the quarter ended  March  31,  2000            
increased  12.7%  or $91.3 thousand to $811.9  thousand  compared               
with  $720.6 thousand for the three months ended March 31,  1999.               
At  March 31, 2000 and 1999, NCB serviced single and multi-family               
real estate and commercial loans for investors in the amounts  of               
$2.05 billion and $1.74 billion, respectively.                                  

Other  income  was  down  28% to $616.3  thousand  from  $856.2             
thousand  due  to  lower  commercial and real  estate  loan  fees               
received and yield of interest-only receivables and higher expenses             
maintaining a real estate property owned.                                       

NON-INTEREST EXPENSE                                                            

Non-interest expense for the three months ended March 31,  2000             
increased 10.8% or $691.0 thousand to $7.1 million compared  with               
$6.4   million  for  the  three  months  ended  March  31,  1999.               
Compensation and employee benefits, remaining by far  the  single               
largest  component  of non-interest expense, increased  17.7%  or               
$639.3  thousand due to a higher employee base and bonus accruals               
than  in  the  year-earlier  period.  Compensation  and  employee               
benefits  accounted  for 60.1% and 56.6% of non-interest  expense               
for the three months ended March 31, 2000 and 1999, respectively.               
Occupancy and equipment expenses went up 18.3% or $191.8 thousand               
due  to increases in computer and internet services and equipment               
and software maintenance.                                                       

Excluding   the  voluntary  contributions  to  NCB  Development             
Corporation,  which was zero and $50 thousand  during  the  first               
quarters of 2000 and 1999, respectively, non-interest expense  as               
a percentage of average assets was 2.6% for both the three months               
ended March 31, 2000 and the same period a year ago.                            
Table 1                                                                         
RATE RELATED ASSETS AND LIABILITIES                                             
(dollars in thousands)                                                          

                                                                [Download Table]
Table 2                                                                      
RATE RELATED ASSETS AND LIABILITIES                                          
(dollars in thousands)                                                       
                                                                             
                                    For the years ended December 31,         
                                     2000                      1999          
                                              Ave.                      Ave. 
Assets                     Average   Income/  Rate/   Average  Income/  Rate/
                           Balance*  Expense  Yield   Balance* Expense  Yield

Interest earning assets                                                      
 Real estate loans        $  442,086  $ 8,636  7.81%  $458,737 $ 8,705  7.59%
 Commercial loans and                                                        
  leases                     563,528   11,945  8.48%   391,192   8,309  8.50%

 Total loans and leases    1,005,614   20,581  8.19%   849,929  17,014  8.01%

Investment securities                                                        
 and cash equivalents         78,663    1,241  6.31%   103,106   1,489  5.78%

 Total interest earning                                                      
  assets                   1,084,277   21,822  8.05%   953,035  18,503  7.77%

Allowance for loan losses    (18,694)                  (17,719)              

Non-interest earning assets                                                  
 Cash                          2,912                    10,528               
 Other                        16,802                    32,710               

Total non-interest earning                                                   
 assets                       19,714                    43,238               

Total assets              $1,085,297                  $978,554               

Liabilities and members' equity                                              
Interest bearing liabilities                                                 
 Subordinated debt        $  182,610  $ 2,646  5.80%  $182,641 $ 2,588  5.67%
 Note payable                590,111   10,173  6.90%   486,578   6,825  5.61%
 Deposits                    126,889    1,459  4.60%   126,018   1,451  4.61%

 Total interest bearing                                                      
  liabilities                899,610   14,278  6.35%   795,237  10,864  5.46%

 Other liabilities            37,540                    42,443               
 Members' equity             148,147                   140,874               

   Total liabilities and                                                     
     members' equity      $1,085,297                  $978,554               

Net interest earning                                                         
 assets                   $  184,667                  $157,798               
Net interest revenues and                                                    
 spread                               $ 7,544 1.70%            $ 7,639  2.31%
Net yield on interest                                                        
 earning assets                               2.78%                     3.21%


PROVISION FOR INCOME TAXES                                                      

The  federal income tax provision is determined on the basis  of              
non-member income generated by NCB Savings Bank, FSB and reserves               
set  aside  for the retirement of Class A notes and dividends  on               
Class  C  stock. NCB's subsidiaries are also subject  to  varying               
levels of state taxation.  The income tax provision for the three               
months  ended March 31, 2000 was $378 thousand compared with  the               
prior year's provision of $324 thousand.                                        

CASH, CASH EQUIVALENTS AND INVESTMENT SECURITIES                                

Cash,  cash equivalents and investment securities totaling $86.9              
million  at  March 31, 2000 increased $8.0 million or 10.2%  from               
$78.9  million at year-end 1999 due to repayments  on  loans  and               
leases  received at the end of March. As a percentage of  earning               
assets,   cash,   cash  equivalents  and  investment   securities               
decreased  to  7.6% at March 31, 2000 from 8.1% at  December  31,               
1999.                                                                           

ALLOWANCE FOR LOAN LOSSES                                                       

The  allowance  for  loan losses at March  31,  2000  was  $18.7              
million,  down  slightly  by  .1% from  December  31,  1999.  The               
allowance during the period was impacted by loans charged-off  of               
$334.9  thousand, recoveries of loans previously  charged-off  of               
$304.0  thousand  and the provision of $12.5  thousand.  Overall,               
loan portfolio quality remained both strong and stable at the end               
of  the  first  quarters  of  2000  and  1999.  NCB's  annualized               
provision  for loan losses as a percentage of average  loans  and               
leases outstanding was less than .1% for the quarter ended  March               
31, 2000 and .2% for the quarter ended March 31, 1999.                          

The  loan  loss allowance as a percentage of average  loans  and              
leases  decreased to 1.9% at March 31, 2000 from 2.0% at December               
31,  1999.  Management  considers the  current  allowance  to  be               
adequate  to  absorb  known  and  inherent  risks  in  the   loan               
portfolio.                                                                      

As  shown in Table 3, total impaired assets (non-accruing  loans              
and  real  estate  owned) increased 6.6%  from  $3.3  million  at               
December  31,  1999 to $3.5 million at March 31, 2000.   Impaired               
assets as a percentage of loans and leases outstanding plus  real               
estate  owned  was .33% at March 31, 2000 compared with  .34%  at               
year-end 1999.  The allowance for loan losses as a percentage  of               
impaired assets decreased to 536.3% at March 31, 2000 from 572.2%               
at December 31, 1999.                                                           

Table 2                                                                         
Changes in Net Interest Income                                                  
(dollars in thousands)                                                          

For the three months ended March 31, 2000 compared to 1999                      

                      Increase (decrease) due to  change
in:                                                                             

          Average    Average
                  Volume*    Yield     Net**

Interest Income                                                               

Cash equivalents and                                                          
investment securities             $ (377)    $   129  $ (248)               
Commercial loans and leases         3,653         (17)  3,636                 
Real estate loans                    (321)        252     (69)                

Total interest income              2,955         364   3,319                

Interest expense                                                              

Deposits                               10          (2)      8                 
Notes payable                       1,612       1,735   3,347                 
Subordinated debt                       0          58      58                 

Total interest expense             1,622       1,791   3,413                

Net interest income                $1,333     $(1,427) $  (94)                

* Average monthly balances                                                      
**Changes in interest income and interest expense due to changes in             
rate and volume have been allocated to "change in average volume"           
and "change in average rate" in proportion to the absolute dollar           
amounts in each.                                                            

INTEREST BEARING LIABILITIES                                                    

Interest Bearing liabilities                                                    
(dollars in thousands)                                                          
           3/31/00    12/31/99      % Change

Deposits                    $134,267     $126,071          6.5%                 
Short-term debt              410,106      283,589         44.6%                 
Long-term debt               254,322      286,263        (11.2%)                
Subordinated debt            182,593      182,620          0.0%                 

Total                     $981,288      $878,543         11.7%                

Interest bearing liabilities increased $102.7 million to  $981.3              
million  at  March 31, 2000 from $878.5 million at  December  31,               
1999.                                                                           

For  the  first  three months of 2000, deposits  at  NCB  Saving              
Bank,  FSB  (NCBSB)  grew 6.5% to $134.3  million  compared  with               
$126.1  million at December 31, 1999. The growth was attributable               
to   local  and  national  deposit  accounts  and  deposits  from               
cooperative  customers. Average maturity of the  certificates  of               
deposits is 13.6 months. Funds generated by the increased deposit               
activity  were used to originate single-family loans and increase               
liquidity.                                                                      

At  March  31,  2000, total short-term and long-term  borrowings              
(including subordinated debt) increased 12.6% or $94.5 million to               
$847.0  million  in comparison to prior year-end 1999  of  $752.5               
million.   Proceeds from the borrowings were used to fund  growth               
in  loans  and leases. At March 31, 2000 and December  31,  1999,               
NCBSB   had   advances  of  $23.0  million  and  $15.0   million,               
respectively, from the Federal Home Loan Bank and NCB had  $387.1               
million,  net  of discount and $268.6 million, net  of  discount,               
respectively, outstanding on its short-term facilities.  At March               
31,   2000,  included in the short-term borrowings were revolving               
lines  of credit of $146.5 million; commercial paper with a  face               
value  of $225.4 million and $16.0 million in borrowings  from  a               
related  entity and cooperative customers. At December 31,  1999,               
included  in  the short-term borrowings were revolving  lines  of               
credit  of $79.5 million; commercial paper with a face  value  of               
$172.4  million  and $17.2 million in borrowings from  a  related               
entity and cooperative customers. Long-term debt decreased  11.2%               
from  year-end 1999 due to a payment of $32.0 million  under  the               
long-term  facilities.   At  March 31,  2000,  there  was  unused               
capacity  under  the  short-term  and  long-term  facilities   of               
approximately $64.6 million and $350.0 million, respectively.  At               
December 31, 1999, unused capacity under the short-term and long-               
term   facilities   was  $183.3  million  and   $350.0   million,               
respectively.                                                                   

TABLE 3                                                                         
Impaired assets                                                                 
(dollars in thousands)                                                          

              March  31,  Dec. 31,  Sept. 30,  June 30,  March 31,
            2000        1999       1999       1999      1999

Real estate owned   $2,687       $2,687    $2,893     $3,334     $3,355         

Non-accruing           795          580       685        701      2,371         

           $3,482       $3,267    $3,578     $4,035     $5,726

YEAR 2000                                                                       

NCB  undertook  many actions intended  to  assure  that  its          
computer  systems and other equipment were capable of functioning               
in,  and  processing for, periods for the Year 2000  and  beyond.               
NCB  experienced  no  operational problems as  a  result  of  the               
changeover  of  the date 1999 to 2000. NCB has  not  incurred  to               
date,  and  does not expect to incur in the future, any  material               
expenditures  in  connection  with  identifying,  evaluating   or               
remediating   Year   2000  compliance  issues.    Most   of   its               
expenditures to date have related to the opportunity cost of time               
spent  by  NCB's employees evaluating and remediating  Year  2000               
issues  for  the  hardware and software products purchased,   the               
information  technology  used in its operations  and  its  non-IT               
Systems or embedded technology, such as building security,  phone               
system  and  other  systems. Direct costs incurred  by  NCB  have               
totaled  approximately $55,000. NCB did not incur any  Year  2000               
expenses in the first quarter ended March 31, 2000.                             

As  of  March 31, 2000, NCB has not experienced any material          
consequences  of failure of Year 2000 compliance, either  by  the               
Company,  its  suppliers,  and  customers.   However,  Year  2000               
compliance has many elements and potential consequences, some  of               
which  may  not  be  foreseeable or may  be  realized  in  future               
periods.   Therefore,  there can be no assurance  that  unforseen               
circumstances could still not arise, or that NCB will not in  the               
future  identify  equipment or systems which are  not  Year  2000               
compliant.                                                                      

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES  ABOUT  MARKET RISK           

No material changes in NCB's market risk profile occurred from        
December 31, 1999 to March 31, 2000.                                            

Part II OTHER INFORMATION                                                       

Item 4.    Submission of Matters to a Vote of Security Holders                  

NCB  held  its  annual meeting on April 27, 2000.   Shareholders      
elected the following persons to serve as directors:                            

Kirby J. Erickson(re-elected)                                                 
Jackie Jenkins-Scott(re-elected)                                              
Peter C. Young(re-elected)                                                    
Thomas K. Zaucha (re-elected)                                                 

The following directors continued in office after this meeting:               

James L. Burns, Jr.                                                           
Harry J. Bowie                                                                
Joseph Cabral                                                                 
Eben Hopson, Jr.                                                              
Marilyn J. McQuiade                                                           
Michael J. Mercer                                                             
Alex N. Miller                                                                
Alfred A. Plamann                                                             
Stuart M. Saft                                                                
Shiela A. Smith                                                               

Item 6. Exhibits                                                                

(a)  The following exhibit is filed as part of this report:                   

Exhibit 27 - Financial Data Schedule                            

SIGNATURE               

Pursuant to the requirements of the Securities Exchange  Act  of              
1934, the registrant has duly caused this report to be signed  on               
its behalf by the undersigned there unto duly authorized.                       

NATIONAL CONSUMER COOPERATIVE BANK                

Date:                                                                           

By:         
          Richard L. Reed,
            Managing Director,
                 Chief Financial Officer

By:         
            Marietta J. Orcino
               Vice President, Tax &
               Regulatory Compliance

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing		Date		Other Filings
Filed on:		5/15/00
		4/27/00
For Period End:		3/31/00
		1/1/00
		12/31/99		10-K
		3/31/99		10-Q
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