SOURCE: ProAmerica Bank

ProAmerica Bank

March 30, 2012 18:00 ET

PROAMERICA BANK Fourth Quarter 2011 Results Reflect Strong Capitalization and Growth

LOS ANGELES, CA--(Marketwire - Mar 30, 2012) - ProAmérica Bank (OTCQB: PMRA) (PINKSHEETS: PMRA) today reported results of operations for its fourth quarter ended December 31, 2011. Highlights include:

  • Total Loans at December 31, 2011 grew to $106.9 million, an increase of $25.7 million or 32% from December 31, 2010.

  • Capital ratios remain well in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of 16.5% and a Total Risk-Based Capital Ratio of 20.2% at December 31, 2011. Regulatory "Well Capitalized" definitions are 5% for the Tier 1 Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.

  • Total Assets at December 31, 2011 grew to $129.1 million, an increase of $12.4 million or 11% from December 31, 2010.

  • Total Deposits at December 31, 2011 grew to $105.8 million, an increase of $8.0 million or 8% from December 31, 2010.

ProAmérica Bank reported a net loss of $1,369,000 for the fourth quarter of 2011 ($0.50 per share) as compared to net income of $18,000 ($0.01 per share) in the fourth quarter of 2010. The Bank reported a net loss of $914,000 ($0.33 per share) for the year ended December 31, 2011 as compared to a loss of $506,000 ($0.18 per share) for the year ended December 31, 2010. The results for the quarter and year ended December 31, 2011 included the impact of a large provision for loan losses of $1,278,000 recorded in the fourth quarter. The provision for loan losses was primarily the result of one problem loan that arose in the fourth quarter.

The Allowance for Loan and Lease Losses represents 2.9% of total loans at December 31, 2011. Nonperforming assets, net of government guaranteed loans, totaled approximately $10.4 million, or 8.1% of assets at December 31, 2011. This represents an increase of $9.8 million over year ago levels. Approximately $5.6 million is paying as agreed. Management believes the Allowance for Loan and Lease Losses is sufficient in light of the higher level of problem loans compared to the previous year.

"We are pleased with the strong growth ProAmérica Bank has continued to show, especially in light of the weak economy," stated Maria Contreras-Sweet, Executive Chairwoman of ProAmérica Bank.

ProAmérica Bank also reported that John H. Quinn, President and CEO, retired from the Bank effective February 28, 2012, as previously announced. Frank Smith, the current Chief Financial Officer, and Stephen Rolfe, the current Chief Credit Officer, were appointed as Interim Co-CEO and President by the Board of Directors, subject to regulatory approval.

ProAmérica Bank provides a full range of financial services, including credit and deposit products, cash management, and internet banking for businesses and high net worth individuals from its headquarters office at 888 West Sixth Street, Second Floor, Los Angeles, CA 90017. Information on products and services may be obtained by calling (213) 613-5000 or visiting the Bank's website at www.proamericabank.com.

NOTE:

This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about ProAmérica Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: ProAmérica Bank's timely implementation of new products and services, technological changes, changes in consumer spending and savings habits and other risks discussed from time to time in ProAmérica Bank's reports and filings with banking regulatory agencies. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and ProAmérica Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

PROAMÉRICA BANK BALANCE SHEETS
(Dollars in thousands)
December 31, September 30, December 31,
2011 2011 2010
Audited Unaudited Audited
Assets:
Cash and Due From Banks $ 2,355 $ 1,761 $ 1,195
Federal Funds Sold 9,935 20,205 25,145
Interest-bearing Balances at Other Financial Institutions 9,902 8,182 9,181
Total Cash and Cash Equivalents 22,192 30,148 35,521
Loans Net of Deferred Loan Fees/Costs 106,860 100,018 81,168
Allowance for Loan Losses 3,074 2,127 2,058
Loans Net of Allowance for Loan Losses 103,786 97,891 79,110
Premises and Equipment, net 918 119 408
Federal Home Loan Bank Stock 418 418 364
Other Real Estate Owned 0 0 0
Accrued Interest Receivable and Other Assets 1,802 1,502 1,352
Total Assets $ 129,116 $ 130,078 $ 116,755
Liabilities:
Non-Interest-Bearing Demand Deposits $ 31,789 $ 38,511 $ 39,667
Interest-Bearing Demand Deposits (NOW Deposits) 3,585 4,077 5,187
Savings and Money Market 22,649 21,820 15,811
Certificates of Deposit 47,732 42,227 37,092
Total Interest-Bearing Deposits 73,966 68,124 58,090
Total Deposits 105,755 106,635 97,757
Other Borrowings 0 0 0
Accrued Interest Payable and Other Liabilities 1,774 544 512
Total Liabilities 107,529 107,179 98,269
Shareholders' Equity:
Common Stock 27,245 27,245 27,245
Additional Paid in Capital 1,714 1,656 1,448
Accumulated Deficit (11,122 ) (9,752 ) (10,207 )
SBLF Preferred Stock 3,750 3,750 0
Total Shareholders' Equity 21,587 22,899 18,486
Total Liabilities and Shareholders' Equity $ 129,116 $ 130,078 $ 116,755
Tier 1 Leverage Ratio 16.5 % 18.4 % 15.8 %
Tier 1 Risk-based Capital Ratio 19.0 % 21.4 % 21.0 %
Total Risk-based Capital Ratio 20.2 % 22.6 % 22.3 %
PROAMÉRICA BANK STATEMENTS OF OPERATIONS
For the Quarters Ended
(Dollars in thousands except per share data)
December 31, December 31,
2011 2010
Unaudited Unaudited
Interest Income:
Interest and Fees on Loans $ 1,357 $ 1,324
Interest on Federal Funds Sold 11 17
Interest on Balances at Other Financial Institutions 17 29
Total Interest Income 1,385 1,370
Interest Expense:
Interest on Deposit Accounts 106 103
Net Interest Income 1,279 1,267
Provison for Loan Losses 1,278 0
Net Interest Income After Provision for Loan Losses 1 1,267
Non-Interest Income:
Non-Interest Income 42 73
Non-Interest Expense:
Salaries and Employee Benefits 699 720
Stock Based Compensation Expense 67 67
Occupancy Expense 229 229
Operating Expense 417 306
Total Non-Interest Expense 1,412 1,322
Pre-tax Income (Loss) (1,369 ) 18
Provision for Income Taxes 0 0
Net Income (Loss) $ (1,369 ) $ 18
Net Income (Loss) per share - basic and diluted loss per share $ (0.50 ) $ 0.01
PROAMÉRICA BANK STATEMENTS OF OPERATIONS
For the Years Ended December 31
(Dollars in thousands except per share data)
2011 2010
Audited Audited
Interest Income:
Interest and Fees on Loans $ 5,778 $ 4,800
Interest on Federal Funds Sold 44 58
Interest on Balances at Other Financial Institutions 77 112
Dividends on FHLB and PCBB Stock 1 1
Total Interest Income 5,900 4,971
Interest Expense:
Interest on Deposit Accounts 402 482
Net Interest Income 5,498 4,489
Provison for Loan Losses 1,544 62
Net Interest Income After Provision for Loan Losses 3,954 4,427
Non-Interest Income:
Non-Interest Income 604 338
Non-Interest Expense:
Salaries and Employee Benefits 3,015 2,772
Stock Based Compensation Expense 276 278
Occupancy Expense 921 891
Operating Expense 1,259 1,329
Total Non-Interest Expense 5,471 5,270
Pre-tax Loss (913 ) (505 )
Provision for Income Taxes 1 1
Net Loss $ (914 ) $ (506 )
Net Loss per share - basic and diluted loss per share $ (0.33 ) $ (0.18 )

Contact Information

  • Contact:
    ProAmerica Bank
    Maria Contreras-Sweet
    Executive Chairwoman
    213.787.2802

    Frank E. Smith
    Interim Co-CEO & President, CFO
    213.787.2804

    Stephen M. Rolfe
    Interim Co-CEO & President, CCO
    213.787.2831