-- The Bank recorded its first-ever quarterly profit from operations.
-- Capital ratios remain well in excess of all minimums required to be
"Well Capitalized" by regulatory agencies, with a Tier 1 Leverage
Ratio of 15.8% and a Total Risk-Based Capital Ratio of 22.3% at
December 31, 2010. 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, 2010 grew to $116.8 million, an increase
of $21.4 million or 22% from December 31, 2009.
-- Total Deposits at December 31, 2010 grew to $97.8 million, an increase
of $21.6 million or 28% from December 31, 2009.
-- Total Loans at December 31, 2010 grew to $81.2 million, an increase of
$7.2 million or 8% from December 31, 2009.
PROMÉRICA BANK reported net income of $18,000 for the fourth quarter of
2010 ($0.01 per share) as compared to a net loss of $1,359,000 ($0.49 per
share) in the fourth quarter of 2009. The Bank reported a net loss of
$506,000 ($0.18 per share) for the year ended December 31, 2010 as compared
to a loss of $2,754,000 ($1.00 per share) for the year ended December 31,
2009. The results for the year ended December 31, 2009 included the
successful resolution of a lawsuit with a payment of $1.1 million to the
Bank in September 2009. The 2010 results include gains on the sale of SBA
loans totaling $0 and $206,000 for the three and twelve-month periods,
respectively.
The Allowance for Loan and Lease Losses represents 2.5% of total loans at
December 31, 2010. Nonperforming assets, net of government guaranteed
loans, totaled approximately $1.2 million, or 1.0% of assets at December
31, 2010.
"We are pleased to announce PROMÉRICA BANK's first quarterly profit from
operations. Our year-over-year 28% growth in deposits was especially
impressive in light of the weak economy. Our strong Board and Management
have continued to complement each other and work in unison to overcome the
recessionary challenges and build our franchise," stated Maria
Contreras-Sweet, Executive Chairwoman of PROMÉRICA BANK. "Funding business
growth is critical to economic recovery. Nationwide, commercial and
industrial loans finally inched upward during the final two months of 2010
after nearly two straight years of declines according to the Federal
Reserve. And while lending was in decline for nearly all of 2010,
PROMÉRICA's lending continued to show improvements with an 8% growth for
the year.
"Our continued growth in our core markets is a result of the excellent
client service our highly professional team provides. At all levels of the
organization, we strive to give our clients a market advantage through our
strong banking partnership. Our paramount goal remains helping our clients
grow and expand their organizations to build wealth for their families and
the community," stated John H. Quinn, President and CEO of PROMÉRICA BANK.
"With strong capital ratios and maximum allowable FDIC insurance, we offer
our clients security. And with strength and stability, we remain an
attractive financial partner for the businesses we serve in the community
of Los Angeles."
PROMÉRICA 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 S. Figueroa Street, 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.PROMERICAbank.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 PROMÉRICA 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: PROMÉRICA 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 PROMÉRICA 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 PROMÉRICA BANK does not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after the date
of this release.
PROMÉRICA BANK
BALANCE SHEETS
(Dollars in thousands)
December 31, September 30, December 31,
2010 2010 2009
------------ ------------- ------------
Unaudited Unaudited Audited
Assets:
Cash and Due From Banks $ 1,195 $ 824 $ 3,930
Federal Funds Sold 25,145 28,650 11,875
Time Deposits in Other
Financial Institutions 9,181 9,659 3,841
------------ ------------- ------------
Total Cash and Cash
Equivalents 35,521 39,133 19,646
------------ ------------- ------------
Loans Net of Deferred Loan
Fees/Costs 81,168 73,992 75,315
Allowance for Loan Losses 2,058 2,051 2,030
------------ ------------- ------------
Loans Net of Allowance for
Loan Losses 79,110 71,941 73,285
Premises and Equipment, net 408 496 788
Federal Home Loan Bank Stock 364 364 232
Other Real Estate Owned 0 357 0
Accrued Interest Receivable and
Other Assets 1,352 1,345 1,403
------------ ------------- ------------
Total Assets $ 116,755 $ 113,636 $ 95,354
------------ ------------- ------------
Liabilities:
Non-Interest-Bearing Demand
Deposits $ 39,667 $ 26,443 $ 17,134
Interest-Bearing Demand
Deposits (NOW Deposits) 5,187 14,447 2,963
Savings and Money Market 15,811 14,591 13,834
Certificates of Deposit 37,092 38,906 42,245
------------ ------------- ------------
Total Interest-Bearing
Deposits 58,090 67,944 59,042
------------ ------------- ------------
Total Deposits 97,757 94,387 76,176
Other Borrowings 0 293 0
Accrued Interest Payable and
Other Liabilities 512 556 464
------------ ------------- ------------
Total Liabilities 98,269 95,236 76,640
Shareholders' Equity:
Common Stock 27,245 27,245 27,245
Additional Paid in Capital 1,448 1,381 1,170
Accumulated Deficit (10,207) (10,226) (9,701)
------------ ------------- ------------
Total Shareholders' Equity 18,486 18,400 18,714
------------ ------------- ------------
Total Liabilities and
Shareholders' Equity $ 116,755 $ 113,636 $ 95,354
------------ ------------- ------------
Tier 1 Leverage Ratio 15.8% 16.5% 21.0%
Tier 1 Risk-based Capital Ratio 21.0% 22.3% 25.0%
Total Risk-based Capital Ratio 22.3% 23.5% 26.2%
PROMÉRICA BANK
STATEMENTS OF OPERATIONS
For the Quarters Ended
(Dollars in thousands except per share data)
December 31, December 31,
2010 2009
------------ ------------
Unaudited Unaudited
Interest Income:
Interest and Fees on Loans $ 1,324 $ 1,203
Interest on Federal Funds Sold 17 5
Interest on Balances at Other Financial
Institutions 29 18
------------ ------------
Total Interest Income 1,370 1,226
Interest Expense:
Interest on Deposit Accounts 103 138
------------ ------------
Net Interest Income 1,267 1,088
Provision for Loan Losses 0 1,181
------------ ------------
Net Interest Income After Provision
for Loan Losses 1,267 (93)
Non-Interest Income:
Non-Interest Income 73 30
Non-Interest Expense:
Salaries and Employee Benefits 720 713
Stock Based Compensation Expense 67 68
Occupancy Expense 229 226
Operating Expense 306 288
------------ ------------
Total Non-Interest Expense 1,322 1,295
------------ ------------
Pre-tax Income (Loss) 18 (1,358)
Provision for Income Taxes 0 1
------------ ------------
Net Income (Loss) $ 18 $ (1,359)
------------ ------------
Net Income (Loss) per share - basic and
diluted loss per share $ 0.01 $ (0.49)
------------ ------------
PROMÉRICA BANK
STATEMENTS OF OPERATIONS
For the Years Ended December 31
(Dollars in thousands except per share data)
2010 2009
------------ ------------
Unaudited Audited
Interest Income:
Interest and Fees on Loans $ 4,800 $ 4,156
Interest on Federal Funds Sold 58 16
Interest on Balances at Other Financial
Institutions 112 88
Dividends on FHLB and PCBB Stock 1 0
------------ ------------
Total Interest Income 4,971 4,260
Interest Expense:
Interest on Deposit Accounts 482 578
------------ ------------
Net Interest Income 4,489 3,682
Provision for Loan Losses 62 2,371
------------ ------------
Net Interest Income After Provision
for Loan Losses 4,427 1,311
Non-Interest Income:
Non-Interest Income 338 1,234
Non-Interest Expense:
Salaries and Employee Benefits 2,772 2,977
Stock Based Compensation Expense 278 267
Occupancy Expense 891 911
Operating Expense 1,329 1,143
------------ ------------
Total Non-Interest Expense 5270 5298
------------ ------------
Pre-tax Loss (505) (2,753)
Provision for Income Taxes 1 1
------------ ------------
Net Loss $ (506) $ (2,754)
------------ ------------
Net Loss per share - basic and diluted loss
per share $ (0.18) $ (1.00)
------------ ------------
Contact Information: Contact: Promerica Bank Maria Contreras-Sweet Executive Chairwoman 213.787.2802 John H. Quinn CEO / President 213.787.2803 Frank E. Smith CFO 213.787.2804