SOURCE: Promerica Bank

PROMERICA BANK

July 28, 2011 12:14 ET

PROMERICA BANK Second Quarter 2011 Results Reflect Record Operating Profits, Strong Capitalization and Growth

LOS ANGELES, CA--(Marketwire - Jul 28, 2011) - PROMÉRICA BANK (OTCQB: PMRA) (PINKSHEETS: PMRA) today reported results of operations for its second quarter ended June 30, 2011. Highlights include:

  • Three-month Net Income of $146,000 -- the Bank's third straight profitable quarter.

  • Total Assets at June 30, 2011 increased to $122.3 million, an increase of $13.1 million or 12% from June 30, 2010.

  • Total Loans at June 30, 2011 increased to $94.9 million, an increase of $24.6 million or 35% from June 30, 2010.

  • Total Deposits at June 30, 2011 increased to $103.0 million, an increase of $14.1 million or 16% from June 30, 2010.

  • Capital ratios in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of 16.0% and a Total Risk-Based Capital Ratio of 19.8% at June 30, 2011. Regulatory "Well Capitalized" definitions are 5% for the Tier 1 Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.

PROMÉRICA BANK reported net income of $146,000 for the second quarter of 2011 or 5 cents per share as compared to a net loss of $125,000 or 5 cents per share in the second quarter of 2010. The Bank reported net income of $170,000 or 6 cents a share in the first six months of 2011 as compared to a loss of $442,000 or 16 cents a share in the first six months of 2010.

The Allowance for Loan and Lease Losses represents 2.3% of total loans. Nonperforming assets, net of government guaranteed loans, totaled approximately $1.1 million or 0.9% of assets at June 30, 2011.

"PROMÉRICA BANK'S performance has shown strength across the board in net income, assets, loans and deposits, which is attributable to our unique positioning and growing loyalties in entrepreneurial-minded communities," said Executive Chairwoman Maria Contreras-Sweet. "While some of our country's largest financial institutions continue to be plagued by the lingering effects of the financial crisis, we are confident of our continued ability to build the PROMÉRICA franchise with our unwavering dedication to helping our clients expand their businesses, build family wealth and create jobs in the region."

"This emerging profitability reflects the efforts of our outstanding staff to deal with the challenges facing banks today and to create the momentum of growth and profitability we desire. I am very pleased with this progress, and look forward to a bright future ahead," said John H. Quinn, President and CEO.

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)
June 30, March 31, December 31, June 30,
2011 2011 2010 2010
Unaudited Unaudited Audited Unaudited
Assets:
Cash and Due From Banks $ 1,531 $ 1,661 $ 1,195 $ 2,741
Federal Funds Sold 17,395 23,655 25,145 26,205
Interest-bearing Balances at Other Financial Institutions 8,661 6,923 9,181 9,417
Total Cash and Cash Equivalents 27,587 32,239 35,521 38,363
Loans Net of Deferred Loan Fees/Costs 94,945 85,725 81,168 70,311
Allowance for Loan Losses 2,221 2,129 2,058 2,040
Loans Net of Allowance for Loan Losses 92,724 83,596 79,110 68,271
Premises and Equipment, net 213 312 408 594
Federal Home Loan Bank Stock 418 232 364 364
Other Real Estate Owned 0 0 0 390
Accrued Interest Receivable and Other Assets 1,398 1,418 1,352 1,257
Total Assets $ 122,340 $ 117,797 $ 116,755 $ 109,239
Liabilities:
Non-Interest-Bearing Demand Deposits $ 38,013 $ 35,352 $ 39,667 $ 22,760
Interest-Bearing Demand Deposits (NOW Deposits) 5,004 4,768 5,187 6,328
Savings and Money Market 18,597 21,260 15,811 17,525
Certificates of Deposit 41,409 37,354 37,092 42,298
Total Interest-Bearing Deposits 65,010 63,382 58,090 66,151
Total Deposits 103,023 98,734 97,757 88,911
Other Borrowings 0 0 0 1,296
Accrued Interest Payable and Other Liabilities 514 486 512 617
Total Liabilities 103,537 99,220 98,269 90,824
Shareholders' Equity:
Common Stock 27,245 27,245 27,245 27,245
Additional Paid in Capital 1,595 1,515 1,448 1,314
Accumulated Deficit (10,037 ) (10,183 ) (10,207 ) (10,144 )
Total Shareholders' Equity 18,803 18,577 18,486 18,415
Total Liabilities and Shareholders' Equity $ 122,340 $ 117,797 $ 116,755 $ 109,239
Tier 1 Leverage Ratio 16.0 % 16.1 % 15.8 % 18.0 %
Tier 1 Risk-based Capital Ratio 18.6 % 20.0 % 21.0 % 23.7 %
Total Risk-based Capital Ratio 19.8 % 21.2 % 22.3 % 25.0 %

PROMÉRICA BANK STATEMENTS OF OPERATIONS
For the Quarters Indicated
(Dollars in thousands except per share data)
June 30, March 31, December 31, June 30,
2011 2011 2010 2010
Unaudited Unaudited Unaudited Unaudited
Interest Income:
Interest and Fees on Loans $ 1,482 $ 1,350 $ 1,324 $ 1,138
Interest on Federal Funds Sold 9 13 17 14
Interest on Balances at Other Financial Institutions 22 22 29 29
Total Interest Income 1,513 1,385 1,370 1,181
Interest Expense:
Interest on Deposit Accounts 100 87 103 126
Net Interest Income 1,413 1,298 1,267 1,055
Provision for Loan Losses 87 179 0 0
Net Interest Income After Provision for Loan Losses 1,326 1,119 1,267 1,055
Non-Interest Income:
Non-Interest Income 251 253 73 103
Non-Interest Expense:
Salaries and Employee Benefits 813 776 720 623
Stock Based Compensation Expense 80 67 67 76
Occupancy Expense 224 221 229 221
Operating Expense 313 284 306 362
Total Non-Interest Expense 1,430 1,348 1,322 1,282
Net Income (Loss) from Bank Operations 147 24 18 (124 )
Pre-tax Net Income (Loss) 147 24 18 (124 )
Provision for Income Taxes 1 0 0 1
Net Income (Loss) $ 146 $ 24 $ 18 $ (125 )
Earnings (Loss) per share - basic and diluted earnings (loss) per share $ 0.05 $ 0.01 $ 0.01 $ (0.05 )

PROMÉRICA BANK STATEMENTS OF OPERATIONS
For the Year-to-Date Periods Indicated
(Dollars in thousands except per share data)
June 30, June 30,
2011 2010
Unaudited Unaudited
Interest Income:
Interest and Fees on Loans $ 2,832 $ 2,326
Interest on Federal Funds Sold 22 23
Interest on Balances at Other Financial Institutions 44 53
Total Interest Income 2,898 2,402
Interest Expense:
Interest on Deposit Accounts 187 271
Net Interest Income 2,711 2,131
Provision for Loan Losses 266 62
Net Interest Income After Provision for Loan Losses 2,445 2,069
Non-Interest Income:
Non-Interest Income 504 136
Non-Interest Expense:
Salaries and Employee Benefits 1,589 1,359
Stock Based Compensation Expense 147 143
Occupancy Expense 445 440
Operating Expense 597 704
Total Non-Interest Expense 2,778 2,646
Net Income (Loss) from Bank Operations 171 (441 )
Pre-tax Net Income (Loss) 171 (441 )
Provision for Income Taxes 1 1
Net Income (Loss) $ 170 $ (442 )
Earnings (Loss) per share - basic and diluted earnings (loss) per share $ 0.06 $ (0.16 )

Contact Information

  • Contact:

    PROMERICA BANK

    Maria Contreras-Sweet
    Chairwoman
    213.787.2802

    John H. Quinn
    CEO / President
    213.787.2803

    Frank E. Smith
    CFO
    213.787.2804