SOURCE: Promerica Bank

Promerica Bank

October 31, 2011 11:00 ET

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

LOS ANGELES, CA--(Marketwire - Oct 31, 2011) - Promérica Bank (OTCQB: PMRA) (PINKSHEETS: PMRA) today reported results of operations for its third quarter ended September 30, 2011. Highlights include:

  • Three-month Net Income of $285,000 - the Bank's fourth straight profitable quarter.

  • Total Assets at September 30, 2011 increased to $130.1 million, an increase of $16.4 million or 14% from September 30, 2010.

  • Total Loans at September 30, 2011 increased to $100.0 million, an increase of $26.0 million or 35% from September 30, 2010.

  • Total Deposits at September 30, 2011 increased to $106.6 million, an increase of $12.2 million or 13% from September 30, 2010.

  • The Bank received $3.8 million in new capital from the sale of preferred stock to the U.S. Treasury under the Small Business Lending Fund.

  • Capital ratios in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of 18.4% and a Total Risk-Based Capital Ratio of 22.6% at September 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 $285,000 for the third quarter of 2011 or 10 cents per share as compared to a net loss of $82,000 or 3 cents per share in the third quarter of 2010. The Bank reported net income of $455,000 or 17 cents per share in the first nine months of 2011 as compared to a loss of $524,000 or 19 cents per share in the first nine months of 2010.
The Allowance for Loan and Lease Losses represents 2.1% of total loans. Nonperforming assets, net of government guaranteed loans, totaled approximately $0.2 million or 0.1% of assets at September 30, 2011.

"With its fourth straight quarter of profitability, Promérica Bank continues to make progress in the market with increases in assets, loans and deposits strengthening its franchise and competitive position in the market," stated Executive Chairwoman Maria Contreras-Sweet. "Promérica's position was further strengthened by its selection -- amid stringent standards -- to participate in the U.S. Treasury's Small Business Lending Fund (SBLF). With a capital investment of $3.8 million by SBLF, the Bank is strategically positioned to provide access to capital to small businesses to build jobs and wealth in the community."

"Our continuing strong performance demonstrates the execution of our plan to become a quality, business-focused and Latino-owned community bank," said John H. Quinn, President and CEO. "We are on target to achieve healthy growth for the year and continue building very strong momentum for our future."

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)
September 30, June 30, December 31, September 30,
2011 2011 2010 2010
Unaudited Unaudited Audited Unaudited
Assets:
Cash and Due From Banks $ 1,761 $ 1,531 $ 1,195 $ 824
Federal Funds Sold 20,205 17,395 25,145 28,650
Interest-bearing Balances at Other Financial Institutions 8,182 8,661 9,181 9,659
Total Cash and Cash Equivalents 30,148 27,587 35,521 39,133
Loans Net of Deferred Loan Fees/Costs 100,018 94,945 81,168 73,992
Allowance for Loan Losses 2,127 2,221 2,058 2,051
Loans Net of Allowance for Loan Losses 97,891 92,724 79,110 71,941
Premises and Equipment, net 119 213 408 496
Federal Home Loan Bank Stock 418 418 364 364
Other Real Estate Owned 0 0 0 357
Accrued Interest Receivable and Other Assets 1,502 1,398 1,352 1,345
Total Assets $ 130,078 $ 122,340 $ 116,755 $ 113,636
Liabilities:
Non-Interest-Bearing Demand Deposits $ 38,511 $ 38,013 $ 39,667 $ 26,443
Interest-Bearing Demand Deposits (NOW Deposits) 4,077 5,004 5,187 14,447
Savings and Money Market 21,820 18,597 15,811 14,591
Certificates of Deposit 42,227 41,409 37,092 38,906
Total Interest-Bearing Deposits 68,124 65,010 58,090 67,944
Total Deposits 106,635 103,023 97,757 94,387
Other Borrowings 0 0 0 293
Accrued Interest Payable and Other Liabilities 544 514 512 556
Total Liabilities 107,179 103,537 98,269 95,236
Shareholders' Equity:
Common Stock 27,245 27,245 27,245 27,245
Additional Paid in Capital 1,656 1,595 1,448 1,381
Accumulated Deficit (9,752 ) (10,037 ) (10,207 ) (10,226 )
Preferred Stock 3,750 0 0 0
Total Shareholders' Equity 22,899 18,803 18,486 18,400
Total Liabilities and Shareholders' Equity $ 130,078 $ 122,340 $ 116,755 $ 113,636
Tier 1 Leverage Ratio 18.4 % 16.0 % 15.8 % 16.5 %
Tier 1 Risk-based Capital Ratio 21.4 % 18.6 % 21.0 % 22.3 %
Total Risk-based Capital Ratio 22.6 % 19.8 % 22.3 % 23.5 %
PROMÉRICA BANK STATEMENT OF OPERATIONS
For the Quarters Indicated
(Dollars in thousands except per share data)
September 30, June 30, December 31, September 30,
2011 2011 2010 2010
Unaudited Unaudited Audited Unaudited
Interest Income:
Interest and Fees on Loans $ 1,590 $ 1,482 $ 1,324 $ 1,149
Interest on Federal Funds Sold 10 9 17 19
Interest on Balances at Other Financial Institutions 16 22 29 31
Dividends on FHLB and PCBB Stock 0 0 0 0
Total Interest Income 1,616 1,513 1,370 1,199
Interest Expense:
Interest on Deposit Accounts 108 100 103 108
Net Interest Income 1,508 1,413 1,267 1,091
Provision for Loan Losses 0 87 0 0
Net Interest Income After Provisionfor Loan Losses 1,508 1,326 1,267 1,091
Non-Interest Income:
Non-Interest Income 58 251 73 129
Non-Interest Expense:
Salaries and Employee Benefits 727 813 720 693
Stock Based Compensation Expense 62 80 67 67
Occupancy Expense 222 224 229 222
Operating Expense 270 313 306 320
Total Non-Interest Expense 1,281 1,430 1,322 1,302
Pre-tax Net Income (Loss) 285 147 18 (82 )
Provision for Income Taxes 0 1 0 0
Net Income (Loss) $ 285 $ 146 $ 18 $ (82 )
Income (Loss) per share - basic and diluted loss per share
$
0.10
$
0.05
$
0.01
$

(0.03

)
PROMÉRICA BANK STATEMENT OF OPERATIONS
For the Nine-Month Periods Indicated
(Dollars in thousands except per share data)
September 30, September 30,
2011 2010
Unaudited Unaudited
Interest Income:
Interest and Fees on Loans $ 4,421 $ 3,475
Interest on Federal Funds Sold 33 41
Interest on Balances at Other Financial Institutions 60 84
Dividends on FHLB and PCBB Stock 1 1
Total Interest Income 4,515 3,601
Interest Expense:
Interest on Deposit Accounts 296 379
Net Interest Income 4,219 3,222
Provision for Loan Losses 266 62
Net Interest Income After Provisionfor Loan Losses 3,953 3,160
Non-Interest Income:
Non-Interest Income 563 264
Non-Interest Expense:
Salaries and Employee Benefits 2,316 2,053
Stock Based Compensation Expense 209 210
Occupancy Expense 668 661
Operating Expense 867 1,023
Total Non-Interest Expense 4,060 3,947
Pre-tax Net Income (Loss) 456 (523 )
Provision for Income Taxes 1 1
Net Income (Loss) $ 455 $ (524 )
Income (Loss) per share - basic and diluted loss per share $ 0.17 $ (0.19 )

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