SANTA MONICA, Feb. 14, 2000 (PRIMEZONE) -- Professional Bancorp, Inc. (AMEX:MDB) today said it expected to report a net loss approximating $6 million for the fourth quarter ended December 31, 1999, and a net loss of about $8.4 million for the year ended December 31, 1999. The company emphasized that its subsidiary First Professional Bank NA meets the regulatory standards of an "adequately" capitalized financial institution.
The company attributed the fourth quarter loss primarily to an $8.4 million addition to its loan loss provision. For the year, the company said it increased the loan loss provision by approximately $14 million. The charges were necessitated in large part by a provision for the possibility of three loan losses of approximately $9.5 million in the aggregate. Collection for each of these loans is being pursued.
The company also said it remains in continuing negotiations with a potential acquiror.
Professional Bancorp also announced that Gene F. Gaines, 59, currently chief executive officer of First Professional Bank, has been elected chairman of the bank and chairman and chief executive officer of its parent, Professional Bancorp. Mr. Gaines, who joined First Professional Bank in October 1999 as chief executive officer, succeeds Julie Thompson, 41 as chairman of Professional Bancorp and the bank. Ms. Thompson has resigned to devote full time to her new company, InSync Research, of Aliso Viejo, California.
Also announced was the appointment of Larry Patapoff, 45, chief financial officer, to the additional positions of executive vice president and chief operating officer of First Professional Bank. Mr. Patapoff joined the bank in November 1999.
Mr. Gaines said, "I am excited and pleased to assume the additional responsibilities at the parent company. We have recently completed an extensive review of our loan portfolio and believe the worst is now behind us. We have a new and invigorated management team and the fundamental tools now to return this company to profitability"
Melinda McIntyre, president of First Professional Bank said, "We continue our commitment to the healthcare industry. The bank has a rich history of providing a full range of financial products and assistance to medical service providers. The majority of our loan problems have resulted from credits extended in non-medical markets. This experience reinforces our commitment to focus on the healthcare nitch."
Professional Bancorp, Inc., based in Santa Monica, California, is a holding company whose subsidiary, First Professional Bank NA, is a commercial bank that provides a variety of financial services and products to the health care community.
Certain information set forth in this press release may constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties. The Company's actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, economic conditions, competition in the geographic and business areas in which the Company conducts operations, fluctuations in interest rates, credit quality, year 2000 data systems compliance, and government regulations. For additional information concerning these factors, see "Item 1. Business - Factors That May Affect Results" contained in the Company's Annual Report on Form 10K for the year ended December 31, 1999.